The Global Reporting Inititative

TriLibrium, the firm that I founded, released its first sustainability report yesterday. We used the Global Reporting Initiative (GRI) framework to report on our economic, environmental, and social performance. Follow this link to download a PDF of our report.

Sustainability reports based on the GRI framework allow an organization to benchmark their performance with respect to laws, norms, codes, performance standards and voluntary initiatives. It also allows a company to demonstrate commitment to sustainable development and, to compare organizational performance over time.

The GRI is a standardized approach that can be used by any size organization regardless of geographic location. Has your company prepared such a report? If so, what would it say?

If your organization is promoting its "greenness", it ought to complete or be planning to complete a Sustainability Report as well as a greenhouse gas inventory. In my opinion, a company must do these things or it risks being labeled a greenwasher and with it, its reputation and brand value.

“True” Commitment

I’ve been writing about the A.T. Kearney report that discussed their findings that the market rewarded “companies who show a ‘true’ commitment to sustainability.”  What is a ‘true’ commitment to sustainability and what does that look like?

To me, using sustainability as a strategic driver means you make that focus primary.  Making money and being financially sound are also important but if they become the primary focus or raison d’etre, I believe you’ll make short-term decisions and when the two conflict, you’ll likely make the wrong choice.

Another sign of “true” commitment is leadership and a continuous drive for improvement.  I toured Rejuvination's manufacturing facility this week and learned that they sit down each year and evaluate all areas of their business to ensure they are using the current best practices.  Is there a better chemical, process or material they should be using, if so, they change.  

One thing I’m beginning to use as a criteria between a deep and real commitment to sustainability and a lesser, questionable commitment is the greenhouse gas (GHG) inventory.

No GHG inventory and no plans to do one = Questionable commitment.  Are they just greenwashing?

Taking action to minimize your waste stream is important. The largest and arguably most dangerous waste streams are your unseen and unmeasured carbon emissions. 

Dr. James Hansen, the NASA scientist and climate expert, recently wrote that “our planet really is in peril” as a result of our carbon emissions.

Will 2009 be the year you do your GHG inventory, or are you prepared to be accused of greenwashing and lose your brand and market position?

Greenwashing

Yesterday I wrote about the A.T. Kearney report that discussed their findings that the market rewarded “companies who show a ‘true’ commitment to sustainability.”  What is a ‘true’ commitment to sustainability and what does that look like?

Let me start with a true story about a ‘fake’ commitment. 

I was recently introduced to an executive for a ‘green’ online website.   I was excited to meet her based on her business card and initial ‘image’.  I visited their website before our meeting and could immediately smell a fake.

Visiting their website I could instantly tell they didn’t get it.  While it was an aesthetically pleasing site with the appearance of some good branding, it was clear they didn’t get sustainability and I predicted failure.

•  They were promoting consumerism
•  Their online articles were fluff
•  There was no information about who they were, where they were located or an easy way to contact them
•  There was nothing about their story
• Nothing about their commitments or goals to social justice or sustainability
•  There was nothing there to make me care

I met with the executive and shared my thoughts in a polite manner.  I sent her a mini report after our meeting and here is part of her email response:   

“I Know, I know, we aren't transparent and all the other stuff you mentioned...but in this economy it is all about making money.”

I stand by my prediction.

While a company like this may temporarily grow, it won't be sustained as savvy consumers really figure out the motivations, and how sustainable is that?  A failing company takes lots of people down with it including vendors, employees and investors.

More to come tomorrow.

What are you doing about climate change?

Every single business needs to be taking action.  

The first step is to conduct a greenhouse gas (GHG) inventory.  Have you done that yet? 

The subsequent steps are to reduce emissions and then offset the remaining ones.  By conducting a GHG inventory, you will discover ways to make positive changes.  This is an iterative process so progress can be measured and reported.  

It is the transparency of the process and the reporting that helps provide credibility.  If you aren't transparent you will lose credibility and might be accused of greenwashing.  How sustainable is that? How long do you think that type of firm will survive in this market?

Stakeholders are far more sophisticated these days and are asking legitimate questions.  On Friday last week I sent an email announcement formally introducing TriLibrium and our website.  One of the receipients noted our GHG offsetting claims and asked the following questions:

Upon review of your website you mention that you will be "offsetting" your GHG emissions.  I have a  few questions/comments:  How are you determining your GHG Emissions?  What Scope are you defining and what are your boundaries?   As a matter of transparency, it might be advisable to define how you are calculating your GHG Emissions.  Also, it may be advisable to indicate how you are offsetting your GHG Emissions.  What company you intend on buying offsets from, etc.

I'll share my answers with you tomorrow.

Greenwashing and environmental claims

I was recently drinking from a disposable cup that claimed to be “biodegradable”. While it may in fact be biodegradable, the question that arises is by when and under what conditions? I’m not a scientist but I suspect everything is biodegradable given enough time. Therefore, the biodegradable claim provides no useful information and may in fact be misleading if the cup is simply tossed in the garbage and ultimately buried in a landfill without sunlight and oxygen.

The point I’d like to discuss today is the importance of accurate environmental claims and to point readers towards a new guide published by our friendly neighbors to the north.

On June 25th, Canada’s The Competition Bureau, in collaboration with the Canadian Standards Association released guidelines for the business community to ensure that green marketing was not misleading, while providing consumers with greater assurance about the accuracy of environmental claims. The 72-page report addresses a number of commonly used green claims and provides examples of best practices on how such claims can be used by businesses to comply with the false or misleading provisions of Canadian laws.

Among other practices, the Guide states that:

• The use of vague claims implying general environmental improvement are insufficient and should be avoided.
• Environmental claims should be clear, specific, accurate and not misleading.
• Environmental claims should be verified and substantiated, prior to being made.

You can get a copy of the guide here: Environmental Claims: A Guide for Industry and Advertisers

One item I found particularly interesting was the entry on sustainability claims. Here is what the guide says:

The concepts involved in sustainability are highly complex and still under study. At this time there are no definitive methods for measuring sustainability or confirming its accomplishment. Therefore, no claim of achieving sustainability shall be made.
CAN/CSA-ISO 14021, Clause 5.5

In the spirit of honest advertising and useful information, I have to agree that a claim of achieving sustainability would be inappropriate within the systems thinking paradigm.

I haven’t had a chance to completely read the guide but based on a quick review, it looked like a responsible list of criteria we could all adopt as we go forward with our green business, working towards sustainability.