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Green Business is Good Business in California

Beth-Trask.gif
By Beth Trask
Manager
Corporate Partnerships Program
Environmental Defense Fund

It's official: Green business is good business.

Environmental Defense Fund just released "Innovations Review 2008: Making Green the New Business as Usual," an inaugural report documenting more than 20 examples of how forward-thinking companies are turning environmental action into tangible business benefits. Not surprisingly, more than a third come from California-based companies.

EDF's report is a result of six months of research. We talked with dozens of experts from the manufacturing, IT, finance, packaging, fleet management, and other disciplines and reviewed a couple hundred new technologies, processes, and creative ideas.

The innovations selected for the report clearly illustrate how environmental issues can be viewed not as challenges to be overcome, but as opportunities to be harvested. They are helping companies save money—in some cases millions a year—reduce risk, attract new customers, increase market share and recruit and retain top-notch employees.

Some represent radical departures from "business as usual"—what we call the "game-changers." For example:

The first 100% solar-powered data center: Using a water and air-cooled air conditioning system, virtualization software, solar tubes for natural light to decreased energy demands, AISO.net has achieved the first fully solar-powered data center, while saving $3,000/month on utility bills and cultivating loyal clients.

A Net Zero Energy building: A Silicon-Valley based engineering firm (Integrated Design Associates) taps geothermal and solar energy, along with ultra-green building design to achieve what experts believe is the first "net-zero energy/net-zero carbon emission" commercial building in the U.S.

Other innovations represent more incremental changes—but if widely adopted across industries, they would generate tremendous environmental benefits:

Shortening employee commutes: Sun Microsystems is taking cars off crowded freeways by helping 55% of its workforce to telecommute, reducing the company's carbon footprint by nearly 30,000 tons of C02 a year.

Overcoming barriers to solar power: Solar companies are leveraging a tool called Power Purchase Agreements to finance, install and maintain solar systems for host companies in return for a 15 to 20-year fixed-rate power contract (often at prices lower than those offered by the local utility).

Green building insurance: Fireman's Fund launched the first suite of insurance products design to protect the value of green buildings and promote green renovations after a loss. The price of coverage is typically 5% less expensive than convention policies because the superior quality of green structures presents fewer property risks.

The bottom-line finding of Innovation Review 2008: In a resource-constrained world, environmental sustainability is no longer the purview of boutique eco-brands. It's what all companies can do and must do in order to be successful and competitive in the 21st century.

Beth Trask works to incorporate Environmental Defense's corporate partnership innovations into new companies and industries. With a focus on California’s business community, she collaborates with companies to leverage new and proven best practices that provide distinct business benefits and produce significant environmental results. In particular, she specializes in marketing sustainability initiatives to employees, customers, and other key constituents. She has a Masters in Public Administration from Harvard University and began her career working for local government and business associations in northern California.

Posted on May 23, 2008

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