Why Going Green Makes Good Business Sense

1. Why Going Green Makes Good Business Sense Green could be the largest economic opportunity of the 21st century. We'll get a clean environment because entrepreneurs will make it happen." John Doerr Silicon Valley Venture Capitalist Stefan Doering BEST Coaches, Inc. June 23rd, 2010

2. What does it mean to be Green? • Making a best effort • Take responsibility for your actions • Know your impact on others BEST Coaches, Inc.

3. The Old School of Thought Single Bottom Line— “The Social Responsibility of Business is to Increase its Profits.” Milton Friedman, Nobel Lauriat and chief economist, The New York Times Magazine (13 September 1970) BEST Coaches, Inc.

4. The New School of Thought Triple Bottom Line (TBL) — captures an expanded spectrum of values and criteria for measuring organizational and societal success: people, planet and profit BEST Coaches, Inc.

5. People (Human Capital) • Fair and beneficial business practices toward: labor, the community and region in which a corporation conducts its business. • Stakeholders are taken into account, not just shareholders. Harvard Business Review on Corporate Responsibility by Harvard Business School Press BEST Coaches, Inc.

6. Planet (Natural Capital) • Sustainable environmental practices. • Benefiting the natural order as much as possible • Do no harm and curtail environmental impact Harvard Business Review on Corporate Responsibility by Harvard Business School Press BEST Coaches, Inc.

7. Profit (Economic Capital) • The bottom line shared by all commerce, conscientious or not. • Lasting economic impact the organization has on its economic environment. • Traditional corporate accounting approach plus social and environmental impact. Harvard Business Review on Corporate Responsibility by Harvard Business School Press BEST Coaches, Inc.

8. 5 Stages of Green Business BEST Coaches, Inc.

9. Stage 1 • The company feels no obligation beyond profits. -- The Next Sustainability Wave, Bob Willard BEST Coaches, Inc.

10. Stage 2 • The business manages its liabilities by obeying the law and all labor, environmental, health, and safety regulations. -- The Next Sustainability Wave, Bob Willard BEST Coaches, Inc.

11. Stage 3 • The company moves from defense to offense. • Realizes it can save expenses with proactive and eco-efficient operation , cleaner processes, and better waste management. • It is about incremental, continuous improvements in eco-efficiency. -- The Next Sustainability Wave, Bob Willard BEST Coaches, Inc.

12. Stage 4 • The firm transforms itself. • Re-brands itself as a company committed to sustainability and integrates sustainability with key business strategies. • It is about discontinuous, leapfrogging breakthroughs. (i.e. DuPont, The Body Shop and Timberland.) -- The Next Sustainability Wave, Bob Willard BEST Coaches, Inc.

13. Stage 5 • Driven by a passionate, values-based commitment to improving the well-being of the company, society and the environment, the company helps build a better world because it is the right thing to do. (i.e. Patagonia, Gaiam.com) -- The Next Sustainability Wave, Bob Willard BEST Coaches, Inc.

14. Green Companies • Patagonia – outdoor sporting catalog www.patagonia.com • Stonyfield Farms– dairy farm producer www.stonyfieldfarms.com • Ecologic Solutions– commercial chemical supply company. www.ecologicsolutions.com • Bright Power– alternative energy consulting company. www.brightpower.biz • Green Pirates– organic smoothies and juicer on wheels in NYC. www.green-pirates.com BEST Coaches, Inc.

15. Companies Greening Their Act • General Electric – Ecomagination program • Toyota – Prius hybrid cars • Shore Fire Media – music PR company going paperless and recycled plastic jewel cases • Green Fitness Studio - the first eco friendly fitness center BEST Coaches, Inc.

16. Advantage– Increase Sales • Consumer demand for green BEST Coaches, Inc.

17. Advantage – Increase Sales Continued… • Less price sensitive • solid strategies to position to be quite desirable BEST Coaches, Inc.

18. Advantage — New Verticals • Solid Business Opportunities— • energy, clean tech or green tech sectors, • education, training, consulting sectors • Designers for environmental / social solutions BEST Coaches, Inc.

19. Advantage – Market Exposure • Green is Hot— • Is it a fad or is it here to stay? • Media is HOT for green businesses • Small Businesses Catch the Green Bug • LOHAS Market-Size Data Released: A $290 Billion Opportunity • Avoid greenwashing BEST Coaches, Inc.

20. Greenwashing • Is used to describe the practice of companies disingenuously spinning their products and policies as environmentally friendly. • It is a deceptive use of green PR or green marketing. www.Wikipedia.com BEST Coaches, Inc.

21. Green Sheen • Is a term that has similarly been used to describe organizations that attempt to show that they are adopting practices beneficial to the environment. www.Wikipedia.com BEST Coaches, Inc.

22. Advantage – Competitive • Easier to Compete With Non-Green— • People looking for green solutions • Price/Quality MUST be as good or better • Branding and positioning advantages over non-green competitors • First-mover or early-adopter advantage BEST Coaches, Inc.

23. Advantage – Customer Loyalty • Strong Feel Good Component • makes a difference for the planet and society • leverage in branding and marketing • people like to know their purchase is helping • if price, cost and performance are equal • Examples: • The Body Shop • Clif Bar & Co. – Creators of the Lunabar • Stonyfield Farms BEST Coaches, Inc.

24. Advantage – More Stability • improved customer loyalty • increased community support • reduced impact from changes in pricing -Sustainability a Better Brand of Business? by Gary Langenwalter. BEST Coaches, Inc.

25. Ways to Green Up Your Business • Do the basics • Get involved • Leverage your people BEST Coaches, Inc.

26. Do the Basics • Reduce water use– avoid bottled water!! • Energy efficiency • Limit waste – excess packaging • Recycle – paper, metal, glass, plastic, electronics, etc. BEST Coaches, Inc.

27. Get InvolvedTop 10 Current Environmental Challenges • Climate Change • Energy • Water • Air Pollution • Chemicals, Toxics, and Heavy Metals • Waste Management • Ozone Layer Depletion • Biodiversity and Land Use • Forest and Fisheries • Deforestation BEST Coaches, Inc.

28. Involve Your People • Explain to your customers • Select suppliers committed to Green • Leverage your purchasing power with your vendors • Give back to your communities • Educate and involve your employees • Partner with like-minded green businesses • Look for socially responsible / green investors BEST Coaches, Inc.

29. Let the World Know • Social Media • Powerful marketing campaigns • Contests for customers • Blogging / Newsletter • Leverage your age in the media BEST Coaches, Inc.

30. Next Steps • Do the basics:reduce water, energy and consumption. Recycle the rest • Choose your environmental issue/passion • Mix your environmental passion with business • Build a campaign around what you are planning • Empower your people to make this happen • Create a buzz: pick three marketing tools you will use this month BEST Coaches, Inc.

31. Stefan Doering BEST Coaches, Inc. E-mail: stefan@beunreasonable.com Phone: (646) 485-7688 www.beunreasonable.com BEST Coaches, Inc.

32. Additional Resources • Al Gore speech at TED: http://www.ted.com/talks/al_gore_s_new_thinking_on_the_climate_crisis.html • Be UnReasonable Power Booster newsletter • Cradle to Cradle– by William McDonough and Michael Braungar • Green Into Gold – by Daniel C. Esty • Story of Stuff – online community to end waste www.storyofstuff.com/ • Center for Small Business and the Environment – a support center for green entrepreneurs www.aboutcsbe.org BEST Coaches, Inc.