Inspired Business

Think employees only care about money and time-off. Think again.

New Belgium Brewery in Fort Collins Colorado is most famous for its wonderful Fat Tire Amber beer. But it is also one of the leading companies in the world for creating a sustainable business. But the story of how it went to clean renewable energy deserves a page in HR manuals as well.

The owners of the business are committed to the environment and wanted to run on completely renewable clean energy. This is done through wind power and the on-site waste-water treatment operation.

In 1998 the 32% employee owned company brought the idea of going to wind power to a company vote. At the time it meant a 30% higher cost of electricity, most likely meaning the loss of significant end-of year bonuses for the employees. Despite knowing that their bonuses were going to suffer, the vote was unanimous to go to the clean energy solution. And not surprisingly, because of these high moral decisions, turnover is low and productivity is high because people feel like they are contributing to something bigger in the world.

To see how New Belgium produces some of its own power through it’s waste-water treatment, check out this video.



New Belgium Brewing from whatis waste on Vimeo.

If you think sustainability is important in our human systems, then you have some vision of what your company should be doing about it. Whether you are a line worker, middle manager or senior executive, your vision has some relationship to current reality.

Here is a graphic I absconded from the excellent book “The Sustainability Champions Guidebook” by Bob Willard. It will help you see not only where your company is now, but what hurdles are in the way and what helpers might be available to you.

What helps and hinders your sustainability vision

Want to make your company more profitable with each transaction AND worth more during your exit? Then make it truly green and the money will follow.

As of January 2008, a 0.15 oz tube of Burt’s Bee’s lip balm cost $3.00. The same size tube of Chapstick cost 1.69. Sure, Burt’s production costs were about 25% higher, but the cost at the cash register more than made up the difference.

At the time that Burt’s had revenues of $164 million, the company sold to Clorox for $913 million. At a time when many businesses will sell for 2-3 times net profit, Burt’s sold for nearly six times revenue.

The Body Shop was sold to L’Oreal for nearly $1.1 Billion in 2006. Far ahead of the market cap of similar companies.

The evidence is clear. Profits are higher while doing business and the exit strategy pays better to the founders if your company is truly green and responsible. And you are doing better for the world at the same time.

Starting a business? Make it truly green and socially responsible. You’ll sleep better at night and make more money in the process.

Are you still stuck in the old paradigm that acting ethically might hurt your bottom line? Think again.

“Between 1995 and 2007, socially responsible investmanet assets expanded by 324 percent, sharply outpacing growth in the broader universe of investments, which increase by less than 260 percent over the same period. Social Investing is thriving as never before”*

“Even during the bust of the great recession, investing in socially responsible funds grew at a higher rate than ever”**

If you are a business owner or executive decision maker at a larger organization, keep this in mind. Doing the right thing not only allows you to sleep better at night, it adds more to the bottom line!

Sources

* Report on Socially Responsible Investing Trends in the United States, Published by Social Investment Forum, March 2008

** Time, September 21, 2009; “The Responsibility Revolution”

I found this a great guide for starting any venture; green, high-tech or low-tech. Brand new or spin-off. Rock band, green business or non-profit venture.

Key Points:

• Get a great team
• Get committed partners
• Offer something unique that meets a need
• Build slowly with low risk tests/installations/engagements
• Continue to improve
• Scale when ready

Thanks to the blog TelevisionSky for this great guide. For the entire article, go here:

http://www.televisionsky.org/2010/04/tech-startups-vs-rock-bands

It is happening slowly but surely… It is getting easier to find out which vendor is greenest.

May people don’t know the phrase “Greenwashing.” It is the practice of simply using green in marketing materials but not following through with any real commitment to the green movement.

Welcome ClimateCounts.org. On this site they are begining to rank all kinds of businesses, from airlines to housecleaners, based on how well they really do in being green.

And for companies that want a roadmap in going from where they are now to becoming green, they have guidlelines to follow. Check it out.

www.climatecounts.org