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April 12, 2010 11:53 PM

Categories: Sustainability

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Marc Stoiber

Maddock Douglas
Joined: 01/30/2010

Heard a great thought from David Yarnold, Executive Director of the Environmental Defence Fund:

 "Efficiency as a means of greening business isn't low hanging fruit. It's fruit that's laying on the ground."

The quote came from a panel discussion at the Fortune Green Conference (hosted by Fortune Magazine). Yarnold and his co-panellists were discussing what green measures made the most sense for companies to pursue. Referring to Lee Scott (also a speaker at the Conference) who said Wal-Mart had saved millions simply by paying attention to energy waste, Yarnold hammered home that corporations could do well (both being profitable and environmentally responsible) by simply paying attention to turning off the lights, the machinery, and the idling engines. 

 At a time when everyone is reaching for shiny new things to save the earth, this sort of 'so-simple-that-it's-brilliant' innovation is refreshing.

Discussion:    Add a Comment | Comments 1-10 of 10 | Latest Comment

April 13, 2010 3:40 AM

That's exactly my philosophy, and that's exactly what I recommend everytime I'm asked for "greening" advice.

Greetings Maciek Kokot

April 13, 2010 8:08 AM

Thanks for your feedback.

Marc Stoiber

April 13, 2010 11:35 AM

I like the metaphor of the fruit on the ground because it is clear that many fail to look DOWN for humble and simple solutions while they walk with heads in the clouds dreaming of the 'green' world.
Perhaps thriftiness and common sense are not as 'sexy' as a 'Green Initiatives'.

April 13, 2010 11:47 AM

You nailed it on both counts. 1. It's not as fun to look at turning off the lights as it is to invent shiny new things. 2. Turning off the lights works.

Thanks for the feedback.

Marc Stoiber

View unverified member's comment - posted by Kevin Carter

April 13, 2010 2:32 PM

Thanks for the link to the great article, Kevin. personally, I love working with clients on packaging problems - packaging is both a visible green 'baddie', and (in most cases) it is absolutely necessary. It isn't easy to fix quickly - the cost involved in changing packaging, as well as logistics, is daunting. There are many measures that can be taken to improve packaging immediately (check out the more efficient shirt folding Hanes has innovated to save plastic wrap on its clothing!) Based on the conditions above, I'd say packaging is low-hanging fruit, but it's not as easy a fix as reducing energy consumption in shipping or manufacture. When you hear we could reduce our energy drain by 30% (based on the McKinsey study)simply by paying attention to the energy we waste, I still believe that's the place to make the big first dent. It's also an area that could benefit from some easy-to-use, simple innovation.

Look forward to more thoughts from you. Keep us posted!

Marc Stoiber

May 6, 2010 4:40 PM

Nothing wrong with enlightened self-interest but let's not confuse this with corporate social responsibility of anything remotely to do with sustainability. It's a bit like lean thinking - firms resort to it when they are on their lasty legs and bag the savings when what they 'should' be doing is investing them in activities that add value - I don't see Walmart investing any of their energy bill savings in environmental or social sustainability initiatives? Sustainability is about behaviour change for the benefit of the many and the future not the few and today.

May 6, 2010 4:55 PM

Enlightened self-interest is a good way to put it. And yes, you're correct in saying that Wal-Mart is moving more along the path of lean thinking than Patagonia-style sustainability thinking.

However, by lessening road miles on trucks, lessening packaging, lessening energy usage, lessening or improving hundreds of things up and down the value chain, they are making a difference.

And as consumers reward the effort, they're only going to ramp up their efforts.

In actual fact, Wal-Mart is taking on quite a few environmental initiatives not directly related to eco-efficiency. That would include making the decision to switch to organic cotton and organic milk on a large scale. By adopting these two products, they've made a huge impact on dropping pesticide, herbicide and animal steroid/antibiotic/etc usage throughout the world. There's no 'lean' in that equation.

Really appreciate your thoughts. Keep them coming!

Cheers

Marc Stoiber

May 6, 2010 5:10 PM

I would love to see the contracts they have drawn up (implicit of course) for those organic lines... and all those Walmart shoppers queuing up to pay more? The organic industry has got it SOO wrong trying to go mainstream and Walmart doubtless think they are doing a great job giving them all that market access... The shift to organic has to come at a price - sustainability is not a free good and our biggest challenge is getting consumers to think and behave more like citizens, consuming less not more and paying the full cost of sustainable products not one that is artificially suppressed by market power and the blind persuit of volune growth!

May 10, 2010 6:10 PM

Thanks for the great feedback, Andrew. Sorry about my tardy response.

I actually heard one of the founders of Organic Acres dairy speak. His co-op, the largest in North America, decided not to work with Wal-Mart, because it would've put them in a bit of a 'supply one instead of supply many' situation. And they found this something they didn't want. However, the fellow seemed to have good things to say about Wal-Mart and their mission.

I think its still early days - we're all trying to figure out the best way to go. Business models (maybe even Wal-Mart's 'lowest prices everyday') may have to be refitted for the sustainability age. It makes life interesting, following the developments.

Thanks again for your great feedback. Keep me posted.

Marc

Discussion:    Add a Comment | Back to Top | Comments 1-10 of 10 | Latest Comment

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