There’s been a lot of talk around the office lately about what the next decade has in store for the sustainability movement. One trend we’ve discussed is the development of new corporate structures that make it easier for businesses to pursue social and environmental good. There’s been a lot of media focus recently on Benefit Corporations (or B Corps), especially as Patagonia recently became the first company in California to elect this new corporate status. B Corps are required by law to create a positive social impact, in addition to profits for their shareholders, by taking into consideration how all their business decisions impact their employees, the community, and the environment.
Less discussed is another similar social enterprise structure emerging in the United States: the low-profit limited liability company, also known as the L3C. Could this new corporate model help advance more businesses toward sustainability in the coming years?
Similar to B Corp designation, the L3C framework is a new way of for businesses to be more socially and environmentally responsible without sacrificing their immediate bottom line. The L3C is a hybrid between the nonprofit and for-profit models in that it is essentially a profit-generating entity with a socially beneficial mission. Like an LLC corporation, L3Cs have the same liability protection and are not tax-exempt; however L3Cs have access to forms of capital that traditional corporations don’t qualify for, all in order to further social and environmental goals. Americans for Community Development describe the L3C as a company that “combines the best features of a for-profit LLC with the socially beneficial aspects of a nonprofit… the for-profit with a nonprofit soul.”
More specifically, philanthropic sources of funding, such as foundations, have the ability to invest in L3Cs through “Program Related Investments” (or PRI funds) and reap small returns (unlike with traditional grants) while still ensuring their tax-exempt status. Because foundations can invest in L3Cs and are willing to take on more financial risk in exchange for social returns (especially during the early stages of these ventures), the risk/return profile becomes much more attractive for traditional market-driven investors. The L3C structure is essentially a way to leverage market forces as an effective means of achieving social goals at scale that the more traditional nonprofit model may not be able to accomplish.
Currently, Vermont, Illinois, Louisiana, Maine, Michigan, North Carolina, Rhode Island, Utah, and Wyoming are the only states that have enacted legislation allowing businesses to incorporate as L3C corporations, with additional legislation pending in other states. Maine’s Own Organic Milk Company (or MOOMilk), which promotes farm preservation in Maine while producing and distributing organic milk, is a great example of a new L3C business.
The impetus for B Corps, L3Cs, and other emerging corporate structures is the belief that current laws governing corporations may be too restrictive for the more socially-minded organizations interested in long-term sustainability investments, as they may not be able to meet their social goals while facing pressure from shareholders to achieve increasing profits quarter after quarter. While there are still many unanswered questions about these new types of businesses, such as how they will be monitored to ensure they are making a social impact, these enterprise models in which positive social and environmental outcomes can be coupled with attractive financial returns may ultimately prove to be an important mechanism to catalyze large-scale social transformation. It remains to be seen if these models will actually change the way businesses operate, however it is clear that a new type of corporation and a better way of doing business is needed if we are to transform our economy.
Category: GreenBlue
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Sustainable Energy for All
In January, the United Nations declared 2012 the International Year of Sustainable Energy for All. The action calls on governments and the private sector to expand energy access, improve efficiency, and increase the use of renewables the world over. One person out of five—1.4 billion people—lack access to modern electricity, and twice that number still rely on wood, coal, charcoal, or animal waste for cooking and heating. “Sustainable energy for all is within our reach,” announced UN Secretary-General Ban Ki-moon at the World Future Energy Summit in Abu Dhabi. “It is the golden thread that connects economic growth, increased social equity, and preserving the environment.”
The concept of energy “for all” builds on the UN’s Millennium Development Goals, eight ambitious aims that connect poverty eradication with environmental sustainability. In industrialized nations, we tend to think of sustainable energy as a choice, for example, between a hybrid or combustion engine in our cars. In undeveloped regions, however, sustainable energy means the difference between life and death.
In 2008, for a book on design as activism, I outlined five principles for a more inclusive concept of sustainability that embraces the entire global community. In light of the UN’s new initiative, these seem worth revisiting.
Five Principles Toward a Humane Environment
1. People come first
The problem of the planet is first and foremost a human problem. To reverse the devastation of nature, reverse the devastation of culture. We can better the environment by bettering ourselves. The UN has set poverty eradication and universal health as the world community’s first priorities. Every industry has a responsibility and an opportunity to promote this goal.
2. Now comes before later
Definitions of sustainability focus on the future—the “seventh generation” rule. While we cannot squander our resources today and leave little for tomorrow, we also should not forget our responsibility to the generations currently occupying the earth. If the living do not survive, their heirs will never exist. The present cannot be sacrificed for the future.
3. More for more
Prosperity must be measured with all of humanity together. No one is completely settled if anyone is truly suffering. As Martin Luther King, Jr., put it, “We are all caught in an inescapable network of mutuality, tied to a single garment of destiny. Whatever affects one directly affects all indirectly.” Or in the words of Mahatma Gandhi, “Though we are many bodies, we are but one soul.”
4. The triple bottom line is bottom up
Social justice may be defined as first helping those most in need. Social, economic, and ecological value must be built from the ground up, beginning with the most disadvantaged among us. “If a free society cannot help the many who are poor,” said John F. Kennedy, “it cannot save the few who are rich.”
5. Nature knows no borders
In the age of global warming, national boundaries have little bearing on the most pressing problems. Natural and human communities transcend politics. American environmentalist Aldo Leopold wrote, “All ethics…rest upon a single premise: that the individual is a member of a community of interdependent parts.” We share one world.
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Film Biz Recycling
I’m sure some folks have heard of Film Biz Recycling before, but I found their mission and impact so compelling that I wanted to share. Film Biz Recycling is a non profit organization, creating socially responsible and sustainable solutions from media industry waste. They are tapping into an otherwise “hidden” area of waste generation; capturing stuff from film sets and stage productions that might otherwise have ended up in a landfill. I give them major props for creativity and for their impact in this sector. I just wish I lived in Brooklyn so that I could go shopping in their warehouse!
This year marks GreenBlue’s 10th anniversary. One way we plan to recognize this milestone is to organize a series of articles about the future of the sustainability, products, and business. At the end of our first decade, what will the next decade bring for GreenBlue and the broader sustainability movement?
Through the coming year, watch this space for features and interviews with visionaries, thought leaders, business innovators, scientists, and educators. The question we’ll put to everyone will be this: Over the next decade, what will be the most important ideas and trends that will advance business toward sustainability?
To kick it off, we took a stab at answering this question ourselves looking at product sustainability. Together, the whole staff identified nearly a hundred topics and narrowed them down to a handful. Here are GreenBlue’s top five topics that we believe will become increasingly important for product sustainability in the coming years.
1) Water is the new carbon
The United Nations calls water scarcity one of the most significant problems of the 21st century. Nearly half the world’s population—3.3 billion people—lacks access to clean water or soon will, and it’s only a matter of time before the rest of us feel the pinch. As water scarcity competes with carbon emissions for the public’s attention, the sustainability dialogue could shift from global issues such as climate change to local, community-based solutions in developing regions. Major multinationals already are taking action. Since 1999, Frito-Lay has cut its water use by 40%, and Coca-Cola plans to become “water neutral” by 2020.
2) Nature’s services get a price tag
The phrase “natural resources” often implies just the earth’s physical assets—water, fuel, materials, etc. But equally important are natural processes—the cleaning of water through the hydrologic cycle, for example—called “ecosystem services.” First formally defined by the United Nations in 2005, ecosystem services are declining, and their loss could become a significant market driver. Last month, the International Finance Corporation began requiring clients to “maintain the benefits from ecosystem services.” A project draining wetlands, for instance, would have to account for its impact not only on biodiversity but also on the loss of pollination services for surrounding farmers. The economics of a spike in True Cost Accounting could dramatically change how we do business.
3) Product transparency hits the tipping point
Despite the economic downturn, the demand for green products continues to rise, and with that demand comes more pressure for companies to disclose what’s in their products so that consumers can make more informed decisions. “We are approaching a tipping point,” declared the Financial Times in 2010, “beyond which everyone will want to know the provenance of their products.” Companies such as Patagonia, Method, Interface, and SC Johnson have led the pack with ingredient disclosure, and more and more businesses will follow suit.
4) Producer responsibility escalates
More aggressive ways to reduce waste and recover material at the end of a product’s useful life are increasingly urgent. Extended Producer Responsibility (EPR), or product stewardship, puts the burden of recovery on product makers, because, as the US EPA puts it, “manufacturers have the greatest ability, and therefore the greatest responsibility, to reduce the environmental impacts of their products.” Long required in many other countries, EPR is a growing trend here at home. To date, about two-thirds of the 50 states have product-specific EPR laws, and in 2010 Maine became the first state to enact a blanket EPR rule that in theory could apply to any product. The take-back programs of many electronics manufacturers and retailers, including IBM, Panasonic, Apple, Staples, and Best Buy, are reaping extraordinary financial benefits from the valuable scrap materials. From 2004 to 2009, Dell recovered 275 million pounds of computer equipment, and in the first year of its program Xerox saved over $50 million.
5) Planned obsolescence becomes obsolete
The making of products, compared to their use, has an enormous environmental impact. Manufacturing consumer electronics, such as cell phones and computers, accounts for about 80 percent of the total energy consumption of those products. Yet, the average life of a cell phone is 18 months, and many companies bank on continual churn to sell more of their latest releases. Nokia estimates that extending the life expectancy of a mobile phone by a year could cut its total energy consumption by more than 40 percent, and other sources suggest that continuing to use a computer can mean 20 times greater energy savings than recycling it. More companies could improve environmental performance and customer satisfaction at the same time by making their products easier to upgrade. Julius Tarng’s Modai concept phone includes modular internals that can be replaced easily without discarding the whole phone. Brand loyalty could get replaced by object loyalty.
I love well-designed space, which for me marries form and function and is simple, elegant, and pleasing to the eye. I have been following the Tumbleweed Tiny House Company for several years and specifically like owner Jay Shafer’s series of small homes built on utility trailers. They are beautifully crafted and every inch well used. My favorite—the Fencl—is the largest at 130 square feet of living space plus a sleeping loft with a bit of storage and room for a queen size mattress.
Tumbleweed is based in California; they hold open houses from time to time but until recently none close to Charlottesville, VA. So, when I read about an open house featuring the Fencl within semi-reasonable driving distance (20 hours round-trip in two days), I literally jumped into my car and went. My destination: a small town in the foothills of the Adirondacks, Woodgate, New York, where Bill Rockhill of Bear Creek Carpentry was exhibiting the Fencl he built with the intent to sell to a Tumbleweed Tiny home lover.
I attempted to rope others into this trip but was successful in convincing only one: my dog (and really all I had to do was open the car door and say, “let’s go”). We arrived in Woodgate around 1:30 pm, just a half hour after the after the start of the open house, and there were already 20 or so people milling about. I have been imagining what it would be like to live in an 8×19 space—going as far as taping off the dimensions on my living room floor—but nothing compares to the actual experience.
The inside of the Fencl was open and airy and very cozy. The heat was provided by a small Dickinson propane heater (it looks like a small gas fireplace and typically used on boats and RVs). After touring the home, I had only one concern: could my cat and dog exist in the space peacefully?
The cost to build the Fencl yourself is just $23,000, or less if you take advantage of used or recycled materials. I really like the idea of purchasing materials as I can afford them and then building my home along this timeline. Another great feature: you can configure your home to tie into local utilities or adapt it to living off the grid. A home on wheels also appeals to the nomad in me. In my nomadic dream, I envision little plots of land across the US with drive up porches.
More information:
Tumbleweed website
Blog post about the Fencl Open House with photo tour
I recently returned from a week-long trip aboard the MSC Poescia, as staff for the music festival Jam Cruise, managed by Cloud 9 Adventures. This was my fourth year on the boat, where my duties include administration of the “Conscious Cruiser” program and Volunteer Management under the nonprofit arm of Cloud 9, called Positive Legacy.
While clearly cruise ships are far from being ecologically beneficial, I continue to be impressed by what Positive Legacy has been able to accomplish in both the social responsibility and environmental awareness arenas. Despite restrictive regulations, the team was able to bring back PLA cups for composting, as well as recycling glass, plastic, aluminum, and for the first time, corrugated cardboard in the Ft. Lauderdale area. The rest of the waste goes to Broward County’s Waste-to-Energy plant (with the exception of food waste, which is discarded at sea).
Social impacts at ports is another issue altogether, and the Positive Legacy team focuses many of its resources on the needs of local populations. All of Cloud 9’s events include some type of social outreach, meaningful carbon offsetting for both the ship and its patrons, and needed donations. In Haiti, the team worked with a local organization and cruise patrons in an interesting intersection between packaging and local issues: 10,000 orange seeds were planted in plastic bottles that were fished out of local waterways. There was great enthusiasm for this endeavor, as one can see in the pictures.
That reminded me of a friend’s picture from Guatemala, where building walls are constructed using plastic bottles filled with other discarded packaging (see picture). There has also been an interesting set of videos circulating, where plastic bottles were used in areas with limited electricity to bring light into homes. The author refers to the interesting term “instinctive design,” which, she notes, is not always the best solution but often the most realistic.
I am torn with these uses and the implications. On the one hand, cruise ships will continue to exist and not all bottles get recycled, so why not continue to seek out ingenious ways to give back and help local resources? On the other hand, clearly cruise ships need to make improvements in many areas, including wastewater treatment, and recycling infrastructures are sorely needed in the types of communities cruise ships visit. The work of Positive Legacy and many organizations like it should not be seen as the perfect solution, but a step in the right direction towards a more sustainable global future.
It is imperative that we draw upon the ingenuity of these local, instinctive designers to help eliminate wasteful practices and litter towards developing sustainable materials management solutions.
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Sustainable Sounds: A Music Mix Part 2
Back in September I posted the first installment of a mix called “Sustainable Sounds”. I really enjoyed putting together the last one and promised a follow-up as there were just too many songs to fit in one post.
Volume 1 was more literal (and rock / pop) while this second part is more of a mood mix made for relaxing. Whatever your favorite way to, this might add some extra chill vibe.
I secretly love it when Yoga teachers at the gym put on music during class, even though most of the time it’s super cheesy! So this is my kind of Yoga mix. I went through a big Bollywood phase years ago which ignited an interest in what I would broadly call Hindi and Indian Pop, so you’ll hear some of those sounds on here. This mix also leans heavily towards 90s downtempo perhaps because of the zeitgeist. I hope you enjoy the soothing sounds.
Download the mix or click below to play
[audio:http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/01 Raga Bairagi Todi_ Jod Jhala.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/02 Adrift In Kerala.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/03 Fuse Box.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/04 Raanijhan.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/05 Devadasi (Mantra Mix).mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/06 Feel.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/07 Slow Devotion.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/08 Satyam Shivam Sundaram.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/09 Raga Bairagi.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/10 Agar Tum Mil Jao (Taken from the film Zeher).mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/11 The Way You Dream.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/12 Hold Me Im Falling.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/13 The Mummers Dance.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/14 God Moving Over the Face of the Waters.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/15 The Sun Rising.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/16 Little Fluffy Clouds.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/17 Loft in Paradise.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/18 Moments in Love.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/19 Oxygene Pt. 4.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/20 Polynomial C.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/21 Papua New Guinea.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/22 Coastal Brake.mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/23 Je taime moi non plus (Dzihan & Kamien Remix).mp3,http://gb.assets.s3.amazonaws.com/music/sus-sounds-2/24 Night Sight.mp3|titles=Raga Bairagi Todi_ Jod Jhala, Adrift In Kerala, Fuse Box, Raanijhan, Devadasi (Mantra Mix), Feel, Slow Devotion, Satyam Shivam Sundaram, Raga Bairagi, Agar Tum Mil Jao (Taken from the film Zeher), The Way You Dream, Hold Me I’m Falling, The Mummers’ Dance, God Moving Over the Face of the Waters, The Sun Rising, Little Fluffy Clouds, Loft in Paradise, Moments in Love, Oxygene Pt. 4, Polynomial C, Papua New Guinea, Coastal Brake, Je t’aime moi non plus (Dzihan & Kamien Remix), Night Sight|artists=Ravi Shankar, Bob Holroyd, Kid Alex, Midival Punditz, Makyo, Bombay Dub Orchestra (Thievery Corporation Remix), Govinda, Thievery Corporation, Charanjit Singh, Shreya Ghoshal, 1 Giant Leap featuring Michael Stipe & Asha Bhosle, The Unknown, Loreena McKennitt, Moby, The Beloved, The Orb, Danny Tenaglia, Art Of Noise, Jean Michel Jarre, Aphex Twin, The Future Sound of London, Tycho, Serge Gainsbourg & Jane Birkin, Air]
Tracks
Raga Bairagi Todi: Jod, Jhala – Ravi Shankar
Adrift in Kerala – Bob Holroyd
Fuse Box – Kid Alex
Raanijhan – Midival Punditz
Devadasi (Mantra Mix) – Makyo
Feel – Bombay Dub Orchestra
Slow Devotion – Govinda
Satyam Shivam Sundaram – Thievery Corporation
Raga Bairagi – Charanjit Singh
Agar Tum Mil Jao (Taken from the film Zeher) – Shreya Ghoshal and others
The Way You Dream – 1 Giant Leap Featuring Michael Stipe & Asha Bhosle
Hold Me, I’m Falling – The Unknown
The Mummer’s Dance – Loreena McKennitt
God Moving Over the Face of the Waters – Moby
The Sun Rising – The Beloved
Little Fluffy Clouds – The Orb
Loft in Paradise – Danny Tenaglia
Moments in Love – Art of Noise
Oxygene, Pt. 4 – Jean Michel Jarre
Polynomial C – Aphex Twin
Papua New Guinea – The Future Sound of London
Coastal Break – Tycho
Je t’aime moi non plus (Dzihan & Kamien Remix) – Serge Gainsbourg & Jane Birkin
Night Sight – Air
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Full Disclosure
In his State of the Union on Tuesday, President Obama called for new incentives to encourage innovation: “After all, innovation is what America has always been about.” Investing in new forms of energy production is the key, he declared, because “nowhere is the promise of innovation greater than in American-made energy.” Natural gas, for example, represents a hundred-year supply of fuel and the potential to create 600,000 new jobs by the end of the decade. Yet, processing and production can be risky, so the Obama Administration will require that all companies drilling for gas on public lands disclose the chemicals used in the process. “America will develop this resource without putting the health and safety of our citizens at risk.”
The new policy is an inspired move, both environmentally and economically, and encouraging more transparency is an appropriate role for government to protect public health and safety. But why limit the policy to natural gas? There is an urgent need to ensure that industrial manufacturing and production don’t harm workers or the communities where they occur, but there’s an equally urgent need to protect health and safety closer to home.
As Rick Smith and Bruce Lourie point out in the irresistibly titled, Slow Death by Rubber Duck: The Secret Danger of Everyday Things, factories and processing plants don’t necessarily represent the biggest threats: “Pollution is no longer just about belching smokestacks and ugly sewer pipes—now, it’s personal. The most dangerous pollution, it turns out, comes from commonplace items in our homes and workplaces.” The everyday products that fill our lives—from toys to TVs to T-shirts—often contain or create harmful substances, and in many cases consumers aren’t aware of this, because the products don’t disclose what they contain.
Greater innovation and transparency are imperative to every form of production. Why shouldn’t all products made or sold in America fully disclose the chemicals they contain?
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GreenBlue's Better Business Challenge
In October I was asked to participate with a team of GreenBlue staff in the Charlottesville Area Better Business Challenge, a friendly competition among local businesses to incorporate sustainable practices into their day-to-day operations. This would become one of my first tasks after officially joining GreenBlue as the Office Manager. I did not have a background in sustainable issues and it has been a very educational undertaking.
The Better Business Challenge has all participating businesses start with a scorecard to take stock in six key areas: Energy, Transportation, Waste Reduction, Water, Purchasing, and Leadership. The initial responses serve as the baseline for your business: each improvement gives you 1-2 points, you gain certification with 40 points on the scorecard, and businesses work toward a goal of up to 150 points.
With the initial scorecard completed I found that we are already a pretty sustainable business but we continue to look for areas that we can improve upon. We research and order products that use recycled materials and make efforts to recycle as much of our office materials as possible. We’ve recently installed cans in our kitchen and bathrooms to collect paper towels (non-bleached, recycled materials, of course) and other materials for composting. I was surprised at the amount of stuff that can be composted and I’m sure my garden will appreciate it next summer. Prior to starting with GreenBlue I was unaware that some of the carryout food containers are now made of sugarcane and can be totally composted. We even collect food waste that is fed to a staffer’s chickens.
My learning experience continues daily as I research programmable thermostats, plumbing issues, energy-efficient light bulbs, and compostable materials. I’m sure our efforts will make GreenBlue even more sustainable and in turn we will continue to help others in their efforts. I’ll have more to report on as we complete our goals in June.
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Top Five Fun Facts: January
Eric DesRoberts continues his monthly series of facts and tidbits he’s uncovered during his research to better understand products and packaging. You can also check out his past Fun Facts here.
1. In 2011, Call2Recycle collected more than 7.6 million pounds of rechargeable batteries from small electronics, tools, and mobile devices. This figure includes nickel cadmium, nickel metal hydride, lithium ion, and small sealed lead acid batteries under 11 lbs. This equates to nearly 122 million AA batteries… that’s a lot of channel surfing.
2. Dioxins and dioxin-like compounds are pollutants that have been shown to negatively impact wildlife and humans. According to the FDA, over 95% of dioxin exposure comes from the consumption of animal fats.
3. Over 1,500 US power plants reported 2,324 MMT CO2E emissions in 2010. This information is mapped and compared to emissions from refineries, metals, minerals, and pulp and paper sectors in an interactive info graphic produced by the EPA.
4. Fryer oil is currently selling at $0.40/pound and is often purchased from restaurants to be processed into biofuels or animal feed. As it turns out, $0.40 is the price that makes used grease appealing to thieves and causing problems for local authorities. Without political support for corn-based ethanol, what should we expect for the future of biofuels?
5. According to a recent report from the National Research Council, roughly 12 billion gallons of municipal wastewater effluent is released into an ocean or estuary daily. The report emphasizes municipal wastewater reuse, and recognizes the potential to increase water availability.
