GreenBuzz :: June 8, 2009
June 15, 2009
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Taking Care of Business
By Joel Makower
For more than 20 years, environmentalist and companies alike have promoted the power of partnerships, particularly those between environmental nonprofits and big corporations. Ever since McDonald's partnered with the Environmental Defense Fund back in 1989 — which involved the activists flipping burgers behind the counters in order to understand the fast-food chain's real-life operations and identify waste-reduction opportunities —company-NGO partnerships have been a potent, albeit underutilitized, tool.
Indeed, it's surprising how relatively few good stories exist out there. True, a lot of Big Green groups, such as Conservation International, The Nature Conservency, WWF, and the World Resources Institute, have partnered effectively with companies. Even Greenpeace has a program to help companies adopt more eco-friendly processes and technologies. But the list of successful programs remains relatively small. (Late last year, the business group GEMI published a great resource guide to such partnerships, downloadable here.)
This week, we report on the latest partnership involving EDF, which remains the leader in this field, continually plowing new ground. About a year ago, EDF partnered with Kohlberg Kravis Roberts & Co., a.k.a. KKR, the iconic private-equity firm known for doing leveraged-buyouts of mature companies, from KinderCare to Kraft. EDF and KKR first hooked up when the latter was buying TXU 2007, the largest buyout in history. EDF helped broker a deal that led TXU to reduce their plans to construct more coal-fired power plants.
After that deal was done, KKR and EDF found other opportunities to combine business smarts with environmental smarts, forming a partnership last year that studied the operations at three KKR-owned companies, identifying about $16 million in cost savings that also produced meaningful environmental benefits. For example, U.S. Food Service saved $8.2 million in fuel costs through better driver training and technologies that turn off trucks when idling or set maximum speeds. Primedia, which publishes magazines and websites for home buyers and tenants, saved $2.9 million by shrinking paper sizes and putting more content on the Internet. Sealy Corp., the bedding manufacturer, saved $4 million by recycling raw materials, like cotton and wood, used to make mattresses.
Last week, the two announced they were dialing this up yet another notch, adding five more KKR companies to the partnership, including healthcare giant HCA and retailer Dollar General. Each of these companies stands to gain millions of dollars in new efficiency — and have a good environmental story to tell. KKR says it plans to extend the Green Portfolio Project participation to all its companies.
Why are these efforts still the exception rather than the rule? Is the level of distrust between NGOs and companies so high that they still can't sit at the table? What are the other barriers these partnerships face? What will it take to break through them?
What would it take for your company to follow in the footsteps of EDF and KKR? I'd welcome your thoughts.
The Latest News on Sustainable Business Practices Loans from Whole Foods Help Small Producers Grow Business
By Sarah Terry-Cobo
Offering a bright spot in an otherwise gloomy economy, Whole Foods Markets have been loaning small, local producers of natural foods up to $100,000 to maintain, improve or expand their businesses.... Read More
Clean Energy Creates Jobs, Improves Economic Growth
In with Green Packaging, Out with Convenience, Consumers Say
Accellent, Biomet, Dollar General, SunGard, HCA Embark on Green Initiatives
Obama Administration Orders $210M Worth of Fuel Efficient Vehicles
Waste Management to Distribute Solar Powered Trash Compactors
Duke Energy Partners with Cisco to Spur Development of Utility's Smart Grid
Aviation Targets 'Carbon Neutral Growth' But Can It Do More?
Mitsubishi Drives Into Electric Minicar Market
Kmart, Tender and Dyna-E Charged with Making False Biodegradable Claims
Featured News Electric Vehicles May Fail to Achieve Mass Adoption Without Support
By Matt Mattila and Jenn Wilson
Automakers are increasingly looking to achieve efficiency gains by developing plug-in electric vehicles. But despite significant support from the Obama administration, electric vehicles are unlikely to grow beyond a minuscule portion of the country's fleets unless city and regional leaders get on board as well.... Read More
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GreenBiz Radio Wal-Mart's Journey Toward Sustainability and Greater Value
By Leslie Guevarra
Almost four years ago, Wal-Mart announced three major goals that have since driven the company's operations internally and externally. Today, Rand Waddoups, Wal-Mart's senior director of Business Strategy and Sustainability, provides an insider's update on Wal-Mart's efforts toward sustainability, its progress and its next big challenges.... Listen
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Columns and Blogs
Gwen Ruta
When It's Wal-Mart, How Much is Good Enough?
> Read more...Karen Healey
Three Secrets to Driving Down Your Fleet Emissions
> Read more...Marc Gunther
A Few 'Facts' About Green Jobs
> Read more...Carolyn Mansfield
Chevron and Sierra Club: Strange Bedfellows?
> Read more...
FEATURED RESOURCES
Climate Risk Disclosure in SEC Filings
Ceres, the Environmental Defense Fund and the Center for Energy and Environmental Security analyze recent filings from the world's largest industries, finding that while the energy industries are disclosing climate change risks to a greater extent than other sectors, the detail and depth are far from sufficient to help investors make wise choices.
'Green' Winners
This A.T. Kearney analysis finds that companies committed to corporate sustainability practices are achieving above average performance in the financial markets during this slowdown.
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Wednesday, June 24, 2009
GreenBuzz :: Why Electric Vehicles Need Support, Loans from Whole Foods, and More...
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