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This post is inspired by the question "What benchmarks do you use to determine if a company is green?" recently asked by a user on LinkedIn.
If a product has recycled content, it's green, right? Anyone who's even a little skeptical (and these days, I wish more people were) understands that you need to ask more than just this one question to determine if a product is green. And how do you know if an entire company is green? If they recycle their paper, or turn the lights and computers off when everyone goes home, does that make them green? The answer is, quite simply, it depends.
The problem with these types of groups is that they themselves have subjective criteria that they apply to member businesses. So in order to determine if a certified company is legitimately green, one first needs to vet the certification program. This is the challenge I've run into with the San Francisco Green Business Program. The SFGBP is actually one of the most stringent government-sponsored certifications available in California. I've been doing a bit of consulting work with SF's Department of the Environment (just one of the city agencies involved in the program), trying to help them identify the best ways to build the program's credibility. Since there are now at least 285 certification programs to choose from, distinguishing the SFGBP as a leading program becomes even more important.
At the heart of the SFGBP, as with all certification programs, is the need to identify measurable criteria. The challenge, however, is that what is an appropriate and sustainable solution for one organization, business, industry, and/or process may not be so for another. The very nature of holistic sustainability is case-by-case, which makes it exceedingly difficult to create blanket criteria that actually work across all organizations. This leaves us with the simplistic solution of creating specific operational guidelines (as opposed to measurements) that are tailored to particular industries or business models.
The following certifications are just a few that I consider to be decently stringent, though none are "perfect." They're presented with the caveat that this is a partial list, and that my own assessment should be subject to your scrutiny:
Obviously, looking for viable certification is the easiest, quickest method to determine if a company is really green. But what if no certification exists, or if you want to vet the certification? In these cases, you can evaluate the following operational areas of the company:
So there you have it: determining if a company is truly green or not is no simple task. Every day more benchmarking groups crop up to try and serve as a standard, but we're still a long way from consensus. In the meantime, any thinking about sustainability must by definition include flexibility, critical thought, and an understanding of the many complexities that go into judging results.
Finally, what methods do you use to judge how green a business is?
If a product has recycled content, it's green, right? Anyone who's even a little skeptical (and these days, I wish more people were) understands that you need to ask more than just this one question to determine if a product is green. And how do you know if an entire company is green? If they recycle their paper, or turn the lights and computers off when everyone goes home, does that make them green? The answer is, quite simply, it depends.
The Challenges of "Certified Green"
Increasingly, consumers are using certification to determine whether or not a company is green. There are a number of general certification bodies that have cropped up to help consumers and other businesses identify those who have met particular standards (see the end of this section for examples). Some of these are nonprofits, some are trade associations, and some are glorified PR outlets. Some local governments, especially in California, are also implementing certification systems.The problem with these types of groups is that they themselves have subjective criteria that they apply to member businesses. So in order to determine if a certified company is legitimately green, one first needs to vet the certification program. This is the challenge I've run into with the San Francisco Green Business Program. The SFGBP is actually one of the most stringent government-sponsored certifications available in California. I've been doing a bit of consulting work with SF's Department of the Environment (just one of the city agencies involved in the program), trying to help them identify the best ways to build the program's credibility. Since there are now at least 285 certification programs to choose from, distinguishing the SFGBP as a leading program becomes even more important.
At the heart of the SFGBP, as with all certification programs, is the need to identify measurable criteria. The challenge, however, is that what is an appropriate and sustainable solution for one organization, business, industry, and/or process may not be so for another. The very nature of holistic sustainability is case-by-case, which makes it exceedingly difficult to create blanket criteria that actually work across all organizations. This leaves us with the simplistic solution of creating specific operational guidelines (as opposed to measurements) that are tailored to particular industries or business models.
The following certifications are just a few that I consider to be decently stringent, though none are "perfect." They're presented with the caveat that this is a partial list, and that my own assessment should be subject to your scrutiny:
- San Francisco Green Business Program (local only; all industries)
- Co-op America Seal of Approval (national; all industries)
- Green Seal
- FSC (international; wood-based supply chain)
- C2C (international; product design)
- LEED (national; building/construction
*Full disclosure: I'm certified by the first two groups.
A Simpler Method of Measuring Green
Obviously, looking for viable certification is the easiest, quickest method to determine if a company is really green. But what if no certification exists, or if you want to vet the certification? In these cases, you can evaluate the following operational areas of the company:
- Energy consumption (amount of, type of)
- Materials consumption (amount of, type of, toxicity of)
- CO2 and other greenhouse gas output (amount of)
- Physical waste output (amount of, toxicity of, treatment of)
- Product output (nature of, life cycle of)
- Employee programs (existence of, nature of)
- Ethics (nature of, statement of, track record of)
- Community relations (use of local resources/vendors, distribution to local areas, enrichment of local communities)
The Benchmark of Transparency
Another good measure of a company's greenness is their transparency. If an organization voluntarily discloses their operational methodology, and explains in detail the environmental measures they take, that's a pretty good indicator that they're at least addressing those areas. If you're wary of greenwashing (the act of paying lip service to environmental commitment), then look for generic statements, like "All of our products are green," or "We use an eco-friendly production process." Companies should be prepared to go into detail about their processes and back up their claims.So there you have it: determining if a company is truly green or not is no simple task. Every day more benchmarking groups crop up to try and serve as a standard, but we're still a long way from consensus. In the meantime, any thinking about sustainability must by definition include flexibility, critical thought, and an understanding of the many complexities that go into judging results.
Finally, what methods do you use to judge how green a business is?
Labels: articles, business, green_design, marketing, sustainability
4 responses:
I agree transparency is a good way of judging a company, but you cant expect them to be completely open about their projects or objectives. That doesn’t mean they are not “green”. I would like to get your views on sustainability in our corporate blog (mahindrauniverse.com).
That's true - lack of disclosure does not necessarily mean lack of green practices. However, businesses who fail to disclose what actions they're taking are making a grave mistake, particularly in these times. Consumers (and that includes both B2B and B2C) expect a new level of transparency in exchange for their loyalty.
Additionally, vague/nonspecific disclosures are often used to mask a lack of real action. As greenwashing becomes more and more prevalent, companies are going to have start getting real with the public or risk alienating their market base.
When I think about it again I feel you are right. Actually blogging could be a great way for corporates to open up to their customers and also get feedback from them. This was one of the main reasons we started our corporate blog.
Yep - I think blogging is a great way for companies to engage their customers and share insights into the internal workings of the company. I always remind clients that customers can smell BS from a mile way, so just make sure whatever you share is real. It goes a long way!
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