How green are green businesses?
Apr 21 - McClatchy-Tribune Regional News - Jim Wyss The Miami Herald
Global warming may be bad for the environment, but it has been great for one
industry: eco-marketing.
With Earth Day being celebrated Tuesday, it seems every industry is eager to
tout its green credentials. There are environmentally friendly spas, green
printing presses, green liquor companies, and green alternatives to
inflating the tires of your gas-guzzling SUV.
There are at least two good reasons for the green push: the environment, of
course, and greenbacks.
According to the LOHAS Journal, which measures the green marketplace, 19
percent of U.S. consumers buy goods with an eye on their sustainability and
environmental impact. Green products generate about $227 billion in sales,
and that could reach $1 trillion annually within 12 years, the journal
estimates.
"Every major player in every industry is trying to figure out an
environmental strategy," said Marci Zaroff, the founder of Under The Canopy,
a Boca Raton-based manufacturer of certified organic clothing available at
more than 300 outlets, including Target and Macy's. "It's not about keeping
up; it's about not being left behind."
For Shorne "Q" Fortune, going green is about getting ahead of the
competition. Last year, Fortune and his wife, Grerimar, changed the name of
their Miami scooter company from VIP Vespa to Grow Verde to reflect their
new take on business.
Rather than focus on the glamour and convenience of zipping around South
Beach on Vespa scooters, they are recasting the company as an eco-friendly
alternative to renting or owning a car.
Verde (Spanish for green) now works on a membership basis, a bit like
ride-sharing pioneer Zip Cars.
Fortune says personal conviction and client demand are fueling the change.
"We talked to our customers and they wanted some sort of service they could
use where they didn't feel guilty," he said. "We all have to do our part to
reduce our carbon footprint."
The company will be making its formal launch in June, but the change is
already making a difference. "It has been getting us a lot of attention,"
Fortune said. And getting noticed is half the battle.
But with everyone from Kmart to Clorox rushing into the green marketplace,
some worry that consumer confidence in the emerging niche might be trampled.
In 2007, environmental marketing company TerraChoice studied 1,018 products
that made environmental claims. It found all but one of the items made
statements that were either demonstrably false or misleading.
The TerraChoice study may have suffered due to overly stringent standards --
everything from outright lies to vague wording sent up red flags -- but it
does illustrate problems in the green marketplace, said Joel Makower, the
executive editor of GreenBiz.com, an online publication that follows
environmental business trends.
While there are standards for energy-efficient appliances and green
construction methods, "there is no clear definition for what makes a green
business," he said. The category can include everyone from the corner shop
selling hemp socks to the industrial dry cleaner investing in
energy-efficient machines.
"That makes it a bit of the Wild West out there," Makower said.
Nature and commerce abhor a vacuum, and more than 140 organizations have
stepped in to try to formulate guidelines for running a green business --
but there is no consensus, Makower said.
Hilary Kusel is the executive director of the Green Business Alliance, a
Boca Raton-based organization that aims to help businesses adopt
environmentally sound practices.
For a starting price of $475 a year, the Green Business Alliance will send
its proprietary list of actions to "greenify" your business or home. The
list runs from printing on both sides of a sheet of paper to giving those
who carpool preferential parking spaces.
"Each one of these steps will have a positive impact on the environment,
their workplace and hopefully their bottom line," said Kusel, who has a
background in international management.
Once a company returns a notarized form stating it is in compliance, the
Green Business Alliance includes it in its directory and provides decals,
lapel pins and other marketing material.
MODELED ON 1909 SEAL
"What we would like to see is the greenified logo become the green version
of the Good Housekeeping Seal of Approval," she said, referring to the
certificate around since 1909 that comes with a money-back guarantee.
Decals or not, consumers are rewarding companies that have bona-fide green
credentials.
Zaroff, of Under the Canopy, started her firm in 1996 when the organic
clothing industry was more about "hippie than hip."
Since then she has seen sales soar 50 percent to 100 percent annually into
the "double-digit millions" as the niche has gone mainstream.
But Zaroff worries that newcomers, drawn by profits more than environmental
conviction, might not be as careful about vetting their suppliers.
"Consumers need to be aware and beware," she said. There are companies in
her industry, she said, making environmental claims they probably cannot
support. "There are some investigations starting and people will get caught
with their pants down," she predicted.
Trying to separate the truly green from the green-washed is part of what
Thomas Bache-Wiig is hoping to do with his new website: www.thisisgreen.com.
The Coral Gables resident carries a fashionable briefcase made of inner
tubes, has business cards printed on recycled cereal boxes and buys carbon
credits from Terrapass.com to offset driving his Mini Cooper.
PRODUCTS REVIEWED
His website, founded with business partner Jorge Guerra, provides links to
almost 1,000 environmentally friendly products -- from exotic trash cans
made out of potato-chip wrappers, to more mundane, energy-efficient light
bulbs.
'We're not tree huggers, and not all 'green things' are necessarily good,"
said Bache-Wiig, a native of Norway who works full time as an architect.
Still in its infancy, the site hopes its mix of video reviews and
reader-generated content will make shopping for eco-friendly goods, well,
enjoyable.
"In the '60s and the '70s they tried angry, and it didn't work very well,"
he said. Rather than browbeating people into making changes, "what we want
to do is inspire people to make environmentally sound decisions," he said.
But going green has its costs.
Ana Rabel and her daughter Laura Alfonso pay almost three times as much for
the eco-friendly products they use at the Green Gables Cafe, the organic
eatery they opened six months ago in Coral Gables.
Their cups are made of biodegradable cornstarch, the napkins are made from
unbleached recycled paper.
"We don't use plastic at all -- but let me tell you it can be expensive to
be responsible," said Rabel.
"If it means making a little less money right now until people are educated,
and I can add those costs into the price of my food, then that's what we
have to do," she said. "It's the only responsible choice."
The driving force for many businesses looking at green technology isn't
altruism but higher bills, said Byron Kennard of the Center for Small
Business and the Environment in Washington, D.C.
As utility prices continue to soar, small firms are turning toward
power-saving light bulbs, thermostat timers and water-efficient toilets.
A survey by the National Small Business Association found 73 percent of
small business owners would invest in energy-saving products if prices keep
rising.
While the environmental community has largely focused on massive corporate
polluters, small businesses make up 98 percent of the economy. And if that
community truly embraces green practices the cumulative effect would be
massive, he said.
"If the planet is going to be saved," Kennard said, "it's going to be saved
by small businesses." |