Sustainability Practices in Organizations - Environmental Sphere

Environmental Sphere

A major initiative of sustainable businesses is to eliminate or decrease the environmental harm caused by the production and consumption of their goods. The impact of such human activities in terms of the amount of greenhouse gases produced can be measured in units of carbon dioxide and is referred to as the carbon footprint. The carbon footprint concept is derived from ecological footprint analysis, which examines the ecological capacity required to support the consumption of products.

Businesses take a wide range of green initiatives. One of the most common examples is the act of "going paperless" or sending electronic correspondence in lieu of paper when possible. On a higher level, examples of sustainable business practices include: refurbishing used products (e.g., tuning up lightly used commercial fitness equipment for resale); revising production processes in order to eliminate waste (such as using a more accurate template to cut out designs); and choosing nontoxic raw materials and processes. For example, Canadian farmers have found that hemp is a sustainable alternative to rapeseed in their traditional crop rotation; hemp grown for fiber or seed requires no pesticides or herbicides. Sustainable business leaders also take into account the life cycle costs for the items they produce. Input costs must be considered in regards to regulations, energy use, storage, and disposal. Designing for the environment (DFE) is also an element of sustainable business. This process enables users to consider the potential environmental impacts of a product and the process used to make that product.

Among large corporations, Ford Motor Company occupies an odd role in the story of sustainability. Ironically, founder Henry Ford was a pioneer in the sustainable business realm, experimenting with plant-based fuels during the days of the Model T. Ford Motor Company also shipped the Model A truck in crates that then became the vehicle floorboards at the factory destination. This was a form of upcycling, retaining high quality in a closed-loop industrial cycle. Furthermore, the original auto body was made of a stronger-than-steel hemp composite. Today, of course, Fords aren't made of hemp or running on the most sensible fuel. Currently, Ford's claim to eco-friendly fame is the use of seat fabric made from 100% post-industrial materials and renewable soy foam seat bases. Ford executives recently appointed the company’s first senior vice president of sustainability, environment, and safety engineering. This position is responsible for establishing a long-range sustainability strategy and environmental policy. The person in this position will also help develop the products and processes necessary to satisfy both customers and society as a whole while working toward energy independence. It remains to be seen whether Ford will return to its founder's vision of a petroleum-free automobile, a vehicle powered by the remains of plant matter.

Smaller companies such as Nature's Path, an organic cereal and snack making business, have also made significant sustainability gains in the 21st century. CEO Arran Stephens and his associates have ensured that the quickly growing company's products are produced without toxic farm chemicals. Furthermore, employees are constantly encouraged to find ways to reduce consumption. Sustainability is an essential part of corporate discussions. Another example comes from Salt Spring Coffee, a company created in 1996 as a certified organic, fair trade, coffee producer. In recent years they have become carbon neutral, lowering emissions by reducing long-range trucking and using bio-diesel in delivery trucks, upgrading to energy efficient equipment and purchasing carbon offsets. The company claims to offer the first carbon neutral coffee sold in Canada. Salt Spring Coffee was recognized by the David Suzuki Foundation in the 2010 report Doing Business in a New Climate. A third example comes from Korea, where rice husks are used as a nontoxic packaging for stereo components and other electronics. The same material is later recycled to make bricks.

The many possibilities for adopting green practices have led to considerable pressure being put upon companies from consumers, employees, government regulators and other stakeholders. Some companies have resorted to greenwashing instead of making meaningful changes, merely marketing their products in ways that suggest green practices. For example, various producers in the bamboo fiber industry have been taken to court for advertising their products as more "green" than they are. Still, countless other companies have taken the sustainability trend seriously and are enjoying profits. The Gort Cloud written by Richard Seireeni, (2009), documents the experiences of sustainable businesses in America and their reliance on the vast but invisible green community, referred to as the gort cloud, for support and a market.

Green investment firms are consequently attracting unprecedented interest. In the UK, for instance, the Green Investment Bank is devoted exclusively to supporting renewable domestic energy. However, the UK and Europe as a whole are falling behind the impressive pace set by developing nations in terms of green development. Thus, green investment firms are creating more and more opportunities to support sustainable development practices in emerging economies. By providing micro-loans and larger investments, these firms assist small business owners in developing nations who seek business education, affordable loans, and new distribution networks for their "green" products.