BA 850
Sustainability-Driven Innovation

 

Sustainability Innovation Leaders - Planet

PrintPrint

Beyond looking at the empirical measures or philosophies of sustainability, it can be highly valuable to examine the leaders (and failures) of sustainability in practice. The practice of sustainability has many component parts representing a very wide spectrum of ideas and material concerns, and with a seemingly infinite number of potential blends to be created in implementation:

The Emotional and the Rational

The Massive and the Minute

The Progressive and the Regressive

The Global and the Local

The Aspirational and the Tactical

A goal throughout this course will be therefore to understand both ends of the each spectrum, map and distil the choices made by sustainability programs, and understand the opportunities created for the organization. As we understand more deeply, we may begin to understand how we can create spaces and niches for sustainability-driven innovation within any organization, and in an integrated and seamless way.

Below are three examples of initiatives within organizations leading the way in Planet-oriented sustainability initiatives, ranging from the billion-dollar Interface to the 47 employee Full Sail Brewing Co. From there, we will take a brief look into the component parts of each initiative, what Planet aspects they leverage, and how they uniquely create value for the organization.

Interface

Watch the following 16 minute video: The Business Logic of Sustainability. While it is not a "summary", it is a great story from an unlikely pioneer of sustainability.

Link to Transcript

The Insight

Ray Anderson's sustainability epiphany was the inspiration, and his position and conviction allowed him to apply significant resources to solving the problems of the carpet tile lifecycle. Regardless of whether it was guilt of a founder nearing retirement or the inspiration of a book, Ray Anderson devoted himself to creating a sustainable legacy.

The Opportunity

Creating an offering of "climate neutral carpet" to a primarily commercial building market. Importantly, the timing would be ideal, as this was happening when LEED, recycled materials, and sustainable sourcing in architecture were gaining significant headway. Interface would become the first sustainable carpet tile in a market where sustainable materials and surfaces were becoming a requirement.

GRI Planet Aspects

Vision

Significant, and with its foundations in Ray Anderson himself. While much of the original vision for infinitely recyclable, "climate neutral carpet" may have started with Mr. Anderson, it became a serious engineering, chemical, and logistical challenge to execute. It would be fascinating to learn if the profit and market share gains experienced were part of the early Interface vision, or if they turned out to be fortunate byproducts of what might have otherwise been considered a sunk-cost program. It would be an interesting learning experience to see what kind of test or Beta program Interface could have been established to understand the gains they were walking into for their nearly half a billion dollar investment.

The Interface Mission is extremely lofty, but one on which the company has done significant work and devoted significant resources to help make happen. Interface describes its Mission as:

"What drives us? A positive vision of the future and the determination to make it come true. The moral courage to do what is right, despite all obstacles. An abiding commitment to show that sustainability is better for business. We believe that change starts with us and is transforming Interface from a plunderer of the earth to an agent of its restoration. Through this process of redesigning ourselves, we hope to be a catalyst for the redesign of global industry."

Innovation

Significant. After the establishment of their original ReEntry process to recycle used carpet into 100% recycled carpet tiles, it tackled the issue of used commercial fishing nets washing up on shores worldwide. It not only developed a process to recycle this notoriously difficult material, but also partnered with the Zoological Society of London to establish a "community-based supply chain" by which communities in the Philippines could clear their beaches and reefs of the nylon nets while being paid for the material.

Storytelling

The Interface story has become one of the most hailed sustainability stories of the last 20 years, gaining attention everywhere from Forbes and the Wall Street Journal to Triple Pundit. The story of Interface has gone on to influence countless other businesses as to the possibilities of sustainability.

Achievement

Interestingly, Interface has not issued a CSR for some years, and is fairly limited on metrics. So despite spending millions on sustainability programs and gaining significant PR (as well as being a NASDAQ traded company), it does not disclose sustainability indicators.

Structure

Again, without a published CSR or real sustainability documentation, it can be difficult to evaluate the structure of their program.

The Secret

Most competitors (such as the Warren Buffet-owned Shaw Carpet) have closed the gap on recycled materials, and can offer the same level of recycled material. Interface has been able to hold much of its gains from its initial burst of growth as the first mover in recycled carpet.

Patagonia (Worn Wear Program)

Please watch the following 3:47 video.

Transcript of Worn Wear Stories Presented by Patagonia

KEIRA HENNINGER (RUNNER): When you’re running 100 miles, you’re running for 21, 22, 23 hours, a lot of stuff can unravel when you’re out there running for a long time.

KEITH MALLY (SURFER): You put yourself in a situation where you really don’t think you’re going to make it, and somehow you do. And after a wave like that, beer tastes good, food tastes good.

TOMMY CALDWELL (CLIMBER): These rugged mountain environments are not made for life, there’s nothing living. There’s not even a speck of lichen.

KEIRA HENNINGER (RUNNER): I always say, going for a run clears your mind, but running an ultra clears your soul. I think I’ve completed 42 ultras and 5 hundred-mile races. Running gear is probably one of the most essential parts of running ultras, whether it’s being comfortable in the shorts and all the chafing in all the right places. I would never go start a 100 mile race without having worn a certain piece before. I’ve had these for about 2 years. These shorts have probably seen 5000 miles on them. These are like my handy-dandy best friends.

KEITH MALLY (SURFER): With modern day high-performance surfboards, you’re lucky if it lasts 3, 4, 5 months. This surfboard’s 9 years old and doesn’t have one single ding in it. I’ve taken that board to Indonesia, Canada, the Wedge, a trip to Fiji, the Cloud Break, Tahiti, the Chofu, Washington, I took it to Norway, and Iceland also. I just have confidence in that board, and the reason why because I know it so well. The amount of good waves I’ve had on that board it makes me smile when I think about it.

TOMMY CALDWELL (CLIMBER): Last January, with a good buddy of mine, Alex Honnold, we managed to traverse the entire FitzRoy massif. We climbed for four days, about 18 hours a day. Seven different major summits, 12,000 feet of vertical gain, groveling through cracks for days, just getting our arms in there. The reason that we can exist for days at a time is because the clothing that will make it work. Yeah. Beautiful. The most important thing is that morale is high. A lot of people when they’re intimidated, they just get scared. They want to go down. [Well, I am quite scared. And you know why? Because of this.] It’s hard to articulate exactly why one piece of clothing becomes a favorite. I think the experiences you’ve had, like if you’ve used it over and over again and it’s worked for you, you just know it’s going to work.

KEITH MALLY (SURFER): I mean naturally you don’t even think about the board, because you trust it so much.

TOMMY CALDWELL (CLIMBER): There’s a little bit of superstition involved.

KEIRA HENNINGER (RUNNER): I tend to have an emotional connection to certain pieces.

TOMMY CALDWELL (CLIMBER): You like, "oh man, I’ve worn this jacket on all my biggest climbs for the last couple of years, I better bring it or I might not descend."

KEIRA HENNINGER (RUNNER): These shorts I have won 8 races in.

TOMMY CALDWELL (CLIMBER): I love with this jacket and I’ll continue to wear it. Now it’ll always be attached to this climb which was one of the most rich experiences of my life.

KEIRA HENNINGER (RUNNER): They’re getting a little, they're getting worn.


The Insight

In the face of increasing consumerism, immediate gratification, and disposable products, there is an opportunity to own a space around authenticity, durability, and modesty. Patches and repairs to an item of clothing should be considered a badge of honor from a life well lived.

The Opportunity

To own the space, and in the process, help justify the price premium of their well-constructed, sustainably sourced clothing. There is also an opportunity to distance themselves from other outdoor brands (i.e., North Face) which have lost their authenticity to some extent. Patagonia can provide information, materials, and support to those who seek to repair their clothing as opposed to throwing it out.

GRI Planet Aspects

Vision

Patagonia Mission Statement: "Build the best product, cause no unnecessary harm, use business to inspire and implement solutions to the environmental crisis."

"One of the most responsible things we can do as a company is to make high-quality stuff that lasts for years and can be repaired, so you don’t have to buy more of it. The Worn Wear® program celebrates the stories we wear and keeps your gear in action longer to take some of the pressure off the planet."

Innovation

Many companies tout the durability of their clothing, but very few actively give you the tools and support to repair their clothing. Fewer still promote purchasing fewer of their products in the headlines of their pages.

If any additional evidence is needed that they are serious about this, Patagonia actively promotes a Black Friday "Worn Wear Swap" at eight of its flagship locations where you can bring in your used Patagonia and swap with others. Not many stores would devote the largest retail day of the year to encouraging used clothing.

Storytelling

Everywhere. The initiative is excellent at not only unearthing stories, but in the process reinforcing the bond between a piece of clothing and an emotional or memorable experience. They have a dedicated blog for the Worn Wear program, and you can easily see how customers will wax poetic about the memories they have of their favorite Patagonia item (and furthermore, reinforcing the durability of Patagonia used for years in rough conditions).

Achievement

While it would be nice to have a metric (i.e., "200,000 Patagonia garments NOT sold since 2012"), the Worn Wear program is more of a message or social imperative than anything. Participation in the program does not involve the purchasing or signing up for anything, so it would be hard to measure. It does capture quite a bit of vicarious achievement through the rich stories shared by customers about the adventures of their faithful Patagonia jacket or shirt.

Structure

Very little, which is keeping with the Patagonia sustainability ethos of initiative- as opposed to metric-driven sustainability reporting. While they lack in structure, they far exceed in framework and execution. Patagonia has offered this statement as to why they do not have a structured CSR:

"The advantage to the reader/user of sustainability reports that follow the GRI framework is the ability to easily compare data from different companies. The disadvantage: a sustainability report, like an annual report, can be a dull read held forth in specialized language that clouds as much as it reveals. Because we recognize the advantages of easy comparability, we are investigating the possibility of importing data we collect for the Footprint Chronicles into a GRI framework (and with as much plain speaking as possible). Sustainability reports can be expensive for a company of our relatively small size to research and produce and can only supplement, not substitute, for the Footprint Chronicles. We want to continually raise rather than lower the quality of the conversation we’ve created with our stakeholders over the past years."

The Secret

The Worn Wear program does a fantastic job of justifying a premium price and deepening the brand experience through storytelling and authenticity. It's in keeping with the Patagonia platform of 'a consumer brand that rejects consumerism.'

Full Sail Brewing Co.

Watch the following 2:44 minute video on Beer, Water, and Responsibility.

Transcript of Full Sail Brewing: Beer, Water & Responsibility

[MUSIC PLAYING]

JAMIE EMMERSON: My grandmother said being responsible is doing the right thing when no one's looking. And it's a choice we make as an independent company working and living here in Hood River. We want people to continue to be able enjoy the natural resources of the gorge just as we do.

In 1987 we started brewing in the fruit juice press plant of the Diamond Fruit cannery building. Part of our idea at the time was to recycle these old buildings as opposed to demolishing them and build something new, and trying to save those resources. The benefit to being in Hood River was that it also had a wonderful water source. Cold Spring and Stone Spring up in the slopes of Mount Hood feed the city of Hood River, and in turn, our brewery.

Classic brewing cities are known for their water because beer is mostly water. And Hood River's water source is impeccable. Because we're an employee-owned company, we're able to invest in projects that reflect our values and priorities, like using recycled glass, recycled packaging, wind power. And the outcome for the brewhouse is the Meura mash filter.

As brewers, we need to address our water consumption is our number one priority. And the mash filter is a reflection of our responsibility to the environment. Also, the outcome from the brewhouse is the ability that the Meura provides, such as dry spent grains. Those spent grains are recycled into cattle feed, so used to feed dairy cows, which make cheese for our cheeseburgers in our pub.

The Meura 2001 is an interesting machine because it replaces a traditional ladder tug, which is essentially a giant strainer. The biggest benefits the Meura provides are that it's fast, efficient, makes very dry spent grains, and most importantly, very high quality beer. Last year, we were able to reduce the number of truckloads of spent grain by 77 trucks more than one a week. So that was just reducing the amount of diesel, reducing the amount of truck hauling on the highways, all side benefits of reducing water.

Last year, we averaged a savings per brew of over 800 gallons, so more than a million gallons of water savings. Most craft breweries use between 6 to 10 gallons of water to brew every gallon of beer. Our current average using the Merua is 2.5 gallons for every gallon of beer, quite a substantial reduction. After 25 years of living the dream, brewing in beautiful Hood River, Oregon, it's very important for us to be good stewards of the environment so that other people can enjoy this area as much as we do.


The Insight

If you listen to what Jaime says in the video, it would appear that their world-leading water efficiency not only stems from a belief of responsibility, but also in remaining a welcome member of the Hood River community (this is an example of securing "license to operate," a topic we will address in a later lesson).

There may certainly be some technical prowess and innovations beyond those Jaime mentions, considering Full Sail uses only about 25% of the water per barrel of major breweries, and about 60% of the water per barrel of the much-touted sustainable brewer, New Belgium Brewing. In fact, Full Sail was named "Craft Brewer of the Year" by Beverage World Magazine, for their “sustainable stewardship, quality, consistency and operational ingenuity.

The Opportunity

As mentioned in a Dec 10, 2010 interview with Jen Boynton of Triple Pundit, we can see a great example of operational sustainability:

What’s your biggest sustainability challenge?
As a brewer, water and waste water are our biggest issues. That is why we are so committed to reducing our usage as much as we can. Water use also impacts waste treatment, energy use, truck hauls, etc.

Any new sustainability projects in the pipeline that have you excited?
We have just installed a new piece of brewing equipment called a Mash Filter, and it will save us nearly a million gallons of water yearly enabling us to lower our water to beer ratio. This savings also extends to the number of truckloads (~70) of material that won’t be coming and going from the brewery on a yearly basis. And I haven’t even got my arms around the savings in heating/cooling/electricity usage yet, but all will be reduced.

GRI Planet Aspects

Vision

From Boynton interview:

What are your plans for growth, if any?
We believe it is important to grow our business in an organic and sustainable way. We only look at opportunities that will allow us to build our business year after year. Because we are a small, independent brewery in a very competitive environment, we need to be sure that our business decisions are responsible and careful of our limited resources.

Innovation

While Full Sail's sustainability reporting is basic and informal, it certainly befits a small company. More importantly, Full Sail has invested its innovation dollars on equipment and infrastructure that will make a tangible difference in water consumption, namely the investment in the fairly exotic Meura mash machine mentioned in the video.

Storytelling

Full Sail marketing and CSR does not have the gloss or reach of a larger company with creative departments and dedicated sustainability staff, but Full Sail certainly makes up for that in substance and a great sustainability story of 'the little brewer who could.' They do quite a bit of storytelling around sustainability in their blog, as well.

Achievement

The fact that they are leading the world in water efficiency for a brewery is a major achievement, in and of itself.

Consider Full Sail to be a perfect case of a company NOT chasing the White Whale... water is important to the business, community and founders, so Full Sail has invested its full consideration and resources on minimizing impacts to the Hood River. They have certainly done well in that regard, and more importantly, they have set the standard and openly share their water conservation measures and advice with other brewers via "Ask Jaime."

Structure

Very little, but they do not have a formal CSR. Again, like sustainability, in a resource constrained setting, we must make choices, and Full Sail is spending it on improving performance as opposed to talking about the improved metrics.

The Secret

Leading the world in water efficiency, wholly-owned by its 47 employees, and holding more than 130 Gold Medals for its beers, Full Sail is an example of what successful sustainability in a small business can look like.