Setting The Record Straight on "Green"

We see it everywhere these days -- the call to "Go Green!"  TV, radio, magazines, newspapers, books, and the Internet, the barrage of advice to green your home, your life and your business is inescapable.  As a rather vocal environmentalist, entrepreneur and MBA, I am often asked by friends, family, and colleagues to give my perspective on "green business."  My initial response often disappoints anyone who is looking for a "profound" answer.  It is my belief that there is no such thing as "green business."  To me, using the term "green business" is like using the terms "red business" or "black business" to describe organizations that are dedicated to losing or making money.  It just doesn't make sense.

When people use the term "green business," what they typically are referring to is a business that is attempting to reduce its negative impact on the environment.  This might include reducing the amount of pollution, manufacturing waste, or the thing we hear most about, CO2 emissions.  

But let's be very clear. These reductions are not solely based on operational tactics or even an operational strategy.  The actions taken to lessen harmful environmental effects are motivated by the organization's values and core attributes.

Let me explain.  Companies such as Patagonia, Stonyfield Farms, Whole Foods, Burt's Bees, and Honest Tea, are often referred to as "green" and typically share some things in common.  These often include a commitment to:

• Reducing pollution


• Curbing global warming


• Supporting biodiversity


• Preserving natural spaces

But there are other traits that these companies share:

• Innovative


• Profitable


• Positive work environment


• Low employee turnover


• Efficient use of all resources (time, materials)

What is critical to understand is that it's the second grouping of traits, not the first that actually make these popular companies successful and more importantly, green.  In fact, when you look at all these characteristics together it does not say "green business," it says "good business."    

To make this a bit more concrete, let's consider a trait that most companies would like to possess, efficiency -- the ability to do more with less.  One of my favorite examples of this is from an organization whose dedication to efficiency helped to reduce their impact on the environment and make them "greener".

UPS is in the business of delivering packages.  Is it a "green business"?  Conventional wisdom would say no.  It burns tens of millions of gallons of gas per year delivering customer packages.  Is one of UPS's core traits efficiency?  Absolutely.  The UPS model is based upon delivering more packages, by driving or flying fewer miles.  UPS continually seeks greater operational efficiency and in 2007, it implemented a rather odd practice, no left turns.  Why no left turns?  Internal studies showed that if UPS drivers avoided left hand turns, they could save time and ultimately deliver more packages.  

The results proved the studies correct.  Not only was UPS able to eliminate 30 million miles from its fleet, allowing UPS to deliver more packages with fewer miles, it also saved 3 million gallons of gas.  But as the story goes, this also reduced UPS's negative impact on the environment.  They cut emissions by 32,000 metric tons of CO2, which is equivalent to removing 5,300 passenger cars from the road for an entire year.

Is UPS a so-called "green business" or just a "good business"?  I think you know my answer.

So why did I feel compelled to write about this topic?  First, as the blog title goes I wanted to set the record straight (or at least make my opinion clear) on "green business."  More important though, I want everyone to remember that like a company, it is your own values that define who you are.  If you strive to live a greener, more sustainable life, stop focusing on changing your light bulbs to CFLs and examine your values.  If your values are in line, and you stay true to them, they will lead you to where you want to go.

Jeremy Litchfield is president / CEO of Arlington-based, Atayne, a newly launched company created to inspire positive environmental and social change through the power of sports and active lifestyles. Website: www.atayne.com