The company also delivers ice cream in thermo-insulated bags instead of refrigerated trucks. Driving competitive advantage through stakeholder engagement. SunNight Solar is home to the extremely popular BoGo Light program. The company purchases coffee beans directly from small family farms and cooperatives in Guatemala, Ethiopia, Rwanda, Uganda, and Nicaragua. Flooding in 2011 in Thailand, harmed 160 companies in the textile industry and halted nearly a quarter of the countrys garment production, increasing global prices by 28%. There are recycling bins throughout the property, and educational kiosks inform guests of the environmental attributes of the property. The company donates 100% of profits to environmental organizations, including Environment America, National Environmental Law Center, the Green Life, Campaign to Save the Environment, Toxics Action Center, ecopledge.com, Free the Planet!, and Recycling Action Campaign. The products are created by collecting fallen leaves from plantations, taken to the factory, sprayed with high pressure water, steamed, and UV sterilized. You can choose from trips to Africa, Central America, or South America, and $100 per participant is donated to a local project. In addition to eco-friendly cleaning, Greenforce offsets emissions created from travel to its cleaning sites (carbon neutral cleaning). The hotel is furnished with natural, organic, and recycled materials, has all-natural and organic landscaping, and uses green cleaning products. 3Ms Novec fire suppression fluids are the first viable, sustainable alternative to hydrofluorocarbons. The Burn & Earn program pays members $1 for every hour spent generating (or saving) electricity. White Dog Caf donates an amazing 20% of pretax profits to nonprofits and the caf has also created its own nonprofit, White Dog Community Enterprises. Fortunately, there are an increasing number of businesses moving toward sustainability. Indigenous Designs (Santa Rosa, California) sells organic Fair Trade fashions created by their own artisan network across South America. The building is the first child care center to be LEED-certified and has floors that emit radiant heat and are made from virgin rubber plants, paint that is zero-VOC (volatile organic compounds), and solar tubes for lighting. Of the respondents, 72% said that climate change presents risks that could significantly impact their operations, revenue, or expenditures. Through the Oromia Photo Project, Oromia Coffee Farmers Grower Union farmers activities are documented. Earth Tones (Denver, Colorado) bills itself as The Environmental Internet & Phone Company. The company offers Internet access and long-distance and wireless phone services. In addition to the standard fare for auto and travel clubs, the Better World Club also offers bicycle roadside assistance, discounts on hybrid or biodiesel auto rentals, discounts at eco-lodging facilities, discounts on eco-tours, membership discounts for hybrid vehicle owners, an online carbon emissions calculator, carbon offsets for your auto or travel plans, and a donation of 1% of revenue to environmental cleanup efforts and advocacy. The company also partners with community, nonprofit, academic, industrial assistance, and local social services groups to promote green-collar job creation, sustainable business practices, and the development of the green building industry. When possible, gold and platinum are reclaimed through recycled jewelry and industrial waste. Massanellis Cleaners supports numerous charitable organizations and has a strong philanthropy program. The remaining 30% of charitable proceeds go toward Kiva loans for entrepreneurs in developing countries and to the Rebuilding Sierra LeoneOneChild at a Time campaign. This project encourages customers to visit neighborhoods they otherwise might not visit and to support minority-owned businesses and cultural institutions. As an aside, the company holds the distinction of baking the Worlds Biggest Cookie in 2003102 feet wide and over 40,000 pounds. Coca-Cola, for example, faced a water shortage in India that forced it to shut down one of its plants in 2004. The sustainability section of the clubs Web site outlines the many initiatives the company has undertaken in the quest for a more environmentally friendly facility. For example, social conflict related to disruptions to water supplies in Peru has resulted in the indefinite suspension of $21.5 billionin mining projects since 2010. These case examples showcase the wide array of approaches being used by businesses of varying sizes in various industries. All manufacturing processes are environmentally friendly and minimize waste. Tropical Salvage is collaborating with the nonprofit Institute for Culture and Ecology to create the Jepara Forest Conservancy, a public forest park and environmental education facility. TOMS Shoes are sold online and in retail locations around the world with the promise that for each pair purchased, TOMS will give one pair to a child in need in Argentina, South Africa, and other locations around the world. All profits from Greyston Bakery go to support the Greyston Foundation, which offers affordable child care for the community, affordable housing for homeless and low-income families, and affordable health care for persons with HIV. The companys goal is to create a ready-made business for local entrepreneurs and to increase access to affordable telephony for base of the pyramid customers. To reduce waste, bulk soap, lotion, and shampoo dispensers are used in guest rooms and only recycled paper is used. All items are handmade by artisans using traditional techniques, natural colors, natural dyes, and low-impact dyes. The garage recycles waste, buys in bulk, uses refillable containers, and specializes in the repair of fuel-efficient vehicles. In the food and beverage industry, a growing number of consumers are considering values beyond price and taste in their purchasing decisions, such as safety, social impact, and transparency. Keen Footwear (Portland, Oregon) began in 2003 with the Hybrid: part shoe, part sandal; a cross between an athletic shoe and a sandal. For example, when possible, electric vehicles are used for deliveries, the restaurant uses 100% renewable wind energy, organic items are on the menu, purchase of the Second Harvest Heartland pizza generates a $1 donation to this hunger relief organization, packaging is either made from recycled materials or is biodegradable, hemp products are on the menu, the menus are printed on hemp paper, produce comes from farms in Minnesota or Wisconsin when possible, the company recycles and composts, and 5% of pretax profits are donated to charity. BetterWorld Telecom is striving for a paperless operation. The White Dog Caf (Philadelphia, Pennsylvania) is a restaurant that supports sustainable agriculture by purchasing seasonal, local, organic ingredients from local farmers whenever possible. In addition, the salon gives back to the community and local charities. The company buys cement regionally and advocates for the greening of the cement industry. The wood and trees are then transported to one of two facilities in Indonesia where artisans build, carve, and finish the wood to create beautiful furniture and decorative items. Nearly two-thirds of consumers across six international markets believe they have a responsibility to purchase products that are good for the environment and society 82% in emerging markets and 42% in developed markets. The sister restaurant project also has an international dimension to foster awareness, communication, and economic justice worldwide. No chemicals, lacquers, glues, bonding agents, or toxins are ever used. Three new giving programs are being developed: Save Our Sisters (which will donate lights to womens groups and collectives in developing countries), Village Lights, and Need It/Take It. Clean Air Lawn Care will also remove yard waste to an organic waste recycling center, where available. sweetriot gets its all-natural cacao from countries of origin in Latin America and abides by ethical and FairTrade sourcing. IKEAs line of sustainable products like LED bulbs and solar panels from its Products for a More Sustainable Life at Home now generate a billion dollars. baabaaZuZu (Lake Leelanau, Michigan) makes clothing from items that would otherwise be discarded. The lights use a low-environmental impact battery and can be used for either task lighting or room lighting. One of the most unique parts of the Good Project I was the Do-Some-Good-Now Commitment. At Clean Green Collision (Oakland, California) precautions are taken during auto repair to ensure that dust, remnants, and hazardous chemicals do not enter the car and leave odors and fumes that could potentially harm customers. In fact, one study found that among numerous factors surveyed, the news coverage regarding environmental and social responsibility was the only significant factor that affected respondents evaluation of a firm and intent to buy. Nike embedded sustainability into its innovation process and created the $1 billion-plus Flyknit line, which uses a specialized yarn system, requiring minimal labor and generating large profit margins. Pizza Fusion (Fort Lauderdale, Florida) is a pizza chain with a wide variety of organic, vegan, gluten-free, and lactose-free menu items. Tropical Salvage (Portland, Oregon) is a tropical wood furniture company that never cuts down a single tree to make a product. IceStones donation program provides free or discounted material to projects that share similar social and environmental goals, with Habitat for Humanity receiving annual donations. The salon seeks to reduce energy and water usage throughout its operations, recycles, uses nontoxic environmentally friendly cleaners, refills bottles, uses only natural and organic hair and beauty products, and purchases from beauty supply companies with sustainable practices. Fair Trade Sports (Bainbridge Island, Washington) is a sports ball and equipment distributor and manufacturer. Hopworks Urban Brewery (Portland, Oregon) is a brewpub offering organic beer and restaurant menu items made from local ingredients. Sapphires used in Brilliant Earth jewelry are sourced from Australia or Malawi following Fair Trade principles. The company now has a line of shoes, Ventura, that are 100% vegan and created through environmentally friendly manufacturing processes. Caracalla (Little Rock, Arkansas) is a salon and day spa with an aggressive recycling program that extends beyond the typical recycling of waste. But the companys commitment to sustainability goes beyond the products it sells. Following the deal with Fair Trade Sports, the Frocester Plantation then created the Fair Trade Welfare Society for the plantations rubber tappers and employees. A study of the gold mining industry, for example, found that stakeholder relations can heavily influence land permitting, taxation, and the regulatory environment, thus playing a substantial role in determining whether a firm has the right to transform gold into shareholder capital therefore, as the study authors wrote, stakeholder engagement is not just corporate social responsibility but enlightened self-interest.. The most recent Habana Labs project is the Offgrid Outlet, a motorized, sun-following solar panel. In the manufacturing process, the company recaptures over 80% of the water used. The Great Elephant Poo Poo Paper Company Ltd. (Toronto, Ontario) recycles the waste of African and Asian elephants from elephant conservation parks and turns it into over 150 unique (and odorless) paper products. assets that lose value prematurely due to environmental, social, or other external factors) and over one-third of respondents reported cutting their holdings of a company in the past year because of this risk. They are working toward all 39 restaurants becoming fully recycling and composting. If the battery runs low at the destination, he can drop the kickstand and start cycling in place. Corporate sustainability initiatives aimed at improving ESG performance and proving value to society can increase employee loyalty, efficiency, and productivity and improve HR statistics related to recruitment, retention, and morale. Redesigning products to meet environmental standards or social needs offers new business opportunities. Carry-out containers that are not compostable are recyclable. The salon is decorated with reclaimed and vintage items and uses or sells eco-friendly products, such as homemade herbal wraps (no packaging waste! In addition, the beer delivery truck, the Fatty Wagon, runs on 100% pure vegetable oil. That conventional wisdom has now reversed. The shoe boxes are smaller than standard shoe boxes, resulting in less materials, labor, and waste. Earth Tones is a for-profit company created in 1993 by a coalition of nonprofit environmental organizations. The system also improves product quality by creating regulated growing conditions. Golden Temples Peace Cereal (Eugene, Oregon) is a line of organic cereals devoted to personal health and a peaceful planet. Items are made in South Asia by VerTerras own employees where employees receive fair wages in safe working conditions and are provided access to health care. And the company also composts waste to create fertilizer to grow herbs and vegetables for menu items. Llamadas Pedaleadas (Managua, Nicaragua), or Pedaled Phone Calls, is a bicycle-pedaled mobile cart with public telephones on board. Factories are monitored by TOMS and third-party independent auditors. In addition to organic Fair Trade fashions, Indigenous Designs purchases local green power to offset carbon emissions from its business activities, encourages employees to bike to work, and claims that about 20% of employees own and drive hybrid or biodiesel cars. Boutique Mix (Washington, DC) is a fashion boutique offering An International Ethnik Chik Kollection of unique items from around the world. The shop claims it currently creates only 30%40% of the emissions of a typical body shop, and the companys goal is to operate a 100% emission-free auto body business. The company has a goal of net-zero energy usage. The company is also carbon-neutral. Each franchise restaurant is LEED certified. Their innovative system has increased productivity and quality, reduced environmental impact and costs, and increased global competitiveness. Additionally, Alaffia and Agbanga Karite donate 10% of sales proceeds (or 30% of income, whichever is greater) to community empowerment projects, AIDS and malaria outreach, and educational scholarships in Togo. McKinsey reports that the value at stake from sustainability concerns can be as a high as 70% of earnings before interest, taxes, depreciation, and amortization. Investors are paying attention. Proctor & Gamble, for example, conducted a life cycle assessment of its products and found that U.S. households spend 3% of annual electricity budgets on heating water to wash clothes. Hotlips Pizza uses as many locally grown ingredients as possible, including wheat, vegetables, cheese, and meat. While the facility is fully equipped with all the standard equipment found in any gym, the equipment has been retrofitted to capture, store, and reuse energy produced from the use of elliptical trainers and stationary bikes. Trucks are equipped with solar panels to recharge the mowers throughout the day. A focus on sustainability can also unlock opportunities for process and logistics savings. To achieve this, all wood used in the construction was FSC-certified, paints are low VOC, and carpets contain postconsumer recycled material. Caracalla supports the local economy by purchasing from local and organic suppliers, particularly other sustainable or green businesses, and buys in bulk to reduce packaging waste. Folk art also adorns all cookie packaging. The solar-powered lights offer an alternative to kerosene, wood, and other forms of lighting used in developing countries. Unlike traditional forms of business risk, social and environmental risks manifest themselves over a longer term, often affect the business on many dimensions, and are largely outside the organizations control. Galactic Pizza (Minneapolis, Minnesota) makes excellent pizza from local and organic ingredients. But what each of these case examples has in common is that they demonstrate it is possible to successfully pursue sustainability and a triple bottom line. Frogs Leap Winery (Rutherford, California) is committed to sustainable farming and traditional farming techniques, including dry farming, which requires tilling every 10 days to hold moisture and which eliminates the need for irrigation. To date, TOMS has donated over 60,000 pairs of shoes during Shoe Drops around the world. For example, the Kids Corner offers ecological activities and an alternative heroes coloring book (about real-life heroes!). Since making and freezing ice cream is an energy-intensive process, the ice cream parlor runs entirely on solar power. In the largest study on climate change data and corporations, 8,000 supplier companies (that sell to 75 multinationals) reported on their level of climate risk. Burgerville purchases 100% of their energy usage with wind power credits, they recycle used canola oil into biodiesel, and they offer affordable health care to employees. Izzys Ice Cream Caf (St. Paul, Minnesota) makes homemade ice cream using local ingredients, when possible, such as local maple syrup and dairy and cream from local and family-owned farms. Electricity is generated as the person is traveling to his destination. The entire process uses only a fraction of the typical energy used for recycling. In addition, the Web site has resources available to everyone, including Green Alerts and a marketplace. An incredible 25% of all profits go toward charitable causes. In addition to Free Range Studios socially conscious creative work, the company also seeks to reduce its environmental impact and give back to communities through the use of triple bottom line accounting, 100% wind power, eco-printing, and other initiatives. Little Rock Green Garage (Little Rock, Arkansas) is attempting to embrace environmental sustainability through all aspects of its operations and seeks to become one of the countrys first green auto repair facilities. Significant cost reductions can result from improving operational efficiency through better management of natural resources like water and energy, as well as minimizing waste. The product line consists of jackets, vests, hats, scarves, mittens, purses and bags, pins, and Christmas stockings. Earth Tones offers online billing or (recycled) paper billing and phone recycling for customers. The Trade for a Change fund-raising program allows nonprofit organizations to sell Higher Groundss organic and Fair Trade blends and thus increases sales for the coffee farmers. The companys waste recycling programs strive for zero waste and recycles food waste for animal feed and composting. The company pays, on average, 40% above market prices for the organic honey, and the company collective currently has 5,000 registered beekeepers. The lights are rugged and durable and suited for harsh conditions in which no light is available. In addition, companies who embed sustainability in their core business strategy treat employees as critical stakeholders, just as important as shareholders. Wal-Mart, for example, aimed to double fleet efficiency between 2005 and 2015 through better routing, truck loading, driver training, and advanced technologies. The disposable dinnerware products are durable, naturally biodegrade in 2 months, and can be used in the microwave, oven, and refrigerator. Better morale and motivation translate into reduced absenteeism and improved productivity. The company purchases carbon offsets for the business and is carbon neutral. pioneered the idea of creating shared value,, regular dialogue with stakeholders and continual iteration, longer-term capacity building and developing adaptive strategies, in the indefinite suspension of $21.5 billion, Whiteboard Session: The Business Case for Sustainability, integrates sustainability into its innovation pipeline, compared with regular cut and sew footwear, perceive a higher level of product performance. The factory has a cool, low-emissions manufacturing process. Here are some other datapoints to consider: Between 2006 and 2010, the top 100 sustainable global companies experienced significantly higher mean sales growth, return on assets, profit before taxation, and cash flows from operations in some sectors compared to control companies. The Green Microgym (Portland, Oregon) is one of the few fitness facilities in the world operating partially on solar and human power. Greyston Bakery (Yonkers, New York) is an example of social entrepreneurship at its finest. IceStone advocates for stronger glass recycling programs in New York in order to create an infrastructure that allows the commercial reuse of regional waste glass. IceStone is working to become carbon-neutral, purchases renewable energy credits, and strives to reduce energy usage. It can also reduce annual quit rates by 3-3.5%, saving replacement costs up to 90%-200% of an employees annual salary for each retained position. Certain bread and pretzels found on the menu are made using grains from the brewing process. Pinehurst Inn composts food and garden waste, recycles, avoids chemical treatments on lawn and gardens, serves locally grown organic food and organic coffees and teas, and has converted their vehicle (the Grease Car) to run on recycled grease. Items are then shipped to North America for retail sale. In addition, restroom construction used recycled tiles and granite, and low flush toilets and showerheads were installed. Indigenous Designs also partners with nongovernmental organizations and others to help provide training, educational materials, and equipment to the artisans. All after-tax profits of Fair Trade Sports are donated to childrens charities to help at-risk children around the world. Boutique Mix sources natural organic handmade items following Fair Trade principles and nonhandmade items that are organic and use low-impact dyes and processes. In addition, Zambezi Honey donates a portion of profits back to Zambia for projects in malaria prevention, HIV/AIDS education, school scholarships, and rural-income generation grants. The company philosophy is Bake well, be creative, have fun and give back. Immaculate Baking Company works hard to maximize its social impact by baking Cookies With a Cause. The company created the Folk Artists Foundation to provide support and exposure for folk artists. For each pound of the Ethiopian Oromia coffee sold, Higher Grounds will add an additional $1 tip to go back to the farmers. Some of that is self-inflicted, as early on companies tended to increase sustainable product prices substantially and in some cases sold inferior products (e.g. IceStone (Brooklyn, New York) manufactures surfaces made from recycled glass and concrete. In addition to the EDUN retail collection of items made with organic cotton, edun LIVEhttp://www.edun-live.com is a business-to-business solution for anyone who wants ethically produced blank T-shirts. You need look no further than the following companies for proof of those who exemplify our own motto: Make a Profit, Make an Impact, Make a Difference. Sustainable businesses are redefining the corporate ecosystem by designing models that create value for all stakeholders, including employees, shareholders, supply chains, civil society, and the planet. In that year, these improvements resulted in 15,000 metric tons of CO2 emissions avoided and savings of nearly $11 million. Through work individually and with GACE, Agbanga Karite Cooperative has provided more than 300 children with books, uniforms, and supplies for the 20042005 school year; paid the school enrollment fees for these children; donated desks and chairs to a local primary school in the village of Adjorogo; and donated and installed new school roofs on rural schools in central Togo. During the 2008 recession, companies committed to sustainability practices achieved above average performance in the financial markets, translating into an average of $650 million in incremental market capitalization per company. The company is pursuing zero waste. Through its nonprofit, Friends of TOMS, the public is invited to participate in Shoe Drops. Boulevard Bread Company (Little Rock, Arkansas) is a multisite restaurant committed to being a low-impact and environmentally friendly business. All locations have been retrofitted with energy-efficient lighting, and the main site has installed a tankless water heater. In addition, the company purchases and sells recycled items, such as paper, bags, office supplies, toilet tissue, hand towels, pet toys, and even biodegradable bags for picking up dog waste. By the end of 2014, they had improved fuel efficiency approximately 87% compared to the 2005 baseline. Much of the strategic value of sustainability comes from the need to continually talk with and learn from key stakeholders. The bakerys facility was selected as a Top Ten Green Project in 2004 for its use of natural light, rooftop gardens, efficient machinery, and the use of outdoor air to cool baked goods. The company offers to make paper from anything you desire, except live trees. Companies can also charge higher price premiums based on positive corporate responsibility performance. Hoping to alleviate their concerns, this article also provides concrete examples of how sustainability benefits the bottom line. The company operates Habana Works, Inc., a nonprofit offering free sustainability-related workshops through various programs such as Habana Labs and Urban Studio Brooklyn.