The Triple Bottom Line of “Green”

Mike Kapalko

Sustainability Marketing Manager

SCA Tissue North America

Tork “Green” Business Survey

• September 2009 online survey

• 1071 men and women, 18+

• Own or manage a business or make purchasing decisions for:– industrial facilities 

– restaurants

– hospitals

– schools

Some “unsurprising” results

• 97% recognize corporate green practices impact the environment

• 83% consider environmental impact 

• 78% purchase green products

Fully embraced by business

• 70% believe the role the environment in their industry will increase to some level

• 65% claim “average understanding” of issues, concerns, impacts

• 20% report “very strong” understanding

• 71% feel sustainable or recycled products have the greatest impact 

Motivating factors

• Why do you purchase green products?– 88% because I care

– 36% to appeal to green consumers

– 34% better ROI

– 28% to keep up with competition

• Financial impacts to bottom line? – 64% no change

– 22% increased revenue

What about the general public?

• Extensive consumer behavior and thought research using Harris Interactive Polls conducted– Hygiene survey

– H1N1 survey

– “Green” consumer habits survey

– Restroom survey

“Green” purchases over last year

more56%

same29%

less8%

never7%

more19%

same48%

less6%

never27%

BUSINESS  versus  CONSUMERS

How business relays “green”

• 59% DON’T publicize green efforts

• For the 41% that do…– 62% website

– 54% employee network

– 41% in‐store signage

– 39% social media

– 27% press releases

• Of the 73% of consumers buying green, best way to be told…– 27% unsure

– 22% shelf/menu notes

– 21% signage or fliers

– 12% displaying awards

– 9% website

How business relays “green”

• 59% DON’T publicize green efforts

• For the 41% that do…– 62% website

– 54% employee network

– 41% in‐store signage

– 39% social media

– 27% press releases

• Of the 73% of consumers buying green, best way to be told…– 27% unsure

– 22% shelf/menu notes

– 21% signage or fliers

– 12% displaying awards

– 9% website

But is it con”green”ience?

more39%

less47%

same14%

green43%

not green9%

either48%

Would you choose a “green”or “not green” restaurant based on wait time?

This is not greening your life

Greenwashing a problem

• The bandwagon has left confusion in its wake

• 63% of businesses feel “green” products are to some extent, but claims are inflated

Confusion is common

• 46% of businesses felt a certification would be beneficial, 28% weren’t sure

• 79% of businesses weren’t sure which certification was most respected in their industry

• 31% of the general public weren’t sure how to validate a green claim

• Reinforces the value of having reputable certifications that are most often requested and recognized

Sustainability is holistic

• Clearly “green” is a driver and being adopted as a personal value

• A sustainable business must be holistic

• Triple bottom line approach

• Interwoven in approach and results

Bad bathrooms = bad business

• 88% believe that washroom cleanliness reflects the hygiene throughout the business

• 29% would never return 

• 50% would tell friends and family about a negative experience

• 46% would avoid an establishment based on bad word‐of‐mouth about restrooms

Where would you eat?

Where would you eat?

Health, Hygiene, and H1N1

• Due to H1N1, a renewed focus on hygiene

• 44% of people most concerned about risks of away‐from‐home restrooms

• 54% of people prefer paper towels for drying

• 94% report they always wash hands after using the washroom

But what about “others”?

More risk than you know

Good16%

Bad84%

+

Disconnect of words & actions

• 70% of adults are concerned about getting it

• 74% think it is unlikely they will get it

• 73% of businesses say it will not affect them

• Both businesses and consumers agree handwashing is best preventative measure

• 38% won’t wash their hands more often

• 48% will not get either flu shot available

• CDC estimates 40% of people will get it 

Sick is not good business

• Absenteeism costs businesses $660 per employee each year

• Absenteeism is built into staffing

• Studies show 20% ‐ 50% reduction in absenteeism with a hand hygiene program

• Also impacts health care costs for companies

Top 10 issues in washrooms

A different thought approach

Shifting customer values

What’s the (triple) bottom line?

• Green is here to stay, values are evolving

• People demand more than silos

• Words and actions still disconnected

• Confusion is being confronted

• Focus on people and planet will lead to prosperity– consumer/employee retention

– reduced costs, increased ROI

About the TGHC

• created to assist in providing sustainable and hygienic away from home washrooms

• top professionals and academic authorities on green building, corporate sustainability, hygiene and germ prevention

• independent feedback, advice, provide industry insight and expertise

David Gottfried

Managing Director, Regenerative Ventures

Founder, USGBC

The New World of Green

We need new models

Continuous Improvement

1. Limiting the Damage

2. Neutral

3. Restoration

4. Regeneration

Biomimicry

LEADERSHIP in

ENERGY and

ENVIRONMENTAL

DESIGN

A leading-edgesystem forcertifyingthe greenestperformingbuildings in theworld

Scores are tallied for different aspects ofenergy and environmentalperformance inappropriate categories including:

1. Site Planning2. Water Efficiency3. Energy Performance4. Material & Resource Use5. Indoor Environmental

Quality6. Innovation &

Design Process

LEED-CI

LEED

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LEED-HOMES

LEED-CS

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LEED-NCexistingbuildings

commercialinteriors

newconstruction

applicationguides

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core &shell

• Healthcare• Laboratories• Schools • Retail• Multi-building

Campuses • Multi-family

Residential

CA

TEG

OR

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OF

LEE

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SFU

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Green Professionals

One Bryant, NYC

• Bank of America NY HQ

• 2 million s.f., 54 stories

• LEED Platinum– Rainwater capture

– Incredible daylight

– Recycled content

– On‐site gas plant

• 70% of energy supply

– Ice storage

– Waterless urinals

CH2, City of Melbourne

42

Green Homes

Adobe Green Retrofits

• Lighting – 61% ROI

• Load management – 304% ROI

• Equipment retrofits – 61% 

• Monitoring & controls – 42% 

• Water management – 22%

• Waste management ‐ Immediate

• Recycled content purchases ‐ Immediate

• Green Building certification costs

CoStar Group Study

• Study = 1300 buildings (351 million s.f.)• Rents > $11.24 p.s.f.• Occupancy > 3.8%• Sales price > $171 p.s.f. (LEED)• Sales price > $61 p.s.f. (En. Star)• LEED buildings (NBI Study)

– 25% – 30% > Energy Efficiency– Gold/Platinum = 50% better Efficiency

WORLD GREEN BUILDING COUNCIL

Greening of Government

Green Companies

Green Products

• Food

• Building industry

• Cleaning

• Clothing

• Toys

• Supplies

• Light bulbs

• Travel

Green Product Rating Systems

Cleantech

• Solar• Wind• Biofuels• Batteries• Green Building• Water• Waste• Smart Meters

CellulosicEthanol

Sugar Feedsto

cks

Starch Feedstocks

ToolsSolar

NaturalGas

MechanicalEfficiency

ElectricalEfficiency

Cellulosic Future Fuels

Plastics

Water

Materials

SequestrationToolsEPC

Waste Water

Water Desalination

PVC Plasticizers

PolyurethanePolyethylene

GlassCement

Dist

ribu

ted

Sola

r

Utili

ty S

cale

Sol

ar

Coal

EfficiencyOil

HomesEngines

AppliancesPumps

LightingBatteriesMotors

Engin

eered Geotherm

al

Wind Stora

ge

Synthetic

Natural

Gas

Corn/Sugar Fuels

Wind

BuildingMaterials

Geothermal

ButanolCellul. Diesel

Cellul. GasolineCellul. Jet Fuel

KhoslaVentures Renewable Portfolio

Green Transportation

• Walkability

• Biking

• Car‐share

• Public transit

• Green cars

• Cash for clunkers

Green Jobs

Green Life

Thank you!