|
|
Printable version  |
Following the Path
of Sustainability
|
There's no doubt about it: Canadian companies, like their counterparts around the world, are under increasing pressure to go green and devise practices that minimize damage to the environment and climate, conserve energy and are safe for consumers, employees and the community.
Highlighting the need for action, four provincial premiers conceded last week at a conference in Vancouver on clean air | Highlights of the U.S. Energy Law | | The Energy Independence and Security Act was signed into law by President Bush last December 19.
One of the highlights of the wide-ranging bill is an increase in the Corporate Average Fuel Economy (CAFE) standards for automobiles and light trucks.
The law requires auto manufacturers to raise fuel economy to a fleet-wide average of 35 miles a gallon by 2020. Congress had not increased fuel economy standards for passenger cars since 1975.
Among the other provisions in the law are:
Incentives for manufacturers to build small cars in the U.S., while preserving about 17,000 domestic assembly plant jobs.
Increasing the use, research and development of biofuels, such as cellulosic ethanol.
Fostering improved energy efficiency in household appliances.
Phasing out many common types of incandescent light bulbs by 2014.
Establishing a new federal department to promote the use of green building technology in federal government buildings. | | Small Steps, Big Savings | Here is a list of energy-saving tips that are relatively easy to put into effect at your business that can help bolster your bottom line while adding to your business's long-term sustainability:
1. Replace high-energy-use light bulbs, fixtures, and equipment. The quickest thing you can do is to switch to low-energy use light bulbs. If your company's equipment is getting old, consider upgrading.
2. Buy recycled and environmentally friendly products. Look for "post-consumer waste" products, including stationery, packaging materials, paper towels and other kitchen and bathroom supplies. Moreover, the market for non-toxic supplies has grown significantly, providing more affordable choices in such items as cleaning supplies, inks, and other materials.
3. Use recycled and non-toxic materials for production. If you're a manufacturer, ask suppliers for environmentally friendly materials. They may be less expensive than the raw materials you're currently using.
4. Offer environmentally friendly alternatives. If you're a retailer, look for non-toxic, recycled, or organic products to sell.
5. Reduce commutes. For most businesses the biggest energy impact comes from commuting. Encourage carpooling and telecommuting if possible. And conduct more of your business online. You probably don't really need to drive to the bank to transfer funds.
6. Purchase hybrid cars. When buying a new vehicle for your business, look for hybrid cars or trucks, or at the very least vehicles that are extremely fuel-efficient. Making sure your cars and vans are well maintained and tires are properly inflated also reduces energy usage.
7. Remember the little things. Turn off extra lights. Put recycling wastebaskets throughout the office. Turn off office equipment overnight and on weekends. Wear a sweater when you're cold and open a window when you're warm. | and trade that they have been discussing the possibility of setting up a cap-and-trade system to regulate and cut greenhouse gas emissions. The leaders of British Columbia, Manitoba, Ontario and Quebec, four provinces that account for more than half of Canada's greenhouse gas emissions, hope to build a foundation for a national market-based trading system that would allow polluters to buy and sell credits based on their ability to meet emission-reduction targets.
Canada has good reason to want to boost its environmental standards. Burning fossil fuels caused an estimated 75 per cent of the country's total greenhouse-gas emissions in 2003.
As part of its efforts to curb emissions, The Harper government closely watched the formation and passage of the U.S. Energy Independence and Security Act, which was signed into law last December (see right-hand box for highlights of that law.)
The two bordering countries are seeking to set uniform North American fuel-economy benchmarks for cars and light-duty trucks. Last year Canadian Transport Minister Lawrence Cannon signed a memorandum with U.S. Transportation Secretary Mary Peters under which the two countries agreed to meet periodically to share regulatory practices, research, modeling and analysis related to fuel-efficiency standards.
The fuel-economy coordination comes as Canada embarks on a high-profile effort to reduce its industrial greenhouse gas and carbon dioxide emissions 18 per cent over the next three years, followed by two percent cuts in subsequent years. Currently Canada produces 2.3 per cent of the world's carbon dioxide emissions, compared with about 30 per cent by the U.S.
Significantly, restrictions on hazardous substances imposed around the globe have raised the bar for higher environmental standards. The tight restrictions include the European Union's regulatory framework under the Registration, Evaluation and Authorization of Chemicals initiative, and Japan's environmental protection regulations, which are among the world's strictest.
Canada, for its part, has its Hazardous Products Act, designed to protect Canadian workers by providing employees with detailed information concerning hazardous materials used in the workplace. Key elements of the regulations include: establishing criteria to identify hazardous substances;
cautionary labelling of hazardous products;
provision of material safety data sheets; and
establishing criteria for evaluating confidential business information claims. These increasingly stringent global regulations added to the continuing surge in energy costs are forcing corporate executives to put a high priority on cutting emissions, curbing energy usage, manufacturing environmentally friendly products, recycling, and finding ways to reduce electronic garbage.
But for a corporation, whether private or public, the real question is whether becoming green and sustainable can generate profits. Apparently the answer is yes.
All the companies that pop up on the Dow Jones Sustainability Index and Innovest Strategic Value Advisors Inc.'s Global 100 ranking are profitable -- often top performers -- and invest both time and money toward finding ways to reduce business risks associated with changing economic, environmental or social circumstances.
Eighteen Canadian companies show up on the Dow Jones Sustainability North America Index, and they are highly concentrated in the financial and oil and gas industries. The companies include Bank of Montreal, Bank of Nova Scotia, Canadian Imperial Bank of Commerce, Royal Bank of Canada, Toronto-Dominion Bank, EnCana, Nexen, Shell Canada, Suncor Energy, and TransCanada. Nexen, TransCanada and Royal Bank, were included in the 2008 Global 100 list of Most Sustainable Corporations in the World, released a week ago at the World Economic Forum in Davos, Switzerland.
But don't get the idea that only the corporate giants can benefit from green practices. Some observers suggest that by integrating sustainability into their operations, small and medium-sized companies can boost profits by at least 65 per cent over five years. Companies can save money by using less gas, electricity, and heating oil, as well as trimming waste volume, which lowers the need for some of the labour and machines needed to handle waste.
Taking a longer view, green businesses can expect reduced recruiting and attrition costs, and increased productivity. One survey showed that three-fifths of college graduates and potential employees said "ethical management" is an important factor in choosing an employer. Another global study of graduates showed that nearly 70 per cent of respondents felt that a company's social and environmental reputation is more important than salary.
Going green can also pump up your company's revenue as consumers increasingly factor in corporate sustainability when they make purchases. An estimated two-thirds of consumers are likely to switch their spending to companies that show a commitment to green policies.
Here are five key considerations if your company is striving for long-term sustainability by implementing green policies and processes:
1. Take an environmentally conscious approach to product design changes. This encompasses development of product structure as well as building and testing a system for production. Conduct research and testing on products before regulations impose new mandatory standards. Design products and packaging that can be recycled and downsize the amount of waste.
2. Coordinate efforts with all departments. Product design is only one factor. Look for improvements that can be made in your buildings, workforce, supply chain and vehicle fleets. Investigate the best technology solutions. With integrated practices, one side of the business won't operate in a vacuum.
3. Ask your marketing department to play a role. Some of the companies using improved technology in production activities, such as Toyota and Honda, have become well known as green manufacturers. Strive to raise awareness among your customers, as well as the public in general, of the importance of new approaches and the benefits available from your efforts. It projects an image of social responsibility to customers, shareholders, regulators and the community.
4. Work to help develop policy. Push provincial and territorial premiers, as well as the federal government to enact such policies as caps on greenhouse gas emissions or subsidies to help change manufacturing processes.
5. Expand your C-suite. Many companies are adding a Chief Energy Officer or VP of Sustainability to manage their energy strategies and measure their return on investment. These executives are looking for ways to improve corporate reputations, lower costs and boost profits.
Bottom line: You have a choice between adopting a wait-and-see approach to government regulation and stepping up self-regulation in anticipation. Most manufacturers likely would prefer the latter option. Ultimately, green manufacturing can provide a competitive advantage, as consumers, shareholders and employees become more environmentally conscious and demand eco-friendly products. If your company hasn't done so already, now is the time to formulate a strategic manufacturing vision.
|
|
|
Full Newsletter 
