Filed Under Sustainable procurement

Ashforth Pacific, Inc., Portland, Oregon, USA

Chas Martin — Tue, 28 Oct 2008 14:07:31 -0400

A Natural Step Network Case Study

Overview
Ashforth Pacific, Inc. (API), is an investor, owner, and operator providing third-party property management, construction, and parking management services in West-Coast markets. An affiliate of The Ashforth Company, a Connecticut-based firm, API was established in Portland, Oregon, in 1995 and currently has 55 employees. The Ashforth Company presently owns and manages upwards of 15 million square feet of office space, of which 1.5 million square feet is in Portland. In May 1999, API launched an environmental initiative based on its newly created environmental statement and the four system conditions of The Natural Step.

Background
The Ashforth Company was founded as a family owned real estate company in New York in 1896. Throughout the next century, it expanded its services and coverage areas. The creation of the API office extended The Ashforth Company’s services beyond the Northeast to include the rapidly growing Northwest real estate market.

The company strives to bring social and economic benefits to the communities in which it operates. The opening page of its centennial celebration book states, “We owe it to our ancestors to preserve entire the rights they have delivered to us; we owe it to our posterity not to suffer their dearest inheritance to be destroyed.”

Ashforth is dedicated to serving its customers by adhering to its four operating principles: Commitment—to create enduring business relationships that will enhance the value of the company, Quality— to be dedicated to providing the highest level of service with speed and professionalism, People—to foster teamwork, personal growth, creativity and leadership and to encourage respect for the individual, communication, optimism, and a sense of humor, and Practices—to act with integrity and fairness to customers, employees, and community.

Introduction to The Natural Step: the Passion of a CEO
Hank Ashforth, CEO of API and the great-grandson of The Ashforth Company’s founder, learned about The Natural Step (TNS) through his involvement with the environmental community in Portland. Convinced that the business community must be part of the solution of pressing environmental issues, he attended an Oregon Natural Step Network breakfast meeting and quickly saw a good match between API’s principles and the framework TNS provided. In March 1999, he invited Duke Castle to give a briefing for members of the API executive team in charge of property management, construction, leasing, and finance.

The executive team met with Castle again to conduct a visioning exercise and brainstorm potential ideas. The team came up with a list of “low hanging fruit” and sent several employees to the National TNS conference in Portland in April 1999. Its purpose was to gain insight on ways to implement TNS framework, recruit a summer intern to focus on environmental issues, and train employees.

Launching the Environmental Initiative
In May 1999, the executive team hired Wendy Faubert as an intern and worked with her on a strategy for implementing an environmental initiative. They developed an approach that was both top-down and grassroots oriented. This strategy was designed to take advantage of the strong support of the executive team, the small and personal nature of the company, and the existing interest and passion of some employees.

The primary function of the grassroots approach was to develop awareness and interest among office employees in a fun and non-threatening manner. Meanwhile, the top-down strategy involved the executive team formulating an environmental policy statement and the formation of two sustainability teams. The teams’ mandate was to focus on ways that office operations and building-management practices could support the environmental initiative. The two groups, OSCAR (Office, Sustainability, Conservation, and Recycling) and BEAT (Buildings Environmental Action Team), would each be staffed by six employees handpicked by the CEO.

In July 1999, API officially launched its Environmental Initiative at an all-hands meeting—a debriefing meeting attended by all members of the office. The initiative was based on the company’s new environmental statement, “We will be stewards of our environment by taking responsible actions within our business and our communities,” and the four system conditions of The Natural Step. During the meeting, Duke Castle presented TNS framework, Hank Ashforth spoke, and a brainstorming activity allowed employees to write down their ideas for practices that could be implemented within the company.

By the fall it was apparent the Faubert was needed fulltime, and she accepted the job of sustainability coordinator.

Building Employee Support for the Environmental Initiative
From the beginning, building employee interest, awareness, and support for the Environmental Initiative was a top priority. The initial strategy was to keep the activities voluntary and fun. Several different methods were used to educate employees about sustainability and concepts surrounding TNS framework.

A brown bag lunch series served as the primary means of engaging employees. Employees learned about other environmentally conscious businesses organizations such as The Collins Companies, the Sustainable Chef’s Collaborative, Nike, PGE, The Rebuilding Center, and Carsharing Portland.

Other education methods included field trips and a bulletin board displaying relevant articles and information on sustainability and TNS framework. Office games and activities for each system condition kept the initiative and the concept of environmental responsibility in front of employees in a fun and interactive way. One popular activity was the “cookies-for-trash-cans” trade where employees voluntarily gave up their individual trash can and agreed to throw away all of their garbage in a central area. This activity was easy for employees to participate in, succeeded in raising employee awareness about what they were throwing away, and saved API 9,000 plastic trash can liners a year.

Finally, each API office employee attended a two-and-one-half-hour TNS framework training. The sustainability coordinator, office manager, and assistant controller conducted the training in groups of six to ten people during August and September 2000. All office employees attended the training as well as several outside vendors and other organizations interested in The Natural Step. The training focused on understanding the four system conditions through a combination of games, videos, visual aids, and discussions exploring how our actions and purchases affect the environment. The employees also completed a questionnaire that polled their perceptions related to the initiative and their interest in participating in other environmental events.

Results, Results, Results
API’s Environmental Initiative is a vision shared by the entire company, but it is rooted in producing results, results that can be measured and managed. Hank Ashforth has emphasized quantifiable results, believing that “if we know where we are, it is easier to go where we want to.”

Energy. Many of API’s initial projects focused on energy conservation measures. Between 1997 and 2001, the company reduced energy consumption by 18% through lighting and heating/cooling changes in the four commercial properties it owns, saving $654,000 over five years. T-8 lights, compact fluorescents, and LED lights replaced less efficient products; and automatic controls sweep all lights off during evenings and weekends. Thermostats were adjusted by two degrees. As a conservation incentive, sub-meters were installed so that tenants pay for any extra use of electricity above a standard amount. In addition, API has invested 6% of total electricity usage in wind power through Pacific Power’s Blue Sky program. The company is one of Pacific Power’s largest supporters of Blue Sky.

Water. API reduced water consumption in its portfolio properties by 6% by not using air conditioning after hours and not watering lawn areas, saving $43,000 annually. To handle storm water on site, the Liberty Center Parking Garage was retro-fitted with bioswales that filter the runoff and allow it to seep into the ground.

Waste. Through electronic communication and double-sided copying, API reduced paper purchases by 39% between 1998 and 2001. As a further commitment to saving trees, the company switched to 100% post-consumer recycled copy paper and 100% (40% post-consumer) recycled, chlorine-free toilet paper, saving over $15,000 annually. In 1999, when PacifiCorp’s office space was renovated, API’s construction arm made an extraordinary effort to recycle not only metal and wood, but also ceiling tile, window glass, drywall, and carpet. The company is now working to expand recycling options available to tenants to include batteries and packing peanuts and to create a better mechanism for tracking waste and recycling outputs. The centralized trash collection system for the office is on its way to becoming standard operating procedure for all tenant spaces.

Toxics. The company worked with ABM Janitorial Services (ABM) to switch to non-toxic cleaning products in the maintenance of its buildings. First testing the citrus-based Bi-O-Kleen on an outside curtain wall and finding it effective, ABM found it could replace over 20 standard cleaners, from scouring powder to carpet spotter, degreaser to disinfectant, with the same solution in different concentrations. As a result, 25 hazardous chemicals have been eliminated. ABM now promotes Bi-O-Kleen with its other commercial clients.

To reduce landscaping impacts, chemical herbicides, pesticides, and fertilizers are now prohibited in API’s maintenance specifications. Gasoline-powered maintenance equipment has been replaced by propane, electric, or manual equipment wherever possible, and the most polluting two-stroke engines are no longer allowed. Leaf blowers, because of their air and noise pollution, are allowed only at the height of fall season.

Transportation. Not only does API provide free transit passes to all employees, but it also actively supports alternative transportation throughout the Lloyd District. For example, it played an instrumental role in the expansion of Tri-Met’s Fareless Square to the District. That means that workers can travel from downtown to the Lloyd District free of charge. For those who don’t drive to work, API has loaned two parking spaces and purchased a membership in Flexcar, a service that makes a car available when needed during the workday. To encourage bicycle commuting, it provides 34 bicycle lockers in addition to racks and included showers in its newest building. To further encourage employees to use alternatives to single-occupant auto commutes, it offers a special benefit on a trial basis. Those who use alternative transportation 80 percent of the time each month get a half-day of personal time.

Green building. When API remodeled its office space, it installed Interface carpet tiles, allowing worn tiles in high-traffic areas to be sent back to the company without replacing the entire carpet. Low VOC paints were specified for the walls. Environ Biocomposite, a particle board manufactured from agricultural wastes, was chosen for desk surfaces.

Operating from the belief that people want to do their best, API has been pleased by employee ideas that have been generated through the Environmental Initiative. In fact, many of the projects API has worked on or is currently working on came from employees’ suggestions. A sampling of other employee ideas include double-siding fax cover sheets; using glasses, plates and silverware in the office instead of disposables; using envelopes provided by vendors in their invoices instead of API envelopes; and standardizing office supplies with choices based on TNS principles along with efficiency and cost.

Lessons Learned
• Invest time in training workers so they are knowledgeable and excited about the company’s new direction.
• Take small steps. The challenges, changes, and ideas can be overwhelming at times. Look for the easy things to do first, as accomplishments breed success.
• Encourage workers to come up with ideas to support the initiative.
• Set up a structure to make employees’ ideas a reality.
• Communicate environmental goals and policies to vendors to help expand your company’s impact.

API feels that the most important element in launching an initiative is enlisting the support of people working in the company. As Wendy Faubert, API’s first sustainability coordinator put it, “I strongly believe that having taken the time to get people on board, to make it fun, to increase the energy around the initiative before we start [more] projects. . . is going to pay dividends in the long run.” According to the office manager and assistant controller, benefits of involving employees in the Environmental Initiative include improving the cohesiveness of the company, challenging employees to think of new ways to improve existing processes, and better communications among departments.

Challenges
API spent the first 18 months of its environmental initiative pursuing “low-hanging fruit,” primarily in the property management division. The projects were fairly easy to accomplish because they did not radically change business operations (e.g., shifting to a more environmentally friendly cleaner) and demonstrated short-term economic justification (e.g., the energy savings). The company’s next challenge will be changes that alter fundamental practices and are harder to justify economically. Greener construction, for example, often requires a large investment in materials and, initially, more employee involvement and time. In the “time-is-money” world of construction, such challenges can seem daunting. However, API is quick to point out that while construction will be more challenging, there is ample opportunity for significant environmental benefits.

Beginning September 2001, API was selected as property manager for the Vollum Natural Capital Center, a LEED (Leadership in Energy and Environmental Design) gold-rated green building located in Portland’s Pearl District. Involvement with this high-profile project has raised the bar for API to continue to develop innovative and environmentally friendly approaches to property management.

In 2002 API accepted a new challenge—participation in a pilot project of the U.S. Green Building Council to test its new LEED-EB (Existing Buildings) rating system. To date, the Council’s LEED certification system for green buildings has applied largely to new construction. Over the course of the coming year, Ashforth Pacific staff will document Liberty Center’s performance and policies in the areas of cleaning and maintenance, indoor air quality, energy efficiency, recycling and facilities, and landscape maintenance. Where necessary, building systems may be upgraded to bring the building into compliance with LEED criteria.

The Future
The company is now developing a more in-depth approach to sustainability involving all office staff. Smaller teams will focus on revising specific areas of corporate and building operations and working to balance sustainability goals with the needs of tenants, profit expectations, and the constraints of the company’s existing buildings. Each group will conduct a thorough analysis of its area of operations, identify and implement necessary improvements, and track indicators that will help the company measure environmental performance. The four system conditions of the Natural Step will serve as a compass for these groups as they redefine organizational processes and operations.

Many organizations and individuals have contributed knowledge and inspiration to the company’s sustainability efforts. As the work of the Environmental Initiative further unfolds, API will strive to share information and lessons learned with clients, suppliers, and the community at large. While recognizing that much work lies ahead in the company’s quest for
sustainability, Ashforth Pacific intends to continue stepping forward to increase service to clients while improving the environmental and economic bottom line.

Sources
1. Interview with Wendy Faubert, Sustainability Coordinator, Ashforth Pacific, Inc., December 15, 2000
2. Master Recycler News, October 2000, “Profile: Sustainability in Real Estate Management,” Mendola, Kathleen Finn
3. The BEAT Bulletin, November 2000, March 2000, October 1999

This case study was prepared in April 2001 by Vanessa Margolis for The Natural Step Network and updated in October 2002 by the Network.

Axis Performance Advisors, Portland, Oregon, USA

Chas Martin — Tue, 28 Oct 2008 14:42:36 -0400

A Natural Step Network Case Study

Background
Axis Performance Advisors was started in 1990 by Marsha Willard and Darcy Hitchcock as an organizational management consulting firm, specializing ins self-directed work teams. As of today, November 2003, about 53 percent of Axis' work is directly related to sustainability.

Inspiration
In addition to its consulting work, Axis would, on occasion, host one-day think-tank meetings. In 1996, having heard about the concept of sustainability, it hosted a meeting on the subject. At that meeting Hitchcock had an “aha” experience when she realized that Axis was showing companies how to be more efficient and effective in depleting the planet’s resources. She decided that she and Willard had to do “something.” Shortly thereafter Hitchcock was introduced to The Natural Step (TNS) at a Business for Social Responsibility meeting. She says she felt a great relief, because TNS offered the “something” that Axis should do. In 1998 she went to the TNS conference in Chicago and began doing volunteer work for the Oregon Natural Step Network as a speaker and as a contributing writer for the Tool kit.

Action
Upon learning about TNS, Axis first examined the impacts of its own business on the environment. Hitchcock and Willard quickly realized that as a service business, their greatest impact was through their consulting services and the influence they had on their clients. Since they had experience in organizational change, they could help companies become more sustainable.

Axis also examined its internal practices against the four systems conditions. It determined that its greatest impact was greenhouse emissions from energy use, especially transportation, but it was able to take action to reduce its impacts in all four system conditions.

System Condition One (Taking Substances from the Earth's Crust)

Willard and Hitchcock measured their greenhouse gas impact and purchased carbon offsets to be climate neutral with a cost of approximately $20 per year per person (see Appendix 1 for measurements, including tracking alternative transportation).
Hitchcock moved her home office from Vancouver, Washington to Portland, Oregon to reduce travel.
Both Hitchcock and Willard use bicycles and public transportation whenever possible, resulting in 43% of business travel through alternative transportation (up from 0% before 2000)
Hitchcock and Willard both work from their homes, they purchased Green Power for both work and personal consumption.
Hitchcock purchased a Toyota Prius for business and personal use.
Axis purchased Energy Star rated computers (MAC G3s and monitors) and chose not to buy a copying machine.

System Condition Two (Use of Synthetic Substances)

Switched overhead transparency markers to ones that wash off with water instead of isopropyl alcohol.
Decided not to purchase certain products (e.g., glues) that had volatile organic compounds (VOCs).

System Condition Three (Preservation of Natural Resources)

Committed to buying recycled content paper, using 100% post-consumer recycled paper for company stationary.
When copier broke, did not purchase new one. This reduced the number of copies Axis makes.
Transitioned services like its newsletter and Team Booster product to an electronic service to save paper.
Axis does small print runs of the Sustainability SeriesTM booklets so as not to build up a large inventory, which might need to be scrapped later.
Axis has also chosen ShoreBank Pacific for their banking services.

System Condition Four (Meeting Human Needs)

Offered no- or low-cost services for targeted non-profits which would otherwise not be able to afford consulting services and which had a mission related to sustainability (Housing our Families, Planned Parenthood, Oregon Environmental Council, OMSI).
Provided pro bono facilitation services for the Oregon Natural Step Network’s Climate Change Peer Learning Group.

Results
Axis’s expenditures have mainly been in time, although it has paid for some training as well. It characterizes the time and training as R&D because Axis’ goal has been to transform the business to sustainability consulting.

That said, just operating its business more sustainably has saved Axis money over all. It has spent less money on parking fees, equipment not purchased, and printing and postage and has less wear and tear on its vehicles. The combined effect of its transportation efforts resulted in an annual reduction of 4,000 pounds of CO2 emissions. Axis has also learned that measurement does change behavior. It helps inform decisions and makes an immediate impact.

Challenges
One irony is that the more successful Axis becomes the more Hitchcock and Willard have to travel, which will actually increase their environmental impacts. They will address these impacts through the use of offsets.

Because sustainability is the focus of Axis’s business, the biggest challenge is creating a market to sustain all those who want to work in this field. It appears that sustainability is still at the early adopter phase in most sectors so the list of potential customers is limited. Also in tough economic times, people tend to pull back from exploring new options (even if they could save time or money) because they are already feeling stressed and stretched. That said, the challenge for consultants is always: to provide value to customers.

This case study was prepared by Regina Hauser for the Oregon Natural Step Network. For more information contact Darcy Hitchcock (503) 288-7704, darcy@axisperformance.com, or Marsha Willard (503) 284-9132, marsha@axisperformance.com, or visit the Axis Performance Advisors’ Web site, www.pacifier.com/~axis.

Appendix 1

BOORA Archietcts, Portland, Oregon, USA

Chas Martin — Mon, 20 Oct 2008 16:47:08 -0400

A Natural Step Network Case Study

TNS gave us a banner to march behind. It enhanced the spirit that was already here and gave us order and direction. —Eric Miller, BOORA employee Overview BOORA Architects provides architecture, planning, and interior design services to clients throughout the United States and abroad. With one office in Portland, Oregon, BOORA currently has 85 employees and annual gross revenues in excess of $13 million. The firm’s projects include schools, theaters, museums, libraries, office buildings, and recreation facilities.

· LEED implementation: Assisting in the registration and certification of BOORA projects. Currently, four of BOORA’s buildings are LEEDä registered.

· Products library classification: “Greening” BOORA’s interiors and products library so that teams can use the best and most responsible materials available; developing product classifications which describe what makes various products green; and developing a classification form that product representatives can use to provide detailed information
about their product’s sustainability features.

Lessons Learned and Challenges Ahead
· Provide leadership from the top. BOORA management communicated to the staff its commitment to the firm’s sustainability efforts through specific goals and objectives
outlined in the annual business plans.

· Commit to education and training. Strongly encouraging all staff to attend a half-day TNS training session at an early date gave everyone the same knowledge base and vocabulary.

· Take calculated risks. Believing that too much analysis can cause paralysis, BOORA did not get bogged down with elaborate cost-benefit examination or require concrete evidence of assured success before moving forward. It continues to implement ideas that intuitively seem like the “right thing to do.”

· Little successes add up. Having some tangible achievements, especially if they are recognized publicly, inspires staff to take them to the next level. BOORA has received a PGE EarthSmart Innovator Award for the design of George Fox University’s Stevens Center, and two BOORA-designed buildings were selected for the Ten Plus Northwest exhibition organized by Portland’s Office of Sustainable Development, showcasing the
latest and best in sustainable practices and technologies in the Pacific Northwest.

· Share the responsibility. BOORA created a Sustainability Coordinator position, but the position was eventually eliminated. Because the TNS framework touches every aspect of
BOORA’s practice, from architecture and interiors to specifications, marketing, and technology, the responsibility for integrating TNS was too large and undefined for one individual.

· Find quantifiable industry standards . In the United States, The LEEDä rating system of the U.S. Green Building Council is the standard for assessing sustainability in commercial and institutional buildings. Many local governments, higher education institutions, architects, and engineers are already using this standard to assess the “shades of green” of their construction and renovation projects.

BOORA’s efforts over the past several years have focused on “building” a green BOORA—its people, place, and practice. The biggest challenge BOORA will face in the future will be “marketing” green BOORA. This shift from a more “internalized” focus to an “externalized” approach will advance the practice and business of sustainable design and build BOORA’s
reputation for knowing how to do this work.

Developing marketing communications materials that reflect BOORA’s accomplishments and perspectives, presenting seminars on sustainable design, and promoting recent innovative sustainable design approaches and technical systems in trade newspapers and journals all contribute to BOORA’s reputation as one of the most knowledgeable in this specialty. Resources need to be allocated toward these efforts so they don’t take a back seat when other “billable” efforts are pressing.

Learning to become effective advocates of sustainable design will result in better buildings, more satisfied clients, and a strong referral base for future work. Clients may be wary of the benefits of sustainable design, either because they don't understand it, they think it's too expensive, and/or they don't want to take a risk on unproven technology and equipment. Design professionals need to better learn the language of the building owner, facility manager, and CFO in terms owners can understand--first-cost savings, return on investment, and enhanced productivity--to effectively champion the benefits and value of sustainable design.

This case study was prepared by Mary Van Domelen and Julie Wallis of BOORA for the The Natural Step Network.

Canadian Business for Social Responsibility :: 7th Annual Summit on CSR, Toronto, ON

Anouk Bertner — Thu, 30 Jul 2009 13:23:31 -0400

Start: Nov 5 2009 - 12:00am

End: Nov 5 2009 - 11:59pm

Timezone: Etc/GMT-4

Transformational CSR: The Next Wave of Business Leadership, Innovation and Performance
November 5, 2009 – Toronto

This year’s Summit will focus on new and creative ways for businesses to take a transformational approach to CSR – by embedding environmental, social and governance excellence and linking these principles to effective business strategy and bottom line performance. We will highlight current strategies, practical case studies and cutting edge trends that are advancing business practice. Featured speakers include: Dr. John Ruggie, United Nations Special Representative on Business and Human Rights, Ray Anderson, Founder and Chairman of Interface Inc. and Jeffrey Hollender, Chair and Chief Inspired Protagonist of Seventh Generation. Pre- and post-Summit workshops will take place on November 4 & 6. To learn more and register visit their website.

Canada

College Housing Northwest, Portland, Oregon, USA

Chas Martin — Tue, 28 Oct 2008 15:51:49 -0400

An Oregon Natural Step Network

Overview
College Housing Northwest is a non-profit organization providing housing for students at Portland State University (Portland State) and Central Oregon Community College. It has 120 employees and approximately $9.8 million in annual revenues.

Background
College Housing Northwest (CHNW) was founded in 1969 by a group of students and faculty members at Portland State. At that time, Portland State was not allowed to have housing on its campus and planned to demolish several apartment buildings and convert them into parking lots as part of a redevelopment effort. Students recognized the need for the preservation of those housing resources and convinced both the University and the State Board of Higher Education to allow them to form a non-profit organization to operate student housing called Portland Student Services. This organization later became College Housing Northwest. Portland Student Services was truly a product of the ‘60s’ culture, which included taking care of the earth. For example, the founding group also formed Portland Recycling Team, which operated a drop site on campus.

CHNW currently operates 1,407 apartments at Portland State and a 108-bed residence hall at Central Oregon Community College. Together they house approximately 1,920 students. CHNW owns 384 of the apartments it operates and partners with the Housing Authority of Portland for operation of 96 units at Portland State. The rest are owned by the two client schools.

Since 1988, Gary Meddaugh has been the CEO of CHNW. Meddaugh came to the job with an extensive background in both business management and earth stewardship. Through the ‘70s and early ‘80s Meddaugh managed a United Methodist Camp and Conference Center that had a two-acre organic garden, solar greenhouse, and vegetarian food program and offered several programs on the stewardship of the earth.

Introduction to The Natural Step
After coming to Portland as CEO of what is now College Housing Northwest, Meddaugh was able to find a model that made sustainability meaningful and workable in a business environment. Through his friend John Emrick of Norm Thompson, he was invited by Dick and Jeanne Roy of The Northwest Earth Institute to attend one of the early Natural Step workshops in Portland. Excited about the concepts and the possibility of building a business model that incorporates a healthy relationship with the environment as part of its business strategy, Meddaugh encouraged each member of his management team to go to a Natural Step workshop.
While the management team found The Natural Step framework to be a meaningful and important way to move the organization forward, it agreed that some outside assistance would be helpful to incorporate the concepts into the business. Russell Barton of Ekos International worked with CHNW over the course of 18 months to develop the vision, the goals, and the strategies to incorporate sustainability into the company.

Implementation of the NEXUS Model
What evolved out of this work is what the company calls The Nexus Model, referring to the nexus of three converging circles: human enhancement, organizational excellence, and environmental sustainability. The Natural Step principles serve as a framework for the environmental component. After the management team and an expanded group of 23 employees developed this approach, it was presented to the Board of Directors, which adopted it with this strategic directive: “Implement Nexus to achieve our mission and be the provider of choice for innovative and eco-friendly student housing.”

The company launched a program to educate all employees and develop plans for making the changes to the organization. It operated with the belief that the fundamental way to make this change successful over time was to focus early efforts on changing the culture, instead of just doing "green" things. Training programs about the Nexus model and The Natural Step were begun first for managers, then all employees. A workbook was created entitled “Solutions at the Nexus: Sustainable Excellence at College Housing Northwest.” The workbook served as the centerpiece of the company-wide training effort. The initial training was four hours long. It covered the history of CHNW; a sustainable vision for CHNW; a discussion of the environmental, social, and political challenges to sustainability; an introduction to operating at the Nexus; an overview of The Natural Step system conditions; and discussion of a company-wide Nexus implementation plan.

To allow wide involvement in the program and achieve early success, the company allowed employees, without management interference, to look for low-hanging fruit throughout the company. An employee Low-Hanging Fruit Team was formed to promote, review, recognize, and celebrate ideas. At the same time, the expanded Nexus group worked on strategies to move the company forward using the Nexus model. When the managers looked at all processes and practices of the company, however, they became overwhelmed. As a result, several adjustments were made.

A senior executive was put in charge of implementing the change. CHNW has found great value in having one person in the organization be responsible for making sure everyone is actually doing things, not just talking about them. That person needs to have management support, must be very direct, and must both engage the staff and work with them to find even better and more appropriate products and ways of doing things. For example, if the painting department group says it is doing well and that it has replaced oil-based paint with recycled paint for certain applications, it can still be challenged and engaged to make certain it is looking deep enough and examining every option for improvement: “Have you considered low/zero-VOC paint?” CHNW appointed Vice President Dan Potter, who had been with the company for 28 years, to fill this role. His new, restructured position includes responsibility for budget preparation, new acquisition start-up, and new construction and remodeling supervision, as well as the Nexus program development.

The company also set up a new annual plan strategy called GAME (Goals, Actions, Measurements, and Excitement). Each year the Board sets overall goals, the management team determines how they will be accomplished, and each supervisor writes a GAME Plan. Measurements include task completion, a key indicators report (occupancy, revenue, HR, statistics, etc.), and responses from an annual customer survey. A group of employees was put in charge of excitement. CHNW found that excitement is one of the keys to keeping the Nexus approach in front of employees at all times. This involves communication both with employees and CHNW's customers--its tenants. The employee team refined a monthly tenant newsletter to include Nexus-type information and added a quarterly employee newsletter that emphasizes Nexus.

The company decided that if it wanted to walk its talk, it needed to do a better job of training. The total training budget—not just Nexus--has nearly doubled, from $25,000 to $42,280. All new employees receive orientation at the start of employment and additional training within the first 30 days. This training, presented by CHNW staff, includes the Nexus program as well as the mission, policies and procedures of CHNW, employee safety, and customer service.

During the first year Potter has focused most of his efforts in the areas of purchasing and energy. He went to each group—paint, mechanical, carpentry, cleaning—and tried to determine where the opportunities were for more sustainable products. He took his employees on field trips to local sources of sustainable supplies, such as Endura Woods, Rebuilding Center, and Environmental Building Supplies; got a copy of Green Specs published by Environmental Building News, and met with painting and cleaning vendors. He then gave his employees the task of renovating an old storage area into a studio apartment using what they had learned. They had a chance to try reclaimed wood, waterbased wood finish, cork flooring, low-flow plumbing fixtures, zero-VOC paint, energy conserving light fixtures, and recyclable carpet. This exercise helped the employees to start thinking differently and gave them positive encouragement.

Potter also formed an energy conservation group that meets once a month to decide what projects to undertake. The company did have an energy audit for two buildings by the gas utility, but Potter found that it’s more helpful to have his in-house experts make suggestions and determine pay-back times. When a project is complex, he hires an outside engineer to help make a decision.

Initial Results
The first year of the program resulted in 83 submissions to the Low-Hanging Fruit Team. Approximately 55 percent of them met the Nexus test, as determined by the team and the appropriate department supervisor, and were implemented. They were primarily small steps such as using double-sided copies, increasing all forms of recycling from broken window glass to office paper, using e-mail instead of paper, replacing paper dishes with reusable ceramic ones, being aware of energy and resource usage, etc. From these initial steps, the company realized financial savings of approximately $5,000 a year, but, more importantly, they were the beginning of a change in the cultural mindset. Paint. As a result of extensive research, College Housing has selected a zero-VOC paint. Potter had put together a matrix that considered important factors, such as quality, appearance, environmental impact, odor, and cost, and let his employees test the paints. Sherwin-Williams Harmony best met all criteria.

Cleaning products. Potter met with the company’s vendor Coastwide Labs to request more environmentally sustainable cleaners, and employees tried all sorts of “green” products. They didn’t find any that satisfied them until Coastwide Labs came out with a hydrogen peroxide product that replaces three conventional cleaners. Since that decision, Coastwide Labs has received third-party certification for six “Sustainable Earth” products.

Energy. In the laundry rooms, top-loading washing machines were replaced with more hot-water-efficient side-loaders, saving $15,000 in utility costs. Occupancy sensors were installed in these rooms to turn out lights. LED (Light Emitting Diode) bulbs were installed in all exit signs. And in common areas, the fluorescent bulbs were replaced by more energy-efficient T8 bulbs. Other measures have been carried out in single buildings: an ultra-low-flow shower head retrofit, a switch to compact fluorescents in dorm rooms, and replacement of an electric water heater with a high-efficiency natural gas one.

Water. A water study in conjunction with a doctoral student at Portland State has resulted in a plan to retrofit plumbing fixtures in older facilities that will ultimately affect over 1,000 units. CHNW completed an informal study in three of its buildings to gauge the results of various actions with and without water conservation education. In one building, it made many retrofits to improve water consumption efficiency combined with an educational program for the employees and tenants. In another building, it implemented just the educational program, and in the third (control), it did neither. In the control building and the building with just education, there was no real difference in outcomes. There were significant improvements in the building with retrofits and education.

New student housing at PSU. A 134-unit housing complex to be completed at PSU by summer 2003 is seeking a LEED (a national environmental performance ranking system) silver rank. The architect firm was selected because of its experience in sustainable construction and has considered life-cycle operational costs as well as up-front construction costs. The units have been designed in the European style—with less floor space than traditional American ones. In a closet by the front door will be a space for hanging a bicycle. The building will be so well insulated that computers, lights, cooking, and bodies will provide most of the heat. Rainwater will be captured for flushing toilets and irrigating landscaping. As the water comes through downspouts to the ground, it will be sent through a bioswale for filtering and then stored in an underground tank. Before use, it will be treated with filters and an ultraviolet light. The heat from shower water will be captured and used to heat cold entry water to the hot water tank. Other features include wheatboard cabinets, and low-toxicity finishes.

So far, the financial results include a two percent increase in occupancy (to 97.5%) and $120,000 per year in additional income. The company has saved approximately $10,000 per year from recent retrofits to reduce utility consumption.

The Future
Potter’s next focus will be on carpet purchases, additional energy savings measures, and improvements in residential recycling. CHNW knows that if the recycling system is more convenient (containers close to where they are needed) and more materials are accepted, more students will participate.

Lessons Learned

Prioritize the projects and break them down into manageable pieces. Trying to analyze every system at once was not very effective. It was overwhelming for a small organization not used to taking on things of this scope. Starting out that way was unnerving to some people for a period of time and made them feel as though they were losing.
It is important to understand that cultural change is an ongoing process, and management needs to be consistent in its approach to succeed. Not everyone shares the view that the world is in trouble and that we need to help save it. Not everyone wants to understand that view or make it their first priority. To change the culture, continual training is necessary.
CHNW found there is great value in having a champion to get people motivated, someone who has the responsibility of implementing the vision, whose job is to challenge employees and work with them to find better and more appropriate products and ways of doing things. As this person starts to do things and lead by example, others see what the company is trying to accomplish. Then they have ideas and make meaningful contributions toward the common goal.
Source
Interview with Gary Meddaugh, President, in March 2001 and phone comments from Dan Potter, Vice President, in May 2001.

This case study was prepared by Kent Snyder for the Oregon Natural Step Network in May 2001 and updated by the Network in October 2002.

Dr. Robèrt at TEDxMälaren, June 15th

Anouk Bertner — Fri, 04 Jun 2010 10:08:12 -0400

We’re pleased to announce that the Founder of The Natural Step Founder, Dr. Karl-Henrik Robèrt, will be participating in TEDxMälaren, in Stockholm, Sweden on June 15th, 1-5 pm. TEDxMälaren is a Swedish conference that brings people together to share a TED-like experience. The name Malaren comes from Lake Mälaren, the third largest lake in Sweden. Just like Lake Mälaren that connects towns across Sweden, TEDxMälaren will connect topics in featuring a holistic perspective of inter-linked global issues through the audience, the organizers and speakers of diverse backgrounds, with different forms of media.

TEDxMälaren aims to reach beyond the Scandinavian seas and explore the influence of cultural, political and socio-economic diversity on the way we think, and ought to think for a better future. To register or learn more, click here.

Sweden

Electrolux

Chas Martin — Mon, 27 Oct 2008 13:14:53 -0400

A Natural Step Case Study

Overview
Electrolux, a global group of about 500 companies, is the world's largest manufacturer of household appliances (refrigerators, washing machines, vacuum cleaners), commercial appliances (refrigeration and laundry equipment), and outdoor appliances (chain saws, lawn mowers, and trimmers). Some of the better known companies in the US include Frigidaire, Eureka, and Kenmore. Today, employees number approximately 106,000 and net sales for 1997 were over $14 billion.

Background
Electrolux began operations in 1901 manufacturing kerosene outdoor lamps and in 1912 designed the first household vacuum cleaner. In the 1920s Electrolux bought AB Arctic, the world's first producer of refrigerators, thereby beginning its history of acquiring appliance and garden/forest-product companies. The Electrolux strategy has been to acquire companies and allow them to operate as individual units. It has become a multi-cultural, flat-management-style company that values cooperation, individual development, efficiency, and the environment.

Introduction to The Natural Step
Prior to the 1990s Electrolux was reactive and defensive about the environment. CFCs were becoming an industry issue, especially after the Montreal Protocol in 1987. The company was trying to find reasons not to change and was pointing to others around the world as worse violators than it. This strategy proved fruitless as the company began to see changes in market forces and demand for environmental goods in the early 1990s.

In 1991 top executives approached Karl-Henrik Robèrt, founder of The Natural Step (TNS), after a customer expressed concern over the use of CFCs (chlorofluorocarbons) in refrigeration equipment. The customer had told Electrolux that the use of CFCs would violate the second system condition of The Natural Step. Because the customer was canceling a large contract for commercial refrigeration units, senior executives had become involved. Through meetings and dialog with Karl-Henrik Robèrt, these executives learned that environmental leadership was the key to long-term survival and the surest way to satisfy environmentally aware customers and avoid unexpected costs resulting from environmental degradation.

As a result of this experience, former CEO Leif Johansson decided to be proactive and to embed environmental considerations into the company's business strategy. In 1992 Electrolux adopted an environmental vision and policy based on TNS principles. (See p. III-8.) Management liked TNS because the framework focused on causes rather than symptoms, could be understood and agreed to by most people, and was not controversial.

Implementing the Environmental Vision
Electrolux adopted a total approach in its environmental efforts. This approach implies an active commitment to the environment in all operations and a contribution from all employees. In addition, every phase in a product's life cycle is evaluated to minimize negative environmental impact and reduce consumption of raw materials and energy. In the words of current CEO Michael Treschow:

"Environmental protection is a long-term question of survival for individuals, companies and society. Activities must be adapted to nature's own limitations in terms of resource use and pollution. Environmental care must be a cornerstone in our operations and characterize our daily work."

To make Electrolux an industry leader, management decided to drive environmental developments in the respective markets rather than just keep ahead of legislation. It established an Environmental Board, with the CEO as chairman, to make decisions on major strategies. All product lines (some 20 divisions) were required to present plans to implement the environmental vision and policy. To advise the Board and to assure implementation of these plans, an Environmental Affairs unit was formed under Senior Vice President Per Grunewald. Integrating environmental and business strategies.

Environmental Affairs establishes minimum company-wide standards for environmental management systems, employee education, measurement, and reporting. However the business units are responsible for carrying out the environmental work. This is accomplished through a network of 70 environmental coordinators who are appointed by and report to product line managers. Through a number of seminars and workshops, Environmental Affairs has raised the coordinators' awareness and helped them create environmental strategies within their business areas.

In 1995 Environmental Affairs introduced the Environmental Change Program as a method of
identifying opportunities and integrating environmental concerns into business strategies. The
initiatives are driven by three forces:

Potential legislation and treaties
Cost reduction opportunities through resource efficiency
Market demand for ecological products

Product-line management and staff explore environmental issues and develop action plans in
three phases:

Analyze the existing situation and draft alternative policies for addressing future environmental issues. Identify the business opportunities that might arise from the proposed solutions.
Develop and implement an action plan from the best business opportunity(ies).
Assess results to be woven into the organization as continuous improvement.

This program determines which environmental concerns receive attention from the operating units. The process helps to avoid disastrous environmental problems and create environmentally superior products.

Life cycle analysis. In the early 1990s Electrolux Research & Innovation performed life cycle assessments on different product groups. It discovered that only about 10% of the total environmental impact of the products occur in production. Most of the impact is generated in the form of energy and water consumption during the use of the product and the emissions and waste once the product is at the end of its useful life. As a result Electrolux chose, not only to become a leader in the development of environmentally sound products, but also to create demand for these products.

It places a strong emphasis on cutting the energy and water needs of its products and making them recyclable. Engineers look closely at the ease with which products can be dismantled and seek to eliminate undesirable materials. Some product lines have begun printing dismantling instructions.

Training
Training of 106,000 employees in over 60 countries has been a decentralized process at Electrolux. Some business units have used TNS directly; some have not. However, the company has developed a training package called Eco Know How that can be used for presentations, group exercises, or independent study. Module one, "Basic Training," introduces environmental issues and then basic principles of building an ecologically sustainable society. In this module the four TNS system conditions are highlighted as the guiding principles for Electrolux's environmental activities. The second module, "Electrolux and the Environment," details the holistic view that Electrolux has adopted. Information includes the environmental strategy and products. Both modules one and two are available to the general public on the company's internet site. Module three, "Environment at Work," provides employees with guidance and examples of environmental work in areas such as purchasing, product development, and distribution.

An important aspect of the training is to demonstrate that environmental management, as Per Grunewald puts it, "has everything to do with business." As individual companies implement their environmental management systems, they are finding that most of the work does not involve the technology or machinery; instead it involves changing people's behaviors and habits.

The plant in Vallenoncello, Italy, when it was seeking initial certification of its environmental management system, trained its employees to see that real environmental quality comes from thinking about plant activity as a continuous process that starts from product planning and continues all the way to disposal and recycling.

Environmental Management System
Electrolux uses an environmental management system designed according to ISO 14001, developed by the International Organization for Standardization. This prescribes an environmental policy, planning, implementation, monitoring and corrective action, and management review. Once a manufacturing facility has a system fully operating, it can be ISO 14001 certified or registered with the European Union's Eco Management and Audit Scheme (EMAS). Electrolux is committed to have an environmental management system in all 150 manufacturing sites around the world by the year 2000. By the end of 1997 approximately 30 had ISO 14001 certification. Another 19 are expected to receive certification in 1998.

Results
Through its total approach to the environment, Electrolux has made many changes to products and processes to comply with the TNS system conditions. Some examples are highlighted below:
To reduce dependence on substances from the earth's crust

A solar powered lawnmower that runs on solar cells
A portable vacuum that uses cadmium-free rechargeable batteries
The use of canola oil, a biodegradable vegetable oil, in its chain saws
Utilization of the railway system (more fuel-efficient than trucking) for 75% of product distribution in Europe
Brush cutters and trimmers that consume 30-35% less fuel than earlier models

To reduce dependence on unnatural substances

Refrigerators and freezers that use no CFCs or HCFCs in the cooling system or insulation
New equipment that replaces the dangerous solvents in commercial dry cleaning. The equipment uses water and biodegradable detergents, but avoids shrinkage by computerized timing, temperature, and moisture controls.
Use of water-based and powder paints instead of solvent-based paints on white goods, resulting in an emissions reduction of 45% between 1992-95 by Electrolux's US white goods company
Reduction of hazardous waste by 95% in 1994 by a St. Cloud, Minnesota plant
An Eco vacuum cleaner containing no PVC
Reduction in discharges of 17 chemical substances by 93% between 1988-1996 in North American factories

To minimize dependence on exhausting nature's biological diversity and ecocycle

A wastewater cleaning system that recycles water within a Nashville, Arkansas weed eater plant instead of discharging it into the sewer system, saving 10 million gallons of water per year

To stop wasting resources and get more out of less

A new dryer that uses a heat pump to cut electrical energy consumption in half
Frigidaire's front-loading washing machine that saves about 18 gallons of water per load
A series of AEG dishwashers using 26 components made from recycled plastic, reducing annual consumption of new plastic by 220,460 pounds
Eco-vacuum cleaners in which 40% of plastic parts are recycled, many large plastic parts are uncolored to ease recycling, and plastic and rubber details are marked for easy recycling
Ovens which use 60% less energy than comparable products
Purchasing policies at AEG Hausgerate that require suppliers to use reusable packaging to the greatest extent possible. Between 1992-94 reusable packaging increased from 45% to
58%.

Environmental and Financial Benefits

Electrolux tracks environmental impacts of production through six key ratios, four of which are related to added value--the difference between total manufacturing costs and direct material costs:
1. Energy cost per added value
2. Energy consumption per added value
3. Carbon dioxide emissions per added value
4. Water consumption per added value
5. Energy consumption per square meter of heated surface area
6. Direct material efficiency--the amount of incoming material compared to the amount in the finished products

The most significant improvements occurred between 1991 and 1994. Continued improvements are more difficult because the easy steps have already been taken and because some plants with old technology have been acquired.

By 1996 the company had introduced four internal environmental performance indicators:

Share of total sales represented by environmentally leading products
Average annual environmental improvement of product range
Increase in recyclability of products
Environmental improvement of manufacturing facilities

Electrolux has been open about the results of its environmental efforts, recognizing that the availability of this information can help fuel further success. The Environmental Affairs unit has produced environmental reports each year since 1994. Senior Vice President Per Grunewald believes that governmental and non-profit education of the general public is not enough. In his view, the manufacturers and marketers are in the best position to persuade consumers to choose environmentally sound products.

The aggressive environmental strategy has been shown to be profitable. Data from 1996 show that the most environmentally sound products generated 3.8% higher profits than conventional products. Electrolux has introduced the first front-loading washing machine in the U.S. Many in
the company were quite concerned they would not succeed because the price is almost double that of other machines. The company advertising has emphasized the better washing quality and long-term cost savings, and the machine got the highest rating from Consumer Reports. Now they are selling more than they can produce.

Lessons Learned
Integration of The Natural Step framework into business strategies has changed the way Electrolux thinks about product design. For example, the company initially improved lawn mowers by adding catalytic converters, and it supported tougher emission legislation in California. Then the designers began to ask, "Why do it this way? What is the basic service?"

As a result of looking at how sheep "mow" grass, they designed a solar mower to work randomly when the sun comes up like sheep do. The design uses an embedded wire to keep the mower within bounds. Currently the model is too expensive. However, Electrolux got lots of media attention, and the few purchasers, such as restaurants and conference centers also got PR value. The company is developing a core competency in this area that it can use in future years when solar cell costs come down.

Sources
1. Electrolux Environmental Reports for 1994, 1996, and 1997.
2. Interview with Henrik Troberg, Product Ecology Manager by Duke Castle and Clem Laufenberg, September 14, 1998.
3. Email from Henrik Troberg, September 29, 1998.

This case study was prepared by Heidi Owens for the Natural Step Network.

Gerding/Edlen Development Company, LLC, Portland, Oregon, USA

Chas Martin — Mon, 20 Oct 2008 17:54:05 -0400

A Natural Step Case Study

Background
Gerding/Edlen Development Company is a commercial real estate development firm, specializing in mixed-use urban renewal projects. Its projects include condominiums and apartments; build-to-suit projects for high-tech clients; public-private partnerships; and mixed-income housing. It currently has 17 employees (including the managing partners). The firm was created in 1996 when developer Mark Edlen joined forces with Gerding Investment Company.

Bob Gerding, one of the founders, has long been concerned about environmental and social issues, but it wasn’t until 1993 when he was able to put those values into practice at work. The Pacific Gas Transmission building in Portland was the first private energy demonstration project, funded by the Oregon Department of Energy, giving his firm experience in a number of leading edge energy saving technologies including solar studies, certain window glazing, light shelves, and an ice-generating system to cool the building. While the construction costs, with the help of government tax credits, were comparable to other buildings, the building’s energy use was half that of similar buildings.

Inspiration
Through Bob Gerding’s long-standing relationships with members of the Northwest Earth Institute (the founder of the Oregon Natural Step Network), Gerding was invited to workshops on The Natural Step in 1997. Perceiving that the TNS Framework made business sense, Gerding encouraged his firm to hire someone who could apply it at the project level. The firm hired Dennis Wilde as senior project manager in 1997 to champion the effort.

Action
Wilde describes his initial efforts as “not cohesive.” Using peer pressure he tried to educate and influence employees, architects, and contractors. In 1998 the firm conducted an internal executive briefing on TNS, closely followed by training for the rest of the staff. While the training was useful in introducing the TNS framework to employees, the firm did not follow up with a vision for using the framework in its development projects. A watershed event for Wilde was participating on the Oregon Natural Step Network construction peer-learning group, in which a group of architects, engineers and designers applied the backcasting process to commercial buildings. The peer-learning group published a paper about its experience and created a vision for a sustainable commercial building. The resulting paper gave Gerding/Edlen specific outcomes to pursue and a clear vision it could share with others.

Around the same time, LEED was also being developed. The managing partners at Gerding/Edlen committed to pursuing LEED certification for their own Brewery Blocks projects. Wilde saw LEED as a useful tool, but the Natural Step helped him see all that it did not include. “LEED, by itself, doesn’t provide
a comprehensive overview. It’s really only a yardstick. For us, TNS provides the framework.” And so with each ensuing project, Wilde pushed the teams to exceed the accomplishments of the earlier ones.

Each project within the Brewery Blocks has included efforts that go beyond LEED such as, reduction of PVC-based materials, a central chilled water plant to improve energy efficiency, eco-roofs, even photovoltaic panels. Gerding/Edlen's goal is to create buildings that create more energy than they use, keep all stormwater on site, eliminate toxic materials, and create a sustainable environment for people to live and work.

Bob Gerding describes the business this way: “We sell being the thoughtful, responsible developers. We walk the talk and can tell people, 'we’ve done this in our own buildings and we can prove the long-term benefits, that this will save you money.’”

Gerding/Edlen has integrated The Natural Step framework into its integrated design process. “I can’t imagine doing a traditional design anymore,” says Wilde. “All the different players have to understand how their decisions affect the others so you can come up with an optimal solution.”

In particular, Gerding/Edlen has embedded the Natural Step backcasting process into its ecocharrettes (design meetings). “We spend most of our time talking about the system conditions and backcasting, trying to envision the building as sustainable and working backward from there. We spend a very little time at the end on the LEED score sheet.” See the appendix for a more detailed agenda.

Gerding/Edlen also has tried to influence its tenants through the creation of a tenant manual that explains the importance of green design and gives the tenants suggestions for how they can be more sustainable. It is working with its janitorial vendor to provide environmentally preferable cleaning products to the tenants as well.

Results
Wilde strongly believes that pursuing sustainability has made good business sense, for Gerding/Edlen and its clients. The extra construction costs of the Brewery Blocks for green design were approximately $700,000. However, Gerding/Edlen was able to offset these costs two-fold with grants, assistance, and tax credits. The most obvious source of funds to offset the cost of energy improvement measures is the State of Oregon Business Energy Tax Credit (BETC). Other sources of assistance include : Northwest Energy Efficiency Alliance (NEEA), The Energy Trust of Oregon, the City of Portland Office of Sustainable Development, the Climate Trust, PGE EarthAdvantage and PPL FinAnswer programs.

At the time of this writing, Gerding/Edlen's condominium project, "The Henry" has sold out in record time at record high prices in a bad economy. Wilde estimates that the average homeowner will save $600 per year in utilities based on the green design features around energy and water use. About 10 percent of condominium buyers said that the sustainability features were important to their purchasing decision and another 25 percent said they were really glad to have them, in part because of the energy saving features.

Wilde concedes that many customers won’t pay extra for green features. To convince reluctant building owners, he emphasizes both the tangible and intangible savings: reduced operating costs, tenant comfort and retention, employee productivity, reduced absenteeism, resale value, etc.

When Gerding/Edlen first began its emphasis on green building, many of its contractors were resistant and charged higher rates to use non-traditional building techniques. Now, many of its consultants are bringing them position papers, having analyzed alternative materials or systems in light of the system conditions. (See the sidebar listing of existing position papers.) And as its contractors gain experience in green design, cost premiums are coming down. In addition, job candidates are seeking positions within the firm. “Young people, in particular, are drawn to this,” says Wilde.

Gerding/Edlen has position papers on the following products:
* Building Integrated Photovoltaics
* Solar Domestic Water Heating
* Radiant Heating and Cooling System
* Rainwater Recovery
* Living Machine
* Elimination of Mercury from Lamps
* Elimination of all PVC from Electrical

Products
One of the biggest benefits is the publicity and visibility. Wilde said, “We couldn’t have bought all the PR that this has brought us. We’ve had one or two articles published about us or our projects every week for the past two years.” Managers are being interviewed by local and national media. Hundreds of people have toured their buildings. This is all part of creating awareness about green design, developing the demand, and promoting themselves as leaders. Wilde confesses: “Initially, we had to try to identify the benefits. We were fearful of spending more. Our customers weren’t asking for it. People wanted to know if we could afford to go green. But at some point, you take the plunge and then you discover paybacks you never dreamed were there.”

Challenges
Despite all their success, keeping sustainability on the front burner is still a challenge:

· Leadership takes time, attention, and money. Bob Gerding admits that the firm has sometimes trimmed its profit margins to implement leading-edge building practices. “If you’re trying to build something at the lowest cost to maximize profits, you can’t lead. Like all the greatest companies, you have to reinvest in R&D. But I’d rather lead than follow. Being a leader is a marketing advantage.”

· Getting everyone on board. While sustainability is here to stay at Gerding/Edlen, Wilde is still the biggest advocate, pushing to raise the bar on each project. “If something happened to me, would Gerding/Edlen continue to pursue sustainability? Sure. Would it make as fast progress? Maybe not.” And as it has grown, it has been a challenge to bring new employees up to speed. Public workshops are not always available when they need them.

· Finding sustainable alternatives. It can be a challenge to find a product that is environmentally preferable and that performs as well as its environmentally inferior counterpart. For example, Gerding/Edlen was thrilled to have recently discovered a paint to use on metal stairs that is as durable as previously used products but has a low level of VOCs (Voluble Organic Compounds). Wilde would like to make a PVC-free building but this goal has proven elusive because he has been unable to find alternatives to some of the PVC (Polyvinyl Chloride) products such as electrical conduit, water and soil pipes, electrical insulation, roofing, wall covering, flooring, carpeting, paint, rubber base mold, and many others that are found throughout virtually all buildings. Wilde and his colleagues continue to search for alternatives, and with each project, they uncover a few more products that can be integrated into future designs.

· Focusing internally. Gerding/Edlen has focused most of its attention to applying sustainability in its building projects as opposed to in its own office. The firm's building projects certainly create the greatest environmental impacts. However, the firm believes that it should be more systematic about applying sustainability in its internal operations to maintain its credibility. . It has switched to highrecycled
content paper, encouraged recycling and switched to environmentally friendly janitorial products. Nevertheless, the firm struggles with how much effort it should expend on greening its internal operations and what to take on next.

· Making sense of system condition #4. Gerding/Edlen has made great strides reducing the environmental footprint of its projects. However, the firm struggles with the social side, what Wilde refers to as “how to move beyond our consumptive lifestyles.” Gerding/Edlen does take into account the impact its projects have on the community but it could do more to integrate the fourth system condition into its decision-making and practices.

Appendix
TNS Backcasting Charrettes for Sustainable Developments
Over the past several years, owners, architectural design professionals and consultants, and contractors have utilized a number of techniques to optimize integrated design teams through eco-charrettes (also referred to as sustainable design workshops), to optimize the performance of energy-efficient and environmentally responsible buildings. In the mid-1990’s, eco-charrettes were an effective means of bringing together a project’s team early in the design process to identify environmental performance goals and strategies through brainstorming and the formulation of goals and objectives. With the launch of the US Green Building Council’s LEED rating system in 2000, eco-charrettes became redirected to focus upon the attainment of a LEED rating, by directing the design and construction team, point by point, through all 69 potential points. While LEED provides valuable performance metrics and a means to structure building performance evaluations, it does not address the overarching sustainability goals for projects, such as those represented by the four System Conditions of The Natural Step. A TNS backcasting charrette can be a high-leverage collaborative planning mechanism for a group, regardless of whether planning for an architectural design project or an organizational development venture.
Backcasting charrettes are generally composed of three sequential steps:
1. Formulating aspirations and a vision for a preferred future
2. Conducting a SWOT (strengths, weaknesses, opportunities, and threats) of current conditions, and
3. Projecting back from a time in the future (30 to 50 years) to the present and mapping the key
elements that contributed to the preferred future.
Backcasting charrettes can be designed to last from a half-day to two days, depending upon the complexity of the project, the size of the group, and the level of detail desired. The following represents a sample agenda for a half-day TNS backcasting charrette involving approximately eighteen multi-disciplinary individuals for a commercial building project:

8:00 – 8:30 (30 minutes) Welcome, purpose, and introductions
8:30 – 8:45 (15 minutes) Project overview
8:45 – 9:00 (15 minutes) TNS overview
9:00 – 9:45 (45 minutes) Future scenario
9:45 – 10:15 (30 minutes) SWOT analysis
10:15 – 11:15 (60 minutes) Backcasting
11:15 – 11:45 (30 minutes) Action plan
11:45 – 12:00 (15 minutes) Concluding remarks

Backcasting charrettes utilizing the System Conditions of The Natural Step hold the potential to yield multiple results. One of the most direct impacts of backcasting charrettes is to expand the time frame of participant’s reference for decisions, from short-term to long term. The process of dialogue and disclosure among a design team in a charrette process results in a robust strategy for a given project towards a preferred future.

This case study was written for The Natural Step Network by Darcy Hitchcock, president of AXIS Performance Advisors with assistance by Dennis Wilde and Kelly Saito of Gerding/Edlen Development Company in January 2004.

Glossary

Anouk Bertner — Tue, 05 Aug 2008 23:22:14 -0400

ABCD method: A strategic tool for backcasting from sustainability principles. The letters represent the following steps:

A – Gain awareness of the ecological and social systems your organisation operates within, based on an understanding of the principles for sustainability. From this understanding, create a vision of what your organisation would look like if it operated within these principles;
B – Undertake a baseline assessment of today’s current reality. Note where violations of the principles for sustainability occur and identify organisational assets;
C – Create solutions to the issues discovered in the B step without technological, political or other constraints – this is brainstorming. Imagine measures to achieve these. Be creative!
D – Decide on priorities. Prioritise the actions developed during ‘C’ by asking: i) Does this action move us in the right direction (toward alignment with the sustainability principles)? ii) Can this action be built upon in future? (Ie. is this a flexible platform?) iii) Does this action bring an acceptable financial, ecological and/or social return on investment?

Backcasting: A fancy word for a strategic planning method where a successful future is envisioned first. The current reality of today is then assessed against the vision. More here.

Basic human needs: A comprehensive set of fundamental human needs that are culturally and historically universal, non-overlapping, non-substitutable, complimentary to one another, and must be satisfied on a continual basis. They are: subsistence, protection, affection, idleness, identity, freedom, creativity, participation and understanding. This list of basic human needs was created by the Chilean economist, Manfred Max-Neef, and is used to define human needs for the fourth system condition of The Natural Step.

Biosphere: The portion of the Earth and its atmosphere that is capable of supporting life.

Capacity-building: The transfer of knowledge from experts to practitioners with the intent of strengthening the skills and ability necessary for them to act self-sufficiently.

Community Planning: Any planning that is done for a community. This may include, but is not limited to, Official Community Plans, Municipal Planning Strategies, and/or Integrated Community Sustainability Plans. Community planning may encompass a variety of aspects, such as planning for sustainability, water use, economic development, parks, and/or land-use.

Community Engagement: The involvement of the community in the creation and implementation of major decisions.

Continuous improvement: In the context of management systems, this means the continuous focus on improving an organization’s performance - from assembly line to the CEO - is a permanent objective.

Decision-maker: A person who has the authority to make decisions. Decision-makers do not always have formal authority; they can also be the individuals within an organization or community that make decisions behind the scenes.

Downstream Solutions: Solutions that deal with the symptoms of larger systemic problems. These solutions are often developed in reaction to the obvious symptoms without examining the cause of the symptom.

Early Adopter Program: This is a program that brings together local businesses, organisations, community groups, concerned citizens and, ideally, the local municipal government. Early Adopters commit to becoming leaders by introducing and incorporating sustainability into their respective organizations and by working together towards community sustainability. As Early Adopters implement their sustainability plans, they become local success stories and share the lessons, knowledge and energy they have gained with the rest of the community.

The Natural Step pioneered this approach in Whistler, British Columbia by providing a training program for Early Adopter organisations, which focused on building community capacity. The program helped develop a common understanding and shared language for sustainability among a variety of community stakeholders.

Eco-municipality: An eco-municipality aspires to develop an ecologically, economically and socially healthy community for the long term, using the Framework for Strategic Sustainable Development for sustainability as a guide, and a democratic, highly participative development process as the method. The eco-municipality becomes the driving force for involving citizens and sectors of the larger community in the process of becoming a sustainable community. Eco-municipalities collaborate with other organisations and communities regionally, nationally, and internationally to learn from and assist each other. Networks of eco-municipalities are found in Canada, Sweden and the United States.

Five level model framework: A generic framework for planning and decision making in complex systems utilizing 5 distinct, non-overlapping levels: (1) System Level, (2) Success Level, (3) Strategy Level, (4) Action Level, and (5) Tools Level. More here.

Framework for Strategic Sustainable Development (FSSD): Describes a generic five level framework used to understand and plan progress towards a sustainable society using backcasting from sustainability principles to prioritize strategic actions.

Full-cost accounting: a method of accounting where the full costs and benefits of the decision are weighed (ie. costs are estimated for the long term impacts of the decision, hidden costs, externalities, overhead and indirect costs are included).

Funnel metaphor: A metaphor that demonstrates the sustainability challenge that results from continuing along our current path. More here.

Integrated Community Sustainability Plan (ICSP): An over-arching long-term plan based on consultation with community members that provides direction for the community to realize its sustainability objectives.

Greenhouse gasses: Gasses in the atmosphere which reduce the loss of heat into space. Human-induced emissions of greenhouse gasses are believed to be a main driver of current global temperature increases and increasingly erratic weather.

Indicators: Measures used to assess whether an organisation is moving towards its vision and goals.

Mental models: Deeply ingrained assumptions, generalisations, or pictures and images which influence how we understand the world and take action.

Municipal Sustainability Plan: (see ICSP)

The Framework for Strategic Sustainable Development: A planning and decision-making framework that allows individuals to understand the root causes of un-sustainability and then move strategically toward sustainability. More here.

The Natural Step (Organization): An international not-for-profit organisation founded in Sweden in 1989 by Swedish scientist Karl-Henrik Robèrt. The Natural Step has pioneered a "Backcasting from Principles" approach to effectively move society towards sustainability. The organization is committed to helping to create a sustainable human society using the Framework for Strategic Sustainable Development to communicate the scope and scale of the current problem and empower individuals to move towards strategic solutions. More here.

Photosynthesis: The process by which plants use solar energy to convert water and carbon dioxide into carbohydrates and oxygen.

Precautionary Principle: A moral and political principle which states that if an action or policy might cause severe or irreversible harm to the public or to the environment, in the absence of a scientific consensus that harm would not ensue, the burden of proof falls on those who advocate for the action or policy.

Procurement guidelines (aligned with sustainability principles): A set of guidelines to help in the combined functions of purchasing, inventory control, traffic and transportation, receiving, inspection, store keeping, and salvage and disposal operations to ensure that an organisation’s procurement decisions help move society toward sustainability.

Risk: The ‘probability of a consequence occurring’ multiplied by ‘the magnitude of the consequence’.

Root Cause: The most basic reason for the presence of a problem, which, if eliminated, would prevent its recurrence.

Shareholder: A person or group who owns shares of stock in a corporation or mutual fund.

Stakeholder: Any person or group who has an interest (a stake) in an organisation or community.

Strategic planning: An organisation's process of defining its strategy or direction and making decisions on allocating its resources to pursue this strategy, including its capital and people.

Strategic prioritization questions: Three questions for effective backcasting used to make strategic decisions toward sustainability

Strategic sustainable development (SSD): Development and planning based on first-order principles for sustainability. This field was pioneered by a network of sustainability researchers in cooperation with the international non-governmental organization, The Natural Step.

Sustainability: A state in which society does not systematically undermine natural or social systems within the biosphere. Achieving sustainability would happen when the four system conditions of The Natural Step are met.

Sustainability plan: Encompasses comprehensive, or integrated, objectives including social, economic and environmental. An environmental plan focuses primarily on the environment. This integrated planning approach sets it apart from other traditional community plans. Because sustainability problems are often complex and overlapping, they cannot be solved in isolation and are best addressed using a comprehensive, systems-based approach that focuses on the root of the problem, rather than only the symptoms. For example, toxic effluent in rivers affects fish health (environmental), which affect people (social) and financial prosperity (economic). All of these elements and their connections must be considered to arrive at optimal solutions.

Sustainability principles: First-order principles for sustainability that are designed for backcasting from sustainability. These principles state that, in a sustainable society, nature is not subject to systematically increasing:

Materials drawn from the earth’s crust;
Substances produced by society;
Degradation of natural systems by physical means;
And in this sustainable society, people are not subject to conditions that systematically undermine their capacity to meet their own needs

System Conditions: Four conditions for achieving sustainability. The conditions are stated in the negative to create the constraints within which creativity can flourish. They are:

In a sustainable society, nature is not subject to systematically increasing:

Concentrations of substances extracted from the earth’s crust
Concentrations of substances produced by society
Degradation by physical means
and people are not subject to conditions that systematically undermine their capacity to meet their needs

For more on system conditions vs sustainability principles.

Systems-thinking: An approach to problem-solving that assumes that the individual problem is part of a much larger system. The intent is to solve the problem in a way that does not create further problems down the road. This approach is particularly important in complex systems where we do not always understand the inter-connection between parts. See systems thinking FAQ.

Technosphere: Refers to the human system as a sub-system within the biosphere, in which materials, industries and their products interrelate and interact.

Upstream Solutions: Proactive solutions that address the source of the original problem, as opposed to the effects of it.

Visioning: The process of imagining a desired future.

List of acronyms:
ICSP: Integrated Community Sustainability Plan
FSSD: Framework for Strategic Sustainable Development
MSP: Municipal Sustainability Plan
SC: system condition
SP: sustainability principle
SSD: Strategic Sustainable Development
TNS: The Natural Step

Green Procurement - Webinar

Anouk Bertner — Tue, 10 Mar 2009 19:55:18 -0400

Start: May 27 2009 - 1:00pm

End: May 27 2009 - 2:30pm

Timezone: Etc/GMT

This webinar will provide an introduction for those working on green procurement in their own organizations. John Purkis, Director of Advisory Services and Learning Programs will share The Natural Step's experience while practitioners, Richard MacLellan, Procurement Lead from the Halifax Regional Municipality and Naomi Devine, Sustainability Coordinator at the Resort Municipality of Whistler will share their experiences of creating and implementing green procurement guidelines in their own communities. These presentations will be followed by dialogue between participants and presenters. Engage in conversation while sitting at your desk!

Cost: $50 for general public, complementary for TNS Canada Network members.

> Register here

> Learn more about our upcoming webinars

Canada

Greening Government Conference: Keynote by The Natural Step Canada's Chad Park (Ottawa, ON)

Josh Snider — Wed, 28 Sep 2011 14:20:36 -0400

Start: Nov 29 2011 - 8:00am

End: Nov 30 2011 - 3:30pm

Timezone: Canada/Eastern

The Natural Step Canada is excited to be a partner, presenter, and exhibitor at the upcoming Greening Government Conference at the National Arts Centre in Ottawa, ON. Building on the great success of previous Greening Government Conferences in Toronto for the past 2 years, this great conference is now coming to the nation's capital for the first time!

Kicking off the conference, The Natural Step Canada's Co-Founder and Director of Programs and Strategy Chad Park will deliver a keynote presentation on Tuesday, November 29 at 11:00am: Where we are going and how to get there: Planning and decision-making starting with sustainability. Chad, who will become the new Executive Director of The Natural Step Canada on January 1, 2012, will discuss the big picture of sustainability, helping delegates understand what we mean by “greening,” how to plan toward sustainability (as opposed to away from something bad), and how they can make strategic decisions that help them move toward that goal.

We will also have a trade show booth throughout the conference, so please stop by to learn more about our free sustainability resources and how The Natural Step Canada can help your government organization understand and move strategically toward sustainability.

As a partner of the event, Members of The Natural Step Canada save $200 off the regular conference registration fee (even after the early bird deadline). If you are interested in attending, please contact Jennifer Monteverde to process your discounted registration (jmonteverde@govevents.ca, 416.241.4000 x267).

We hope to see you there!

About the Greening Government Conference:

The Greening Government Conference organizers have developed a dynamic program, which will include panel discussions and breakout sessions. This program is designed to be an interactive experience for delegates through organized and informal discussions. Learn innovative strategies, proven solutions, best practices and the latest information and research within greening initiatives. Learn how these procedures and policies can be implemented efficiently and how these practices can be disseminated into the public and private sector.

This conference offers a unique and valuable opportunity to network and exchange information with various government officials, green teams, environmentally conscious organizations, and suppliers from across Canada.

Key Topics to be Addressed:

Updates on the Federal Sustainable Development Strategy – Implementation and Targets
Green Procurement – Sustainable Return on Investment, Assessing Suppliers
Staff Engagement and Employee Behaviour - Best Practices for Implementing a Green Team including Motivation Techniques & Strategies
Behavioural Change Strategies - Using Technology and Social Marketing
Sustainable Building Design and Infrastructure
Green Fleet and Transportation Programs

Live Video Webcast Available:

In order to encourage nation-wide participation at the conference, we are producing a live online video webcast of the conference. This is a great option for those who have travel restrictions or a busy schedule. The live video cast allows you to be part of the conference virtually in the comfort of your own office or home. You will have the opportunity to view the speakers live and ask questions through an online chat. You will also have online access to all power point presentations and the archived conference for up to 45 days following the conference.

For more information and to register, please click here.

Canada

Hot Lips Pizza, Portland, Oregon, USA

Chas Martin — Mon, 20 Oct 2008 18:59:42 -0400

A Natural Step Network Case Study

Overview
Hot Lips Pizza is a small, three-store operation with 50 employees and $2 million in sales located in Portland, Oregon. To emerge from the struggle of the company’s first 12 years of existence, owner David Yudkin sought to establish a distinctive market position. He used the Natural
Step principles to develop an approach to his business that saves him money while attracting higher caliber employees and loyal customers.

Background
Hot Lips Pizza was founded in 1984 with one store in Portland, Oregon. For the first three years the operation quickly expanded, growing to ten locations in four cities. Rapid growth created operational difficulties and substantial debt. David Yudkin, who became a partner in 1986, took over as head of operations in 1988 and found himself in a survival mode, constantly reacting to situations just to keep the business afloat.

By 1996, Yudkin owned 50 percent of the company and was able to pay off the majority of debt and scale operations back to two stores. At this point, he felt that Hot Lips made good pizza, but there was little else that distinguished it from the growing competition. With the survival of the company behind him, he was now in a position to create proactively a distinguishing market position. However he did not want to pursue the typical approach that involved demonizing his competition. Building on the company's value of community involvement and accountability, Yudkin sought an approach that would instead inspire his employees and create a loyal customer base.

Introduction to The Natural Step
Yudkin first became interested in environmental issues in 1970 when one of his junior high school teachers first explained global warming and its repercussions on society. The teenager was stunned. For years afterwards, he could not understand why there was not more discussion
about this issue.

In the fall of 1998, Yudkin heard a presentation about The Natural Step at a marketing forum at the Benson Hotel and immediately felt the impact. The Natural Step approach objectively laid out the facts and made a clear and compelling case for sustainability. It also integrated the systems nature of the biosphere with a social equity perspective.

Aligning the Company with The Natural Step Framework
Two other events caused Yudkin to select The Natural Step sustainability framework as the way to distinguish his company. The first was a store manager’s announcement that he had been diagnosed with cancer. The manager was only 26 years old. Yudkin was distressed that someone so young could contract cancer. It seemed likely that the cancer was caused by environmental factors. The second turning point was a fund-raiser for Growing Gardens. This non-profit organization helps elderly, low income people in northeast Portland grow their own food. As a supporter of the program, Yudkin placed beautiful pictures of these gardens on the walls of Hot Lips restaurants where people could see the connection between the earth and food. He felt these pictures had a compelling impact on those who saw them.

He saw the opportunity to use the environment to differentiate Hot Lips from other pizza companies. Its product was very personal – something you put in your body – and directly connected to a healthy environment.

Once Yudkin decided to pursue sustainability and The Natural Step for competitive advantage, he immersed himself in Natural Step activities. He joined the Oregon Natural Step Network and attended breakfasts and other Network events, including the 1999 one-day workshop offered by TNS US in Portland. He also observed Nike’s Natural Step employee trainings and read The Natural Step for Business by Brian Nattrass and Mary Altomare.

Following the lead of other organizations, Yudkin first wrote an environmental policy and then gathered data to determine the greatest areas of environmental impact. With help from Carbon Cookbook, an article written by Gary Hirshberg, founder of Stonybrook Farms, Yudkin began focusing on the carbon dioxide emissions (CO2) his business was creating. By analyzing electricity usage and delivery vehicle fuel, he calculated that Hot Lips Pizza contributed 200 metric tons of CO2 annually. Yudkin was stunned. He had no idea his contribution was so substantial and even questioned his findings.

Hearing that an environmental class at Portland State University was looking for a research project, he asked for corroboration of his data. The students agreed to undertake their own environmental analysis of Hot Lips and began by analyzing all of the company's invoices – utilities, suppliers, etc. – to get a better understanding of the energy and materials that the pizza business was consuming. Another class participant and Network member, Darcy Hitchcock of Axis Performance Advisors, helped identify the environmental impacts of his business and categorize them by the four system conditions of The Natural Step. Concurrently, Margaret Nover, one of the instructors affiliated with the class and an employee of the City of Portland’s Bureau of Environmental Services, offered to conduct a waste flow analysis for Hot Lips.

Application of TNS Principles
By the Spring of 2000, the student report was completed, and Yudkin confirmed that the greatest environmental impact of his business was due to CO2 from the generation of the electricity used.

Energy. Yudkin began to tackle energy consumption by replacing 72 incandescent bulbs with compact fluorescent bulbs at $16 each for a total expenditure of $1152. He next replaced a broken water heater with a more efficient one for around $300. Then he obtained a larger but more efficient walk-in refrigerator at an auction for $1500. Beyond these efforts, Yudkin implemented “rolling starts,” only turning on lights as they became necessary and turning off computer monitors at night. Additionally, Hot Lips purchased a multimeter, an instrument that is used to directly monitor electricity consumption. From this data, he could identify which components used the most electricity, whether they were operating as efficiently as possible, and if they would becandidates for replacement. With all of these efforts and a total investment of around $3000, Yudkin cut his electric bill from $900 per month to $450 for a payback of just under seven months. This was the low hanging fruit.

Next Yudkin started converting his 18-mpg delivery trucks to 30-mpg cars such as the Toyota Echo. Now he has his first hybrid car that runs on gasoline and electricity and gets 40 mpg. He was able to downsize the gas water heater. He studied how Hot Lips used its ovens and reduced the hours that they were kept on. Understanding the link between equipment maintenance and CO2 emissions, Yudkin now makes sure that all vehicles, refrigeration, HVAC and exhaust systems are maintained to give optimum performance.

To partially offset remaining CO2 emissions, Hot Lips purchases blocks of renewable energy from Portland General Electric. At the newest restaurant in the Natural Capitol Center, 15 percent of the electricity is from wind power, and 35% of CO2 emissions are offset by payments to Climate Trust
When the new restaurant was planned, it was easy to design in energy-saving features. Instead of buying four pizza ovens Yudkin bought one bread-baking oven, which will hold more pizzas and use less than one-half the energy. Its heavy insulation also reduced air conditioning needs. All hot water is heated by a heat exchanger on top of the oven. Instead of three refrigeration units, one in each work area, the new restaurant has only one, which can be accessed by three doors. This design saves energy, material, and maintenance.

Locally grown organic food. The next area of concern was the ingredients used in making Hot Lips’ pizzas. As a member of Chefs Collaborative, a local group that focuses on sustainable food practices, Yudkin was aware of the environmental impact of current agricultural practices. He took his employees out to visit an organic farm and decided to shift toward organically grown produce from local farmers. He saw this, in part, as addressing the social equity aspects of The Natural Step’s fourth system condition.

The decision to favor local farms has caused Yudkin to begin integrating seasonality into his menu. Typical toppings of the summer are tomatoes, corn and summer squash. During the winter, they are greens, potatoes and sun-dried tomatoes. Yudkin says, “This insures flavor, freshness and nutrition. It also helps keep money within our community and maintains local agriculture and regional food security. And it reduces the amount of fossil fuel used to grow and transport our food.”

Hot Lips currently uses organic flour for cookies, uses some organic produce in soups, and offers local organic fruit, salads, beer, juices and milk. It purchases cheese made from bovine-growthhormone-free milk produced in Oregon and Washington by small family farms. Shortly it will be using organic tomatoes for pizza sauce. In order to reduce reliance on factory-farmed meats, Hot Lips has begun making pepperoni in house using local, organic pork. It has also increased vegetarian offerings and selects meats from responsible sources (hormone-free, free-range, and small family farms).

Packaging. The third area of focus has been packaging. Margaret Nover’s report caused Yudkin to question why so much packaging was required. As Yudkin now explains it, “We have reduced our use of disposables by using straw plate liners with a sheet of paper instead of paper plates. We offer customers reusable plastic cups and flatware. In many cases, we allow portioning by our cooks as they make the pizzas, eliminating a lot of plastic portion cups and bags. We save waxed boxes and return them to farmers to be used again. We have also been careful in our selection of packaging and paper supplies, using unbleached boxes and bags as well as napkins and paper with high post-consumer content.”

Other Activities
Food waste. Yudkin currently composts approximately 100 pounds of pre-consumer waste weekly in his own backyard. He had tried vermiculture, which was working until the worms froze in the winter 1999. Hot Lips participated in a City of Portland organics pilot program in 2001 and will do so again as soon as the city contracts with a processor. If all food and soiled paper can be separated for composting, very little waste will remain in the trash. However, in case the city’s program doesn’t start soon, he is seeking a local farmer to compost the food.

Building materials. When the deck at one restaurant needed to be replaced, Hot Lips chose certified wood. And at its new restaurant in the Natural Capital Center, it chose certified particleboard for the cabinets, low-VOC adhesives for the tile and Formica, and as much recycled paint as color needs allowed.

Paper. Instead of buying new paper, Hot Lips reuses paper from the neighborhood copy shop that has been printed on one side. This paper is satisfactory for all in-house documents like cash sheets, policy manuals, incoming faxes, payroll letters, signs, and customer information. For print jobs, it asks for paper with high post-consumer recycled content and soy-based inks.

Recycling. The company has expanded recycling to include plastic films and bags, which were formerly sent to the landfill. To prevent mercury from leaking into the environment, it saves thermostats, thermometers, and compact fluorescent bulbs for recycling.

Detergents. Although cleaners pose a relatively small problem, Hot Lips has switched to low- or no-phosphate products. It has also reduced its use of chlorine by switching to a quaternary sanitizer and avoiding chlorine-containing cleaning products.

Training of Employees
Yudkin started his training efforts by bringing some of his managers and key suppliers to Natural Step events. Later he expanded that effort to include all of his employees. He has supplemented this effort with ongoing written communications to keep all informed of current efforts.

Yudkin educates employees about sustainability via the statements of policy (including the environmental policy) and values in the company manual. Policies and values are reinforced in training programs and rewarded during regular performance reviews. Additional information about The Natural Step is disseminated in biweekly newsletters and informal discussions. Yudkin reports, “We have found that many of our new employees have come to us because of our commitment to the environment, and our employees are enthusiastic, looking for ways to help the effort.”

Costs and Benefits
Yudkin has not yet completed a thorough cost analysis of his Natural Step efforts. In the future he plans to focus his attention initially on expenditures from three areas:
• Utility bills
• Dollars spent on local and organic foods vs. conventional
• Dollars spent on packaging & consumables.

From an employee standpoint the results have been quite positive. When Yudkin started implementing the Natural Step principles, a change in the culture of Hot Lips initially resulted in higher than average employee turnover. Now, however, the company is attracting employees who are more motivated and dedicated to their jobs.

The results with customers have also been positive. Several have mentioned that they appreciate what he is doing and patronize his business to show their support. To capitalize on this benefit, Yudkin hired Brian Lanahan, a local marketing consultant familiar with The Natural Step, to expand promotional efforts. As a result, Yudkin has created signs explaining why he buys from local farmers and uses the menu to tell where the food comes from. It takes a lot of work to communicate these changes, but he feels it will ultimately give him a competitive advantage.

Future Focus
Yudkin has been working on an environmental report detailing his efforts and results, although it has been difficult to do while managing the day-to-day operations of the business. The report will establish a base line that can be used to measure future progress and also be a public declaration of what he is doing. It can serve as a motivator to keep him focused on these activities because his “public” will now expect updates on how Hot Lips is doing. After the report is done he would like to conduct a more thorough backcasting process and look at areas like the janitorial service and supplies that he has not yet spent much time examining.

Lessons Learned
• What worked. Initially, just becoming conscious of the environmental impact of what his business was doing had a big impact on Yudkin. He wouldn’t have gone through this repositioning if The Natural Step concepts had not brought the issues to light.

• What did not work. Yudkin had unrealistic expectations of how much and how quickly one person can do all of this. He is the primary driver of this effort and knows that he needs more leaders inside his company. He believes that leadership is emerging, but he had underestimated how big an effort moving toward sustainability can be.
Advice for Others

• Getting help from the university students, Margaret Nover, and Darcy Hitchcock were all
good moves. It gave him an outside perspective on the impact of his business on the environment.
• Developing his suppliers as allies helped. Yudkin accomplished this by bringing them to Natural Step events and lending them tapes and other Natural Step educational materials.

• Getting advice from others who have gone through it was also very helpful. This came in part by being very active in the local Natural Step Network.

This case study was prepared and updated by Duke Castle, The Castle Group, in December 2000 for The Natural Step Network and updated in October 2002 by the Network.

IKEA

Chas Martin — Tue, 28 Oct 2008 13:28:41 -0400

A Natural Step Case Study

Overview
IKEA, a Swedish home furnishings retailer, is known as the world's largest designer and retailer of well-designed, inexpensive, and functional furniture for the home. The company is owned by a non-profit foundation and has grown 15% per year in this decade (FY 1990 - FY 1997 average growth rate). Each year, IKEA has over 140 million visitors to the 140 stores in 29 countries and distributes over 80 million IKEA catalogues. IKEA designs all 11,000 items in the product line. Product manufacturing occurs at both IKEA production facilities and at approximately 2400 suppliers in 65 countries. Today, employees number 36,400 and sales for FY 1997 were $5.86 Billion (US dollars).

In 1990, IKEA adopted The Natural Step (TNS) Framework as the basic structure for implementation of its environmental policy and plan. Using the TNS principles and system conditions, IKEA has made a number of changes affecting its products and services. This case describes many of the results of these changes, along with the issues and events that lead IKEA to adopting the TNS Framework and formulating an environmental plan.

Background
IKEA was founded in 1943 by 17 year-old Ingvar Kamprad. As a young entrepreneur in south Sweden, Kamprad soon turned his business into a mail order operation selling a variety of household products, particularly furniture. The first IKEA showroom/store opened in 1953 in Sweden.

Kamprad's innovative strategy was to design functional furniture that was easy and inexpensive to build, receive it disassembled at stores, and display it on the show room floor with detailed explanation tickets, making salesperson assistance unnecessary. Employees were available for questions but the customers could choose, order, pick up, transport, and assemble their own selections. Cost savings earned by IKEA were passed through to customers in lower prices (estimated cost savings are 20-50%, compared with the competition). His stores soon became home furnishing centers, also offering restaurant facilities and play areas for children. The strategy continues to drive IKEA operations.

From the start, Kamprad's desire to integrate social value into business practice has strongly influenced the IKEA vision. In December 1976, Kamprad wrote, "What is good for our customers is also good for us in the long run." This objective of responsibility drives the company vision to create a better everyday life for the majority of people. The vision is realized by offering a wide range of functional and well-designed home furnishing items, at prices so low that the majority of people can afford to buy them.

An Environmental Challenge
In the mid-1980s, IKEA ran into an environmental problem that had significant implications on the firm's furniture line. Tests on some IKEA particle-board furniture products showed that formaldehyde emissions exceeded the standard specified by Danish environmental law (Reichert, 1996).

Obviously this situation created a huge problem for IKEA, given the extensive use of particle board in IKEA furniture products. If the particle board from one product violated the standard and was deemed hazardous, then all products using particle board could be deemed hazardous. Negative publicity required a quick response.

While IKEA was searching for solutions, new German environmental law was announced that required formaldehyde emissions from particle board to not exceed .01 parts per million (the German E-1 standard). IKEA elected to apply the E-1 standard, the strictest in the world, to all markets by requiring that all of its particle-board suppliers meet that standard.

This long-term solution proved beneficial when California voters passed Proposition 65, tightening formaldehyde emissions and prosecuting stores selling products exceeding the standard. IKEA avoided the costs of litigation and retooling or revamping the product line because its company-wide formaldehyde requirement exceeded the California requirement. A visit by company executives to the California Attorney General, to inform him of the IKEA standard, even eliminated the cost of investigation.

In the late 1980s, IKEA and other European retailers were receiving pressure, including calls for boycotts from environmental groups, to eliminate the use of tropical rain forest wood in furniture. These pressures made it clear to IKEA-Group Executives that environmental issues would impact the future credibility of IKEA. Therefore, CEO Anders Moberg, who was personally concerned about the pace and extent of environmental deterioration, appointed Russel Johnson as the manager responsible for environmental issues.

Commitment to The Natural Step Framework
In 1990, Johnson invited Karl-Henrik Robèrt, founder of The Natural Step, to speak at an internal ECO seminar with the board of directors. Dr. Robèrt was viewed as having a new approach to environmental issues. Whereas other environmental groups were good at describing environmental problems, TNS offered clear guidance on how the problems involved IKEA and what the company could do about them from both a strategic and operational point of view. Based on the awareness created by the TNS four system conditions, the relationship with TNS developed into a commitment to work with Dr. Robèrt to develop an environment-friendly business and contribute to a sustainable society.

Throughout the spring of 1990, a series of group management meetings produced an environmental policy that the IKEA board approved in August 1991. (Section III in tool kit.) The implementation and training program of the policy are based on TNS system conditions.

In many ways, the historical values of the company were a natural basis from which to accept the TNS system conditions and adapt business operations. For example, Kamprad had viewed the minimal use of resources essential to keeping a "low-price picture." Furthermore, he valued innovation in employees and encouraged responsibility and decision-making at all levels of the organization. Therefore, as the company began to develop an environmental program, it became a natural extension to the corporate culture. In keeping with the IKEA vision, Anders Moberg, CEO wrote, "Once and for all, IKEA has decided to side with the majority of people: to create a better everyday life. Therefore, it is our responsibility to do what we can to contribute to a better environment. " (Moberg, 1993)

The IKEA Environmental Program
In 1992, the environmental policy was transformed into an Environmental Action Plan describing concrete and practical measures for the mid-1990s. As part of the Plan's development process, 25 top managers attended a two-day seminar with presentations given by Karl-Henrik Robèrt, the president for Swedish Greenpeace, an environmental legislative expert, and other environmental speakers. Following the presentations, the managers discussed a proposal for the environmental action plan. Working groups were formed to agree upon the detailed activities for the plan.

The plan is a living document and is periodically updated. Unit managers receive the plan and decide how to focus implementation efforts in their business units. Specific implementation tasks fall into six categories: Management and Personnel, Products and Materials, Customers, Suppliers, Buildings Equipment and Consumable Materials, and Transport.

IKEA seeks to achieve substantial environmental improvements by focusing implementation efforts on structural changes, those that impact processes, methods, or material content. By keeping the efforts focused on structural change, IKEA can maximize the impact of resources invested and reduce the energy necessary to address isolated issues. Some examples of structural changes include: a) the use of the E1 standard for all IKEA products in all sales markets; b) the use of ultraviolet (UV) hardened and water-based lacquers to avoid solvents; and c) the process of optimizing transports to reduce exhaust emissions. In a number of cases, the efforts have resulted in long-term cost reductions.

The following sections highlight many results from the six implementation areas.

Management and Personal
This category recognizes the crucial need for individual contribution to successfully realize the environmental policy. Key tasks involve training and communication. Manager training addresses specific issues or problems in the manager's functional area. Co-worker training includes general information about environmental issues and the IKEA environmental policy and action plan, and "function specific" information about the known environmental problems related to the functional area of the employee.

Results Achieved
1. By 1995, IKEA North America implemented an environmental training program, with TNS principles at its core. The training program utilizes the "train-the-trainer" principle. In the first step, the trainers are selected from different organizations and functions within the company and then trained at a five-day seminar. In the next step, these trainers are assigned to educate all management teams and all employees, primarily those having a direct customer or supplier contact. For each group, the extent of the program is adapted to the functional needs. The basic modules include:

Basic environmental knowledge according to TNS
The company's environmental program: background, policy, action plan
Education adapted to the tasks of the group; e.g., range, purchase, distribution, retail

2. Stores receive the IKEA position on different environmental issues to use for addressing questions or concerns raised by customers.
3. An "ECO-facts" database was created that contains brief descriptions of different topical environmental issues with summaries of known facts. (See Exhibit A for an example entry.) Co-workers have access to the "ECO-facts" database to gather information to address customer inquiries or solve other problems.
4. Some co-workers have voluntarily started local environmental working groups.

Products and Materials
This category recognizes that products and packaging must convey a clear signal about the commitment to the environment. Key tasks involve evaluating materials and manufacturing methods to identify the environmental impact of the materials or methods. When assessing the environmental impact of product materials, IKEA applies the environmental laws and standards from the strictest market as a minimum requirement for the products sold in all markets.
__________________________________________________________________
Facts about Formaldehyde
What is it? Under normal conditions, formaldehyde is a colorless gas with a pungent smell. It occurs naturally in all living cells and therefore also in the human body. Formaldehyde is able to combine with a number of substances to form a variety of end-products, and synthetically manufactured formaldehyde is used in the manufacture of paints, lacquers, adhesives, rigid plastics and a number of toiletry items, such as shampoo and soap. Formaldehyde is normally used in bound form or in aqueous solution as formalin. Formaldehyde also occurs as a by-product of incomplete combustion, for example in car exhaust fumes and tobacco smoke where it is present in much higher concentrations than emitted from, for example, furniture.

How is the Environment Affected? Formaldehyde is quickly broken down in nature and is not accumulated in animals and plants. Formaldehyde can, however, cause allergic reactions in contact with skin or if inhaled. In very high doses over a long period of exposure, formaldehyde is suspected of being carcinogenic. There is, however, no scientific evidence for this.

Is it Used in IKEA Products? Formaldehyde occurs in IKEA products as a binder in wood-based materials such as particleboard, bentwood and plywood. It also occurs in adhesives and lacquers, and in textile materials as a component in finishing treatments.

What Rules Apply Generally? IKEA has long worked to minimize the use of formaldehyde. Since 1986, IKEA has applied the German formaldehyde requirement, currently the strictest, for all IKEA products on all sales markets, even where no limit exists. The German limit is such that even persons who are over sensitive to formaldehyde should not experience any problems. Denmark and Austria have similar requirements, while Sweden, Norway, Finland and California have their own formaldehyde requirements.

On it own initiative, IKEA has also introduced equivalent requirements on textiles in spite of the fact that formal requirements exist only in Japan and Finland.
__________________________________________________________________

Results Achieved:
1. Polyvinylchloride (PVC) is gradually being phased out at IKEA. It has been replaced in wallpapers, home textiles, shower curtains, lamp-shades, and furniture. PVC has also been eliminated from all packaging and is gradually being phased out in electric cables.
2. IKEA is at the forefront of minimizing the use of formaldehyde in its products, including textiles (despite the fact that formal requirements for formaldehyde in textiles exist only in Japan and Finland).
3. Acid curing lacquers have been replaced with alternatives (e.g., ultraviolet (UV)- hardened and water-based lacquers).
4. A version of the IKEA OGLA chair is made from 100% recycled pre-consumer plastic waste.
5. A product called "a.i.r.," consisting of a series of air inflatable furniture products (e.g., a sofa), has recently been introduced into the product line. Individual components are inflated by the customer, using a hair-dryer, and then individually "stuffed" into a slip cover, that serves as the item's frame. The resulting product reduces the use of raw materials for framing and stuffing. In addition, transportation weight and volume are reduced to about 15% of what is required for a conventional sofa.
6. Powder lacquer is substantially reducing the use of chromium for metal surface treatment.
7. The use of substances such as cadmium, lead, PCB, PCP, and AZO pigments is prohibited or strictly limited.
8. IKEA strives to use only wood from known, well-managed sources: forests that replant and care for the protection of biological diversity.
9. IKEA uses only recyclable materials for flat packaging. In addition, using "pure" (nonmixed) materials for packaging enables easy sorting/recycling.

Customers
This category recognizes the need to make it easy for customers to incorporate environmental considerations into purchase decisions. Tasks seek to give customers sound environmental information and provide environmentally-friendly alternatives for acquiring IKEA products.

Results Achieved:
1. In 1992, IKEA worked with Greenpeace to develop guidelines for catalogue production. Today, over 80 million IKEA catalogues are printed on non-chlorine bleached paper and use pulp from farmed wood (no old growth). In addition, the company issues only one catalog per year, utilizes 10-20% post-consumer recycled paper, and accepts old catalogues back at stores for recycling. Additional environmental highlights of catalogue production include the use of:

Digital engraving at the print shop, rather that traditional film reproduction. This process reduces the use of plastic film and heavy metals, and there are no chemicals in the reproduction process.
Low-toluene content ink and heavy-metal-free ink, resulting in less use of solvents.
Adhesives that are free from injurious chemicals.

2. Several European stores offer free bus transportation from selected city areas to the store, as an alternative to use of private cars. When public bus transportation became available to a German IKEA store, 33,000 additional individuals visited the store in the following year.
3. Stores will accept product packaging that the customer wants to leave.
4. Organic cotton fabrics are available for custom upholstery.

Suppliers
This category recognizes the need to encourage suppliers to adopt environmentally responsible production methods. Key tasks are to encourage suppliers to strengthen their awareness of environmental issues and to support the development of more environmentally sound production technologies.

Results Achieved:
1. The process of working with suppliers for the North American market has been challenging. Robert Paolozza, IKEA NA manager responsible for quality and environmental issues, said that most suppliers were "somewhat surprised" at the environmental requirements of the IKEA product specifications. It has been necessary to work closely with suppliers to help them understand and adapt to key environmental product specifications, including restrictions on formaldehyde, lacquers, wood sources (no rain-forest wood). Also, packaging is to be recyclable or reusable and contain no PVC.
2. In Northern Europe, IKEA has organized 2½-day environmental workshops for suppliers. The workshop is offered to suppliers at cost. Participating companies send one or two individuals to be trained to train others on environmental issues. Afterwards, the participators are prepared to conduct training at their own company and to help establish their own environmental program.
3. Several IKEA suppliers in European countries now act according to established environmental standards and use an environmental management program. Standards used for certification are ISO 14001 or the Eco Management and Audit Scheme (EMAS), an European Union regulation. Many more suppliers are in the certification process.

Buildings, Equipment and Consumable Materials
This category recognizes the need to work for a better environment in all "we" do. Efforts in this area include evaluating the environmental impact of property, property enhancements, waste, equipment, and materials. For example, the environmental impact of office machines and materials is evaluated, and if more environmental compatible alternative products are available, they should be chosen at the time of next procurement. Similar practices are also used for other kinds of equipment (e.g., fork lifts) and consumable supplies.

Results Achieved:
1. Newly built IKEA stores and other owned property are constructed according to environmentally adapted requirements. Every effort is also made to adapt to these requirements when renovating old property.
2. Many European IKEA stores have adopted a "Trash is Cash" program. Trash is Cash takes IKEA packaging materials (e.g., cardboard, plastics), recyclable office waste (e.g., paper), and other store waste (e.g., paints, glass, wood) and recycles it.
3. In 1993 the Gothenburg, Sweden store set up its own on-site recycling facility and today the store recycles almost 85 % of its waste. Its annual solid waste bill, about $35,000 (US dollars) in 1992, is now a small profit. On-site recycling facilities are now established at all Swedish IKEA sites (including stores, offices, and warehouse/distribution centers). Waste is sorted into 16 to 22 fractions, and 80 to 85 % of total waste volume is sorted. The program considerably reduced waste handling costs; total cost today is close to zero. The goal is to reach 100% sorting/recycling within a few years. There also is a prototype in use for on-site composting of restaurant waste.
4. In Switzerland, stores offer customers the ability to deposit old furniture when replacing it with new IKEA furniture. By depositing old furniture with IKEA, customers can save about half of the waste disposal cost (e.g., nearly $100 for a sofa). A recycling contractor dismantles the furniture and sorts the materials into different fractions: wood, metal, textile, plastic, etc. The IKEA goal is to offer this service at a break-even cost point.
5. In 1995, the Philadelphia store was retrofit with fluorescent lighting at a one time cost of $151,000 (US dollars) and expected yearly savings of $85,322 (US dollars) through less energy (in KWH) use. By the end of 1998, all IKEA North America facilities will be retrofit with fluorescent lighting.
6. Some buildings are experimenting with alternative energy sources (e.g., photo voltaic solar systems and use of ground water to heat/cool the indoor climate).

Transport
This category recognizes the need for environmentally-sound transportation methods. Efforts seek to reduce the demand of non-renewable natural resources such as oil and direct damage to the environment as a result of emissions. Specific tasks achieving positive results over time include:

Using flat IKEA packaging that takes up little transport volume.
Using railroads for long-distance transportation.
Maximizing the efficiency of shipments: reduce the number of transports and the number of empty transports, make maximum use of cargo vehicle space, utilize return transportation, and avoid rush-hour traffic.
Choosing transportation companies that meet EC-standards on emissions and noise.

Results Achieved:
IKEA has continually applied logistic solutions to all distributed goods (e.g., product, catalogue, and fixtures). These items have resulted in real cost savings for IKEA, through the reduction of waste and the efficiency of transport. For example:

recycling shrink-film.
using returnable pallets.
using combi-transports, i.e., goods are conveyed by rail for part of their journey and by road for the remainder of the journey.
using transportation units in both directions when possible.
creating a "smart" goods logistics, e.g., using a bookbinding contractor between the printing house and the distribution center, to minimize total transportation distance.

Benefits, Challenges & Lessons Learned
To date, IKEA has not focused on measuring tangible benefits of its environmental program. Plan implementation costs have been viewed as operational or product costs. Intangible benefits have affected the employees, customers, suppliers, and product line.

The environmental training program received a fantastic response from employees and good support from management. Employees are motivated to work for a company with an environmental commitment.

Consumers, in all markets, are benefiting from the IKEA adherence to strict environmental standards, regardless of the regulations in that market.

Supplier relationships are strong. IKEA has worked closely with suppliers to help them modify production processes to meet revised product specifications. Such modifications have often resulted in production efficiencies and a reduction in total product cost.

IKEA has made the strategic decision to focus its energy internally on continuous improvements that support the environmental policy and plan. Therefore, external communication of the plan's implementation is made through "proving results."

The greatest challenges that lie ahead are in the areas of sustainable forestry, producers' responsibility legislation (Sweden and Germany), and transportation. The following insights share some lessons learned from the IKEA experience:

create awareness by involving as many people as possible from the start.
align your environmental work with your business vision; it must fit your business reality.
keep it simple in simple words!
put the environmental issue deep into the line organization - don't departmentalize it; it concerns everybody.
start with visible actions that show concrete results.
have a champion, someone whose job it is to focus on the key issues. Managers and coworkers will absorb the "functional view;" a champion can advocate a "systemic view."

"Even on a day-to-day operation," says Russel Johnson, director of environmental affairs, "there is a lot to be done." Basic tasks that will help achieve objectives include:

avoid complicated specialist terms by using 'every-man' wording and explanations.
try to find 'down-to-earth' changes and solutions. communicate to employees and others involved.
encourage employee volunteer activities and behavior changes at home as well as at work.

Works Cited
FY 1990 - FY 1997 average growth rate.
Estimated cost savings are 20-50 percent, compared with the competition.Kamprad, I., "Testament of a Furniture Dealer," December 20, 1976.
"IKEA and the Natural Step," by Joel Reichert, Darden Graduate School of Business Administration, University of Virginia, Feb. 1996 and from IKEA sources.
Anders Moberg, Feb. 24, 1993 from Introduction of IKEA and the Environment.

This case study was prepared by Heidi Owens, Ph.D., for The Natural Step Network.

Interface reduces water use 80% per unit since 1996

Anouk Bertner — Tue, 29 Jun 2010 13:53:19 -0400

By: Erin Meezan, Vice President, Sustainability, Interface

Interface, Inc. today uses only 20% as much water to make products as they did in 1996. This is an impressive accomplishment, especially for a materials manufacturer, and shows the benefits of looking at a business through the lens of sustainability.

Sixteen years ago, Interface Inc. started on a journey led by their founder, Ray Anderson. The company adopted a bold new vision - “To be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: People, process, product, place and profits - and in doing so- become restorative through the power of influence”. Reaching this vision meant that Interface would need to evolve into an entirely different kind of organization, but here was no blueprint for this kind of organization in business.

Interface started by asking how they could translate the operations of nature into a model for business. They relied heavily on the Natural Step Framework to guide their thinking as they mapped out how to change their business. Interface ultimately developed the Seven Fronts of sustainability – seven key areas where Interface would focus to remake their company. Over the last 16 years, Interface has followed these Fronts and made progress reducing the impacts of the company and its reliance on natural resources. This has included a strong focus on the manufacturing operations where they traditionally used large amounts of raw materials, energy and water.

As Interface approached the management of their manufacturing operations through a sustainability lens, they were able to identify numerous opportunities to not only conserve resources, but also cut costs.

Some savings have been the result of making fundamental shifts in how Interface manufactures its flooring products. For instance, engineers at Interface‘s Bentley Prince Street factory in California reconsidered the way they made carpet that resulted in a reduction of the water used to manufacture each unit by 47%. The company simply moved away from the energy water and chemical-intensive dye-injection and yarn dye methods for adding colors and patterns to their products. Dye-injection involved using a large machine, much like a big ink-jet printer, to apply colors to long lengths of carpet. The yarn-dye method involved soaking fibers in dye solution before tufting it into carpet. In pursuit of their sustainability objectives, Interface Bentley Prince Street totally phased out the use of dye-injection carpet printing in 1999 and reduced carpet made with the yarn-dye process from 45 percent of its output in 2001 to 1 percent in 2009.

As a substitute, the company shifted its focus to two alternative processes - piece dyeing and solution dyed yarns. The piece dyeing process involves manufacturing a blank slate of white carpet, and then adding patterns and colors on a made-to-order basis. This process of customization is far more energy and resource efficient than the sweeping dye-injection method.

The company also reconsidered the process of creating the carpet yarn itself. Instead of soaking fibers in dyes, the switch was made to the use of yarn filaments that are extruded from solutions already impregnated with pigment. This dyeing method drastically reduces the amount of water energy and chemicals required in the process and at InterfaceFLOR’s modular carpet factory in Georgia, this change in the manufacturing process resulted in a savings of over 88% in water per unit of production.

Interface has also taken advantage of the low hanging fruit available to them by making easy changes in building operations. At InterfaceFLOR in Thailand, they have reduced total water usage by 30% percent water through the installation of water efficient toilets, showers and sinks. Outside, they selected plants for their landscape plan that only required one year of temporary irrigation.

Interface’s significant reduction in water use is just one example of how managing the environmental impacts of business can bring about meaningful change. By relentlessly pursuing sustainability-focused innovation, Interface is racing to fulfill its long-term vision of becoming a “restorative company,” and is continuing to set the pace as a world leader in next generation manufacturing.

Interface, Atlanta, Georgia, USA

Chas Martin — Wed, 15 Oct 2008 23:31:49 -0400

A Natural Step Network Case Study

Overview
Interface was founded in 1973 to produce the first free-lay carpet tiles in America. Now the world's largest producer of commercial floor coverings, Interface manufactures and sells 40 percent of all the carpet tiles used in commercial buildings in the world. The company has expanded into specialty fabrics, architectural products such as raised access flooring, and chemicals used in commercial office installations. Interface is headquartered in Atlanta, Georgia. It has 25 production facilities in six countries, sales offices in 110 countries and 6,300 employees. Annual sales are approximately $1 billion (U.S.).

Introduction of The Natural Step
In August 1994, Chairman and CEO Ray Anderson was asked by a research division task force to give a keynote address about the company's environmental vision. His words describe the situation best:

" Frankly, I didn't have a vision, except 'comply, comply, comply.' I sweated for three weeks over what to say to that group. Then, through what seemed like pure serendipity, somebody sent me a book, Paul Hawken's The Ecology of Commerce. I read it, and it changed my life. It was an epiphany. I wasn't halfway through it before the vision I sought became clear, along with a powerful sense of urgency to do something. ... I agreed with his central thesis. ... Business is the largest, wealthiest, most pervasive institution on Earth, and responsible for most of the damage. It must take the lead in directing the Earth away from collapse, and toward sustainability. ... "

As a result, Anderson decided that his mission should be making Interface the first name in industrial ecology worldwide.

Fortunately, Interface already had a mechanism to help implement this vision. QUEST (Quality Utilizing Employee Suggestions and Teamwork) had been initiated earlier that year as a vehicle for improvement. As the Interface group of companies grew, new management wanted to create a single program that would integrate each company's efficiency and quality programs and unify all employees. QUEST did so.

Under QUEST, Interface focused on eliminating waste, which it defined as anything that goes into a product that doesn't come out as value to the customer. It set a three-year goal of 50 percent waste cost reduction. Cross-functional teams of 15 to 18 people brainstormed ways to conserve time and materials. Bonuses reflected the unit's waste reduction performance.

Anderson's address inspired the task force. It established a program called EcoSense within the research division to carry out sustainability initiatives, and chose a vice president to head it. The research division helps Interface businesses examine all manufacturing processes--analyzing the impact of each step on product quality, process efficiency and the environment. It developed a list of objectives and a point system to reward business units when they reach each objective. In February 1996 Interface merged QUEST and EcoSense. It formed 18 teams with an assigned scope of investigation and implementation. Every six months about 80 people from these teams meet for three days.

Meanwhile, Anderson asked experts in the area of sustainability to join his "Dream Team" to guide the company. Paul Hawken, chair of TNS US, joined this team in the fall of 1995 and interested Anderson in TNS as a conceptual framework for EcoSense. In January 1996 several executives went to Stockholm to learn more about TNS.

In June of 1996, Anderson declared his intention to redesign Interface's business practices to conform to TNS's four system conditions. He announced the decision at a gala event in Atlanta, co-sponsored by Georgia Institute of Technology and The Georgia Conservancy. The audience included 400 individuals representing a broad range of companies and organizations.

Training
In April 1996, Anderson hired Hawken to lead a two-day workshop about TNS for about 50 managers. In June TNS founder Karl-Henrik Robèrt spent a day with the group. In August Hawken gave them an in-depth two-day training. As a result, Interface decided to train all employees in TNS.

A group of Interface employees, guided by the Southeast TNS coordinator, Georgia Tech, and TNS US trainers, began to develop a curriculum. In 1997 Interface bought the consulting company that had been training its employees in "Play to Win," an experiential, risk-taking, team-building program. This company, One World Learning, integrated "Play to Win" with the TNS materials to develop an one-day training program.

In May 1997, 14 key executives attended a one-week TNS US training session led by Robèrt and Hawken. In June, One World Learning began conducting trainings for all employees, in groups of 75 to 400. In addition to the formal training, the company increases awareness through its EcoSense Net Letter on the World Wide Web, information kiosks, and an employee survey designed to monitor progress.

Sustainability Goals & Targets
· Organic Nutrient Carpet: Invent a product of completely organic material.
· Recycled Fiber: Identify recyclable fibers and develop incentives for suppliers to "get hooked" on sustainability.
· Emissions: Move beyond compliance by identifying ways to achieve zero emissions.
· Energy Efficiency: Decrease dependence on petrochemical energy sources.
· EcoMetrics: Under the slogan, "what gets measured gets done," Interface gauges the ecological impact of its business practices and provides quick feedback for decision-making.
· Toxics Elimination: Reduce Interface's toxic-materials-disposal responsibility and financial liability and look for alternatives to toxic inputs.
· Education and Communications: Increase awareness among employees and customers about the mission and progress of Interface's sustainability initiatives, including information about the company's environmental and business impacts.
· Scrap and Waste Reduction: Identify sources of and reduce scrap through production improvements, decreased packaging and accurate measurement.
· Yarn Waste: Achieve zero yarn waste by limiting scrap, overages and errors.
· PVC Paste Reduction: Minimize the use of PVC paste on products.
· Solvent Reduction: Measure and reduce effects of solvent emissions by modifying equipment and procedures.

Results
Today Interface has over 400 sustainability initiatives. Eighty Interface task force members meet for three days twice a year to share progress, discuss challenges and increase their understanding of sustainability.

Waste Reduction
Goal: To create zero waste.
Achievements:
· Engineers in one Interface factory found 25 different waste streams and calculated that by eliminating them, they could save $70 million in disposal costs.
· In 1996 solid waste was reduced company-wide by 2,874 tons. For example, due to construction changes and thousands of small steps to reduce waste, Interface Flooring Systems didn't have to buy 2.5 million pounds of nylon. And by converting to a metric sizing system, it reduced trim waste by 20,000 square yards.
· The Prince Street business unit recycled 480 tons of construction waste in one year, saving
over $35,000.

Toxics Reduction
Goal: To eliminate all harmful emissions into the ecosphere.
Achievements:
· Bentley Mills replaced its flat goods dryer with a high-efficiency dryer, reducing NOx emissions by approximately 50 percent.
· By redesigning its printing process, Interface Flooring Systems Canada eliminated all sources of water pollution.
· Interface Europe has reduced or completely eliminated dyestuffs containing heavy metals.
· Interface Architectural Resources eliminated all toxics by refining the adhesive system in its panel assembly and finish lines.

Fossil Fuel Reduction
Goal: To run the company on benign energy sources so, as Anderson puts it, "we never have to take another drop of oil from the ground." Interface worked with Rocky Mountain Institute, Georgia Tech and Georgia Power to develop the strategic plan for this objective.
Strategy 1: Reducing demand for power by increasing efficiency.
Achievements:
· Interface Flooring Systems Canada reduced consumption of electricity and natural gas per unit of production by 16 percent and 47 percent respectively.
· Interface Flooring Systems discovered an energy savings opportunity of 61 percent by conducting an energy audit and correcting improperly-installed fans.
· Bentley Mills and Interface Europe installed high-efficiency dryers, reducing gas consumption by 25 percent and 30 percent respectively.
Strategy 2: Investing in renewable energy technologies.
Achievement:
· Interface Flooring Systems Canada is the first customer of wind-generated "green power" from Ontario Hydro.

Resource Recovery and Reuse
Goal: To align its practices with cyclical principles of biological systems wherein "waste equals food" and resource use is highly efficient. One key is a shift from thinking of products as things to understanding products as a means to deliver a service.
Achievements:
· Interface has established a perpetual carpet lease; the customer uses the carpet, but Interface owns it and is responsible for replacing worn pieces and taking back the product at the end of its useful life. Instead of buying the carpet and paying for its installation and disposal, customers pay only a monthly fee and receive fresh-looking and functional carpeting.
· Interface's research unit is experimenting with ways to recycle the carpet fiber and backing. Interface Europe has produced the first fusion-bonded carpet made of 100 percent postconsumer recycled yarn. Its US counterpart is working to achieve the same product. The company also challenges its suppliers to develop 100 percent natural fiber products using industrial hemp, flax and natural dyes.

Resource-efficient Transportation
Goal: To eliminate the use of petrochemicals for transportation and reduce transportation-related emissions.
Achievements:
· Interface Research Corporation is experimenting with natural gas-powered fleet cars.
· The company also joined a "Trees for Travel" program that plants trees in the tropics. It is hoped that these trees will absorb carbon dioxide in sufficient quantity to offset the emissions from company-related air travel.

Applying TNS Outside the Workplace
Goal: To encourage employees to continue their commitment to sustainability at home.
Achievements:
· Interface Flooring Systems Canada subsidizes employees' home energy audits and retrofits to conserve energy.
· Several Interface companies have joined local "Adopt-A-Stream" programs, taking responsibility for the waterways that border their properties.
· Interface Europe in Northern Ireland established a challenge program to fund winning environmental proposals from local schools.
· Interface Flooring Systems Canada is working with local community leaders to promote TNS in local government, industries and institutions.

Benefits and Lessons Learned
Employees are enthusiastic about the importance of sustainability and what they can do to achieve it. They especially like hands-on activities. For example, Anderson turned a week-long company retreat at a luxurious Hawaiian resort into an exercise to encourage employees to reduce their environmental impacts. His Dream Team acted as consultants. They measured consumption patterns on the first day of the retreat to establish baseline metrics. After that, attendees received daily reports about their use of energy, water and other resources. Between plenary sessions, attendees heard presentations about the implications of their resource use and how they could reduce it. By the end of the week, the group was using 21 percent less electricity, 48 percent less propane and 48 percent less water while producing 34 percent less solid waste. Interface has learned which implementation techniques are effective:
· What propels Interface's sustainability initiatives is Ray Anderson's passion and commitment. If it weren't for this, it would be easy for employees to push environmental objectives aside under pressure to "get my work done."
· Broad directives from management such as "We've joined EPA's Green Lights program; carry it out." don't work well. As Interface has discovered, monetary and recognition incentives are much more effective. Employees compete informally to complete sustainability projects so they can receive recognition at the company's semi-annual task force meetings.
· Good PR always helps. The company promotes its successes through its Sustainability Report.
These many efforts are paying off for Interface. In 1996 company sales increased by $200 million even though Interface used no more raw material than in 1995. This saved the company $29 million (US). In this way, Interface expects to save $76 million between 1994 and 1998.

Sources
1. Telephone interviews with Jenier DuBose, EcoSense Program Manager and Sue Wooten,
Interface Research Corp., December 1997.
2. Telephone interview with Bryan Basham, V.P. of Customer Service and Quest, December, 1997.
3. Interface Sustainability Report, 1997.

This case study was prepared by Jeanne Roy for the Oregon Natural Step Network.

J.M. Bygg Construction, Sweden

Chas Martin — Mon, 20 Oct 2008 17:33:47 -0400

A Natural Step Network Case Study

Overview
JM Bygg AB is a Swedish-headquartered, international construction company founded in 1945 by building contractor John Mattson. The company is publicly traded on the Stockholm Stock Exchange. Its largest shareholder is Skanska, another large construction company, which owns 56 percent of JM's stock. JM is both a builder and property manager. Residential units represent 60-70 percent of company sales; commercial buildings, 30 percent. Construction revenue is $500 million per year while real estate holdings are approximately $1 billion in value. The company has 2500 employees.

Why TNS?
In the early 1990s the company board felt that environmental issues were growing as an important business issue. One issue in particular had been a well publicized case of "sickbuilding" syndrome in Sweden where a number of people had become ill from materials used to construct the buildings. It cost the companies involved millions of dollars to repair the buildings. JM didn't want the same thing to happen to it. JM decided it wanted to be the first construction company to take these issues head on and felt there was little PR or market value in being second. Managers liked the Natural Step because it wasn't so extreme and was understandable by business people. They made the decision in 1994 to begin using the Natural Step to guide their environmental efforts. The process began with the creation and formal adoption of a JM environmental policy by the Board of Directors.

Introduction of The Natural Step
Initially, information on The Natural Step was presented to 200 JM employees and 150 major customers. Next a group of JM employees was trained as Natural Step instructors. Afterwards all JM employees were then trained over a six-month period from late 1994 to early 1995. As part of this training an environmental handbook titled, "A Guide For Environmentally Adapted and Sound House Construction," was developed and was internally distributed to all JM managers.

At the same time, JM began requesting information from its suppliers on the materials that it was using. This was done for two reasons. One was to develop a database of products that would be acceptable or not acceptable. Today its database lists over 700 items in three categories: acceptable, not acceptable, and interim (until a better substitute is found).

The second use of the information was to prepare a materials description document listing the materials used in a project's construction just like a food manufacturer lists the ingredients in its product. The materials description is provided in a notebook that is handed to the customer on moving in. The materials description relates to both the health-related and nature-cycle aspects of the project. In 1995 the training material and database were made available on the company's computer network.

Outcomes
JM has a pilot project underway in southern Stockholm, where 88 condominiums are being built according to the TNS concepts. As optional features, residents may choose among their own garden plots, compost units, or free-standing earth cellars for food storage. Water from rain and melted ice and snow is handled on the grounds of each individual dwelling. The area will be completely automobile-free.

The company uses natural materials such as wood, not plastics, and has made a strenuous effort to use material that won't cause allergies. Eighty percent of materials are ordinary. Only 20 percent are special. Buildings are built with a 100-year life in mind. Walls have five inches of concrete, then an eight-inch thickness of insulation with an outer plaster covering. Windows have three panes of glass with gas between one set.

This project was built on land that the local city provided on long-term lease. The market for these condos is middle-income people who can't or won't pay a premium. The environmental factors were added to give JM a competitive advantage in securing the land (three other developers had failed) and attracting buyers.

The building materials JM has selected have been matched against its database and scrutinized to meet the criteria of its environmental policy. For example, PVC is avoided, and customers are offered nickel-free fixtures. The company has also drawn on experience from a research project where it built an allergy-friendly, multi-family building with the financial support of the Swedish Council for Building Research.

Besides the health aspects of its buildings, an area of environmental focus has been the sorting of waste at building sites. JM requires that all surplus materials and packaging supplied to a building project be taken back, recovered, or handled in a way that is as environmentally friendly as possible. This objective is partially attained by sorting the "residual products" out at the building site. There are five on-site recycling categories: wood, gypsum, steel, plastic and mixed material.

Metrics
Environmental plans are developed for each project, identifying the environmental goals of that project. Typically there are 25 areas measured. The key ones are energy/square meter, both during the construction phase and during operation of the building, and the amount of waste that is generated on a project. Other measurements are the number of employees educated, number of subs and suppliers with an environmental policy, how much PVC is used, etc.

The company has an environmental manager and staff with someone monitoring each region and each project. It is considering going for ISO14001 certification.

Communicating Its Efforts
Marketing is done primarily through sales literature and newspaper ads. In the 1980s many buildings had the "sick-building" syndrome. It cost 500M SEK (about $60 million) for the companies involved to repair these buildings. JM's sales literature shows prospects why they won't get sick. A product specification is provided with a list of all the chemicals and other materials it uses.

Overall added costs for these environmental efforts is two to three percent above normal. Prices are always set by market conditions but often the company is able to get a small percentage more.
If a commercial customer doesn't want an environmental approach, JM will do what the customer wants but ask it to sign a waiver.

Lessons Learned
· The biggest on-going challenge is keeping everyone educated because of employee turnover and use of new subcontractors.

· Sometimes natural material is harder to take care of by the customer than synthetic. For example, wood needs to be painted. It is very important to educate the customer about these matters.

· Subcontractors are resistant to take the time to recycle properly because they are paid on a time-incentive basis.

Benefits
· Local communities often own the land that is being developed and will select a developer based on its environmental policies.

· JM has developed a positive reputation with customers because they know that JM is ecofriendly.

· Potential building delays are eliminated because of the support and trust JM has earned from environmental groups.

This case study was prepared by Duke Castle, The Castle Group, in November 1998 for The Natural Step Network.

Nike

Anouk Bertner — Mon, 27 Oct 2008 17:22:40 -0400

In October, Chad Park and Richard Blume represented The Natural Step at a press event in New York for the public launch of Nike’s Considered Design (“performance without compromising sustainability”). The Natural Step worked with Nike ten years ago to jump-start their earlier sustainability work and in 2008 we began helping them create a new set of innovation goals for their product lines.

Mark Parker, CEO of Nike Inc., made bold statements about the significance of Considered: “I see unlimited possibility with Considered and the potential for us to be a game changer. It is helping us to be a better, more responsible, more profitable company. I envision a time when all our products are closed loop using sustainable, low carbon design.”

Nike’s Considered Index has harnessed the ‘just do it’ mentality in service of sustainability and rewards designers for making good design choices (e.g. environmentally preferred materials, waste reductions, water-based solvents and step-change innovation). This tool has been a key leverage point - Nike exceeded its own expectations and smashed original internal targets by over 700%. They plan to share the Index in the spirit of industry-wide collaboration towards sustainability.

The Natural Step will continue to work with Nike on its vision and strategies to ensure that social and ecological sustainability are indeed considered. For more, read the case study of our work together, read our blog from the launch, our press release (below) and see photos from the launch on our Flickr’ photo sharing site.

Read the attached press release for more. Contact information is also listed.

Nike, Inc., Beaverton, Oregon, USA

Kim Mackrael — Tue, 28 Oct 2008 12:44:24 -0400

Nike, Inc. is the world's leading manufacturer of athletic shoes, apparel and equipment, and directly employs 30,000 people around the world, 6,000 of whom work at Nike World Headquarters near Beaverton, Oregon. As of 2006, Nike products were manufactured by nearly 800,000 workers in 700 contract factories located in 52 different countries.

In 1998, The Natural Step began to work with Nike to help it apply the principles of sustainability to its business operations, and the company formalized its commitment to sustainable commerce with an official policy statement later that year. Hundreds of Nike employees were trained to use The Natural Step Framework between 1998 and 2001, leading to numerous innovative programs to further its sustainability goals. In 2008, Nike partnered with The Natural Step again to help assess and further develop its approach to product innovation by defining a long-term vision for sustainable products. The resulting North Star vision and innovation goals position Nike to become a leader in sustainable product innovation and navigate toward a sustainable future.

Norm Thompson, Portland, Oregon, USA

Chas Martin — Mon, 27 Oct 2008 13:53:57 -0400

A Natural Step Network Case Study

Overview
Norm Thompson is an Oregon-based catalog retailer with three sales divisions: 1) Norm Thompson – traditional, high-quality clothing for travel, leisure, and people on the go; 2) Early Winters – rugged clothing and products for those who play outdoors; and 3) Solutions – goods that make life easier by providing “solutions” to challenges throughout the home. In 2002, Norm Thompson will distribute approximately 80 million catalogs to its national customer base. Annual revenues are approaching $200 million. The company employs approximately 675 yearround employees and an additional 1200 during the peak holiday season.

Norm Thompson has a history and corporate value of being a community citizen. Part of this value is recognizing its global responsibility to leave a healthy environment for future generations. The company addressed this environmental concern in 1994, when it began construction of its “green” corporate headquarters in Hillsboro, Oregon. In 1997, a year after moving into that building, the CEO attended a one-day Natural Step workshop and took what he learned back to the top management team. In 1998, the team embraced The Natural Step (TNS) as a framework to bring sustainability to business operations.

Background
The company’s history began in 1949 when Norm Thompson, the man, began selling hand-tied fishing flies from his home in Portland, Oregon. In 1950, Thompson produced his first catalog, offering high quality gear and clothing to discerning outdoorsmen. Thompson’s son-in-law Peter Alport, who joined him the following year, envisioned a company offering items that escape from the ordinary. As the company grew during the ‘50s and ‘60s, it became viewed as a premiere fly-fishing resource. During the late ‘60s and ‘70s, the company introduced the Irish Country Hat, sheepskin coats, and sheepskin seat covers to the United States. It continues to offer unique products to its customers.

John Emrick, Norm Thompson’s CEO, joined the company in 1965. He became president of the company in 1971 and majority stockholder in 1981. Emrick and his wife and partner Jane have a long-standing commitment to caring for the environment. Based on this commitment, the couple took the opportunity when the company needed to expand its corporate headquarters to do something better for the environment. Rather than constructing and owning a traditional building, the company found a developer that accepted the challenge of “green” building. A construction team was formed, and with each decision, the team considered what would have the least impact on the environment and remain within the tight budget. The resulting building was within budget, and Norm Thompson leases it for less than the cost of its previous leased space. In addition, the building was the first to receive Portland General Electric’s Earth Smart Gold certification for energy-and-resource-efficient design. It also won a City of Portland BEST award for energy efficiency and an American Institute of Architects award for energy and design. The added costs of the building’s environmental features were paid off in the first four years by energy savings. These energy savings, 35% over Oregon code, now contribute approximately $30,000 per year to the company’s bottom line.

Introduction to The Natural Step
In January 1996, as Norm Thompson was moving into its new headquarters, Jane Emrick suggested that the same question about “what is best for the environment” be asked of the business itself. With this concern in mind, the couple heard about TNS. In 1997, the Emricks and two managers attended a one-day TNS workshop, hosted by the Oregon Natural Step Network. They perceived TNS as a framework that had been used successfully at other companies and could guide Norm Thompson toward sustainability. They began the process of integrating the framework into the company. That process has been filled with exciting challenges as creating a cultural and structural change within an organization takes time and deep commitment.

Sustainability as a Strategic Initiative
In the autumn of 1997, the Executive Committee met to identify a set of strategic initiatives. As the process came to a close, John Emrick suggested an initiative on the environment. At the time, he said that the initiative would deal with “sustainability” and that more would be forthcoming. Over the next several months, as action plans for the initiatives were developed, Emrick spoke with top management about the importance of sustainability and introduced TNS framework as a tool for achieving it. In May 1998, Emrick attended the TNS five-day annual workshop in Chicago to learn more specific information on the framework and its implementation. Emrick’s efforts as TNS champion were successful. Top management came to consensus about the importance of sustainability as a strategic initiative.

Later in 1998, the management team began to revise the company’s mission statement. A management-consulting firm helped the team identify the company’s vision, mission, goals, and core values. To realize change within the organization, TNS principles were expressed in and integrated with the core values. For example, an environmental mission statement was adopted that says: “Norm Thompson Outfitters will be a leader in developing business practices that sustain, restore and move in harmony with the natural environment.” The company’s “escape from the ordinary” philosophy has been extended to become the mission of the company, thus incorporating sustainability as a break from the traditional manner of conducting business. Management understood the importance of integrating environmental awareness and the framework of the TNS system conditions into employee activities and decisions at all levels. Hoping to empower all employees so that the program was driven as much from the “bottom up” as it was from “top down” management support, it began to implement a company-wide training program.

Employee Training
Upon returning from the 1998 five-day TNS workshop in Chicago, Meg Miller (the manager of quality assurance) and Jane Emrick designed a training curriculum for all employees, using the TNS curriculum as a guide. This material was presented to the company’s in-house trainers and selected individuals. Based on the attendees’ critiques, Miller and Emrick modified the training materials. They also discovered that participants wanted to brainstorm about taking TNS framework into their personal lives. To help facilitate this desire, they included a hands-on exercise that asked trainees to evaluate products based on the system conditions. This exercise helped demonstrate the goal of Norm Thompson’s TNS training “to put in place a thinking filter.”

This training program is four hours long, multimedia, and interactive. It includes:
Several descriptions of sustainability
An overview of global conditions, including global warming, deforestation, waster
scarcity, and poverty
An introduction to The Natural Step framework
Examples of Norm Thompson’s commitment to sustainability
Case studies of other companies’ movement toward sustainability

Most employees went through the training program by April of 1999 in groups of 15-20. Now, approximately every six months, new hires receive the training. And guests from other companies and organizations are always invited to participate.

In hindsight, Emrick and Miller would have planned the training over a shorter time period and had a structure in place for ongoing idea exchange and implementation. After the training, they became concerned that memories had dimmed and initial enthusiasm from the training had not born fruit.

Further, the company realized that it needed to prioritize and focus on some targeted areas where it could achieve measurable results, rather than diluting focus by trying to accomplish everything at once. Management also realized that the program itself would be more likely to succeed if staff were dedicated to serve as an information resource and coordinator between the different departments. Thus, preparations were made for a company-wide sustainability plan and a new sustainability position.

Embedding TNS into the Culture
In July 1999 the company hired Derek Smith, from outside of the company, to fill the new, fulltime position of Corporate Sustainability Manager, reporting directly to the CEO. In the fall of 1999 Smith worked with an internal advisory board to answer the question “what will it take, culturally, for our company to move toward sustainability?” The focus was not on specific actions the company could take related to resource use, pollution, etc., but rather how to effect a cultural change so that all employees would actively work to bring the company into closer alignment with TNS system conditions. The 10-member advisory board consisted of employees from different work areas as well as different levels of the company’s organizational chart.

The advisory board identified the top drivers behind Norm Thompson’s evolution toward sustainability, as well as the top barriers. Top drivers included clear vision from the CEO (John Emrick), a trained and enthused workforce, and accountability in one person (the sustainability manager). Barriers were that sustainability had not yet been integrated into the company’s business plan, and there were no firm metrics for the company to measure its achievements.

Other barriers included perceived conflicts between profitability and sustainability and no unified sense of urgency around the topic. The board sent a Cultural Integration Plan to the CEO and president with recommendations to set departmental sustainability goals and to develop an action plan.

Sustainability Action Plan. In December 1999, the company began working on its Sustainability Action Plan. The Action Plan identifies four top environmental issues for Norm Thompson: global warming, toxics, habitat destruction, and waste. These were drawn from the U.S. EPA’s list of emerging environmental issues but also parallel the four TNS system conditions. These issues were then tied to the areas where Norm Thompson believes it can have the greatest impact as determined by a subjective review of business operations. The five categories of impacts are products, packaging, printing (including catalogs), transportation, and influence.

The Action Plan includes goals and deadlines for every department in these areas. (See the appendix of this case study.) The Plan was finalized in February of 2000 and was approved jointly by John Emrick and President Becky Jewett. The goals and deadlines of the Plan were then integrated by Jewett and the division vice presidents into the company’s business plan. Derek Smith tracks the progress in meeting the five-year goals. Each year during the fiscal-year planning and budgeting phase, he negotiates with department heads to set annual goals for the coming year.

In April 2000, the company organized a half-day “Sustainability Celebration.” The main office closed operations as most Portland-area employees and invited guests from several nonprofit and for-profit partners attended an interactive event, the intent of which was three-fold:

First, to celebrate winning the prestigious “Rodale Environmental Mailer of the Year Award” from the Direct Marketing Association.
Second, to recognize individual employees and their accomplishments.
Third, to introduce the Sustainability Action Plan. This was done not by the CEO, the President, or the Sustainability Manager. Rather, each vice president spoke to all employees about his or her departments’ plans. This sent a strong signal to all employees that sustainability was now firmly integrated into the company’s business plan and operations.

Featured keynote speakers included Janine Benyus, author of Biomimicry, Joel Makower, editor of the Green Business Letter, and Portland Mayor Vera Katz, who, as the US Conference of Mayors representative, awarded Emrick the Rodale award. The celebration concluded with a multi-media presentation that was very effective. Norm Thompson’s CEO took the podium and asked rhetorically “so, why are we doing this?” With Louis Armstrong’s “What a Wonderful World” playing in the background, photos of employee’s children and grandchildren (collected previously under the guise of “take your child to work day” and then digitized) were shown on the screen. According to Derek Smith, this final activity, tying the company’s sustainability initiative to a sense of personal responsibility for the future, “left not a dry eye in the house.” Employee involvement. To officially communicate that sustainability was now being integrated into all jobs, the CEO and President issued a “declaration of sustainability” to be in every employee’s job description:

From this day on, sustainability is part of your job. This means you can share in a common mindset, earn recognition and contribute to the health of the world. Think outside the box, challenge yourself and feel good about your efforts to improve our business and help our planet and future generations. Each of us, no matter what department we're in, can do things--small or large--that will help us achieve our goal of sustainability.

The company places a lot of emphasis on recognizing individual employees. Whenever employees implement a “great idea,” they can be nominated for an environmental award. Derek Smith works with them to document the results (both environmental and financial savings). The awards are presented in person by John Emrick and Becky Jewett at quarterly associates’ meetings. This highly visible program generates many suggestions from employees and helps sustain employee interest and involvement.

Employees are further trained in sustainable practices through workshops, e-mails, and special events. For example, Derek Smith has sponsored in-house workshops for product buyers (often featuring professionals from outside the company) related to the company’s phase-out of PVC and conventional cotton. A monthly “Eco-Tips” e-mail message goes out to all employees with information and suggestions for environmental actions both at work and at home.

Results
Employee morale
Knowing that progress toward the company’s goals wouldn’t be immediately apparent, Smith encouraged some projects with quick results. A big organic garden was built on-site.

Employees separate their lunchroom food scraps, the maintenance firm incorporates the food into compost bins, and the resulting compost enriches the garden soil. Norm Thompson constructed a huge recycling center and encouraged employees to bring non-curbside items like batteries, plastic bags, light bulbs, and foam packing material. Free transit passes were given to all employees. The volunteer, match program where employees get time off for volunteering in the community was expanded. Employees feel good about working for a company that cares about the health of people and the planet. One said, “I love this company. It stands for the right things—sustainability and work/life balance.” Norm Thompson’s commitment to sustainability also has an advantage in recruitment. Candidates for significant positions have sought Norm Thompson because it is moving toward TNS system conditions.

Catalogs
In 1999 Norm Thompson entered into a partnership with Environmental Defense’s Alliance for Environmental Innovation to analyze recycled paper and paper reduction options. Two years later it announced its most high-profile project--inclusion of 10% post-consumer waste in the paper of all catalogs. By working with its supplier it was able to purchase the recycled paper at prices comparable to virgin paper, and focus groups showed that the paper had no effect on customer response. Norm Thompson received good press coverage of its accomplishment and through this exposure was able to convince other catalog retailers to make the switch. It is now testing 20% content. Norm Thompson also discovered through the project with the Alliance that it could eliminate envelopes holding catalogs to new requestors. This measure saves $50,000 a year plus $50,000 in extra demand because customers respond better to catalogs not in envelopes. Still under consideration are other options such as reducing the size of order forms and sending smaller catalogs or even postcards that refer customers to Norm Thompson’s Web site.

Other waste reduction efforts

“Ship all Together.” When customers order multiple products, standard practice has been to ship those products that are in stock and follow up with shipments of other products as they come into stock. Under a relatively new program, “Ship all Together,” if the out-ofstock items are expected to be in within one week, sales agents at the call center will ask the customer if they want their order shipped all together, or in separate boxes. Sales agents were trained to add a new closing line to their script: “And, shipping all together means less packaging so we can work together to help the environment.” In the period of several weeks, the percentage of customers choosing this option almost doubled, from 8.3% to 15.2%. It is now 17.5%, saving $252,000 annually and over 30,000 shipping boxes or bags, plus filler, tape, labels, and inks, and energy and pollution from shipping.
Packaging. Norm Thompson is testing several packaging alternatives. In 2000 its shipping department added a small-sized box. Previously, the smallest sized box had been about the size of a shoebox. Norm Thompson currently uses wadded kraft paper for padding but is pilot-testing the use of molded, recycled paper “packing cubes.”
In-house waste prevention and recycling. Toward its five year zero waste goal, the company committed to reducing its solid waste in half in 2001. In the first year it had reduced waste by 41% at its headquarters site. Recycling polystyrene foam and garment bags helped tremendously. One dramatic example of office waste prevention is the elimination of heavy-gauge plastic cups from vending machines. By providing every headquarters employee with a reusable mug, the company eliminated the use of 120,000 disposable cups a year, saving almost $10,000 annually. To help create demand for recycled products and reduce toxics, Norm Thompson is purchasing 100% post-consumer-recycled, processchlorine-free copy paper.

Selection of more sustainable products
Early on, Norm Thompson realized that merchandising would be its most difficult area. It had very little knowledge of the contents or impacts of the products it sold, which come from hundreds of vendors. Therefore it started with materials it learned about through colleagues, such as Nike and Patagonia—cotton and vinyl. In 1999 the top executives and cotton apparel buyers toured both conventional and organic cotton farms in California to learn the impacts of growing practices. They came back with a commitment to organic. The first product made of organic cotton was a casual short-sleeve shirt, which sold so well that a long-sleeve version was added. These successes led another supplier to introduce organic cotton into a line of sleepwear. The company goal is to replace all conventionally grown cotton with organically grown cotton within five years. It also intends to phase out vinyl, also known as PVC, within five years.

Sustainability Scorecards. Even with this initial success, progress after two years seemed too slow to meet the five-year goals. In working with vendors, buyers needed a tangible way to interpret benefits and drawbacks of a range of choices. With the help of the buyers and a sustainability consultant, Michael S. Brown, Ph.D., senior management constructed Sustainability Scorecards. For example, the textile scorecard places organic cotton at the top and synthetics at the bottom. Twelve Scorecards are incorporated into a Sustainability Toolkit that also includes sourcing preferences and a glossary of social and environmental terms. The buyers are to improve their aggregate scorecard over time, and they are held accountable in performance evaluations. As soon as the scorecard was launched, more movement started taking place.

To identify specific toxics to eliminate, Norm Thompson helped Business for Social Responsbility (BSR) develop a Restricted Substances List. The list on BSR’s Web site includes dyes, flame retardants, formaldehyde, PVC, chromium in leather, and pesticides. Norm Thompson’s quality department is communicating with vendors about its desire to eliminate these substances. It also needs to develop the capability of testing the products so that it’s not relying totally on vendors.

Energy. Norm Thompson has calculated its greenhouse gas emissions from electricity, natural gas, and company vehicles and is participating in EPA’s Climate Leaders program, which means it has committed to reduce its greenhouse gas impact by at least 90 percent by the end of 2005.

It has purchased green power through its utility and offsets through Ecumenical Ministries of Oregon. Programs converting oil burners to natural gas in low-income Portland schools and retrofitting lighting in community buildings used by non-profits saved energy, which then offset the energy used by Norm Thompson. Between 2003 and 2005 the company plans to significantly increase its offset program to cover 25%, 50%, and then 100% of its electricity. To influence a societal shift from fossil-fuel to alternative energy, the money will be invested in new renewable energy through Bonneville Environmental Foundation’s Green Tag program.

Social Equity. Norm Thompson is committed to insuring that the human rights of workers in the factories that make its goods are upheld. A code of conduct based on guidelines from the Fair Labor Association is included in the company’s vendor manual, and several audits have been carried out in factories. In addition, the company tries to select products that support indigenous cultures. For example part of the proceeds from a sweater knitted by women in Nepal goes to a non-profit that improves women’s literacy there.

Extending Influence
One of Norm Thompson’s sustainability goals is to become a practical model for the business world. Influencing vendors and other companies is one of the roles that Norm Thompson most clearly relishes, and one of the accomplishments that most empowers and excites the company’s employees. Sometimes communication with vendors can yield nationwide results. For example, an employee asked a vendor if it would e-mail its twice-weekly report instead of faxing it. The vendor agreed, then later said that as a result of Norm Thompson’s suggestion, it had begun offering e-mail as an alternative to its other customers nationwide. It was very gratifying to the employee to know that her simple request had initiated a nationwide change.

Norm Thompson shares results of its research with other businesses, including competitors. For example, it met with other catalog retailers to share what it learned about post-consumer recycled paper.

The company is more cautious in the area of customer education and is careful to avoid claims of “greenwashing” the public. It has made a few references to environmental issues in product descriptions and a limited number of small articles in the catalogs. As the company improves its own performance, it plans to eventually provide more information to customers on its Web site.

Challenges and Lessons Learned
One of the greatest challenges facing Norm Thompson is that the cultural and structural changes necessary to adopt TNS framework take time. The process is complicated; the issues are deeper than they seem on the surface. As a catalog retailer, the company does not directly see the environmental impact of its choices everyday as a manufacturer would.

Using the TNS framework is about process, not perfection. Aspects that appealed to John Emrick are that “you don’t fail” and “you won’t be judged.” Given the baseline efforts of Norm Thompson, change will come. Emrick and Smith share the following lessons learned:

It was helpful to tailor the training to the business. Even though it took energy, the presenters got more buy-in because employees could relate to the industry issues.
At times, you may feel “out-there” by yourself, but you are not without support.
Collaborate with others; partnership is critical to making sustainability a reality.
TNS framework has to be part of your mission and needs complete buy-in on the executive level, or it is not going to work.
Integrate sustainability with the business plan. Put measurement systems in place so that all employees, from the president down, are held accountable for the company’s improvements.
Prove that sustainability is congruent with profitability by taking a holistic approach to financing environmental improvements. Savings in one department can be used to justify sustainability investments in another department.
Get employees to talk about it; talking generates more thinking. But don’t invite employee involvement unless you’re prepared to respond to it. In 1998 the company hosted a meeting to brainstorm ideas for TNS initiatives. Approximately 80 employees participated, generating 270 different ideas. Without the staff to respond to employee suggestions, however, some employees went almost a year before seeing a response from the company.

Sources
1. Interviews with John and Jane Emrick in December 1998 and January 1999
2. Interviews with Derek Smith in September, October, and November 2000
3. Company documents

For more information on sustainability and environmental initiatives at Norm Thompson, please contact Derek Smith, Corporate Sustainability Manager at Norm Thompson, dsmith@nortom.com. This case study was written in February 1999 by Heidi Owens for the Natural Step Network. It was updated in December 2000 by David Allaway and in October 2002 by the Network.

APPENDIX

SAMPLE SUSTAINABILITY GOALS AND DEADLINES, NORM THOMPSON

FY01 Goals: Merchandising
1. Begin phase-in of organic cotton (to replace non-organically grown cotton).
2. Begin phasing out PVC (polyvinyl chloride).
3. Begin supply chain engagement
4. Track the “environmental value” of products.
5. Build environmental value into brands.

FY01 Goals: Paper/Forestry
1. Partner with Alliance for Environmental Innovation on review of catalog issues
2. Test recycled content in catalog pages
3. Reduce resource and energy use, and pollution (associated with catalogs?)
4. Prove the case for why the industry should switch to better source reduction, Internet-based sales, and recycled content paper.

FY01 Goals: Packaging
1. Review minimization, biodegradability, recyclability
2. Test alternatives

FY01 Goals: Operations
1. Reduce office paper use by 50%
2. Cut solid waste by 50%
3. Launch employee transportation program
4. Incorporate green building practices into renovation/expansion
5. Recognize employees

FY01 Goals: Finance and Influence
1. Contribute $500,000 net to the company’s bottom line
2. Solidify position as environmental-thought leader in the industry

5 Year Goals: Environmental
1. Global warming: Zero net carbon impact
2. Toxics: Elimination of identified toxins (formaldehyde, PVC, others) from products and processes
3. Habitat destruction: Zero negative forestry impact
4. Waste: Zero waste in facilities

5 Year Goals: Finance and Influence
1. Contribute $5 million net to the company’s bottom line (total, over the first five years)
2. Become a practical model for the business world

OMSI - Oregon Museum of Science and Industry, Portland, Oregon, USA

Chas Martin — Thu, 16 Oct 2008 17:29:54 -0400

Learning by doing: A museum’s mission for sustainability education

A Natural Step Network Case Study

Oregon Museum of Science and Industry
• Founded in 1944
• One million visitors annually
• 200 employees and 400 volunteers
• Hand-on exhibits, interactive labs, OMNIMAX films and planetarium

Summary
The Oregon Museum of Science and Industry (OMSI) is a premiere science and technology museum that is visited by more than one million people each year. OMSI has 501(c)(3) status and relies upon donations, admissions, and memberships from its 75,000 members. Nancy Steuber, made sustainability a priority when she became president of OMSI in 2000. Inspired by The Natural Step Framework, Steuber invited AXIS Performance Advisors to help OMSI develop a steering committee to create and implement a sustainability plan. This plan includes goals of carbon neutrality, waste elimination, sustainably-produced exhibits, and sustainability education for museum visitors. OMSI’s initiatives include recycling and composting, efficient lighting and HVAC, and bioswales that filter stormwater runoff. The effectiveness of these projects is tracked by OMSI’s metrics team. As OMSI integrates The Natural Step into its decision-making, it also strives to make sustainability part of what OMSI does best: provide fun, interactive education on science and technology.

Background
The Oregon Museum of Science and Industry (OMSI) is “a scientific, educational, and cultural resource center” on the banks of the Willamette River in the heart of Portland. Offering hands-on exhibits, interactive labs, OMNIMAX films, and a planetarium, it provides the public with entertaining education on science and technology. It was founded in 1944 and is an independent 501 (c)(3) funded through admissions, donations, and memberships. While OMSI sustained a brief period of financial difficulty resulting from flood damage in 1996, today it draws support from a membership of 25,000 households in the Portland area.

This 60-year reciprocal relationship between OMSI and the public is what underlies OMSI’s sustainability mission. While OMSI is not a for-profit business, Senior Business Analyst Damien Francaviglia likens the museum’s educational services to a company’s product. In this respect, OMSI is in an unusual position to be able to contribute towards The Natural Step’s fourth system condition of social sustainability: not only can OMSI become a more sustainable operation, but it
can connect sustainability to science and technology through its exhibits.

Even prior to the introduction of The Natural Step, OMSI had enacted concrete measures to lessen their environmental impact. In the 1990s, OMSI started a recycling program and created bioswales around their parking lot to collect and filter stormwater runoff. As is the case in many organizations, however, these projects were not part of a larger umbrella program with long-term goals. Still, these independent efforts formed a current of awareness amongst employees, which facilitated a shift towards sustainability.

Introduction of The Natural Step
Nancy Steuber, who had been the head of the exhibits department since 1988, became the president of OMSI in 2000. In 2001, Steuber, a trained environmental scientist who was familiar with The Natural Step Network, invited Darcy Hitchcock of AXIS Performance Advisors to help organize a sustainability program at OMSI. AXIS draws upon The Natural Step framework, as well as the Triple Bottom Line, to consult with organizations who wish to integrate sustainability principles into their business models. Nancy Steuber appreciated the scientific nature of The Framework and felt that it would translate well to a science museum. One of Steuber’s top concerns was that this be done with a grassroots approach that encouraged employee initiatives and feedback. While the effectiveness of an employee-driven approach may vary depending on the context, other Natural Step case studies have shown positive results: when employees are given ample opportunities to participate, not only do they bring their own specific expertise to share, they are more likely to buy in to the changes since they are involved.

While some organizations adopt The Natural Step Framework directly, others partner it with complementary approaches that fit their organizational needs. Although not all OMSI employees received a formalized TNS training, Hitchcock helped OMSI integrate TNS system conditions into its sustainability plan. Over the course of a few years, Darcy Hitchcock helped OMSI form its first Sustainability Steering Committee and develop its sustainability plan. However, because of a lack of time and funding, the Committee has endured periods of dormancy. Sustainability planning has yet to be integrated into all employees’ job descriptions and OMSI has never had a Sustainability Coordinator position—a role commonly appointed in larger organization to coordinate different departmental efforts. Recently, Damien Francaviglia has coordinated the Sustainability Steering Committee in addition to his other responsibilities, resulting in more regular meetings and an updated sustainability plan.

Integrating The Natural Step Framework

The Sustainability Steering Committee, or “Walk the Walk” team that formed in 2001, had voluntary membership from employees representing every department. During the first year, Hitchcock facilitated monthly meetings where OMSI assessed its processes and material flows against TNS system conditions. The Committee initially focused on energy use at the facility, transportation-related carbon emissions, and solid waste. Today, the Sustainability Steering Committee advises senior management and is the locus for documenting and communicating sustainability efforts throughout the organization. In an example of backcasting, the Sustainability Steering Committee identifies projects that helps move OMSI towards its larger sustainability goals. OMSI uses the following parameters to guide the Steering Committee’s mission:
Tools levelUsing performance measurements to evaluate actionsBeing flexible and adaptive to new informationAction levelImplementing actions (D) outlined from the backcastingStrategies levelUsing the Backcasting tool to create a plan for actionAssessing tradeoffs between different materials and processesSuccess LevelBaseline Assessment (B)Creating a Vision (C) based on system principlesSystems LevelAwareness (A) of the interactions between the biosphere and human society Funnel metaphor

Sustainability Steering Committee Parameters for Success
1. Use science-based principles, adapted from TNS framework.
2. Sustainability initiative increase publicity and reputation as organization with triple bottom line credentials.
3. Decision guidelines and business analysis tools with triple bottom line framework are used routinely throughout the organization.
4. Organizational performance targets are clearly defined and adopted; progress is monitored with Key Indicator metrics.
5. Staff and volunteers express conceptual understanding and behaviors that demonstrate sustainability is an essential value of the organization.
6. OMSI’s experience is shared with others and used to disseminate information about sustainable practices.
7. Committee structure and function will be reviewed annually, with documentation of best practices and lessons learned, that can be applied to the formation of other cross-functional teams.

(A) Creating Awareness
Although The Natural Step offers training sessions designed both for staff and managers, OMSI used an informal approach to raise awareness among their employees. Francaviglia describes the process as “organic”, where several initiatives come from within departments. OMSI has engaged its employees through monthly staff meetings, employee newsletters, and informal discussions within departments. One group of OMSI staff has formed a global climate change education committee to educate other staff through newsletter articles, emails, and guest speakers. Museum members are kept abreast of sustainability efforts through a members’ newsletter. According to Francaviglia, generating support from employees has not been difficult:

“Sustainability is a natural fit for OMSI. Not only because we’re in Portland but because we are focused on science and technology and industry, all of which are key to developing enduring sustainable solutions. The link for us is technology and the public and how that gets communicated.”

–Damien Francaviglia.

If OMSI has not formalized a sustainability training program for its staff, it has focused on educating the public on sustainability. Exhibit organizers take a systems approach to presenting sustainability as it connects to the theme of the exhibit. OMSI has gone so far as to develop a rubric that classifies exhibits based on the strength of their sustainability component. An explanation of the rubric can be found in the “Down to Action” section.

(B) Baseline Analysis
During the first few years of the Sustainability Steering Committee, three task forces were formed to analyze energy use, CO2 emissions from transportation and solid waste output. The Oregon Energy Trust provided a free energy audit while the CO2 Footprint Team assessed the carbon impact of business vehicles, employee commuting and other energy usages. The Zero Waste Team analyzed the waste stream by sorting and weighing trash in the dumpsters to determine what could be eliminated. In 2005, these focus areas were consolidated into CO2 Emission Reduction and Solid Waste Reduction, while Sustainability Content Delivery and Sustainable Exhibit Production were added as focus areas.
In January of 2005, a metrics committee was formed to measure the baseline from which to assess progress. The CO2 team decided at this point to focus on facility energy use and emissions from OMSI vehicles, but not to include employee commuting, which it found too difficult to measure. These emissions were measured in 2005 to be a monthly average of 400 metric tons.

The Solid Waste team measured the amount of trash sent to solid waste, as well as the amount diverted through recycling and composting. The analysis found that OMSI produces 140 metric tons of solid waste annually, derived mostly from the restrooms and cafeteria. Much of the waste is either recyclable or compostable.

The Sustainability Content Delivery team created a ranking system to measure the quantity and quality of sustainability content in programs, events, and exhibits. While the goal is not to make sustainability the central theme in every exhibit, OMSI recognizes that it can educate the public by showing how themes and topics from exhibits connect to global well-being.

The rubric that ranks the exhibits is shown below:
Score Definitions
N/A
Program or Exhibit is not related at all to sustainability, and has no mention of issues surrounding environmental or social responsibility.
Bronze - Program or Exhibit mentions ideas and issues relating to sustainability (economic, environmental or social issues), but it is not woven into the overlying theme of the program or exhibit.
Gold - Program or Exhibit deals specifically with sustainability in a systemic way. While this does not mean all content centers solely on sustainability, the topic should deal with the interconnection between economic, social, and environmental health, and should present visitors with options for improvement or progressing forward.
Platinum - Program or Exhibit deals entirely with issues related to sustainability.

The Sustainable Exhibit Production team developed a LEED-inspired point system that allows them to compare the sustainability of different exhibit materials. The criteria are based around reused material, toxicity, distance of source, process or production, and recyclability of the final product.
Sustainable Exhibit Production Criteria
1. Rapidly Renewable Materials--Substitute finite material use with rapidly renewing resources.
2. Resource Reuse--Reduce waste and demand for virgin materials while reducing impacts of extraction and processing.
3. Recycled Content—Reduce extraction and processing by increasing use of recycled materials.
4. End Life Assessment—Reduce waste quantity that ends up in a landfill.
5. Low-Emitting Materials—Reduce the use of materials that emit Volative Organic Compounds (VOC) that pose environmental and health threats. Avoid use of PVC, styrene, and sintra.
6. Sustainably-Certified Wood—Encourage environmentally-responsible forest management.
7. Conservation—Design exhibits that conserve energy and water.
8. Regional Materials—Increase the use of materials that were produced within 500 miles to support regional economy and reduce transportation emissions.

(C) Creating a Vision

Prior to the work of the metrics team in 2005, OMSI’s did not have clear benchmarks to measure progress. Since then however, OMSI’s has developed measurable targets in five year intervals. OMSI’s sustainability goals in each of the four areas identified in the baseline analysis are set for 2017, or ten years since the plan was last updated.

Eliminating carbon emissions and solid waste by 2017 are both bold goals, particularly for their short timeframe. These goals help meet multiple Natural Step system conditions since the systemic effects of waste and carbon emissions affect human societies, physical processes, and ecosystem health and security. Goals three and four, however, are specific to OMSI and could have direct and indirect positive impacts. While OMSI has yet to perform an inventory of toxic, persistent chemicals in its operations, the sustainable exhibit production includes this criterion as part of its point system. OMSI’s third goal of increasing the presence of sustainability education could have lasting impacts on its visitors, although this is difficult to assess.

(D) Down to Action

Since being inspired by The Natural Step framework, OMSI has taken several actions that show a gathering momentum in its commitment to sustainability. Listed below are some of the most significant steps:

CO2 emissions reduction
• Variable Speed fans (2004)—Partnered with Energy Trust of Oregon, OMSI installed eight variable speed fans that reduce electricity demand by 240,000 kWh per year and eliminate 150 metric tons of carbon emissions.
• Lighting system efficiency (ongoing)—OMSI is constantly seeking efficiency improvements in their lighting system by using fluorescents, automatic dimming controls, and motion sensors. However, OMSI has not been able to replace the theatrical exhibit lighting with fluorescents.
• HVAC upgrade (2004)—An upgrade in the HVAC automation system to a Niagara software platform allows facilities to monitor and respond to inefficiencies.
• Wind power (2008)—OMSI now receives 20% of its electricity from wind power provided by PGE.

Solid waste elimination
• Composting worm bin (2005)—A composting worm bin with a 3,000 lb capacity diverts food waste from the solid waste stream.
• Bioswales (Ongoing)—OMSI planted bioswales in 1992 and again in 2007 to collect and filter stormwater runoff that would otherwise flush contaminants into the Willamette River. In part for this work, OMSI has received a Salmon-Safe certification.
• Recycling (Ongoing)—OMSI recycles plastics, metal, and paper; however they have not tracked the ratio of waste diverted from landfills, preferring instead to concentrate on the total waste stream.
• Styrofoam collection (Ongoing)—OMSI hosts and publicizes annual “Styrofoam round-up” events, where the public can bring Styrofoam to be recycled. Approximately 1,000 lbs are recycled each year.
• Reused shipping materials (Ongoing)—The Science store uses 100% reused packaging materials to ship internet and phone orders.
• Composting in the cafeteria (ongoing)—Biodegradable plates, beverage, and silverware are provided to customers in the OMSI café. All the materials can be composted, but OMSI has found that despite signage, many customers continue to mix up the containers.
• Vinyl Reuse (Ongoing)—OMSI donates its vinyl promotional banners to “Queen Bee Creations”, where they are made into purses and messenger bags. 465 ft. of vinyl and styrene have been reused this way.

Sustainable Content Delivery
• Annual Living Green Expo (ongoing)—This two-day event provides resources, information, products, and motivation to live more sustainably. Participants include businesses, NGOs, and government agencies that are merging environmental practices into their products and operations. In 2007, over 2,500 visitors and 30 companies participated.
• Sustainable products in the Science Store (ongoing)—The Science Store makes a concerted effort to sell products with a sustainability theme. These include books, toys, and renewable energy kits.
• Science Pub (ongoing)—A free, informal lecture series offered to the public covers scientific topics of public interest, such as nutrition, health, climate change, and natural sciences.
• OMSI Science Camps and summer classes (ongoing)—Summer Camp participants are educated in waste reduction by composting and smaller serving sizes. Children in summer classes are provided with reusable lunch box utensils to exemplify how waste can be reduced.
• Bon Appetit and the OMSI café (ongoing)—Bon Appetit, the company who manages the OMSI café, sources locally-grown, organic products, and transfers this information along to customers to raise awareness. In 2008, the company began promoting a low carbon diet, to illustrate how food purchasing decisions can impact climate change.
• Moneyville exhibit (2002)—This traveling exhibit focuses on the connections of global economics and encourages visitors to investigate where the materials in their consumer goods are sourced.

Sustainable Exhibit Production
• Innovation Station (2004)—OMSI created this technology exhibit from sustainably-supplied materials that were either reused or recycled. The Exhibit Production team has developed methods that reduced the use of toxic adhesives so that
exhibits could be more sustainably disassembled and reused.
• Green Exhibits Checklist (ongoing)—A LEED-inspired points system adapted by OMSI employees is being used to evaluate the sustainability of exhibits. A review of 10 exhibits over the past three years suggests that there is room for improvement: exhibits averaged 5.5 out of 32 possible points.

Figure 1: The Innovation Station was designed with non-toxic, sustainably-produced materials

Measuring the Results
The importance of matching metrics to sustainability goals is illustrated by OMSI’s metrics committee. In 2005, the metrics committee identified four areas to measure as indicators for sustainability, which were eventually adopted as the four main sustainability goals at OMSI. A reliable system of metrics enables an organization to evaluate progress, identify problems, and make programmatic adjustments. In short, metrics are essential for an organization to be flexible to new technologies, information, and market conditions.

The metrics committee at OMSI has succeeded in measuring the solid waste stream, energy usage, and CO2 emissions. It was also responsible for developing the scorecard to grade the sustainability of OMSI exhibits. Some outputs are harder to quantify, however. Francaviglia explains that OMSI is constantly trying to improve their ability to measure their educational impact on the community. Fortunately, while qualitative information like this can be difficult to measure, many of the important environmental metrics are quantitative. Carbon footprinting metrics are constantly improving and as organizations make the decision integrate sustainability, this is pressuring suppliers to be more transparent in their materials and design processes.

OMSI’s solid waste program provides a telling example of the need to measure the effectiveness of a program. While some organizations create programs to lessen their environmental impact, if their flows of waste continue to increase, then the impact is marginal. Despite numerous efforts to cut down on the 140 metric tons of annual waste, the average monthly waste output has continued to increase at OMSI. Francaviglia attributes this to increased attendance, visitor behavior, and the learning curve in implementing new programs. Even when the results aren’t meeting expectations, this doesn’t mean that the program necessarily should be abandoned. In this case, having this measurement indicated that there were factors limiting the effectiveness of the recycling and composting programs—most notably in generating understanding and cooperation among museum visitors.

“If you don’t know where you stand, you’ll never know how far you can get”

- Former Metrics Committee member Hester Yorgey

Challenges
As OMSI continues to refine its sustainability program, it will be crucial to learn from past challenges and be adaptable to new ones. The Natural Step case studies illuminate the frequency that certain challenges occur amongst different organizations. While there are important distinctions between non-profits, government agencies, and businesses, certain aspects of organizational development can be similar across sectors. For this reason, The Natural Step presents these challenges so that solutions to these obstacles can be discussed between members. OMSI’s challenges have included:

Maintaining continuity and building momentum: OMSI has yet to create a sustainability coordinator position, in part due to lack of resources. While this position may not be necessary for success, it can certainly aid in the early implementation of new sustainability programs. Staff turnover and the lack of a formalized training program may also hinder program development.
Making sustainability part of the job description: Implementing new programs which call for structural and behavioral change takes time and energy from employees who have other responsibilities. Some Natural Step members have found that adding to employees’ workloads without extra compensation can lead to resentment or resistance. To avoid this, several organizations have integrated this work into employees’ job descriptions. OMSI representatives say that this step is one that may need to happen soon in order to create stronger, lasting support from within.
Developing metrics and programs around alternative transportation: While OMSI does provide secure bike racks and has showers on site for employee who cycle to work, so far they have been unsuccessful in producing a reliable estimate of carbon emissions from employee commuting. A lack of resources has prevented OMSI from subsidizing TRI-MET passes for employees.
Developing awareness and compliance strategy for visitors: OMSI has experienced some early struggles in the four months of collecting compostable materials in the cafeteria. Although OMSI now provides clearly marked recycling and composting receptacles in the cafeteria, some customers either remain unaware or unconvinced when dumping the contents of their lunch trays. While the Office of Sustainable Development has commended OMSI’s low rate of compost contaminated with garbage, OMSI employees continue to find compostables within the trash. These issues are to be expected in the beginning phases of a new program. Acknowledging that while it would be difficult to make a trash director/sorter position enticing, Francaviglia notes that other organizations have succumbed to the stubborn consumer demand for convenience.

Benefits and Lessons Learned

The metrics committee has succeeded in making the metrics meaningful by linking them with the sustainability goals to be sure that the results are indeed useful.
The Sustainability Steering Committee has promoted cross-departmental collaboration, where employees’ share expertise and participate together for a common purpose. Francaviglia says that this has been a challenge at times, but that ultimately it has empowered employees and improved working relationships.
OMSI appreciates The Natural Step Framework because of its scientific appeal and ability to provide a common language for an organization. Hester Yorgey, who worked on the metrics committee, says that The Natural Step served as a catalyst for OMSI to unify departmental projects under one program.
Although they have yet to study the impact that their sustainability has on customer opinion of OMSI, OMSI managers feel strongly that sustainability is part of the overall OMSI mission and will create more interest for potential members.

Written by Jesse Worker for The Natural Step Network.

Organically Grown Company, Eugene, Oregon, USA

Chas Martin — Thu, 16 Oct 2008 18:34:15 -0400

Planning for the future harvest: Sustainability in the food industry
A Natural Step Network Case Study

Summary

The Organically Grown Company was formed in 1982 as an organic farmers’ cooperative out of Eugene, Oregon. The cooperative expanded and eventually became a company so that employees could be included as shareholders. Today, it is the largest wholesaler of organic produce in the northwestern United States. From the outset, Organically Grown Company has promoted sustainability by selling organically-grown food to local communities. However, sustainability had not been integrated throughout all operations of the business. Organically Grown Company adopted The Natural Step Framework to guide this transition to a sustainable business model. It has since trained all employees in The Framework, created four long-term goals, developed annual action plans and routinely evaluated its progress. The long-term goals include the elimination of carbon emissions, material and toxic waste, and promoting social development with their employees and farmers. Organically Grown Company now draws 100% of its electricity from wind power, has reduced emissions in its fleet, and contributes to socio-economic development for banana-farming communities in Mexico. It has done all of this while ensuring that its business is profitable. Recently, Organically Grown Company was recognized with a “Fleet of the Year” award by the Clean Cities Coalition and the “Mayor’s Bold Steps Towards Sustainability” by the Mayor of Eugene.

Organically Grown Company
• Organic Produce Wholesaler
• In business since 1982
• 160 employees

Core values
1. Health of workplace, community, food supply, soil, and planet
2. Integrity in providing products and services and in community engagements
3. Partnerships that build trust with organizations in food production and consumption
4. Sustainable business model of distributing food that is “good, clean, and fair”

Background
In the late 1970s, several small farmers in the Eugene, Oregon area were competing to sell locally grown produce to the natural foods market. After working independently to grow, package, and distribute their produce, competition gave way to collaboration. The farmers pooled their resources and in 1982, Organically Grown was formed as a farmer-owned cooperative. Later, Organically Grown became a company so that employees could be included as shareholders.

OGC was founded with the mission of providing healthy, organic food to communities in the Pacific Northwest. This mission has always been closely linked to environmental and social sustainability. By supporting organic agriculture, Organically Grown is committed to food that is grown without the use of synthetic chemicals, or petroleum-based fertilizers. The environmental benefits of eliminating chemical inputs are long-term soil quality and the protection of local watersheds. While this promotes both local and global ecological security,

Organically Grown also includes the health and prosperity of their workforce and the communities they serve as part of their core values. The company is in the process of adopting an employee stock ownership plan (ESOP). This strong commitment to social equity has been rewarded with a very low turnover rate and a high level of employee job satisfaction. Organically Grown’s vision of providing sustainably-produced food, building trust and partnerships, and setting high standards for employee benefits, is in line with The Natural Step Framework.

Despite these notable accomplishments, OGC recognized that sustainability had not been integrated into its entire business model. While organic produce was being delivered to customers, it was still being carried by a fleet of gas-chugging, carbon-emitting trucks and trailers. Heating and powering their three facilities in Eugene, Portland, and Kent, Washington were having the same effect. Sustainability was also not being addressed in the energy used in harvesting, the material waste in packaging, and the labor conditions of the workers who harvested the produce at home and abroad. While there had been employee initiatives to reduce office paper consumption and introduce a more efficient cooler, these were individual efforts, not part of a larger, company-wide strategy. All that changed in 2005 when Organically Grown’s ownership—composed of farmers, former farmers, and employees—and Board decided that sustainability would become part of the company’s mission and be embedded in all facets of its operations. A sustainable business model that will distribute food that is “good, clean, and fair” became the 4th part of their mission. Once this was settled, the Board focused on finding a framework on which to build their sustainable business model.

Introduction of The Natural Step
The Natural Step (TNS) Network provides organizations with a scientifically-based framework to strategically integrate sustainability objectives. The framework is developed within an organization through a series of trainings, some which include the entire workforce and others that are developed for managers and directors. At Organically Grown, former interim CEO and current Chairman of the Board Rick Baker had been a colleague of TNS trainer Duke Castle at Hewlett Packard. Baker recommended The Natural Step Framework because of its ability to translate sustainability into a business-friendly language while forming a clear action plan by connecting discrete initiatives. Sustainability Coordinator Natalie Reitman-White noted the appeal of the science-based approach to agriculturalists, the backcasting process to planners, and the funnel metaphor for business strategists. While both Reitman-White and Baker agree that The Framework in and of itself is not a toolkit, they liken it to a compass that helped Organically Grown Company orient its long-term goals.

“A lot of companies get started with a lot of little projects in different departments—cutting out waste, doing something about energy—and the problem is that companies tend to stall. They don’t have this glue, this language, this overarching framework, which brings all these projects together.”

-- Rick Baker, describing The Natural Step Framework

In 2006, under the leadership of new CEO Josh Hinerfeld, Organically Grown set out to educate its workforce in The Natural Step framework. One of Hinerfeld’s first moves as CEO was to hire Natalie Reitman-White to be the Sustainability Coordinator. Reitman-White was given the responsibility of leading a management team in organizing, implementing, measuring, and evaluating the organization’s sustainability efforts. Rick Baker describes this as a turning point for OGC’s sustainability efforts:

“A huge step for any organization is to hire someone who is truly devoted and dedicated to carrying out a company’s sustainability mission.”

--Rick Baker referring to Organically Grown’s hiring of Natalie Reitman-White as Sustainability Coordinator

In 2006, OGC invited Duke Castle to give a series of training sessions covering The Natural Step Framework. In January and February, Castle gave an executive briefing to senior management, followed by a training workshop to management and Board members. At the general training for all 109 employees in the summer of 2006, CEO Josh Hinerfeld gave a speech demonstrating the Company’s commitment, Castle led a half-day workshop on TNS Framework, and Natalie Reitman-White explained how employees could get involved. The training sessions addressed a multitude of issues, such as: creating a vision for sustainability, delivering triple bottom line results, changing employee culture, applying the framework, measuring results, and creating a timeline. The different training sessions enabled them to be adapted to their audiences. While the general training sessions provided a common language and understanding of The Framework, sessions held with management and the Board focused on bringing multiple initiatives together and assessing tradeoffs.

Integrating The Natural Step Framework.
Immediately following The Natural Step training, Sustainability Coordinator Natalie Reitman-White formed Organically Grown’s first Sustainability Steering Committee. The Steering Committee is composed of 12-16 members from different departments representing the three Organically Grown locations. The Steering Committee was given a three-part mandate:

1. Identify gaps in an internal sustainability audit
2. Articulate a vision of a sustainable future
3. Backcast to determine actions to be taken to reach this vision

The Committee convenes annually to educate new employees, evaluate progress, and plan for next year. Each year, the Committee provides an in-house training for all employees in The Natural Step Framework as well as the vision and strategies that have developed around the Framework. In addition to employee-training, the Committee meets to hash out its annual plan. The planning cycle reviews past projects, sets new goals, and integrates the new goals into the operating and budgeting plan. Reitman-White estimates that the Committee decides upon 10 new projects per year. These projects are developed using The Natural Step backcasting method. The Committee also develops partnerships outside the company, which will be discussed in more detail later. After the planning cycle, the Committee dissolves and work begins.

Figure 1: Annual Sustainability Planning and Implementation at OGC. Source: Organically Grown 2007 Sustainability Report

(A) Creating Awareness
Since The Natural Step training in 2006, Organically Grown has required annual sustainability orientations for all new employees. The purpose of these trainings, says Reitman-White, “is to develop a common framework, language, and basis of understanding throughout the organization”. To date, 134 Organically Grown employees have participated in this training. The trainings focus mostly on staff, but also include Board members and growers, to a lesser extent. The trainings are designed to address the following questions:

What is OGC's mission and why do we want to be a leading sustainable organization?
How do our sustainability initiatives enable us to pursue our mission and company “Aspirations”?
As an employee of OGC, what's in it for me? How can I participate in this process?
What does the Natural Step framework mean and how will it help drive our triple bottom line?
What's the blue-print and time-line for implementing the framework?
How will we measure the results of our sustainability efforts?¹

Besides these annual trainings, Organically Grown has developed several other initiatives:

The Sustainability Steering Committee is composed of non-managers, giving employees an opportunity to become actively involved with project
The annual employee survey includes questions to evaluate employee reaction and buy-in to the sustainability program. Ninety-five percent of Organically Grown employees “strongly agreed” with the sustainability mission on the most recent survey.
Sustainability goals are integrated into the job description so that employees are not expected to perform them voluntarily but rather as part of their daily work.

Figure 2: Radishes and scallions are part of the nearly 100% organic produce at Organically Grown

Figure 3: The Kenworth T300 hybrid-electric biodiesel truck³

(B) Baseline Analysis
For the first baseline analysis in 2006, Organically Grown relied on a few different tools. A sustainability audit performed by Resource Innovations in 2004 identified unsustainable materials or processes within business operations. This was supplemented with an internal staff survey on how a sustainable future would be envisioned and a SCORE²(Sustainability Competency & Opportunity Rating and Evaluation) audit that measured management capacity for sustainability. While baseline analyses are generally considered a one-time event that occurs at the beginning, Organically Grown has added new baseline indicators since 2006. In 2007, for example, OGC began measuring the carbon footprint from employee commuting. Some of the results from this analysis are below:

Organic Produce: 98.8 percent of produce produced was certified organic by Oregon Tilth and other USDA accredited third-party certifiers..
Transportation: OGC assessed miles-driven, fuel consumption and biodiesel usage for its fleet of 21 trucks and 13 trailers in 2006 and 2007.
Energy: Total energy use has been calculated at all three facilities since 2006.

Table 1: Fuel Consumption in Transportation

Greenhouse Gas emissions: OGC tracks greenhouse gas emissions resulting from electricity, diesel, biodiesel, and natural gas. In 2006, this produced 1,560 metric tons of CO2.
Return on Resources Consumed: Organically Grown has developed a metric for measuring the total energy consumed for each case of produce delivered from Organically Grown’s shipping dock to the retail store or restaurant.

Figure 4: Return on Resources Consumed: Energy consumed per case shipped (in BTUs)

Waste: Waste reduction is one of the major ways in which Organically Grown felt sustainability could be incorporated into their business model. In 2006, OGC sent 1,882 cubic yards of trash to the landfill, 3,222 cubic yards to recycling, and 107 tons of food waste to composting services.
Packaging: Organically Grown formed an alternative packaging project team to investigate substitutions for corrugated cardboard boxes. In a Michigan State University Lifecycle Study of Reusable Plastic Containers and found that they generated 95% less solid waste, 29% less greenhouse gas emissions and consumed 29% less total energy.

(C) Creating a Vision
When OGC decided to take The Natural Step to fully integrate sustainability into its business model, it was not a decision to change a core philosophy, but rather a challenge to embody the values and ethics that organic agriculture supports within its business practices. After the Sustainability Steering Committee performed the baseline analysis, it outlined four goals that would act as a compass for the future action plans.

These overarching goals are the basis for the annual projects that the Sustainability Steering Committee initiates. Organically Grown used The Natural Step backcasting method and funnel metaphor to develop these projects.

Table 2: Action Plan

(D) Down to Action
Organically Grown’s action plan includes steps that are no-brainers—those that cut waste and costs—as well as those that must get budgetary approval because they are somewhat costly. According to Reitman-White, using a biodiesel blend currently costs the company more, but she was able to win approval because of a willingness on the part of management and the Board to “pay for their values”. Reitman-White recognizes that these cost structures are also directly linked to factors outside of OGC’s control, such as federal and state policies, transportation infrastructure, and renewable energy technologies. Even in this regard, however, Organically Grown has been pushing for change. OGC has helped pioneer a cluster development group called the “Food Trade Sustainability Leadership Association” to join with other businesses within the food industry to lobby for the rapid development of sustainable technologies. The cluster development group also provides the opportunity to network across the sector and share resources. Additionally, OGC is part of a hybrid truck users’ forum that organizes around improving hybrid truck technology. This networking approach builds upon shared knowledge, lays the foundation for future partnerships, and generates a powerful voice for businesses that are serious about sustainability.

Organically Grown has also developed partnerships to improve socio-economic conditions for farming communities in the U.S. and abroad. The critical social element to sustainability is the ability for people to meet cultural, economic, and political needs, represented by the fourth Natural Step system condition. Natalie Reitman-White points out that while toxic chemicals are absent, organic certifications do not ensure that labor conditions are beneficial to the workers. To confront this issue, Organically Grown partnered with Organics Unlimited as part of their “Giving Resources and Opportunities to Workers (GROW)” program. OGC now purchases bananas exclusively from the GROW program for an extra 60 cents per box, the sales of which in 2007 sent $83,571 to fund educational and health programs in southern Mexico.

Table 3: 2007 Action Plan Results Key: vvv- Achieved vv- Making Progress ? Did not achieve

Other accomplishments:

Transportation: Biodiesel is purchased from Sequential Biofuels, which sources 95 percent of its biodiesel from used cooking oil feedstock. In 2007, all trucks used a B20 (20% biodiesel), while a pilot project was launched using B99 in four trucks. Organically Grown also purchased its first hybrid-electric biodiesel truck (pictured at right). The truck saves 10%-30% on fuel and has a gross vehicle weight capacity of 33,000 lbs.
Energy: In 2006, warehouse capacity expanded, increasing energy use, but by 2007, all facilities were operating on 100 percent green power.
Greenhouse Gas emissions: In 2007, GHG emissions fell to 1,347 metric tons due to greater biodiesel usage and increased green power purchases.

Measuring the Results
While sometimes overlooked because of lack of experience or resources, good metrics are critical to assessing progress. With the increasing availability and accuracy of metrics such as life cycle analyses and carbon footprinting, it is becoming easier for companies to find and implement these tools. Organically Grown has developed a metric for almost every major category of its sustainability program. Financial, environmental, and social data are collected and measured each period and used to determine how projects may be improved. In the early stages, Organically Grown borrowed the measuring methods from the sustainability reports of other companies within the food industry, as well as the Global Reporting Initiative. When a metric was not available, Reitman‐White has been able to backtrack the goal to the material or flow that needs to be measured. One more advanced metric that Organically Grown has developed is the “Return on Resources Consumed”‐‐where the total energy (in BTUs) is measured for each case of produce shipped. In each annual planning session, the Sustainability Steering Committee analyzes the metrics by assessing goal progress vs. financial cost, and uses the information to discuss goal feasibility.

Figure 5: Greenhouse gas emissions at OGC for 2006 and 2007 (in Carbon Dioxide metric tons)

Challenges
Since the decision to adopt The Natural Step framework and form a Sustainability Steering Committee in 2006, Organically Grown has developed a sustainability vision along with short and long-term goals, measurable results, and clear progress indicators. These are laudable accomplishments, especially considering that several goals have been met in the first few years. Of course, all innovative and progressive organizations face challenges when they choose to be an early adopter of new information or technology. One of the benefits of membership in The Natural Step Network is that members can be alerted to these challenges and lessons by the past experiences of fellow members. In essence, The Network provides a roadmap to a sustainable business model for early adopters, where the landmarks are the lessons learned by other members. Listed below are highlights of some of the early challenges that Organically Grown has faced.

It is crucial to allow employees sufficient time to implement new practices. If employees are delegated new responsibilities, but expected to complete them voluntarily, or in addition to their normal workload, the project is likely to fail. New initiatives need time to take effect and if this isn’t provided, employees may not view the work as integral to their job, or they may be resentful of the increased workload.
While some projects will reduce financial costs—reducing waste is an example—others will cost more. Organically Grown made the decision to use 20% biodiesel even though the price tag was higher because the Board decided that a strong commitment to their values was worth the added cost. Organically Grown has succeeded in balancing higher-cost programs with those that save money.
The current state of technology and infrastructure may inhibit a company from choosing more sustainable solutions. Organically Grown, for example, has not found transportation for large loads of produce that does not rely on fossil fuels.
• Decisions that include social and environmental criteria will require more time to properly assess. Managers should expect decision-making processes to become more-involved and allocate time appropriately.

Benefits and Lessons Learned

The Natural Step training series offered by Duke Castle was very helpful in providing a framework for action. The framework has provided employees with a common language and understanding of sustainability.
The Network has given Organically Grown the opportunity to learn from other companies and share valuable experiences. This has been especially useful when the company faced challenges.
Management and leadership need to be engaged and supportive of programs for them to have a lasting effect. Employees should see their work in these programs reflected in their job descriptions.
The decision to adopt a sustainable business model has fed into customer loyalty and solidified relationships with customers.
The A-B-C-D process has been instrumental. Natalie Reitman-White recommends having a long-term vision, a baseline, measured results, and taking the time to share the results with management and employees.

¹ Source: Organically Grown 2007 Sustainability Report
development. The members can come from any department and all three facility locations.

² Developed by Axis Performance Advisors Darcy Hitchcock and Marsha Willard along with Zero Waste Alliance

³ All photos courtesy of Organically Grown Company

Written by Jesse Worker for The Natural Step Network.

Portfolio 21 Investments, Portland, Oregon, USA

Chas Martin — Tue, 28 Oct 2008 16:27:52 -0400

A Natural Step Network Case Study

Overview
Portfolio 21 Investments (formerly Progressive Investment Management) is an investment management firm specializing in socially and environmentally responsible investing. Formed in Eugene, Oregon, in 1982, it offers investment management services for individuals and institutions, helping people invest in companies that align with their personal values. In 1999 Progressive created the Portfolio 21 mutual fund of companies focusing on sustainability. With three offices in Portland, Seattle, and Eugene, the company currently has 12 employees and $165 million under management.

Background
Founder Carsten Henningsen became fascinated with investing at the age of 10 when his father gave him two shares of Mattel stock. Later, in college, his extensive travels made him aware of the social and environmental impacts of multinational corporations. When he graduated from college, he set out to offer socially responsible investments. At the time he opened his office in Eugene in 1982, not many clients knew about socially responsible investing. That changed with the disinvestment movement over South African apartheid. Henningsen testified for an Oregon law that directs the state treasurer to disinvest in companies operating in South Africa.

In 1986 Henningsen opened the headquarters office in Portland; in 1991 he opened a third office in Seattle. As a result of the Exxon Valdez oil spill and Earth Day 1990, the environment had become a significant public issue, increasing the interest in environmentally responsible investing. Portfolio 21 has always been known as a company that lives its values. It is an active participant in shareholder resolutions to improve the social and environmental practices of its clients’ companies. For example, the bulk of these resolutions asked companies to adhere to the CERES principles, which show a commitment to environmental stewardship. Portfolion 21 was one of the first companies in Portland to begin using recycled paper and soy-based ink.

Introduction to The Natural Step
Henningsen learned of The Natural Step (TNS) through Dick and Jeanne Roy of the Northwest Earth Institute. He attended the June 1997 TNS workshop and then arranged for other members of the firm to attend subsequent workshops. President Leslie Christian came back from a workshop in September 1997 with the idea of a mutual fund focused on sustainability--what is now called Portfolio 21.

Henningsen and Christian also discussed in staff meetings how they might implement The Natural Step framework in the office.

Application of TNS Principles
Being a small firm, Portfolio 21 did not need to develop an environmental policy, plan, or internal training. Instead, it used staff meetings to do an exercise: identify every aspect of doing business, determine where system condition violations occur, and envision what the business will be like when meeting the system conditions. As a service company, the most intense environmental impacts are related to employee activities, office management, and vendor selection. Staff looked specifically at paper, energy, office space, and transportation. It considered customers and suppliers as well as its own practices. As far as the service itself, its greatest impact is in the choice of companies in its portfolios.

Results
Sustainability mutual fund. Portfolio 21, launched in September 1999, is a no-load mutual fund designed to secure a sustainable future. Companies selected for the fund have made a commitment to environmental sustainability through their business strategies, practices, and investments. Portfolio 21 believes that using sustainability as a core business strategy will position these businesses to be more efficient today and prosper in the future. Portfolio 21 initially screened 2000 companies worldwide, selecting 30 to put into the fund. It continues to scan the horizon for more qualifying organizations. The company intends to run the fund like an index fund with a long-term perspective, not trading the stocks but instead holding worthy issues over the long term.

Paper. At the same time that it was developing a new mutual fund, Portfolio 21 was making changes internally. It chose 100 percent recycled, chlorine-free New Leaf paper for copying and for Portfolio 21 promotional materials. For letterhead it chose 60 percent recycled, 30 percent postconsumer content paper. Another first step was to eliminate paper towels from the washroom; an employee agreed to wash terry cloth towels weekly. Ceramic cups and dishes were also provided.

Portfolio 21 also worked with Charles Schwab, the brokerage firm it most often uses, to cut down on unnecessary paper. In the past, a UPS driver would show up with a hand truck stacked with boxes of statements from Schwab that had to be duplicated and filed. Schwab now sends account statements on compact disks instead of paper. Schwab also lets Portfolio 21 ’s clients choose not to get a annual report from each company in its portfolio and to have their investment advisor vote their proxies rather than getting mailings. New SEC rules allowed Portfolio 21 to put its prospectus for Portfolio 21 on-line, which has reduced by at least a factor of ten the number of prospectuses mailed.

When it purchased a new copier, it got one that prints on both sides of the paper, further reducing paper consumption.

Energy. After having Portland General Electric do an energy audit of its turn-of-the-century building in southwest Portland, Portfolio 21 installed a new heating/cooling system but decided not to invest further in retrofits. Instead it choose to move into the new Ecotrust Vollum Natural Capital Center in northwest Portland in 2001. It mitigates its electricity and natural gas consumption through a carbon offset program (see below).

Office space. In remodeling the original Portland office, Portfolio 21 chose carpeting with 30-50 percent recycled content. By selecting low-VOC paint, employees were able to work in the space while it was being painted. “You couldn’t smell a thing,” Henningsen said. For landscaping it chose Garth Rhoades Organic Gardening and Landscape Service. But even that company needed some nudging: Portfolio 21 employees enticed it away from the leaf blower (the fumes of which blew in the windows) by agreeing to pay a little extra to have leaves raked by hand.

The new office space, where all tenants have an interest in sustainability, has some intangible psychological benefits. Being in such a community creates energy. Henningsen says, “Sustainability is on our minds more. We have conversations in the hallway.” For example, Portfolio 21 Investment is putting clients’ money in Shorebank Pacific next door, and the bank is letting its customers know about Portfolio 21.

Transportation. Transportation is the area in which the company has the greatest environmental impact. The first step was to purchase bus passes for each bus commuter and annual maintenance reimbursements for each bike commuter. Moving to the new site added an additional incentive for commuting by bus or bike because parking requires a monthly fee whereas before it was free. The fact that the building provides two Flexcars helps as well. Henningsen says, “Their availability is fabulous, and they’re both hybrids (gasoline-electric).”

In 1999 the company learned about carbon offsets. Employees have agreed to a program that offsets carbon emissions from their transportation choices. Each employee tracks his/her mileage on various modes of business travel including daily commutes (via public transportation, car, bike, plane, etc.). At the end of the year, carbon credits are purchased to offset this travel, deducting that amount from each individual’s profit-sharing check. This system acts as an incentive to reduce miles and change modes since some modes have greater emissions than others. (See Exhibits 1 and 2.)

Carbon Offset Program. The Carbon Offset Program was devised to measure the company’s direct impact on global warming and to mitigate this impact by purchasing carbon offsets for workrelated travel and electricity use. Later this was extended to natural gas use. Carbon offsets are an investment in a project that reduces greenhouse gases, typically by storing CO2 (reforestation) or avoiding CO2 emissions through alternative energy sources or efficiency measures. Typically purchases are made through a third party, such as The Climate Trust.

Portfolio 21 Investment first calculated its total CO2 emissions from travel and electricity, converted that to the cost of offsets ($9/ton), and multiplied that by a factor of ten to cover other environmental externalities (including dirty tailpipe and power plant emissions) that an offset program does not address. In deciding where to purchase its offsets, the company considered the limitations of the forestry option. Indigo Twiwes-Cain, who did the research, says, “Planting trees is not a long-term solution. In England, for instance, Climate Care calculated it would have to plant an area the size of Devon and Cornwall for one year. Another two counties would be needed the next year and so on. Clearly this would place tremendous pressure on land resources.” Portfolio 21 Investment also wanted to have an impact on its local community. For its 2000 mitigation, the company invested in the NW Wind Project and PGE Solar for Schools program. Whereas the travel offsets are purchased by the employees, electricity offsets are subtracted from revenues as a business expense.

In 2002 Portfolio 21 Investment partnered with its new building owner Ecotrust and the property manager Ashforth Pacific to arrange for a carbon offset program for all 16 tenants of the Natural Capital Center. By donating funds to The Climate Trust and purchasing Green Tags through the Bonneville Environmental Foundation, the tenants will reduce their fossil fuel energy footprint by 91% or the equivalent of 929,067 miles per year in auto travel. The Climate Trust will achieve offsets by investing in energy efficiency for apartments and commercial buildings. The Bonneville Environmental Foundation will invest in wind power.

Lessons Learned
When asked what lessons he could share with other organizations, Henningsen said, “Implementing sustainable practices takes serious effort, but it’s worth it. You’re never done with it. It’s a journey that’s always changing. But it’s really rewarding. Every day, we’re thinking about what we can do next.”

Henningsen also mentioned that the company’s emphasis on sustainability differentiates it from other investment managers. Portfolio 21 has been attracting an average of $500,000 per month in new assets. The Web site gets 50,000 hits per month (or 12,000 page views).

Source
Interviews with Carsten Henningsen, Chairman, and Indigo Teiwes-Cain, research analyst.

This case study was prepared by Darcy Hitchcock, Axis Performance Advisors, in April 2000 for the Oregon Natural Step Network and was updated by the Network in October 2002. For more information call Carsten Henningsen at 224-7828 Ext. 11 or visit the Web site at portfolio21.com.

Exhibit 1
Environmental Impact: CO2 Emissions
Our research revealed:
CAR travel generates approximately 0.9 lbs. of CO2 for every mile traveled, or 18 lbs. of CO2 per gallon of gas used.
BUS travel generates “insignificant” CO2 emissions and local transit authorities do not collect this data. Additionally, we would like to encourage public transportation (PT) travel as a lower impact-commuting alternative (Portfolio 21 Investments already reimburses employees for public transportation travel passes). Therefore, zero CO2 emissions were used for bus travel.
ELECTRIC TRAIN/MAX uses electricity from PGE. As we would like to encourage PT travel as a lower impact-commuting alternative, we assigned zero emissions for this form of travel. We do recognize, however, that this form of travel does have associated CO2 emissions, as does bus travel.
AIR TRAVEL. Calculations for determining the carbon emissions of air travel are very complicated and vary based on a number of factors. These include the type of airplane, the distance of the trip (longer trips are more fuel-efficient as a considerable amount of fuel is used during takeoff and landing), the longitude and latitude, the temperature and occupancy. The “fuel only” number commonly used is 0.5 lbs CO2/passenger-mile. This is the carbon dioxide release due to fuel combustion and is commonly talked about as being an average for the overall jet fleet. According to Dr. Mark Trexler, an expert on climate change mitigation, the Intergovernmental Panel on Climate Change is considering various multipliers on this “fuel only” number, ranging from 1.5 to 3.5. We have chosen to use a multiplier of 3, which results in an emissions figure of 1.5 lbs CO2/passenger-mile of air travel. This is a conservative (high) number and is triple the number that airlines would agree to today, but there is scientific support for it. By using a conservative (high) number, we aim to ensure we do not underestimate our travel impacts.
ELECTRICITY USED IN OFFICES varies from office to office. In Portland, we can purchase some wind energy from PGE. Seattle has no such program, and, while Eugene has a green energy program, it is not possible to participate in the program due to the current building management situation (Portfolio 21 rents only a small portion of the building and utility costs are included in the rental contract). Finally, our office in Wisconsin has signed up for wind energy through Madison Gas and Electric Company to cover office energy usage. Figures are obtained from each office to calculate carbon emissions from electricity use although there are a number of estimates involved (see calculations spreadsheet).

Exhibit 2
Appendix II

Rejuvenation, Inc., Portland, Oregon, USA

Chas Martin — Tue, 28 Oct 2008 13:00:17 -0400

A Natural Step Network Case Study

Overview
Rejuvenation, Inc. is America’s largest manufacturer and leading direct marketer of period reproduction lighting. Based in Portland, Rejuvenation also sells period lighting and hardware in a retail store. Currently the company employs 200 people, two-thirds of them in the northwest Portland factory and the balance at the retail store. In 2001 Rejuvenation netted $21 million in sales, and the company has experienced steady annual growth.

Background
Jim Kelly founded the company in 1978 as an architectural salvage shop and soon discovered that there was an unmet demand for period pieces. This market need led first to the restoration of old pieces and ultimately to the manufacturing of reproductions.

Rejuvenation has a long history of involvement in corporate responsibility programs based on the business philosophy of the owner. This involvement includes founding membership in the Oregon chapter of Business for Social Responsibility and employee “days of service” in the community. Three days are scheduled per year when employees can leave work to do a service project of their choice. Rejuvenation has also been an environmental leader in the construction and remodeling industry, addressing opportunities to reuse and recycle materials from house demolition.

Introduction to The Natural Step
Jim Kelly, Owner, and John Klosterman, Vice President of Manufacturing, were aware of and very interested in The Natural Step (TNS) framework from the time it was first introduced to Oregon businesses at a June 1997 workshop. Following that one-day workshop, Rejuvenation was among the first companies to make a commitment to implement the four system conditions and become a founding member of the Oregon Natural Step Network. Adoption of the TNS framework came naturally due to Kelly and Klosterman’s deep commitment to doing better in environmental stewardship than simply staying out of trouble. As the sustainability framework emerged as a powerful force in the Portland area, they were central figures in its promotion, as well as pioneers in its implementation.

Introduction of The Natural Step Framework into the Company
Implementation of the framework at Rejuvenation was a top-down process. After Kelly, Klosterman, and senior managers made the initial commitment, they had internal discussions about how implementation might occur.

Because Rejuvenation is known for beyond-compliance environmental performance, the Oregon Department of Environmental Quality invited it to participate in a project that offered consulting services for small to medium-sized companies. The consulting services allowed Rejuvenation to initiate an ISO 14001 environmental management system process centered around The Natural Step principles. It established an environmental policy, an analysis of material inputs and outputs for the production process, and environmental metrics. Each year Rejuvenation carries out strategic planning and develops a set of initiatives. In 1998 and 1999 sustainability was in the forefront of those initiatives.

Training
TNS principles are being systematically and strategically disseminated through the organization, starting with the core group of managers and, over time, reaching supervisors, master craftsmen, and ultimately the line employees. All Rejuvenation managers, a group of 15 to 20 individuals, received a one-hour briefing by the Oregon Network initially and then attended a full-day introductory workshop offered by the Network.

In the first two years the company focused on training those on the manufacturing side because that is where the greatest environmental impacts occur. In the third year training was extended to the retail side. Training of line employees represents a fundamental challenge for Rejuvenation. Its manufacturing workforce represents a substantial diversity of culture and language, making effective communication of the scientific and environmental principles difficult. The company has begun to explore the potential for development of multi-lingual TNS literature and training materials.

Setting Priorities
Aspects Analysis. The four system conditions provided the basis for Rejuvenation’s analysis of environmental impacts. The company developed a detailed system for “Aspects Analysis,” which in ISO 14001 terminology means the things a company does that have an impact on the environment. The Aspects Analysis lists 42 activities and gives each a score in six categories: Extraction, Persistency, Toxicity, Biodiversity, Efficiency, and Social Equity. It also considers the frequency of each activity. Scores for each category and frequency are then totaled for each activities’ aspect score. The score allows the company to prioritize which activities it should address first.

The company took the eight highest-rated activities and set targets for improvement. The process for setting improvement targets included analyzing legal, technological, financial, business, and customer considerations. Based on the targets, Rejuvenation defined indicators of progress and designed an improvement program for each. The program identifies who is responsible for getting it done, what resources are allocated, and a timeline. Each year management evaluates progress and sets new targets. Vice President of Manufacturing John Klosterman is very pleased about how well the EMS has worked.

About a year after the manufacturing EMS was in place, the retail side of the business followed a similar process, developing flow charts for every department and documenting inputs and outputs. “We learned so much,” said Brooks Nelson, Facilities Manager, “Just finding redundancies in the system paid for the exercise, aside from the environmental objectives.” An aspects analysis was done, using the format developed by the manufacturing side, and each department focused on the activities with the highest aspects scores for possible improvement projects. Examples of activities with high impacts were product selection, transportation (customers and suppliers), and paper.

Results
Manufacturing processes. The system conditions thus provide the rationale for several changes that have been adopted or planned. These include more environmentally benign processes for metal cleaning, lacquering, antiquing, polishing, plating, and painting. For example, when metal lighting fixtures are buffed, toxic dust is produced. State environmental regulations prescribe that the company handle this waste stream in a safe and environmentally responsible manner, but the system conditions call for a higher standard. Thus, Rejuvenation invested over $10,000 in new buffing technologies that will reduce the generation of lead-bearing dust. An investment of $110,000 in a water-based ultrasonic cleaning system resulted in cleaner parts and potential ability to switch to water-based, clear-coating processes.

In 2001 the company contracted with Zero Waste Alliance to help it improve the metal antiquing process. The old system for capturing contaminants in the wastewater sometimes allowed excess amounts of selenium to slip through. A new closed-loop, zero-waste system binds the selenium so that it can be sent to a reprocessor for reuse and cycles the water back into the antiquing system instead of the city sewer.

Rejuvenation also invested $250,000 in a new electrostatic spray system for lacquering. The new system reduced VOC emissions by 60 percent, is more efficient in transferring the lacquer to the product, and also produces a more durable coating. The durable coating has even reduced packaging requirements. After a year or more of experience with this process, management is poised to try water-based coatings, which are more difficult to apply but better for the environment.

Packaging. Most Rejuvenation products are manufactured on a made-to-order basis and require considerable protective, individualized packaging. Packaging that protects the product is critical. Currently the company uses primarily roll paper as dunnage and has significantly reduced plastic packaging, especially polyethylene tubes and bubble wrap. Alternative packaging materials and methods are still being explored with the hope of lowering labor costs and damage rates while improving environmental performance. Managers performed a life-cycle analysis comparing expandable plastic foam with current packaging. The economic benefit of the foam would be considerable--$200,000 per year due primarily to lower labor costs and better product protection. However, the foam is persistent, and there are no good options for end-of-life management. Most of the packaging would end up in the landfill. Because that alternative couldn’t meet system condition two, it wasn’t implemented.

Energy. From a product life-cycle perspective, energy consumption during the use phase of the product is one of the greatest environmental impacts. Rejuvenation has been designing period lighting that incorporates compact fluorescent bulbs since 1992 and continues to develop new designs. It would like to conduct a more thorough product life-cycle analysis. Managers believe such an analysis would make it possible for them to work with ballast manufacturers to promote compact fluorescent lighting that is more energy efficient.
The manufacturing plant itself reduced energy consumption by 10 percent between 2001 and 2002 through a lot of little measures, such as paying attention to start up and shut down of equipment and lights, putting lighting on timers, and improving the operating efficiency of equipment.

Purchasing parts. Most of the metal parts for the lamp fixtures come from factories in China and India. Management has begun visiting these factories and asking for changes to reduce environmental impact. For example one factory in China upgraded its degreasing system, and a number of suppliers have been willing to shift from foam to paper packaging. In another case,Rejuvenation found the sites where plating was done in China so poorly run, it stopped using them.

Paper reduction. The retail side of the business focused initially on paper reduction. The goal is to eliminate all paper purchases (except toilet paper and paper towels) within ten years. Some purchasing and all purchase-order archiving is now done on-line. Receipts, which used to be 8 1/2 x11 inches, will be cut in half. To further save resources, Rejuvenation is purchasing 100 percent recycled paper. The copy paper is 30 percent post-consumer waste, and toilet paper is 20 percent post-consumer waste.

Some of these initiatives were begun, or conceived, before Rejuvenation adopted The Natural Step framework. However, TNS has provided a stronger rationale and framework for the initiatives. It has also helped unify company management behind environmental improvements that can lead the industry to more-sustainable manufacturing processes.

Current Prognosis and Lessons Learned
The Natural Step framework has been firmly incorporated into company management perspectives and is increasingly providing inspiration and guidance to long-range, strategic planning. The four system conditions have been very helpful in the rigorous analysis of the company’s processes.

Substantial business benefits, financial as well as environmental, flow from taking processes apart and evaluating improvement opportunities. For example, the new aqueous ultrasonic cleaning system is paying dividends on the investment. The old system required five or six fulltime operators, whereas the new system only requires two, and the parts are now cleaner and can go directly into the next process, without delay. The new lacquering process that reduced VOCs also reduced material costs by 25 percent
The company faces important challenges in fully implementing TNS framework and realizing its potential:

Overcome the language and cultural barrier to training the workforce.
Further develop the environmental management system so that it is more systematic and universally applied throughout the organization.
Effectively influence suppliers so as to improve their environmental performance as well as Rejuvenation’s.
Gain the technical expertise required to make manufacturing processes truly benign. It takes time and resources, and sometimes technological advances, to meet the high standards of the system conditions. It also requires a high level of corporate commitment to take TNS from theory to practice.
Better define system condition four. Management at Rejuvenation takes the fourth system condition of social equity seriously in its employment practices. It has made a strong commitment to fair pay.

Sources
1. Interview with John Klosterman, Vice President of Manufacturing, February 18, 2000 and October 28, 2002. Interview with Brooks Nelson, Facilities Manager, October 28, 2002.
2. “Measuring Sustainability in the Manufacturing process: Incorporating The Natural Step Principles into Rejuvenation, Inc.’s Environmental Management System” by Christopher Juniper, John Klosterman, and David Kunz, March 2000.

This case study was prepared by Wayne Rifer in April 2000 for the Oregon Natural Step Network and updated by the Network in October 2002.

Scandic Hotels

Chas Martin — Mon, 20 Oct 2008 19:36:06 -0400

A Natural Step Network Case Study

Overview
Scandic operates 125 hotels throughout Europe and is the market leader in Scandinavia, with annual revenues of approximately $500 million. The company is publicly held and employs approximately 7,000 people. Scandic began implementing The Natural Step in 1994 and has achieved significant results with the program in both financial and ecological terms.

Background
Founded in 1963 by Exxon as a motor hotel chain, Scandic was eventually sold to Ratos, Inc. in 1983. President and CEO Roland Nilsson was hired in 1992 to turn the company around after three years of consecutive losses to the order of $22 million. At that time, Scandic had little differentiation in the marketplace. For the previous 10 years, the company had pursued a strategy of seeking competitive advantage through tangible amenities such as room decor, color televisions, and ironing boards -- all of which had been quickly matched by competitors.

Scandic's market research showed that the basis for competition in the industry was increasingly shifting to intangible dimensions given this relative sameness of product offerings. A company's values and actions -- how it conducted business -- increasingly factored into consumer purchase decisions. In Sweden, for example, the number of consumers who were actively rejecting products on environmental grounds rose to 48% by 1994. "Increasingly we saw that people want to do business with companies they like and respect" notes Ola Ivarsson, Scandic's Director of Purchasing and Environmental Affairs.

Introduction to The Natural Step
In early 1994 Nilsson and his senior management team became convinced that the leaders in the market of tomorrow would demonstrate business practices that were good for the company and for society and would build consumer loyalty based on shared values. They saw an opportunity for Scandic to claim a leadership position in the hotel industry based on the concept of sustainability.

The management team had heard of The Natural Step from its activities in Sweden and invited Karl Henrik Robèrt to a meeting in February 1994. After this meeting the Executive Committee agreed to pursue sustainability as a strategic initiative using the TNS system conditions as a model. The committee placed one of its members -- Ivarsson -- in charge of the program. The Executive Committee committed the company to this course long term by issuing the following policy in April 1994:
"No company can avoid taking responsibility for the environment and focusing on environmental issues. Scandic shall, therefore, lead the way and work continuously to promote both a reduction in our environmental impact, and a better environment. Our goal is to be one of the most environmentally friendly companies in the hotel industry and to conduct our business on nature's terms."

Stage I: Building Knowledge
The following objectives were established by senior anagement for the program's first 18 months:
1. Imbed environmental priorities into business decision-making;
2. Improve resource efficiency while continually increasing quality;
3. Phase out use of materials harmful to the environment;
4. Share knowledge with employees, suppliers, and customers.

As with any new strategic initiative, Scandic committed to building internal competency before rolling the program out to line units. After the April announcement, the Executive Committee did a one-day training on TNS principles with Dr. Robèrt to ground themselves in the pedagogy. In June 1994 a working group combining Scandic and TNS staff began adapting TNS principles to Scandic's business and culture.

Scandic operates hotels in nine countries. Each hotel is its own profit center, with the manager evaluated by profit performance. Given the low margins and the highly competitive nature of the industry, a program for sustainability had to support managers in making good business decisions. It was very important to Scandic's senior executives that the program did not burden line managers with a new set of headquarter "rules," or create the perception of conflicting priorities. Sustainability had to be a strategic tool that served the business, or it would not work in the organization.

By September 1994 a training program had been developed and was presented to 40 line managers specifically selected for their management skills and interest in the program. The program was refined based on their input, and 25 members of the review team were recruited to be internal trainers, undergoing a three-day training with TNS staff. Scandic trainings are adapted to the regulatory conditions in each of the nine countries where Scandic does business to help employees develop local action plans. The trainings range from six hours to six days depending on the skills and needs of the participants and are augmented with seminars and study groups.

By November 1994 the training program was ready for introduction. To begin building an internal learning structure, an "Environmental Desk" was created at the corporate level and charged with initiating a training process called "The Environmental Dialogue" throughout the company. The word "dialogue" was consciously chosen to convey an atmosphere of learning and two-way communication. The program began with a company-wide-video dialogue between Nilsson and Robèrt, discussing the reasons behind the program and the actions to follow. This video was also shared with suppliers. By the end of 1995, all Scandic employees had been through training programs appropriate to their job.

Phase II: Action Programs
Scandic's managers embarked on a two-pronged approach to implementation: initiating visible changes at the corporate level to demonstrate commitment and stimulating local ideas that were then collected, shared, and quickly implemented.

Concurrent to the training process, each hotel created a local action program soliciting ideas from employees and suppliers. An "Environmental Networker" was appointed at each hotel to facilitate dialogue and idea exchange between interdependent departments. Trial and error were encouraged, and regional environmental managers met regularly to share learning and develop programs better addressed on the regional level. By late 1995 over 1,500 local activities were in implementation, involving 64% of Scandic employees.

At the corporate level, teams focused on inventorying repetitive procedures carried out at all Scandic hotels, in search of changes that could yield high impact throughout the system in terms of environmental quality and cost savings. Primary focus was placed on reducing and eliminating waste, as well as new product innovations that embodied TNS principles. Notable innovations include:
Soap and shampoo dispenser system . Traditional hotel soap comes in a bar wrapped individually in plasticized paper. A normal hotel guest uses approximately 15%, and the rest is thrown out. The same ratio of waste applies to shampoo and conditioner bottles. Scandic researched available dispenser systems and found none that met TNS system conditions; so they worked with suppliers to develop one. The Scandic system uses plastic (PET) dispenser bottles that are manufactured in Germany and recycled by the same supplier into new dispensers. Soap and shampoo contents are made by Ecover, a leading Belgian producer of natural products. The system has reduced annual soap and shampoo volumes by 40 tons and packaging by 11 tons, producing significant savings in operating costs.

House-keeping chemicals. Auditing revealed that 15 different cleaning products were being used in each hotel. Each product was individually packaged, had to be individually ordered and tracked in inventory, and contained chemicals with unknown impact on the environment. Scandic worked with German company Henckel Ecolab to develop an entirely new system for cleaning its hotels using environmentally benign ingredients. The new system uses concentrated cleaning substances that can be combined for different cleaning jobs, thus drastically reducing inventory and carrying costs as well as packaging waste.

Dish washing. Analyzing the kitchen with the same mindset, Scandic worked with Henkel Ecolab to adapt a system using concentrated detergent powder to reduce packaging, transportation costs, and chemical discharge. Detergent use was reduced by 25% in 1994-95. Scandic also realized that breakfast, lunch, and dinner each have different dish-cleaning requirements. It developed a dosage system for detergent calibrated to each meal, reducing powder use by an additional 14%. These changes cut detergent use by 14 tons in Sweden alone.

Laundry. Scandic worked closely with its leading laundering supplier to develop a new system for its extensive laundering needs. Chloride bleach was eliminated from the process, with oxygen bleach used as a substitute. Modified equipment with fewer wash cycles reduced water usage from 9 gallons to 1.5 gallons per unit of laundry. The resulting 17% savings in energy needed to heat water, coupled with reduced detergent and water consumption paid for the cost of the new equipment in one year. The laundry supplier is now fully committed to the new system and has achieved a competitive cost advantage over other suppliers that has helped it expand its business.

Waste management. Initial programs to reduce solid waste and improve energy efficiency were conducted at the local level, generating $11 million in cost savings during the first year. A program pioneered in Germany takes recycling to guest rooms by providing a waste basket with three different compartments, one for paper, one for organic waste, and one for metal/plastic. The program has reduced waste by 40-50%. The system is being introduced into Sweden and Denmark properties; other countries will follow as municipalities develop handling systems that can deal with sorted waste.

Energy efficiency. A system is being tested that puts a temperature sensor in the TV antenna of each room, allowing the temperature to be controlled by the front desk. Rooms not in use for the night can be "shut down" and then brought back to comfort level just prior to occupancy. The "recyclable" hotel room. Scandic renovates about 1,500 of its 16,000 hotel rooms each year, and it decided in 1994 that this investment represented a high leverage opportunity to move the chain toward sustainability. A new type of hotel room was designed along TNS principles with every aspect of the room analyzed throughout its life cycle for environmental impact.

Scandic worked with a number of suppliers to develop new, more sustainable products for the room, which is called recyclable because 97% of its materials are meant to be reused and recirculated.

The recyclable room is constructed of natural materials, relying on wood as a replacement for plastics and metals. Parquet floors replace carpet, and natural fabrics such as wool and cotton replace nylons and acrylics. All paints and wood treatments are water based. With the rooms already brought on line, Scandic estimates significant reductions in its yearly consumption of non-renewable resources:
· Metal reduced by 15 tons
· Plastic reduced by 90 tons
· Mercury reduced by 22 pounds

Scandic estimates the initial capital investment in the recyclable room runs 15-17% higher than its old room, but this is offset by savings from improved durability and efficiency that reduce total costs 30% over the life of the room (e.g. wood floors can be refinished seven times). Guest feedback has shown a marked preference for the new room design.

Top Line Effect
Aside from the cost savings generated from the process and product innovations stimulated by adopting TNS, Scandic has seen considerable impact from a marketing standpoint. Qualitative input shows employee morale and commitment, so critical to the consumer's experience of the product in a service business, has measurably improved. In-room brochures detailing Scandic's values and actions helped guests interpret the changes in a positive context and involved them in the effort.

Scandic gained significant press coverage and public awards for many of these innovations, garnering a "first mover" advantage over its competition. A brand awareness study done in February 1995, when the program was still in its infancy, showed consumer awareness of Scandic doubled to 60% from the 30% recorded in November 1994, when the program was first announced. Additionally, 15% of new conference business claimed Scandic's environmental initiatives influenced their choice of hotel.

Bottom Line Effect
While there is no way to isolate the effect of the TNS program on financial performance, overall sales for the company are up 26% from 1995 to 1997, and operating margin has increased from 3.5% to 5.2% over the same period. Scandic has also returned to profitability, reporting positive net income for the past two years. By all accounts, Scandic appears to be doing well by doing good and plans to continue evolving the program.

Lessons Learned
Ivarsson offered the following insights to companies embarking on a path to sustainability:
· TNS is an explanatory model, not an off-the-shelf program. Companies must do the work necessary to adapt the model to their unique business and culture. TNS should serve as your "internal alphabet" regarding sustainability, but you must integrate it into the language of your business.

· Show visible commitment from senior management early on. Ivarsson felt the kick-off video conversation between Nilsson and Robèrt was essential to the program's success because it showed how personally committed the CEO was to the initiative.

· Centralize communication; localize actions. Training and knowledge sharing should flow from a central point in the organization, but make the process of implementation local as soon as possible--it's too complex to control centrally. Training should empower people to create change in how they do their job. Make resources available to support local initiatives and publicize the results regularly. Scandic regularly publishes a newsletter on the program (now on e-mail) to update employees on ideas, actions, accolades, etc.

· Make visible headquarters decisions that lead and anchor local initiatives. Ivarsson felt speed and tangible impact were important in showing headquarters was committed to the program. For instance, the new soap and shampoo dispenser system was installed in 16,000 hotel rooms in just two weeks. Focus on product initiatives that render visible the company's
intentions and implement them vigorously.

· Involve suppliers early on. Ivarsson noted that Scandic's choosing him as Director of Purchasing to lead the sustainability program was not unintentional. Scandic realized early on that it could not succeed in this program without the help of its key suppliers. The company communicated its intentions early on and offered TNS training to its suppliers. It also outlined the changes it expected from each supplier and gave it specific timetables for meeting these requests. Suppliers who declined participation were notified they would be replaced. This partnership approach was highly effective and was enabled by a centralized purchasing system that allowed the company to consolidate its leverage.

· Allow standards to emerge. Ivarsson recommends companies avoid adopting externally derived performance standards at the outset of their sustainability program. Standards thatemerge from the process itself are likely to be more accurate and lasting.

"It is extremely difficult for any company to set up standards from the beginning. You need to accept that it is a process that starts with gaining knowledge, learning what to do, and then getting people moving with some simple activities. After six months we started to establish our own standards."
-Ola Ivarsson

Scandic Implementation Chronology
February 1994--Scandic Executive Committee meets with K. H. Robèrt.
April--Environmental Policy published and Program announced.
Scandic Executive Committee undergoes TNS Training.
June--August All employees see video with Nilsson and Robèrt explaining the company's commitment to sustainability. Scandic and TNS staff develop training program adapting TNS principles to Scandic's business and culture.
Sept.-- Oct. Train the Trainer program.
November Distribute The Environmental Guide, an outline of how the project would be implemented.
Nov.--Dec. Environmental dialogue with all staff at 100 hotels throughout Europe.
December Begin coordinating Local Activity Plans.
January 1995 Launch the program to all employees and build participation in local activities.
Monthly 1995 Continued training and communication of company-wide activities & learning.
May 1995 Begin setting company-wide standards and implementing formal feedback system.

Sources
1. "The Natural Step 'Good Examples' Business Case Study Sweden" by Change the Way Pty Ltd, 1996.
2. Lectures by Brian Nattrass and Ola Ivarsson at The Natural Step Conference, Chicago, IL, May 1998.
3. Phone interview with Ola Ivarsson, August 6, 1998.
4. "Scandic Environment Program 1994-97" by Scandic Hotels.

This case study was prepared by Brian Lanahan for the Oregon Natural Step Network. further information, contact Ola Ivarsson, Director of Purchasing & Environmental Affairs, email: ola.ivarsson@scandic-hotels.se or telephone: +46-8-610-50-00.

ShoreBank Pacific, Ilwaco, Washington, USA

Chas Martin — Tue, 28 Oct 2008 16:58:39 -0400

A Natural Step Network Case Study

Overview
ShoreBank Pacific is a chartered commercial bank based in Ilwaco, Washington with its largest loan office in Portland, Oregon. It employs seventeen people and has assets of $80 million. It is the first commercial bank in the United States with a commitment to environmentally sustainable community development: "ShoreBank Pacific profitably assists businesses, and through them, their communities, to be sustainable in economic, social and environmental practices.”

The bank used the Natural Step framework as a basis for a scoring system that determines how closely potential loans align with the bank's mission. Aggregate mission scores, which are published in the bank's quarterly reports, allow the bank to determine whether it is helping its customers improve their sustainability practices. ShoreBank Pacific's work has attracted national attention and been a magnet for socially conscious depositors throughout the United States.

Background
The idea for ShoreBank Pacific began with Spencer Beebe. A fourth generation Oregonian and founder of EcoTrust, Beebe wanted to bring the triple-bottom-line concept of sustainability to rural communities in the Northwest. He felt that loggers, fishermen, landowners, and other locals are the only people who have a vested self-interest in both the environmental integrity and economic development of their local community. To support this effort, Beebe felt it was important to have access to capital from people who shared that same perspective. He envisioned a regional commercial bank that could provide rural communities and their businesses financial capital with a triple-bottom-line perspective.

In searching for capital and partners who shared his view, Spencer was introduced to Shorebank, Chicago, the nation's first and leading community development bank. In 1997 EcoTrust and Shorebank Corporation joined to launch ShoreBank Pacific as the first commercial bank in the U.S. with a commitment to environmentally sustainable community development.

Introduction to The Natural Step
In 1998 ShoreBank Pacific hired Kathleen Sayce, a scientist with a background in botany and community ecology. Her responsibility was to bring rigor to the environmental and social components of the triplebottom-line approach the bank was using.

As the bank's science officer, she was looking for a solid framework that her colleagues could use to quickly and objectively measure the sustainability qualities of loan applications. She was introduced to the Natural Step framework by a Shorebank consultant. The staff at Shorebank Corporation had seen a presentation on the Natural Step, and one of Sayce's contacts passed on a copy of the material used in the presentation. When Dave WIlliams came on as the new CEO, he was enthusiastic about this approach as well.

Aligning the Bank with The Natural Step Framework
Prior to Sayce's arrival the bank had been considering a loan scoring system devised by its sister organization, Shorebank Enterprise Pacific (SEP). Sayce found this scoring system cumbersome to use, and it required hours to complete for each client. She was looking for something simpler.

As Sayce began delving into the science and concepts that underlie the Natural Step, she liked what she saw. Unlike other ecological frameworks that depend primarily on environmental science, the Natural Step framework uses basic laws of physics and thermodynamics. In addition the Natural Step has a social component, a quality that is often missing from environmental approaches. Sayce concluded that the Natural Step gave her a resilient, scientifically solid framework for assessing the bank's loan portfolio.

The challenge was to translate the four principles into concepts the bank's lending officers could easily use in their loan assessment process.

Using the Natural Step principles, she devised a system that scored each prospective loan in five different categories on a scale of zero to three, where a higher number meant the organization was making a stronger commitment to move toward sustainability.

The five categories are as follows:

Natural productivity
- Issues: environmental impact, resource conservation, third party certification
Green chemistry and engineering
- Issues: material toxicity, process redesign, global warming impact
Resource efficiency
- Issues: material and energy conservation
Landscape conservation
- Issues: impact on urban sprawl
Community diversity and stability
- Issues: business diversity, rural access to capital, social equity, community improvement

Sayce developed an Excel spreadsheet with each of the five areas listed and examples of how to score each area from zero to three, and subsequently wrote a relational database for the portfolio. Although in theory an organization could be active in all five areas, few would be. Consequently, any loan with a score of three or higher was designated as supportive of the bank's mission. The overall target for ShoreBank Pacific is that 80 percent of its loan portfolio will be mission related.

Once developed, Sayce trained each of the loan officers and other key bank staff to use the scoring system. She reviewed the Natural Step principles behind the scoring system and provided examples of how various loans might be scored. The scores are now part of the loan review process, and Sayce sits as an ex-officio member of the loan committee. At monthly meetings, the loan officers review their portfolios by sector, including what might be done to improve those scores.

Some of the bank's customers, such as recycled paper suppliers, New Leaf and Living Tree Paper Companies, have asked what their scores are and how they can increase them. Sayce says that these companies are examples of how the scoring system has motivated many of their most innovative customers to examine all aspects of how their business can be run more effectively.

Although having a high score is not a requirement for getting a loan from ShoreBank Pacific, the lending officers realize that the scoring system is an objective and useful tool that can assess how well their loan portfolios align with the bank's sustainability mission.

The scoring system is also used as a marketing tool with depositors, and each quarterly report to stakeholders provides not only financial information on how the bank is doing but also the scoring mix of its loans. This gives a measurement tool on how effectively deposits are being used to support the bank's sustainability mission. (See Figure 1.)

Figure 1 - Portfolio Distribution by Mission Score - September 30, 2003

Applying the Natural Step Framework Internally
After establishing the mission scoring system, the bank decided in early 2002 to apply the same sustainability concepts to its own internal practices. Using a sustainability "backcasting" process, Sayce convened bank personnel in a series of meetings that systematically identified where the bank's operations violated the four system conditions of the Natural Step.

By flowcharting how the bank delivered its products and services, the group organized the violations into categories such as transportation, electronic equipment, printed material, document storage, food, and facilities. The group then created a vision of full sustainability where all activities met the system conditions, along with steps the bank could take over an extended period of time to reach that vision.

This process will not only help the bank become more efficient in its internal operations, but it will also give the personnel a deeper understanding of the issues involved in achieving a sustainable company. The results of the planning process were published in EcoNotes, the bank's quarterly customer newsletter.

Outcomes
ShoreBank Pacific is growing rapidly because it provides a safe place for socially driven investors to put their money. As reported in The Oregonian, "Deposits are soaring as people across the nation find the bank a place to save money while helping the environment." Assets increased from $20 million at the end of 2000 to over $80 million by June 2003. Deposits have grown 299 percent in the same time period from $17.4 million to $69.5 million. During this time the loan portfolio has grown from $11.6 million to $26.3 million, a growth rate of 127 percent.

The companies that have taken loans are enthusiastic about their relationship with the bank. "They actively promoted our product, more so than any bank I have ever seen," said Marc Gaudin, owner of the Joinery, a Portland company that makes handcrafted furniture from sustainably certified wood.

Jay Graves, owner of The Bike Gallery, says that when he got a line of credit from ShoreBank Pacific, "Having that connection with the environment and sustainability was a good thing. When we were with another bank we weren't happy with the service we were getting. We felt we were just a number on a page, rather than someone they cared about."

Sayce believes the bank has benefited by the internal "backcasting" effort. One example is saving $1,000 a year by shifting to filtered water from bottled water. A second is replacing an old copier with one that scans documents, converting them to an electronic form that can be e-mailed and digitally archived. Additionally the bank installed software to convert all incoming faxes into e-mails that can be electronically distributed. Sayce has begun calculating the CO2 emissions generated by travel and other bank activities. The bank intends to participate in a CO2 offset program so that its activities are ultimately carbon neutral. Not only is the bank profitable and growing but it is also gaining an international reputation. CEO Dave Williams was invited by the World Bank in June 2001 to address its 50 top managers on ShoreBank’s approach. At the time Williams told the Portland Business Journal, "[World Bank is] finding that development for the sake of development doesn't work -- it needs to be environmentally conscious. … They knew we were doing that, so they wanted to hear how we do it.”

Costs
The most direct cost of ShoreBank's innovative approach is the cost of having a science officer on its staff Some of that cost is offset by consulting services Sayce provides customers on how to improve their sustainability effectiveness. Examples include environmental surveys with recommendations on how to mitigate any negative impacts.

The costs of implementing the sustainability changes to the bank's internal operations have been minimal and are being spread over several years so that they are matched by offsetting resource savings.

Future Focus
By banking standards, ShoreBank Pacific is a small bank with the intention to grow into a significant regional bank. To Williams, sustainability makes good business sense. The sustainability filters not only help it invest in businesses with a long-term future but also businesses with reduced risks. Williams and Sayce foresee the day when their approach to banking will be the norm rather than the exception.

Lessons Learned
What worked
The Natural Step framework gave Sayce the template she was looking for in developing the bank's sustainability scoring system. It was based on solid science, could be articulated with just a handful of aspects to measure, and resulted in a straightforward scoring system that could be used fairly quickly.
What also helped was the strong support of CEO Dave Williams. As a former physics teacher, Williams understood the basic science that underlies the Natural Step and as a former CEO and business turnaround specialist he understood how the four principles made fundamental business sense.

What did not work
What has been more challenging to Sayce is devising a way to assess the social and community component of loans. The fourth system condition of the Natural Step recognizes that there is a social aspect to sustainability. What Sayce is looking for is a social science foundation for the fourth systemcondition that is as readily understood as the physical science components that underlie the first three system conditions.

Advice for Others
Sayce knows that ShoreBank Pacific is leading a pioneering effort in the banking industry. No other banks have a sustainability scoring system like ShoreBank Pacific does. Sayce recognizes that over time she and her colleagues will get smarter about how to do this and that their processes will evolve. What she likes about the Natural Step is that it provides a strong foundation upon which they can build their efforts. She also likes the non-prescriptive approach. The four system conditions don't tell one what to do but act as a compass in guiding an organization toward a sustainable society. Lastly, she believes it is crucial to have a CEO who can make the connection between sustainability and the organization's business mission.

Sources:
1. Interview with Kathleen Sayce, Science Officer
2. "Ecotrust Stirs Up a New Shade of Green,” FastCompany, April/May 1997
3. "ShoreBank's Expertise Sought by World Bank,” Portland Business Journal, June 2001
4. "Walking the Talk - Merging Mission with Internal Operations,” ShoreBank Pacific EcoNotes, Vol.4, Issue 3, Fall 2002
5. "Banking With A Conscience,” The Oregonian, August 8, 2003

This case study was prepared by Duke Castle, The Castle Group, in November 2003 for the Oregon Natural Step Network.

Sokol Blosser Winery, Dundee Hills, Oregon, USA

Chas Martin — Mon, 20 Oct 2008 19:12:51 -0400

A Natural Step Network Case Study

Overview
Sokol Blosser Winery, family owned and operated, is one of the pioneering vineyards in Oregon. The winery planted its first grapes in 1971 and produced its first vintage in 1977, bottling 3,000 cases. Currently Sokol Blosser has 15 full-time employees and employs up to 40 seasonal workers to help in the vineyard and the tasting room during harvest season. The winery now produces 40-50,000 cases of wine per year. Susan Sokol Blosser has run the business since 1991. Alex and Alison, two of her three children, now work with her.

Although the winery founders considered themselves environmentalists, they began by farming conventionally. In doing so, they tried to choose the most benign chemicals, but nevertheless used synthetic fertilizers and herbicides. Gradually, the founders have integrated their environmental values with their farming and business practices. Now, the winery is well on its way to having an organic vineyard and sustainable practices in all of its operations.

Connection with The Natural Step Framework
Susan Sokol Blosser had been one of the founders of the local chapter of Business for Social Responsibility in the early 1990s. Her BSR contacts led her to a workshop introducing The Natural Step (TNS) framework in April 1999. Blosser attended with her winemaker. “It was a real ah-ha,” Sokol Blosser said. “We could see how far we were from meeting the system conditions. Everywhere we looked, we could see things we were doing that weren’t sustainable. This really pushed us to look at everything we did through the lens of sustainability.””

Introduction of TNS framework into the Organization
After being introduced to The Natural Step framework, Sokol Blosser first educated her board. Once she secured their support, she began educating all the staff, partnering with Norm Thompson, an Oregon Natural Step Network Founding member. Norm Thompson invited Sokol Blosser to send its employees to the Natural Step trainings Jane Emrick conducted for Norm Thompson’s own employees. Over time, all the winery’s full-time employees were trained.

Being such a small organization, Sokol Blosser did not develop complicated processes to manage the winery’s sustainability efforts. “We carry around in our heads a list of things we need to do,” Blosser said. “We think about what we can do now, trying to do the easiest things first.” To get inspiration, employees consider what their major waste streams are and visit other wineries like Fetzer (Mendocino County, California), a model of sustainable wineries.

Sustainability is now part of their mission and embedded into their operations. “Whenever we do anything, TNS is just part of the consideration.” They sought organic products for their tasting room gift shop, such as organic cotton T-shirts. They choose high post-consumer content paper for marketing material and packaging. When they remodeled the tasting room, they sought to do it with sustainable wood, shelving, flooring, and paint, educating the contractor in the process. “We can’t always do everything we want. Sometimes, when the sustainable action is prohibitively expensive, we step back. Sometimes we decide we’re going to do it anyway.”

The first vineyard “ah-ha” occurred when Sokol Blosser was approached by the Pacific Rivers Council in 1996 to be the first winery to become certified as “Salmon-Safe.” Sokol Blosser never thought of its practices as saving salmon, but by preventing run-off, it was helping to contribute to this end. “This broadened my understanding of the implications of what we were doing. It was much bigger than just my little vineyard.”

Outcomes
Sokol Blosser Winery publishes a sustainability report for its staff and board of directors. It is made available to the public on its Web site, www.sokolblosser.com. Once its vineyard is certified as organic, all of its Pinot Noir wines will be made from organically grown grapes.

Pinot Noir wine is Sokol Blosser’s flagship product. Because Sokol Blosser purchases grapes from other vineyards for other wines, only 10-15 percent of its wines will be eligible for an organic label. Its accomplishments by category are listed below:

Company
· Has incorporated sustainability into its mission statement.
· Has three of the five board members driving hybrid vehicles.
· Has become a spokesman for sustainability, speaking at wine industry events, such as Oregon Pinot Camp.

Production
· Farms organically, using no synthetic chemicals or fertilizer. 2005 is the last year of organic transition, and full organic certification is expected in 2005.
· Uses 20 percent bio-diesel in vineyard tractors.
· Is part of the Prescott Western Bluebird Recovery Project with a dozen bluebird houses in the vineyard. It now has a small flock of about 25 bluebird residents that help to control insects.
· Recycles used engine and hydraulic oil from vineyard equipment and shrink wrap from bottling.
· Builds annual compost piles from grape stems and skins produced from crushing grapes at harvest, organic cow manure, and organic straw.
· Uses its compost and cover crops to build up the soil so that plants can feed themselves. Soil samples show significant microbial improvement from 2003 to 2004.
· Was the first vineyard to be certified Salmon-Safe when the program began in 1996
· Is certified by L.I.V.E. (Low Input Viticulture & Enology), an international sustainable certification program.
· Provides health care for seasonal vineyard employees through the Tuality Healthcare Foundation’s Salud Program.
· Uses no chlorine (one of the standard procedures) in winery sanitation.
· Constructed a barrel cellar that was certified by the US Green Building Council as LEED silver in 2002 It was the first winery in the nation to achieve this certification. This building cost significantly more to build, but its energy use has been estimated by the Oregon Department of Energy to be more than 50 percent less than a standard building.
· Purchases wind power through PGE (1167 kWh per month). This covers between 4% and 19% of total usage, depending on the month.
· Eliminated foil capsules to simplify packaging and eliminate a mined material.
· Continues to use cork, a renewable resource as the most sustainable wine closure.
· Required their label-printing company to use recyclable backing on pressure sensitive labels.

Tasting Room
· In the remodel used marmoleum flooring, no- and low-VOC paints, wheat board shelves, and FSC wood (Forest Stewardship Council certified).
· Uses unbleached paper products such as wine bags and bathroom towels.
Office
· Uses 100 percent post-consumer recycled paper for copier and fax.
· Has a paper recycling receptacle in every office.
· Purchased new desks and shelves from Herman Miller, known for its sustainable practices.

These accomplishments have been acknowledged by others. In 2004 Sokol Blosser was honored by Food Front Cooperative’s Board of Directors for its part “in creating sustainable community.” The winery was one of 38 recognized in 2004 by Portland General Electric and the Bonneville Environmental Foundation for its support of renewable power in Oregon. And Susan Sokol Blosser was awarded an Honorary Doctorate of Public Service from the University of Portland for business entrepreneurship within the context of sustainability and community service.

Lessons Learned
· Switching from traditional farming practices to organic takes time. “It’s like trying to move a patient who is on life-support (in this case, plants being force-fed fertilizer), to one that can live and eat on its own. If you try to do it all at once, the system can’t handle it, and you’ll have problems.” Similarly, switching from an unsustainable organization to a sustainable one must also happen slowly. “Over time, sustainability drills down, and you get new insights about what you must do.”

· Don’t expect your customers to pay more for organic or sustainability. “I don’t think most customers care right now. Maybe someday more will. We do it because it’s just who we are. As Jane Emrick said, ‘Once you ‘get’ sustainability, there’s no going back.’”

· Balance the cost of choices. Some things may save you money; some sustainable options will cost more. Try to balance these choices so that you are at least no worse off economically.

· It is critical to have the whole staff on board and willing to look at everything they do (at least at work) through the lens of sustainability. This takes not only sustainability training but also reinforcement and continuing education.

This case study was prepared in 2005 by Darcy Hitchcock, AXIS Performance Advisors, for the Oregon Natural Step Network.

Sustainability initiatives take off at Edmonton Airports!

Alexandre Magnin — Tue, 17 Nov 2009 09:19:12 -0500

On November 4th and 5th I, along with my colleague Pong Leung, had the pleasure of delivering a 1.5-day workshop with 20 staff from Edmonton Airports. After a few months of work on high level strengths, weaknesses, opportunities and threats and research into best practices of leaders in sustainability in the airport industry, this workshop was the transition towards the creation of a ‘sustainability road map for Edmonton Airports’ ongoing sustainability initiative.

Participants had taken our Sustainability 101 online course prior to the workshop. The first half day started with a recap on the Natural Step framework which was followed by a “sustainability café” (see http://www.theworldcafe.com/ for more details) to discuss questions such as “what is Edmonton Airports’ role in the world?” This was a very good way for people to discuss general questions around sustainability before diving into more specific brainstorming sessions. We finished the day with exercises to help create a ‘vision of success for a sustainable Edmonton Airports’ and draft a set of sustainability goals. The energy in the room was very high during this exercise. People were very excited to identify the characteristics of their company 25 years from now; at the end of this exercise, some people took some strategic goals in order to refine the wording for the next morning.

The second day started with an open discussion on the strategic sustainability goals statements in order to reach consensus on the goals. Participants then used these goals to look at the current reality of the Airport and complete a force field analysis by answering the following question: what are the “helping” and “hindering” forces that may impact our ability to achieve these goals? This brainstorming was exciting and provided some impressive and very valuable results, allowing people to highlight 5-6 focus areas that needed particular attention in the short term. Finally, participants used these focus areas to come up with key performance indicators, targets and actions in order to achieve the related sustainability goals.

The energy in the room was high all day. It became even higher when participants were asked to share with the group 2 actions that they would each individually undertake in the next 2 months. Each of these sustainability commitments were followed by spontaneous applause and the commitments presented by the CEO were a good indicator that Edmonton International Airports was taking a significant step towards transformational change towards sustainability. I felt very privileged to witness such a great process!

Canada

Sustainability Life Cycle Assessment (SLCA)

Anouk Bertner — Thu, 19 Mar 2009 15:51:34 -0400

Assessing the sustainability of products

The Natural Step's Sustainability Life Cycle Assessment (SLCA) approach helps organisations define, assess and communicate product sustainability. SLCA can be described as an assessment tool and an accompanying process that gives you a strategic overview of the full scope of social and ecological sustainability at the product level. It results in an analysis – using colours instead of numbers – that allows a company to see the major impacts of today’s product through the whole lifecycle in relation to principle requirements of sustainability. The process then helps you so to create plans for how to successfully bridge the sustainability gap.

The SLCA process and generic tools are based on the Framework for Strategic Sustainable Development with its system conditions for sustainability set against the life cycle stages of a product.

On this page you will find information about:

Become an SLCA user now!

Register your interest for training opportunities so that we can alert you when the next seminar will take place. Training will give you access to SLCA tools, a method guide and useful insights into how it is best used.

• what the SLCA method is used for

• how it works

• the Ten Steps to Sustainability Life Cycle Assessment

• benefits of this approach

• learning opportunities and how you can get access to the tool

• how to request a customised expert assessment

• case studies

“The partnership developed an SLCA tool that has proved to be a powerful medium to convey the impact of products or services. This tool is now being rolled out through Carillion’s supply chain to help map out the sustainable impacts of materials and services used within Carillion.” Jas Dhami (Design Manager, Carillion)

What is it used for?

The SLCA allows for rapid yet rigorous assessment, capacity building and communication around product sustainability.

The Ten Step SLCA process identifies the major issues in relation to a product or process in a qualitative manner, allowing key aspects to be strategically explored in greater quantified detail if necessary (e.g. by LCA studies or other methods).After identifying sustainability challenges, the process helps with creative thinking about how to overcome the challenges.

By bringing together a cross-functional working group together for the assessment, the SLCA process also helps to build a shared understanding of sustainability challenges across the company, supporting the development of sustainable innovation agendas and road maps.

In other words, Strategic Life Cycle Assessment helps achieve quicker and more strategic decision-making when it comes to product innovation for sustainability.

How does it work?

The process uses an SLCA tool containing carefully directed questions underpinning each life cycle stage to help product teams identify and think innovatively about sustainability challenges. The answers result in a qualitative colour-coded matrix that communicates sustainability impacts to non-experts and benchmarks progress. The insights from the analysis allow for identifying development pathways towards full sustainability.

Click the image below to open a separate document where you can explore the structure of the questions used in the SLCA process and how it helps to identify appropriate strategies for handling various issues. (PDF, 245 kb)

The Ten Steps of the SLCA process

The SLCA process is carried out in ten steps that combine the requirements of the ISO standard for Life Cycle Assessment (ISO 1404X) with the strategic planning methodology of the Framework for Strategic Sustainable Development.

Steps:

Setting goal and scope
Creating a shared definition of the sustainable product system
Define the system boundaries and life cycle scenario for the sustainability assessment
Conduct an inventory analysis of the life cycle
Sustainability assessment – Use the sustainability principles to assess sustainability strengths and weaknesses
Analysis & synthesis of results – Identifying key impact areas
Brainstorm possible solutions
Prioritise solutions
Create an innovation roadmap
Measure and report progress (ongoing)

Benefits of SLCA

The SLCA has been developed with a focus on ‘designing out’ unsustainable aspects throughout the whole life cycle. This is a more strategic and systematic approach than focusing on simply identifying and minimising known negative impacts. It reduces the chance that creating a ‘solution’ in one part of the system transfers problems elsewhere or creates new ones.

Quicker and cheaper than a full life cycle analysis (LCA)
Reveals hot-spots over the complete life cycle of any product.
Helps product teams to think systemically about a product and provides a way to judge whether or not an innovation is truly more sustainable or not.
Communicates sustainability impacts to non-experts.
Depth of assessment can be adjusted, allowing the process to be designed to suit your budget and timeframes.
Underpinned by researched and well-tested methods.

The SLCA in practice

The SLCA has been used, tested and developed through our work with a number of different organisations – from speciality chemicals companies like Rohm and Haas, to consumer-oriented companies like Nike and construction companies such as Carillion. The SLCA was used to develop strategies to improve the sustainability of paint for ICI, and won the ICI Chief Executive's Leadership Award for Sustainability for Product Stewardship. The SLCA tool helped to identify 25 key sustainability aspects across the life cycle of paint, which helped choose the core innovation projects throughout a three year program. It has also become a filter that will be built into ICI Paints innovation stage-gate process.

"To underpin our drive for sustainable development we are using the SLCA to help us understand the issues we face in moving towards more sustainable products." Dr Phil Taylor, Paints Research Associate.

The SLCA matrix has also been used as a structured framework to identify sustainability issues for key ingredients with the food team at Prêt A Manger. The process aimed to show areas of concern across the lifecycle and identify knowledge gaps.

“We found using the SLCA tool invaluable. It was an easy to use and informative method by which to determine the sustainability pitfalls along the food supply chain. It has helped clarify provenance issues, as well as making the decision making much more informed - a great tool.” Nicki Fisher, Sustainability Manager, Prêt A Manger

You can read more in the case studies indicated below.

Get access

Request an SLCA process from our experienced facilitators

We have facilitators experienced in the SLCA process in our teams around the world. Contact your local office or make contact with Richard Blume at The Natural Step International to learn more.

Get training - Sign up for an SLCA seminar

On October 29th 2011 we delivered a seminar aimed at introducing the methods of SLCA, the associated tools and useful tips and tricks based on our experiences. Attending seminars such as that one gives access to a SLCA process guide, generic SLCA tools to help with the assessment, and the right to use these freely within your or your client’s operations.

Carry through an SLCA process yourself and request a third party review

If you are familiar with the FSSD and LCA-methodology, you may wish to carry out your own assessment process and screen your product's life cycle against the four sustainability principles. If so, you may also be interested in having us review and comment on your work. Please contact Richard Blume if you are interested in this option.

Case studies

SLCA approach underpins Cosmetic Executive Women's EcoBeauty Award
SLCA Provides Competitive Advantage to Manufacturers (2009)
Rohm and Haas- overall program
Rohm and Haas: A strategic approach toward sustainability for Vinyl Additives - SLCA on PVC heat stabilisers
ICI Paints
Paint the Town Green (visit Forum for the Future)
Nike
Background research: Ny, H., MacDonald, J.P., Broman, G., Ryoichi, Y., and Robert, K-H, 2006, "Sustainability Constraints as System Boundaries: An Approach to Making Life-Cycle Management Strategic", Journal of Industrial Ecology, Volume 10, Issue 1-2.

The Collins Companies, Portland, Oregon, USA

Chas Martin — Mon, 20 Oct 2008 20:00:01 -0400

A Natural Step Network Case Study

Overview
The Collins Companies is a wood products company founded in 1855 and headquartered in Portland, Oregon. As a privately-held company with almost 900 employees and revenue in excess of $200 million, Collins has developed a reputation for sustainable forestry practices that sets it apart from many of its competitors. Beginning in 1997, Collins actively embraced The Natural Step as one tool for guiding its sustainability efforts.

Background
In 1855, Truman D. Collins began the first Collins forest products operation at a site in northwestern Pennsylvania. Operations expanded westward in 1887 with the purchase of timberland in Washington and Oregon. In 1918 the headquarters was moved to Portland, Oregon.

The company currently has forest and/or timber operations in Pennsylvania, West Virginia, California, and Oregon with its largest manufacturing facility located in Klamath Falls, Oregon– a facility that was acquired from Weyerhaeuser in 1996. Collins remains a privately held company with all of its stock controlled by the Collins family and its descendants.

From its inception, the company has had an ethic of natural resource stewardship that grew out of the religious values of the founding Collins family. This ethic led to the creation of a set of sustainable forestry practices that has allowed the company to continue lumber production for over 150 years with the same set of privately owned forests. While other forest product companies have focused on maximizing the return from each acre of timber in a single rotation, Collins lets the forest grow at its natural rate, without the aid of fertilizers, and harvests trees selectively. It was the first forest-products company in the U.S. to become certified by the Forest Stewardship Council, an international organization that establishes standards for good forest management.

Introduction to The Natural Step
In March 1996, Collins was one of only five U.S. companies (and the only forest products company) to receive the Sustainable Development Award from the President’s Council on Sustainability. Through the process of receiving this award, Jim Quinn, president and CEO of Collins, became acquainted with Molly Harriss Olson and Paul Hawken, founders of The Natural Step U.S. Shortly afterwards, Quinn was invited to attend a conference on The Natural Step in Sweden. Hosted by the King of Sweden, the conference gave Quinn the opportunity to meet Karl-Henrik Robèrt, founder of The Natural Step, and fellow countryman, Ray Anderson, president of Interface, a Georgia-based commercial carpet tile company. At that time Interface had become the first company in the United States to formally adopt The Natural Step. All of this made a positive impression on Quinn and motivated him upon his return to set up a presentation on The Natural Step in early 1997 by Natural Step U.S. Executive Director Molly Harriss Olson for both his senior staff and board of directors.

Besides being fully compatible with the company’s stewardship ethic, Jim Quinn felt that The Natural Step could provide an important differentiation between Collins and its key competitors. Up until that time, most of Collins’ sustainability efforts had been focused on stewardship of its forests. With the acquisition of the Klamath Falls facility from Weyerhaeuser, Collins had increased its manufacturing capability while still maintaining the same level of privately-held timberland. It was important to Collins to increase both the value and yield of the work done there. The Natural Step was seen as a process that would work well in a manufacturing setting and could help it meet these business and marketing objectives.

Introduction of The Natural Step within the Company
After the Molly Harriss Olson visit, the Collins board of directors and senior management team formally embraced The Natural Step (TNS) as a guide to its long-term sustainability efforts. As part of this commitment the group stated that the long-term goal of Collins would be for all business and operational decisions to be measured against the four TNS system conditions. To initiate the introduction of TNS, the Collins management chose its Klamath Falls facility. Klamath Falls is Collins’ largest facility with over 300 employees. Morale had deteriorated prior to Collins acquisition from Weyerhaeuser, and Collins was particularly interested in changing that by imparting the Collins values and sustainability practices to that operation.

In the spring of 1997 Russ Barton, a consultant with TNS training, conducted a one-day training program on The Natural Step for half of the supervisors at Klamath Falls. Afterwards, Travis Wilson, a particleboard fiber buyer at Klamath Falls, was appointed Natural Step facilitator for that facility and was given the mandate to carry out the directive of Jim Quinn and senior management to implement the TNS principles. A TNS implementation plan was developed by Wilson (see the attached Exhibit 1: “Integration of Business Strategy and Sustainability for Collins Products”) that called for educating all Klamath Falls plant employees within three months.

Wilson attended a week-long, national TNS train-the-trainer workshop in Santa Fe, New Mexico during May 1997. Upon returning, he formed a core team with four other employees who were highly respected at the Klamath Falls facility and brought credibility to the Natural Step effort.

As a part of their team-building process, Wilson and the other members of the Klamath Falls TNS core team attended EcoTech III, a sustainability conference held in Monterey, California in September 1997. The team’s goal was to expand its knowledge about sustainability beyond what it had heard with TNS. Additionally it visited the 96,000-acre Collins Almanor forest in northern California to learn first hand about Collins sustainable forestry practices.

The team sees its mission as being responsible for implementing sustainable practices for as long as the members work at The Collins Companies. Its first task was to train the remaining Klamath Falls employees and solicit employee suggestions for environmental improvements. At first, team members met twice monthly to keep things moving; now they meet as needed.

Training of Employees
After its own training, the team of five used the national TNS training material as a foundation for developing a two-to-three-hour presentation for employees.

The training team calls its process "Journey to Sustainability" instead of The Natural Step. This is partly because it has modified some of the TNS material but also because the team wants to sell sustainability, not TNS per se. What it has retained is the scientific basis for TNS along with the four system conditions. It has added material about Collins' forestry practices and history of forest stewardship, and it has modified the training materials to fit its audience, which includes some employees who have not completed high school. The team completed the training of employees in October and November 1997. Each trainer/coordinator trained the employees in his/her department in groups of 25.

New hires receive a shortened version of the initial training, and each year Collins sends two employees (companywide) to the basic training workshop offered by the Network.

Application of TNS Principles
Because of the long-term impact of installing new capital equipment, one of the first decisions Collins made was to evaluate any changes or additions to its manufacturing systems and associated capital expenditures against TNS principles. A TNS evaluation document was created and is currently used whenever capital projects are considered.

The second area of interest was in product development, and one of the first TNS applications was in the development of particleboard. Particleboard must meet certain U.S. standards regarding the off-gassing of formaldehyde. After the TNS training, one of Collins' sales personnel lobbied for the company to raise its sights by meeting the European standard, which is three times more stringent than the U.S. standard. The company agreed to do so and feels that this not only gives it a competitive edge in the U.S. but also opens up new markets overseas.

After employees were trained, a system was established to take advantage of their ideas and enthusiasm. Employees could speak directly to a JTS Team member or put a note in a suggestion box at one of the JTS information centers. As interest coalesced around specific projects, teams formed to refine the ideas.

Results
By February 1999, employees had formed into teams, including energy, water, air, recycling, and product development and come up with innovative ways to turn waste into resources. Over 100 projects were suggested the first year.

Energy. Collins' first two capital projects reduced power use substantially. The heat from ovens that cure hardboard coating is now reclaimed, run through a heat exchanger and sent back to heat the building. At the particleboard plant a new 300-horsepower motor now does the work previously done by six, saving $118,000 per year in electricity costs. These projects had a financial payback of four and two years respectively. Two other first-year projects are below:
• By taking condensate from the veneer dryer and turning it into flash steam to heat water, plywood workers on the energy team saved the company $152,000 per year.
• Making steam traps more efficient is saving $25,000 per year. Finding one-third of the traps in disrepair, workers took them apart, cleaned, and rebuilt them and established a new preventive maintenance system. Now, much less natural gas and electricity are needed to pump water through the traps.

The energy team has continued to be active, and further projects, such as capturing waste heat, replacing equipment with more efficient models, and installing lighting controls have resulted in continued savings.

Waste. New equipment was installed that allows sander dust to be incorporated into particleboard. This dust, which was previously burned in a boiler, actually improves the appearance of the board in addition to saving $563,000 per year and reducing air emissions.
A decision was made to stop using the on-site landfill. Piles of old chips, which used to be landfilled, were sold to an energy recovery facility, a cleanup that generated $18,000 in revenue. Waste products, such as wood and packaging, are reused, recycled, or burned for fuel. Cardboard is baled and resold. The hardboard plant returns pallets and other packaging to vendors for reuse and sent a letter asking vendors to use biodegradable packing material.

The particle board plant began purchasing glue in bulk rather than in 350-gallon totes. A bulk tank was installed, and tanker trucks now deliver 4,250 gallons at a time. Not only did this save in transportation fuel, but it also reduced the glue residue that was left in the totes, and the difficulty of cleaning it out so the totes could be reused. Cost savings amount to almost $26,000 per year.

Water. A new main condensate line was installed that saves $35,000 annually and 22,000 gallons of water per day. This is equivalent to the amount of water you would save if you did not take showers for three years. As a result of a contest for water conservation measures, a leak was found in the sort yard. Fixing it saved 525,000 gallons per year. As a test, one of 50 watercooled air conditioners, was replaced with an air-to-air type. Now, all of the water-cooled air conditioners are being replaced.

The water team in 1998 set itself a goal of eliminating the discharge of warm wastewater into the Klamath River within five years, and this has been achieved. A system of wetlands to accept all industrial waste water was designed by an expert internationally recognized in the field of constructed wetlands. The nutrients are taken up by plants, and the water soaks into the ground or evaporates. The previous flow of 800,000 gallons per day of waste water has been reduced to 450,000 gallons in order to meet the capacity of the wetlands.

As JTS matures, it is treated less as a separate program and is more integrated into all aspects of the business. Some teams are no longer active on an ongoing basis, but JTS project teams are organized as needed. Recent projects have incorporated aspects from more than one area, such as air and energy.

Eco-indicators. The original core team generated 80 eco-indicators to measure progress in saving resources, but after two years reduced these to eight. Three were for water—industrial waste water, potable water, and sanitary water—two for waste being landfilled, and three for energy—carbon dioxide emissions, steam/unit of production, and electricity/unit of production. Besides the zero discharge of waste water, three other goals were set: zero particle board and hardboard waste to the landfill, ten percent reduction in electricity/unit of product by 2010, and 15 percent reduction in carbon dioxide emissions by 2009. By 2004, CO2 emissions had already been reduced by 12 percent. Water use, waste water (as noted above), and hazardous waste have all decreased significantly.

Results in other locations. After the successes in the Klamath Falls plants, JTS was started at the other locations. At the sawmill in Chester, California, forester Terry Collins traid both salaried employees and then hourly employees in TNS. Sensing that diesel use was the most significant issue, the Chester facility began tracking both diesel and electricity use by department by month and put these number up at the team meetings. Electricity use decreased by 33 percent per unit of production between 2002 and 2005 (part of this due to a new mill), and diesel use, by 32 percent between 2004 and 2005. At the Kane Hardwood mill in Pennsylvania, efforts have focused on new equipment that saves energy and gets more wood out of each log.

The corporate office in Portland made many small changes, such as eliminating disposable cups, composting lunch-room food waste, setting network printer to print double sided, and using Forest Stewardship Council (FSC) certified paper for brochures. When it remodeled its spaces, it was able incorporate green design and materials:
* To maximize daylight and reduce artificial lighting, it designed in sky lights and glass
partitions between office cubicles. Operable windows reduce demand for air conditioning.
* FSC certified CollinsWood was used for flooring, doors, wall panels, cabinets, and desks.
* Interface carpet squares were applied with no VOC adhesives; worn areas can be replaced and recycled instead of removing the whole carpet. Marmoleum, made of wood flour, linseed oil, and resin, was used in the kitchen floor instead of vinyl.
* Armstrong ceiling tiles contain 79 percent recycled fiber and are recyclable.
* A recycling center has containers for the traditional materials plus batteries, printer cartridges, and overhead transparencies.
* Showers and lockers were designed in to encourage bicycle commuting. Other benefits. Employees appreciate Collins' commitment to the environment. A positive corporate image raises employee morale and increases the company's ability to attract and keep high caliber people.

Environmentally concerned customers are also attracted to the Collins’ philosophy and see TNS as a concrete example of that philosophy at work. Notably, Nike used Collins FSC certified products in the construction of its European headquarters. The Joinery, a fine-furniture manufacturer in Portland, Oregon, extensively uses CollinsWood in its furniture. Collins’ reputation has also made it easier for the company to form strategic alliances and develop innovative programs with other companies, government agencies, and non-profits.

Collins, The Joinery, and Neil Kelly Cabinets have done joint promotions at home and trade shows. World Wildlife’s Climate Savers program invited Collins to participate; and the company made a carbon reduction commitment under that program. The constructed wetlands project received matching funds from the US Fish and Wildlife Service.

In the late 1990s, these policies attracted favorable attention from the media. Numerous articles were written about Collins in publications including the Washington Post, Christian Science Oregon Natural Step Network
Monitor, Oregon Business magazine, and the Business Journal. In 1996, CEO Jim Quinn accepted a Presidential Award for Sustainable Development from Al Gore at the White House. And in 1997 he received the Green Cross Millennium Award for Corporate Environmental Leadership from Mikhail Gorbachev in Beverly Hills, California. Showing that the environment is becoming an important consideration in the wood products industry, Quinn was chosen as Man of the Year by Timber Processing in 1998.

Collins makes its TNS interests known to vendors through written purchasing policies and ongoing dialogue. Where there is supplier interest, the company takes the time to explain more fully what Collins is doing. For example, both paint and resin vendors helped supply more concentrated products to the Klamath Falls operation, thus reducing the number of trucks needed for transportation.

Costs and Savings
The first year of JTS achieved monetary savings of approximately $1million. By 2003 the savings amounted to $1,373,818 per year or a cumulative figure of over $3 million. Costs for capital purchases, salary, seminars, and travel were estimated to be about $50,000 or about six percent of the benefits.

Lessons Learned
• Support at the top is critical. Collins would not be as committed or as active in adopting TNS without the commitment and dedication of the Collins family, former CEO Jim Quinn, current CEO Eric Schooler, and Senior Vice-President, Wade Mosby.
• Training all employees seems like the best way to go. There are so many decisions that are impacted by TNS that the only practical way it will be effectively utilized is by training every employee.
• Do not make the training voluntary. At Collins CEO Jim Quinn directed that all employees would attend.
• Find some way to begin applying the principles at the employee level. Collins uses crossfunctional work teams and has each team think about how it can incorporate TNS principles in its work.

Sources
• Interview with Wade Mosby, VP of Marketing, Collins Pine and Cameron Waner, Sales Coordinator, Collins Pine, August 13, 1997
• Interview with Travis Wilson, Natural Step facilitator, Collins Products, Klamath Falls, Oregon, August 27, 1997 and February 1999
• Update notes from Dale Slate, Klamath Falls Plant Manager, April 1998
• Update notes from Lee Jimerson, Manager Manufacturing Accounts, April 2006

Exhibit I
Integration of Business Strategy and Sustainability for Collins Products
The Plan:
1. Tailor The Natural Step training material to fit Collins Products
2. Educate all Collins Products employees on TNS principles within 3 months
• Management Group
• Trainers for Individual Plants
• Balance of Employees
1. Define the framework for a “sustainable Collins Products”
2. Study plants and processes to identify system condition violators
3. Establish “suggestion program”, (promote employee awareness and
involvement)
4. Establish “capital project” review system
5. Develop a “measurement system” to track progress
6. Manage Sustainability as a part of the business practice
TNS course outline:
• History of TNS
• History of Collins
• Scientific Principles
• Investing for the Future
• Case Studies
• Next Steps
• Feedback and Closing

This case study was prepared in 1997 by Duke Castle, The Castle Group, and updated in 2006 by Jeanne Roy, the Northwest Earth Institute, for the Oregon Natural Step
Network.

The Corporate Knights: The Killer Kernel

Franco Varriano — Fri, 26 Nov 2010 11:51:37 -0500

Corporate Knights Magazine's latest issue features health-related articles. "The Killer Kernel: The skinny on what's expanding our waistlines and crippling our health system", by Toby A.A. Heaps, features a section on Sweden's Max Hamburger, a partner of The Natural Step.

Thanks to Corporate Knights Magazine and Toby A.A. Heaps.

***

How Max Hamburger took The Natural Step

Since 2003 Max Hamburger, Sweden's oldest and most popular hamburger chain, has tripled its size, quadrupled its revenue, and quintupled its profits.

All restaurants are powered by 100 per cent wind energy.
All used fry oil is converted into biodiesel.
All fish procured from well managed eco-systems (MSC-certified).
Product lines have been remade into the healthiest of the industry (by 2005).
First fast food restaurant ever to measure carbon impacts of their food from farmer-to-guest and label their menu items with that carbon information.
Max has decreased the amount of beef in their patties to 82 per cent. Taste tests show that people like moist patties with multiple layers of flavour.
A survey by Mindshare, a global media network, discovered a 27 per cent increase in customer loyalty for Max between 2007 and 2009.

***

To read more of the Corporate Knights' article, please click here.

To read The Natural Step's case study on Max Hamburger, please click here.

Canada

Filed Under Sustainable procurement

Ashforth Pacific, Inc., Portland, Oregon, USA

Axis Performance Advisors, Portland, Oregon, USA

BOORA Archietcts, Portland, Oregon, USA

Canadian Business for Social Responsibility :: 7th Annual Summit on CSR, Toronto, ON

College Housing Northwest, Portland, Oregon, USA

Dr. Robèrt at TEDxMälaren, June 15th

Electrolux

Gerding/Edlen Development Company, LLC, Portland, Oregon, USA

Glossary

Green Procurement - Webinar

Greening Government Conference: Keynote by The Natural Step Canada's Chad Park (Ottawa, ON)

Hot Lips Pizza, Portland, Oregon, USA

IKEA

Interface reduces water use 80% per unit since 1996

Interface, Atlanta, Georgia, USA

J.M. Bygg Construction, Sweden

Nike

Nike, Inc., Beaverton, Oregon, USA

Norm Thompson, Portland, Oregon, USA

OMSI - Oregon Museum of Science and Industry, Portland, Oregon, USA

Organically Grown Company, Eugene, Oregon, USA

-- Rick Baker, describing The Natural Step Framework

--Rick Baker referring to Organically Grown’s hiring of Natalie Reitman-White as Sustainability Coordinator

Figure 1: Annual Sustainability Planning and Implementation at OGC. Source: Organically Grown 2007 Sustainability Report

Figure 2: Radishes and scallions are part of the nearly 100% organic produce at Organically Grown

Figure 3: The Kenworth T300 hybrid-electric biodiesel truck3

Table 1: Fuel Consumption in Transportation

Figure 4: Return on Resources Consumed: Energy consumed per case shipped (in BTUs)

Table 2: Action Plan

Table 3: 2007 Action Plan Results Key: vvv- Achieved vv- Making Progress ? Did not achieve

Figure 5: Greenhouse gas emissions at OGC for 2006 and 2007 (in Carbon Dioxide metric tons)

1 Source: Organically Grown 2007 Sustainability Reportdevelopment. The members can come from any department and all three facility locations.

2 Developed by Axis Performance Advisors Darcy Hitchcock and Marsha Willard along with Zero Waste Alliance

3 All photos courtesy of Organically Grown Company

Portfolio 21 Investments, Portland, Oregon, USA

Rejuvenation, Inc., Portland, Oregon, USA

Scandic Hotels

ShoreBank Pacific, Ilwaco, Washington, USA

This case study was prepared by Duke Castle, The Castle Group, in November 2003 for the Oregon Natural Step Network.

Sokol Blosser Winery, Dundee Hills, Oregon, USA

Sustainability initiatives take off at Edmonton Airports!

Sustainability Life Cycle Assessment (SLCA)

Assessing the sustainability of products

What is it used for?

How does it work?

The Ten Steps of the SLCA process

Benefits of SLCA

The SLCA in practice

Get access

Request an SLCA process from our experienced facilitators

Get training - Sign up for an SLCA seminar

Carry through an SLCA process yourself and request a third party review

Case studies

The Collins Companies, Portland, Oregon, USA

The Corporate Knights: The Killer Kernel

Figure 3: The Kenworth T300 hybrid-electric biodiesel truck³

¹ Source: Organically Grown 2007 Sustainability Report
development. The members can come from any department and all three facility locations.

² Developed by Axis Performance Advisors Darcy Hitchcock and Marsha Willard along with Zero Waste Alliance

³ All photos courtesy of Organically Grown Company