Sustainable business: An historical perspective

by Wanda Ballentine

Joel Makower, editor of the Green Business Newsletter and author of many books on environmental business practices, may have changed his mind after hearing Ray Anderson, but in his view, "business is inherently polluting, and in general, business won't save the earth." Actually, he observed, the crisis isn't really about saving the Earth. We may wipe out ourselves and other species, but evolution will continue on whatever tack may emerge. "The crisis is really about saving business."

"Green consumerism," reported Makower, "is very frustrating and discouraging." The majority of people just aren't interested, and "green" businesses need to do a lot of educating. Furthermore, he said, "environmentalists don't know how to talk about bringing value to companies."

Makower notes, however, that during his career, business practices have really changed, and his original anti-business stance has metamorphosed into a grudging respect for what businesses are doing. "Years ago, the cutting edge was recycling paper and getting rid of Styrofoam cups. Now, it's waste reduction, and conservation is not an inhibitor, but creates value." Even such decidedly "brown" companies as Ford and Dupont have made great strides in cutting toxic emissions, he reported. Ford now pays Dupont on the basis of how many cars get painted rather than the amount of paint used. Result: 90% of the paint now goes on the cars, not into the air. Dupont, nevertheless, remains the country's #1 toxic emitter.

The action today, according to Makower, is in greening the service sector. It now accounts for 70% of the economy, $4 trillion of the GDP, 78% of the jobs and huge transportation costs and related emissions. Transportation, for instance, is a big factor in the cost of food; you can even order groceries via the Internet to be Fed Exed anywhere. The real estate industry accounts for 12% of the GDP and involves such environmental issues as land use, sprawl, loss of habitat, transportation issues, air pollution, and storm runoff.

Many of these service industries could institute massive positive changes, said Makower, as they have incredible up-and-downstream leverage. Any organization using two million pounds of potatoes a day, as McDonalds does, could make an enormous difference by changing its requirements and methods. McDonalds also has a huge number of contacts downstream and could pass on ecological methods.

98% of businesses, however, have fewer than 100 employees and have a hard time coming to terms with environmental issues. While strides have been made in cleaning up industrial point sources of pollution, non-point sources produced by small businesses and individuals continue to increase. "The act of getting to and from a store may be at least as impactful as the manufacturing process involved in what is purchased." These groups also use large amounts of pollutants such as pesticides and paints.

Global economic and social inequity must be addressed. The three richest countries spend more on cosmetics than on education. "For balance, we need not only healthy environment and healthy economy, but economic and social equity globally and nationally. We need fairness across generations. Global sustainability is essential." Grameen microcredit banks have made a huge difference in addressing this situation. Monsanto and Nike are now looking at creating similar schemes, and microcredit plans are developing here in the U.S. In Eugene, such an entity is just getting under way: Lane Microbusiness, a collaboration between LCC, O.U.R. Credit Union, and the Saturday Market.

Hen Cackles

©Wanda Ballentine