State of green business report 2012

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State of green business report 2012

  1. 1. state ofgreenbusiness2012by Joel Makower and the editors of GreenBiz.comJANUARY 2012GreenBiz Groupwww.GreenBiz.com
  2. 2. Contents STATE OF GREEN BUSINESS 2012 2Top SUSTAINABLE BUSINESS TRENDS OF 2012 4 1. Sustainability Counts for CFOs 6 Will CFOs Ever ‘Get’ Sustainability? 7 2. Sustainable Consumption Gets Buy-in 7 3. Green Gamification Scores Points 9 Convergence and the Next Big Opportunity 10 4. Sustainable Mobility Hits the Road 11 5. Cleantech Survives a Crisis of Confidence 12 Green Buildings: A Foundation for Growth 13 6. Energy Efficiency Gains Star Power 14 7. ‘Big Data’ Creates Big Opportunities 15 Four Trends Shaping the Profession in 2012 — John Davies, GreenBiz Group 16 8. Footprinting Walks a Fine Line 17 Budgets and Jobs: Back on Track? — John Davies, GreenBiz Group 18 9. Sustainable Cities Take Center Stage 19 10. Non-News Is Good News 21 The Coming Shift to ‘Climate Preparedness’ — Marc Gunther, GreenBIz Group 22THE GREENBIZ INDEX 24 Carbon Intensity 27 Carbon’s Rising Costs, and Risks — Jigar Shah, Carbon War Room 29 Carbon Transparency 30 What’s Next for Carbon Reporting? — Paul Simpson, Carbon Disclosure Project 32 Cleantech Investments 33 Clean-Energy Patents 35 The Future of Clean Energy Innovation — Scott Elrod, PARC 37 Corporate Reporting 38 Reporting: The Seed for Innovation, Growth — John Hickox, KPMG International 40 Employee Commuting 41 How NREL Fosters Low-Impact Commuting — Lissa Myers, NREL 43 Employee Telecommuting 44 Telecommuting for Sustainability — Gordon Feller, Cisco 46 Energy Efficiency 46 Energy’s Two Revolutions — Interview with Amory Lovins, Rocky Mountain Institute 49 Environmental Financial Impacts 51 E-waste 53 Fleet Impacts 55 Car-Sharing: A Solution for Fleet Management — Lee Broughton, Enterprise 57© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  3. 3. STATE OF GREEN BUSINESS 2012 3 Green IT 58 ICT and the Future of Low-Energy Computing — Jonathan Koomey, Stanford 60 Green Office Space 61 Inside LEED’s Disappointing Numbers — Interview with Rob Watson, EcoTech 63 Green Power Use 64 Best Buy and the Consumer Energy Market — Interview with Neil McPhail, Best Buy 66 Organic Agriculture 67 Organic Isn’t Enough; Here’s What Really Matters — Arlin Wasserman 69 Packaging Intensity 70 A Progress Report on Walmart’s Packaging Scorecard — Ronald Sasine, Walmart 72 Paper Use and Recycling 73 Toxic Emissions 75 Stopping Supply Chain Pollution Where It Starts — Michael Kobori, Levi Strauss 77 Toxics in Manufacturing 78 New Markets for Green Chemistry — Howard Williams, Construction Specialties 80 Transparency 81 About GreenBiz Group 83 Sponsors 84 state of green business 2012 Joel Makower, Executive Editor Matthew Wheeland, Managing Editor Tilde Herrera, Senior Editor Leslie Guevarra, Editor Celeste LeCompte, Contributor Mary Catherine O’Connor, Contributor Amy Westervelt, Contributor Infographics by Seth Fields - 00seth@gmail.com Thanks to Our Sponsors ®© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  4. 4. STATE OF GREEN BUSINESS 2012 4 Top Sustainable Business Trends of 2012 Conventional wisdom says that sustainable business is in the dumps. Global markets are down for goods and services, companies and venture capitalists are tight-fisted in making clean and green investments, and the regulators have all but turned the henhouse over to the foxes. Cleantech has become a dirty word politically. Consumers are more preoccupied with saving their jobs and homes than with “saving the planet.” Activists are pedaling hard to keep green issues in view, while the public’s concern over climate change, at least in the United States, has pivoted from “dire” to “debatable.” Given this state of affairs, conventional wisdom says, the business world has moved on from environmental and sustainability concerns. After all, why be proactive when so little is being demanded of them? Conventional wisdom is wrong. “treading,” or from “treading” to “sinking.” Many of these are economy related, and we expect to see improve- Surprisingly—almost miraculously—environmental sus- ments as the recovery continues. Nonetheless, these tainability efforts continue to grow, relatively unabated, setbacks temper the otherwise positive trends. inside mainstream companies. As we’ve found through- out the global recession and recovery, companies con- Indeed, what setbacks we’ve seen in the worlds of sus- tinue to make, meet, and even exceed ambitious envi- tainable business and clean technology have been rela- ronmental goals related to their use of materials and tively minor, amplified by those seeking to score political resources, the emissions of their operations (as well as points or attract viewers or readers. For example, the their suppliers’), the efficiency of their offices and facto- failure of some high-profile solar companies is unfortu- ries, the ingredients of their products, and what happens nate, but it is part of natural technology cycles—in this to those products at the end of their useful lives. Beyond case, the commoditization of solar cells to the point that, companies continue to innovate, buoyed by ongo- where countries with high labor costs can’t compete, ing waves of new technologies and emerging business but also to the point where solar today is more afford- models that emphasize experience and access over able than ever. ownership and consumption. Few recall that there were once dozens of personal That’s the good news. computer manufacturers, some beloved—TRS-80, anyone?—that are now defunct, though one would be The bad news is that despite companies’ seemingly hard-pressed to make a case that PCs are a failed or full-speed-ahead efforts, some environmental indi- inefficient technology. Low-cost manufacturing com- cators are heading off course. In this year’s GreenBiz bined with continuous waves of innovation brought us Index (beginning on page 24)—our set of 20 indicators of the treasure trove of tech we enjoy today. And while how business is doing, environmentally speaking—six of reasonable minds debate the value of public subsidies them were downgraded. Using our swimming-treading- for solar and other clean technologies, few recall that sinking rating system, they dropped from “swimming” to the development of transistors, the Internet, and GPS,© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  5. 5. STATE OF GREEN BUSINESS 2012 5among other technologies we rely on dozens of That, in short, sums up the larger story of sus-times a day, all once received heavy government tainable business: it has turned a corner tosupport. become a normal, even mundane, part of the business landscape. Investors and customers CommitmentAnd what about concern over climate change, are paying closer attention. Addressing sustain-and competenceconsidered by some the mother of all environ- do not always ability issues is no longer an optional, nice-to-domental issues? From a global policy perspec- lead to progress— activity. It is an expectation, no more PR-worthytive, it has all but vanished, the victim of politi- than safety, quality, employee retention, or cus- at least not at thecal squabbling over the fate of the commons. tomer satisfaction. pace and scaleBut many of the world’s largest companies aremoving forward, some aggressively, to reduce or As we said, commitment and competence do required. In someeven eliminate their greenhouse gas emissions not always lead to progress—at least not at the cases, it’s a raceand those of their suppliers. Unfortunately, the pace and scale required, say, to reverse the against time.overall trend on greenhouse gas emissions still decline of fisheries and farmland, or reduceisn’t heading in the right direction. air and water pollution, or stabilize the climate. In some cases, it’s a race against time, and theGiven the lack of mandates, why do companies clock is ticking furiously.bother to address climate? Because such emis-sions are a form of waste—a byproduct that But there is reason for optimism. In this fifthhas no value to the company or its customers, annual State of Green Business report, we takea proxy for inefficiency. And greenhouse gas stock of the trends and indicators that tell how,emissions are increasingly seen as a risk fac- and how well, the world of business is doing totor, a liability to a company and its sharehold- address sustainability concerns.ers should public and political climate concernsrekindle. The price and availability of energy and Where are we headed? We turned to thewater are also being scrutinized by investors to sources, research, and lessons learned fromensure companies won’t be caught flatfooted if the nearly 2,000 stories we reported during 2011geopolitics, natural disasters, or other perturba- in search of trends and themes about the yeartions upend supplies. For companies, the risks ahead. Here, in no particular order, are the 10 keyand potential costs of doing nothing are rising. trends you need to know for 2012.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  6. 6. STATE OF GREEN BUSINESS 2012 61. Sustainability Counts for CFOs“Making the business case” has long been a man- Shareholders aren’t the only ones concernedtra of sustainability advocates. After all, if sus- about the impact of sustainability issuestainability doesn’t create business value, why on stock price. In 2010, the US Securities &bother? For years, the business case focused Exchange Commission issued guidance regard-on growing sales and cutting costs. But there are ing companies responsibility to disclose mate-other aspects of sustainability—transparency, The Big Four accounting rial risks related to climate change. It notes thatdisclosure, compensation, and risk—that garner a company’s CEO and CFO must certify that firms have takenthe attention of shareholders and others near the company has installed “controls and pro- notice. They see newand dear to the boardroom. cedures” enabling it to discharge its climate opportunities in helping change disclosure responsibilities. That placedEnter the chief financial officer, historically an CFOs bring the same sustainability directly into the realm of control-outsider to most corporate conversations about level of diligence to lership and financial risk management.sustainability, which was viewed as “too soft” to sustainability reportingbe relevant to hard-nosed bean counters. The Big Four accounting firms have taken that they bring to notice. During 2011, two of them—Ernst & financial reporting.That’s changing. According to a study con- Young and Deloitte—published reports onducted by Ernst & Young and GreenBiz.com, one CFOs and sustainability, while the other two—in six (13 percent) respondents said their CFO PricewaterhouseCoopers and KPMG—havewas “very involved” with sustainability, while 52 taken a keen interest in the topic. They see newpercent said the CFO was “somewhat” involved. opportunities in helping CFOs bring the sameThe survey was conducted for a forthcoming level of diligence to sustainability reporting thatreport from the two organizations, looking at they bring to financial reporting. In its report,trends in corporate sustainability reporting. Ernst & Young pointed to the growth of corpo- rate sustainability reports, but especially to theHow to account for this? A variety of issues— growing wave of integrated reports that com-among them, greenhouse gas emissions, toxic bine sustainability metrics and conventionalingredients in products, and reliable access to financial reporting.water, energy, and raw materials—are increas-ingly seen as material risk factors that warrant A handful of CFOs are starting to be heard onscrutiny by shareholders, customers, and regu- the topic. In 2011, for example, Kurt Kuehn, CFOlators. Growing calls for transparency and disclo- of UPS and a 33-year veteran of the company,sure of sustainability impacts are requiring more, gave a speech at the Boston College Centerand more reliable, information about increas- for Corporate Citizenship on “Five Reasons theingly deeper levels of company operations and CFO Should Care About Sustainability” (a sub-supply chains. Ratings and stock indices, such as ject he wrote about on GreenBiz.com in 2010).those from Newsweek and Dow Jones, are being He cited cutting costs, mitigating risks, generat-taken ever more seriously by companies, elevat- ing revenue, driving innovation, and improvinging the collection and dissemination of key data employee development and retention. “Theto the C-suite. Shareholder resolutions focusing one thing Wall Street hates the most is surprise,”on social and environmental issues made up the Kuehn told the audience. “So when a companylargest portion of all shareholder proposals in confidently talks about how it will reduce risks2010 and 2011. That further bonds sustainability and be successful for the long term, Wall Streetwith board-level interest. listens.”© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  7. 7. STATE OF GREEN BUSINESS 2012 7 Will CFOs Ever ‘Get’ Sustainability? A 2011 report from the global accounting firm As sustainability issues intertwine with busi- Ernst & Young aims to help companies con- ness strategy, institutional investors are start- nect CFOs with their company’s sustainabil- ing to view financial and non-financial per- ity efforts. “Sustainability issues and finan- formance as two sides of the same coin. The cial performance have begun to intertwine,” report urges CFOs to “Work with your sustain- it begins. “CFOs are getting involved in the ability team to develop a sustainability story management, measurement and reporting of for your organization. If current trends con- the companies’ sustainability activities. This tinue, the CFO could be the one telling it.” involvement has expanded the CFO’s role in ways that would have been hard to imagine Reporting and assurance. Transparent even a few years ago.” reporting of sustainability performance is important, and not just to investors and rat- According to E&Y’s report, there are three key ings agencies. E&Y points to the growth of cor- areas where CFOs are playing a growing role in porate sustainability reports, but especially to sustainability: the growing wave of integrated reports that combine sustainability metrics and conven- Investor relations. E&Y describes this as “the tional financial reporting. art of storytelling.” Sustainability, says the report, “can be viewed as a new character Operational controllership and financial risk introduced into a familiar plotline. The story management. To quantify inputs and outputs is still about financial promise, but with a new related to climate change, CFOs will need twist: increasingly, a company’s sustainabil- accounting systems that track sustainabil- ity story is being heard and read by the same ity-related events that are significant from a people who read its annual financial reports.” financial reporting perspective.2. Sustainable Consumption Gets Buy-inThe years-long conversation about reducing subtle to not-so-subtle. It may not yet be sus-consumption by getting consumers and oth- tainable consumption, but it’s definitely smarterers to buy fewer, more durable goods is gaining consumption.attention—albeit still in small, tentative ways.While there’s not yet any sustainable consump- Patagonia and eBay made the biggest splashtion bandwagon, the companies and execu- with their Common Threads Initiative, whichtives talking the talk are appearing downright encourages consumers to sell their usedmainstream. Patagonia clothing and gear online. At the beginning of the 2011 holiday buying season,Last year heard some corporate voices that Patagonia took out full-page newspaper adscould signal a new approach to curbing con- featuring one of its jackets, with the provocativesumers’ all-consuming passions—and cre- headline “Don’t Buy This Jacket”. It counseled,ate business value, to boot. The approaches “Don’t buy what you don’t need. Think twicerange from incremental to radical—and from before you buy anything,” and directed readers© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  8. 8. STATE OF GREEN BUSINESS 2012 8to a web page where they were asked to sign a Such efforts could finally bring life to the conver-two-part pledge: sations on sustainable consumption conducted for many years by organizations like the World Patagonia agrees to build useful things that Business Council on Sustainable Development, last, to repair what breaks and recycle what the United Nations Environment Programme, comes to the end of its useful life. and the World Economic Forum. And while the Global brands list of companies participating in those conver- I agree to buy only what I need (and will last), sations is long—including Coca-Cola, General can learn repair what breaks, reuse (share) what I no Motors, Henkel, Nestlé, Nokia, Procter & Gamble, from the new longer need and recycle everything else. SC Johnson, Sony, and Unilever—few of these generation of companies have had much to show for it, in startups—someAs GreenBiz.com senior writer Adam Aston terms of radical changes in products, serivces, for-profit, otherscharacterized the eBay relationship: “An auc- or business models. nonprofit—tion function may not sound revolutionary inthe retail world, but Patagonia’s broader agenda Perhaps these global brands can learn from the knownhere is an unorthodox, perhaps even radical, act new generation of startups—some for-profit, collectivelyfor the fashion industry.” others nonprofit—known collectively as “mesh” as “mesh” companies. The term, coined by entrepre- companies.Another apparel company, Puma, is taking a dif- neur and marketing guru Lisa Gansky in a bookferent tack: making its clothes compostable. of the same name, describes companies thatCEO Franz Koch said his company was working offer services instead of products—car sharingwith partners on developing products on the instead of car ownership.principle of “cradle-to-cradle” design, in whichevery component can be recycled back into a Already, there are dozens of mesh companies—acomparable raw material, or composted harm- database Gansky created has more than 2,000.lessly into soil. Nike, for its part, has its own initia- A sampling: A Box Life (keeps shippable card-tive, called Considered Design, whose goal is to board boxes in use longer); GoLoco (ride-shar-use the fewest possible materials and design for ing system that notifies users when their friendseasy disassembly, allowing items to be recycled or interest groups are going places they want tointo new products or safely returned to nature go); Instant Offices (matches businesses withat the end of their life. available office space); Kopernik (connects tools and people where they are most needed);It’s not just clothing. Electronics retailer Best and Local Dirt (helps consumers buy, sell, andBuy launched a kind of subscription model find local food).for electronics in the form of its Buy Backplan, inviting shoppers to “future proof” their Mesh companies could represent the futurenew purchases—for a price. Shoppers pay an of sustainable consumption—and the futureupfront fee—say $69.99, for a laptop or tablet— of commerce itself, at least for some productand receive 10–50 percent of the value of the categories. If consumers catch on to the ideaproduct back if it’s returned within two years, that access may trump ownership, it could beassuming normal wear and tear. It’s still unclear a win-win-win: companies make more moneywhether this will actually reduce waste or con- from less physical stuff; consumers get exactlysumption, but it does introduce a new business what they need, at lower cost and without themodel: the idea of electronics as a service, not worry of planned obsolescence; and the planeta product. is spared countless tons of waste.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  9. 9. STATE OF GREEN BUSINESS 2012 93. Green Gamification Scores PointsMaking sustainability fun and accessible to the efficiently—has become a community activity.masses has long been a challenge for compa-nies, government agencies, activist groups, and Similarly, the Ford Fusion Hybrid uses aothers. While the über-notion of “saving the Tamogochi-style game, in which a small dash-planet” may be compelling, many of its constitu- board plant grows and shrinks based on greenent activities are easier said than done: reusing driving practices. As consumerand recycling, turning off lights, buying greener brands jump onproducts, driving less, and the like. That may SAP, the German software giant, has har- the gamificationpartly explain why so many of us—both at home nessed games as a key part of its employee- bandwagon,and in business—don’t engage in greener behav- engagement program. “I haven’t seen a single some are likely toiors, even when we know exactly what to do. sustainability application that didn’t use game use it to promote mechanics,” Mario Herger, SAP Labs seniorThat could change, thanks to gamification, an innovation strategist, told GreenBiz last year. green behaviors—admittedly kludgy word that describes using In Germany, for example, SAP employees earn and sell greensomething called “game mechanics”—points, points through a carpooling game called TwoGo, products.badges, leaderboards, and other schemes— aimed at making carpooling easy and sociallyto make ordinary activities fun and rewarding. cool. Employees win points by entering informa-Games have long been a business tool for effect- tion about themselves; the game matches theming behavior change—witness the decades-long with drivers going where and when they needsuccess of frequent-flyer and other loyalty to get to work. Riders also earn points by suchprograms that reward customers for repeat things as answering questions about their fel-business. In the past year or so, everyone from low riders. The game has been credited with tak-Samsung and Salesforce to Nike and the NHL ing thousands of cars off the road while helpinghave harnessed the power of games to incentiv- build social ties among employees. Since manyize and reward customers and employees. of these vehicles are company cars, there are direct cost savings to SAP.Increasingly, games are part of companies’ sus-tainability toolkits, providing rewards for making Such technologies represent the next big leapgood, green choices. Consider the Nissan Leaf, in fomenting behavior change around sustain-one of the first mass-produced electric vehi- ability. As consumer product companies jumpcles. Drivers using the car’s “eco mode” soft- on the gamification bandwagon, some are likelyware keep track of such variables as speed and to use it to promote green behaviors—and sellpower usage, receiving constant feedback from green products. The only question is one of mar-a display behind the steering wheel so they can ket saturation: how many ways individuals willimprove upon efficiency. Their achievements be willing to engage with companies and causesare seen as on-screen trees. An online portal through their mobile phones and devices? Ifconnected to the car’s dashboard lets driv- companies aren’t able to keep such “games forers know how well they are conserving energy, good” fresh and exciting, continually upping thecompared with other nearby drivers. The most ante when it comes to rewards and incentives,efficient drivers receive virtual bronze, silver, it will be a short-lived phenomenon. By the endgold, and platinum “medals.” What had been of the year, we’ll know whether it will be “Gamesolely a matter of personal virtue—driving more On”—or “Game Over.”© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  10. 10. STATE OF GREEN BUSINESS 2012 10 CONVERGENCE AND THE NEXT BIG OPPORTUNITY It’s been said that everything that can be mashed together will be. That’s the recipe for the new-media landscape, not to mention fusion cooking. It’s also the basis for a technology evolution that we’ve been tracking: the convergence of energy, information and communications, CONVERGING building, and transportation technologies. That mashup, which we’ve dubbed VERGE, was the ENERGY, INFORMATION, basis for three executive roundtables in 2011, in Shanghai, London, and San Francisco. In 2012, BUILDINGS & VEHICLES GreenBiz Group is presenting a three-day VERGE conference in Washington, D.C., March 14-16, followed by VERGE events in Hong Kong, London, Rio de Janeiro, and New Delhi, as well as other VERGE events in the United States. VERGE has the potential to transform how we live, work, travel, shop, and play, by creating a new generation of smarter, innovative products and services. In some cases, VERGE technologies will radically improve efficiencies of today’s vehicles and transportation systems, buildings, urban infrastructure, industrial production, and other energy- and resource-intensive activities. Beyond that, VERGE has the potential to invent new products and services, even new industries, much like other technologies—such as the Internet, broadband, smart phones — have done in recent CONVERGING years. ENERGY, INFORMATION, We’re already seeingVEHICLES BUILDINGS & the ingredients for this convergence: • Energy technology is becoming decentralized, cleaner, better managed, and easier to store. • Information and communications technologies are making every device, building, and vehicle smarter, able to connect into a vast Internet of things that can be addressed, moni- tored, controlled, and optimized. • Buildings are becoming more intelligent and efficient, better able to optimize energy and resource use and enhance human comfort and productivity, with the potential of becoming net-positive, from the standpoint of their environmental footprint. • Vehicles are getting smarter, too, able to communicate with their drivers, other vehicles, and their surroundings, becoming safer and more efficient while connecting passengers and fleet managers to a broader transportation and energy grid. The early stages of the VERGE vision are coming to life in pilot projects and demonstrations around the world: Autonomous vehicles that can travel efficiently and safely with little or no driver interaction. Hyper-efficient, zero-energy buildings able to generate and store energy, vari- ously buying or selling power to the grid. Cities embedded with intelligence that move traffic, con- nect people, reduce emissions, enhance safety, and maximize well-being. Platooning technolo- gies that allow cars to travel at close range at high speed, reducing congestion and emissions. VERGE holds the potential to make gigaton reductions in greenhouse gas and other emissions, engender step-change improvements in energy efficiency, accelerate the growth of renewable energy, and bring dramatic advances in materials efficiency. To learn more, visit GreenBiz.com/verge.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  11. 11. STATE OF GREEN BUSINESS 2012 114. Sustainable Mobility Hits the RoadWhile the public and media have focused on to garner a slice of the multi-billion-dollar pieelectric vehicles, others are taking the bigger found in easing congestion in cities.view. Smart transportation systems aim to movepeople and goods around more quickly, more The car makers are seeing their business modelssafely, and with less energy and pollution. upended by a new business model that puts the brakes on vehicle ownership. First among these In many of theThis is no idle matter. The world crossed a sig- is Zipcar, the largest of dozens of companies world’s largestnificant milestone in 2011: There are now more offering “mobility on demand,” better known cities, drivers arethan 1 billion cars and trucks on roads globally, up as car sharing—the ability to easily find nearby going nowherefrom 980 million at the end of 2009. That num- vehicles to rent by the hour, an alternative to car fast. Turningber is expected to double by 2020. Combine that ownership or traditional car rental. Zipcar and every car into awith two other recent thresholds—the seven-bil- dozens of other car-sharing services are beinglionth world citizen and the fact that a majority joined by big players: Hertz (HertzOnDemand), green one isn’tof humanity now resides in cities—you have the Enterprise (WeCar), and U-haul (uhaulcar- much help if nomakings for one hell of a global traffic jam. share). While most are currently available in only one can get from a handful of cities, they will be widespread in here to there.The United States boasts the highest density of the next few years. Last year, for example, Fordcars and trucks—one for every 1.3 people—but teamed up with Zipcar to make its vehicles avail-the 1 percent annual rate of growth pales com- able for car sharing on US college campuses.pared with China, India, and Brazil, where annualvehicle growth rates are 27.5 percent, 8.9 per- Behind that business model is an even more dis-cent, and 9 percent, respectively, according to ruptive one: peer-to-peer car-sharing services,the trade journal Ward’s and J.D. Power. In manyin which anyone can make his or her vehicle avail-of the world’s largest cities, drivers are goingable to others on an hourly basis. In the Unitednowhere fast. Mexico City; Shenzen and Beijing, States, RelayRides and Getaround are makingChina; Nairobi, Kenya; Johannesburg, South inroads in P2P, as it is known, allowing car ownersAfrica; and Bangalore and New Delhi, India face to make money renting their vehicles when theythe highest congestion, according to the 2011 would otherwise sit idle, which is about 95 per-IBM Commuter Pain Index. (By comparison, Los cent of the time. Software allows anyone with aAngeles ranked 12th, New York City 15th, and car- smartphone to find a nearby rentable vehicle,choked Houston didn’t even make the top 20.) and vehicle owners get to decide when, where,The index ranks the emotional and economic toll and to whom to rent—and for how much. In aof commuting in each city. nod to the vast potential of P2P, GM launched a partnership with RelayRides last year to allowIBM, which sells control systems to make trans- GM owners to rent out their idle vehicles usingportation systems smarter and more efficient, their mobile phone and GM’s OnStar service.is one of several companies for which backups,bottlenecks, and snarls represent a vast oppor- These are the first signs of a future not far downtunity. Another is Cisco; its Connected Urban the road, where owning a car is no longer a riteDevelopment initiative aims to harness informa- of passage or even a status symbol, and wheretion and communications technology to make “access to mobility” becomes the desired norm.fundamental improvements in transportation After all, turning every car into a green one isn’tefficiency. Providers of such technologies hope much help if no one can get from here to there.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  12. 12. STATE OF GREEN BUSINESS 2012 125. Cleantech Survives a Crisis of ConfidenceLet’s be clear: The perception of clean technol- now provides 20 percent of electricity in Iowaogy these days is far less sunny than the reality. and South Dakota, according to the American Wind Energy Association, and at key momentsThe perception, at least in the political arena, is surges to 50 percent in Colorado. The market Cleantech isthat cleantech was a promise that largely failed, research firm Lucintel predicts that the world going throughlike universal health care or a balanced federal market for wind energy will grow at a compound a reset, not abudget. After all, 2011 saw a few spectacular annual rate of 12 percent for at least the next retrenchment.swan dives by promising companies, several of five years. In some parts of the world—Brazil, for And it portendswhich had received US government funding, at example—the price of wind energy is now belowleast one of whose name is destined to be syn- that of natural gas. more roilingonymous with wasteful taxpayer subsidies. The of cleantechprevailing narrative is that solar and other clean All this turmoil notwithstanding, the United markets.technologies have not lived up to their promise States became a net exporter of solar productsand remain costly and unreliable, out of reach to the tune of $1.8 billion in 2010, according tofor most mainstream uses. GTM Research and the SEIA, primarily through sales of solar manufacturing equipment andThe reality is quite different. Cleantech is matur- polysilicon, solar modules’ main ingredient.ing, growing, and doing reasonably well. In 2011,for the first time, power plants operating on With all this growth, why are companies fail-solar, wind, and biomass energy garnered more ing? It has to do largely with natural technologyinvestment than those powered by natural gas, growth cycles, seen with nearly every technol-oil, and coal—$187 billion for renewables com- ogy over the past century, from cars to com-pared to $157 billion for fossil fuels, according to puters to cell phones. As technologies mature,Bloomberg New Energy Finance. The group pre- industries consolidate, with a handful of win-dicted that renewable energy investments will ners emerging. In the early 1900s, for example,double over the next eight years. there were more than 1,000 American automo- bile manufacturers, from Acme (1903-11) to ZipSolar energy, for all the high-voltage company (1913-14). All but a few are gone.failures, hit record growth in the United States—more than 1,000 megawatts installed during the As technologies mature, the winners becomefirst three quarters of 2011, compared with 887 the value-added players—in solar, companiesMW in all of 2010, according to GTM Research like SolarCity, Sungevity, and SunRun—non-and the Solar Energy Industries Association manufacturers all—which provide turnkey solar(SEIA). The solar market grew globally, as well. installation for homes and businesses, oftenAccording to a report by GTM Research and for little or no money down. So, too, with otherBridge, India is facing a perfect storm of fac- clean technologies, like LED lighting, where bulbtors that will drive solar photovoltaic adoption makers are getting squeezed by ever-droppingat a “furious pace over the next five years and prices, but downstream value-add players likebeyond.” And NDP Solarbuzz forecast that in Adura and Digital Lumens, which package LED2011, China would surpass United States and bulbs into modules for commercial use, areJapanese solar installations for the first time. growing. Rodrigo Prudencio, a partner at Nth Power, a longtime energy-tech investment2011 was also a boom year for wind energy, which firm, calls it finding new value in “old” clean© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  13. 13. STATE OF GREEN BUSINESS 2012 13 GREEN BUILDINGS 2011: LEED bounces back In 2010, the market for green buildings suffered the belated impacts of the economic downturn, with plans to construct new LEED-certified buildings dropping precipitously over 2009. But 2011 saw a roaring return to busi- ness as usual, with “usual” here meaning “rapid growth.” The 2011 Green Building Market & Impact Report—written by Rob Watson, CEO of EcoTech International and senior contributor to GreenBiz.com, and a founder of the LEED rating system—tracked for the fourth year the current and future state of LEED and the environmental benefits of green buildings. • Registrations Bounce Back: In another sign of promising future growth, registrations of new projects across all LEED standards grew by 45 percent over 2010, although newly certified LEED buildings grew by just 2.6 percent, a slowdown to LEED’s previous meteoric growth. • LEED Raises the Bar: Among the biggest developments this year was the maturing of the LEED 2009 standard, which drove buildings to be even more energy-efficient—averaging 30 percent energy savings over conventional buildings—as well as more “location-efficient.” Constructing LEED buildings near transit, homes, and offices reins in sprawl while saving drivers time and money: In 2011, the location of LEED buildings saved drivers 5.7 billion miles driven. • Reduced Impacts Across the Board: In addition to saving energy and commute miles, LEED buildings in 2011 resulted in major reductions in water use—48 billion gallons of water saved in 2011 alone—as well as large reductions to the nation’s carbon footprint. Last year, LEED build- ings saved 9 percent of the nation’s total non-residential energy use. • Existing Buildings Certifications Taking Off: Perhaps most importantly, this year for the first time the amount of square feet certified under LEED for Existing Buildings surpassed the figure for New Construction. This is pivotal not only because square footage is the key benchmark for real impacts of LEED, but also because there is vastly more existing building stock, and momentum behind greening our current facilities will be fundamentally important to making the massive energy and emissions reductions we need.technologies, noting: “Value creation around source among many but in some markets are acommoditization happens in any industry.” direct competitor with fossil fuels.”So, cleantech is going through a reset, not a Cleantech is more than just electricity, of course,retrenchment. And it portends more roiling of though these technologies often get the mostcleantech markets, as competition continues attention. It also includes next-gen electric vehi-to squeeze out weaker or inefficient players and cles, advanced materials, biofuels, water effi-new, innovative companies enter the field. At ciency and purification, and more. Each of thesethe end of 2011, the venerable energy industry is maturing at its own pace, as technologies andjournal Platts noted: “Heading into 2012, renew- markets develop and grow. And each holds greatable energy is entering a new phase, with win- promise to address critical societal needs.ners and losers emerging both within renewableenergy sectors and as part of larger energy mar- Put together, it suggests that cleantech still haskets. Renewables are no longer just one energy bright times ahead.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  14. 14. STATE OF GREEN BUSINESS 2012 146. Energy Efficiency Gains Star PowerClean technology may have been a political hot reduce fuel use by up to 23 percent, depend-potato in 2011, but energy efficiency is becom- ing on truck type, while the passenger vehicleing downright cool. standard should bring average new vehicle fuel economy to just under 50 miles per gallon byA major overhaul at the iconic Empire State 2025. The feds also introduced new efficiencyBuilding helped raise the profile of energy effi- standards for appliances like residential refrig-ciency. That project—which included replacing erators and air conditioners and furnaces.6,500 windows, adding insulation, upgradinglighting, and installing a digital wireless monitor- The big question is whether consumers willing system—is powering a 38 percent annual join in. To date, individuals haven’t found muchenergy reduction and $4.4 million in annual sav- appetite for efficiency measures, short of turn-ings. Publicity surrounding the project—from ing off switches or swapping out a few lightthe likes of Presidents Clinton and Obama, not bulbs—if that.to mention major flogging by the companiesand nonprofits involved with the $13 million But that’s changing. Cool technologies are start-project—amounts to a towering achievement ing to make home energy efficiency more com-for energy efficiency, which has remained in the pelling, such as a smart thermostat from Nestbackground, an unheralded hero, for years. Labs, created by one of the designers of Apple’s iPod. Smartphone apps from companies asThe Empire State Building wasn’t the only aging varied as ecobee and General Electric allow forstar getting an energy makeover. Sixty-odd near-real-time information about home energyblocks downtown, the 104-year-old New York use. Facebook joined forces with Opower andStock Exchange building replaced more than the Natural Resources Defense Council to allow7,000 square feet of windows with super-insu- members to benchmark their home energy uselating SeriousGlass. The windows were designed against a national database of millions of homes,to increase the thermal performance by almost as well as with their friends. Best Buy announced60 percent and reduce solar heat gain by 40 plans to start carrying home energy manage-percent compared to the original glass. Clearly, ment tools, and Pike Research predicted thatthere’s a bull market for saving energy. worldwide users of home energy management systems will reach 63 million by 2020, up fromSuch initiatives are destined to grow, thanks in just over 1 million in 2011.part to federal government efforts to promotebuilding efficiency, along with other initiatives Clearly, we are only at the beginning of a newby US cities and states. But the impacts are lim- era of energy efficiency, as continuous innova-ited to date. As our Energy Efficiency indicator tions in techno-wizardry make our homes, vehi-shows, progress has slowed or reversed in the cles, office buildings, appliances, and devicespast couple years (see page 47). increasingly efficient. The ability for anyone to get real-time, detailed information about theirIt’s not just buildings. The federal government energy use portends a new democratizationissued the first-ever efficiency standards for of energy among consumers. The question,heavy-duty trucks and proposed new standards of course, is whether all of this intelligence willfor passenger vehicles. The truck standard will actually smarten, and change, individual habits.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  15. 15. STATE OF GREEN BUSINESS 2012 15 7. ‘Big Data’ Creates Big OpportunitiesBillions of bits of data are streaming in from years, hundreds of millions of households andeverywhere: buildings, vehicles, manufacturers, businesses worldwide will have “smart meters”warehouses, government agencies, credit card installed by their local utilities, each one spew-transactions, traffic signals, the electric grid, ing real-time data about energy use. Collecting While nearly everyand just about anything else that is connected— and analyzing all of that data will enable utilities device is gettingwired or wirelessly—to something else. This and grid managers—as well as their customers— smaller and more“internet of things,” as it’s been dubbed, already to ensure a steady and reliable energy supply, efficient, informationconsists of a trillion connected devices, and it’s predict rates, and make decisions accordingly. is getting much biggergrowing exponentially. That, in turn, will better manage existing power plants, reducing the need for new ones and and unwieldy.Consider: Within a decade, the number of reducing emissions overall.mobile phones and devices globally will growto more than 10 billion—each a powerful com- Or consider the data streaming from an officeputer capable of sending large amounts of data. building equipped with sensors and smartMeanwhile, nearly 2 zettabytes—that’s 2 trillion devices. IBM placed more than 250,000 sen-gigabytes—of data were created and stored in sors within a 3.3 million-square-foot manufac-2011, according to IDC. According to IBM, more turing site in Minnesota. It sampled only a subsetthan 2.5 quintillion bytes—about 2.5 billion giga- of them every 15 minutes, collecting 2.15 millionbytes—are created every day. For companies, points of data per month. A Microsoft pilot attracking and making sense of all this data is like its Redmond, Wash., campus looked at publicdrinking from a fire hose. While nearly every and private data for a subset of its buildings anddevice is getting smaller and more efficient, gathered 500 million data points a day. All thisinformation is getting much bigger and unwieldy. data can allow you to make buildings more effi- cient and more comfortable—if you know how toWelcome to the world of “big data,” the IT world’s harness it.latest catch phrase. It refers to data sets toobig to be accessed with traditional databases Much of the data doesn’t sit still. For example,and spreadsheets. They require a new set of as smart, electric-powered cars hit the roads,tools and techniques, including massive com- they’ll be streaming data to and from the elec-puting power, vast quantities of storage, and tric grid, IT-embedded “smart roadways,” charg-the human resources needed to turn it all into ing stations, the driver, other vehicles, andknowledge and action. Used well, big data can navigational equipment—all at the same time.lead to accurate predictions of everything from Collecting and crunching all this data in micro-crop yields to consumer habits. It’s become axi- seconds could go a long way toward allowingomatic that companies’ ability to harness big vehicles to travel hyper-efficiently and safely,data will become a core competitive strategy. saving time and fuel.Big data has big implications for sustainability. These are glimpses into the tsunami of informa-Consider, for example, the emerging smart grid, tion that’s bearing down on companies, govern-the interconnected collection of utility plants, ments, and others—the leading edge of a waverooftop solar panels, wind turbines, and other of products and services harnessing big data togeneration systems, along with every device in reduce waste and improve efficiency, and makeevery building that uses energy. In the coming big profits along the way.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  16. 16. STATE OF GREEN BUSINESS 2012 16 FOUR TRENDS SHAPING THE Profession IN 2012 Ten years ago, the formal role of the sustainability professional didn’t exist. Today, the sustainability executive has emerged as a unique role in industry. At GreenBiz Group, we gain tremendous insights from the more than 70 members of the GreenBiz Executive Network (GBEN), our member-based, peer-to-peer learning forum for sustainability professionals. We bring mem- bers together three times a year for a day of face-to-face meetings. They help us—and each other—understand how leaders with limited staff and huge mandates are working to operationalize sustainability. Below are four trends we’ll be focusing on in 2012 as we look at where the profession is headed. Through interviews, case studies, and surveys of our GBEN members as well as our 3,000-member GreenBiz Intelligence Panel, we’ll highlight how the practices of sustainability leaders are transforming their companies. • Strategy Is Job No. 1. The primary task for all sustainability executives is helping senior manage- ment develop a sustainability strategy that syncs with their company’s overall goals. According to a recent GreenBiz Intelligence Panel survey, 85 percent said this has placed sustainability perma- nently on their company’s agenda. Dow Chemical is an example of a company working to incor- porate the economic value of nature into its strategies, goals and decision-making, while Intel has aligned a portion of its employees’ compensation with environmental criteria. • Raising the Bar. Leading companies are working to operationalize sustainability by setting the bar high and targeting what Good to Great author Jim Collins calls “big, hairy, audacious goals.” Campbell’s Soup has set a 2020 goal to cut its product portfolio’s environmental footprint in half. IBM requires suppliers in 90 different countries to install management systems to track environ- mental data. • Strange Bedfellows. To meet big goals, companies are establishing unique partnerships. At a 2011 GBEN meeting, McDonald’s described its 20-year journey working with NGOs as different as World Wildlife Fund and Greenpeace. For those outside the sustainability profession, that’s as surprising as hearing that Patagonia advised Walmart on its sustainable supply-chain efforts. • Built to Last. Last year, budgets and teams grew for many sustainability departments, despite the economic doldrums. Eighty-six percent of large companies now have at least one person focused full time on sustainability. But there’s still no consistency as to where the role reports. While a number of sustainability executives report into public affairs, many others report into operations, marketing, HR or general counsel. That may not be a bad thing. Sustainability executives must use influence to leverage their efforts, and GBEN members tell us their ability to work across functions is more critical than where in the company they sit. For leadership companies in sustainability, 2012 may look unglamorous to the outside world. After picking low-hanging fruit, the work becomes much more challenging—a series of incremental improve- ments built upon earlier improvements. But these efforts will clearly differentiate the leaders from the rest of the pack. —John Davies, VP and Senior Analyst, GreenBiz Group© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  17. 17. STATE OF GREEN BUSINESS 2012 178. Footprinting Walks a Fine LineThe idea of calculating one’s “footprint” began to make reductions. For example, the Northin the 1990s with the notion of an “ecological American arm of LG Electronics announced infootprint,” a measure of human demand on the late 2011 plans to halve its carbon footprint byEarth’s ecosystems. In those terms, a footprint 2020. Also last year, Verizon unveiled a carbonis a standardized measure of demand for natural footprint metric to help the telecom giant trackcapital relative to the planet’s capacity to regen- how efficiently it delivers data to its customers— The paradoxerate it. Organizations like the Global Footprint specifically, the amount of carbon dioxide emis- aboutNetwork (whose founder Mathis Wackernagel sions produced while moving a terabyte of data. sustainablehelped popularize the concept) use footprint Five major hotel chains—Fairmont, Hyatt, MGM, business is thatcalculations to answer such confounding ques- Hilton, and Marriott—joined forces to create a there are tootions as “How many Earths would it take if every- single methodology for measuring and commu- many standardsone lived like us?” nicating their carbon footprints. and not enoughToday, companies are conducting exercises to Most such efforts dovetail with growing metrics.determine their carbon footprints, water foot- demands for corporate transparency of envi-prints, toxic footprints, energy footprints, land ronmental impacts or emissions (see Carbonfootprints, even paper footprints. For better or Transparency, page 81). There’s not necessar-for worse, “footprint” has become variously syn- ily a legal mandate for companies to discloseonymous with “analysis,” “impact,” “measure- such things, but a growing number are doing so,ment,” or “consumption”—or even “emissions.” pushed by institutional investors, customers, activists, and others. In 2011, more than 3,000This is largely a step forward, in that it shows that companies, including more than 80 percent ofcompanies are taking stock of their environ- Global 500 firms, voluntarily reported at leastmental impacts, presumably with the intention some of their carbon emissions, water manage-of reducing them. While purists may scoff at the ment and climate change policies to the Carbonpitter-patter of little footprints, decrying them Disclosure Project.as a weak substitute for more holistic analyses,the talk of footprinting has become fashionable Some carbon footprinting exercises seem,among companies. As “footprinting” becomes well, silly. Over the past year, we’ve learned theincreasingly commonplace, however, the term carbon footprint of unwanted emails (a.k.a.is being used, and misused, in a growing number “spam”)—roughly 0.3 grams of carbon dioxideof ways. It’s hardly a case of greenwashing—that per message, in case you’re wondering. (That, itis, of knowingly misleading, either by omission turns out, is far more deleterious than the foot-or misrepresentation. But the term risks being print of a tweet—just 0.02 grams per 140 char-rendered meaningless, thereby distorting what acters.) Kudos to those who take the time tobegan as a useful scientific concept. calculate the various activities of our lives, for whatever it’s worth.Carbon remains the principal focus of footprint-ing: an analysis of how much carbon is emitted To the extent that footprinting develops andin the making, or the use, or the life cycle of a propagates new methodologies that becomeproduct or service, or the operation of a build- standards within or among industries, suching or company or some other entity or activity. exercises stand to make a significant contribu-In many companies, this leads to commitments tion. Case in point: More than 30 companies and© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  18. 18. STATE OF GREEN BUSINESS 2012 18 Budgets and Jobs: Back on Track? Businesses are back to investing in their green efforts. Driven by customer demand and senior leadership, corporations large and small continue to drive growth in the green economy. In 2008, we created the GreenBiz Intelligence Panel to take a monthly pulse of the green business world. Twice a year, we ask the panel’s nearly 3,000 members for their views on key economic indicators. Our December 2011 survey garnered 282 responses, two-thirds from companies with revenues greater than $1 billion. The indicators remain positive for the green economy, including spending, employment, and product development. Some key findings: • Fewer Job Openings, but Growth Continues. In July 2011, we reported that there were jobs, but they weren’t new jobs. Thirty percent of large companies in mid-2011 posted open requisitions that would not add to their department’s headcount and 22 percent reported openings that would increase headcount. At year’s end, the numbers have flipped, with 30 percent adding new jobs and only 15 percent making replacement hires. Another positive sign? Hiring freezes were reported by only 3 percent of companies, compared to 8 percent in mid 2011. Biggest  Environmental  Impact  in  2012   • Investments Stay the Companies  with  revenues  greater  than  $1  billion   Course. Eighty-six per- Decreasing  the  environmental  impact  of   cent said their 2012 envi- 51%   our  companys  operaAons   ronmental, health, and Decreasing  the  environmental  impact  of   25%   safety spending will be our  customers   equal to or greater than Decreasing  the  environmental  impact  of   13%   our  suppliers   in 2011, a slight dip from a Decrease  the  impact  of  our  product  at   6%   year prior. After dipping to end-­‐of-­‐life   79 percent last summer, Other  (please  specify)   5%   those who cite increasing investments rose to 84 percent by year’s end. • Economic Pressure Turns Business Green. Forty-two percent said economic pressures caused them to invest more in environmental and sustainability activities while only 33 percent indicated they cut back. • New Sheriff in Town. During the summer of 2010, the number of respondents anticipating increased regulation within the subsequent four years peaked at 92 percent. That number has since plummeted to 72 percent—its lowest point since we began the survey. As we’ve seen for years, the locus of action is around business, not regulatory, demands. —John Davies, VP and Senior Analyst, GreenBiz Group© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.
  19. 19. STATE OF GREEN BUSINESS 2012 19organizations—including Nike, Gap, Patagonia, And then there’s Puma, which raised the barand Walmart—last year joined forces to create for such analyses by putting a dollar value on itthe Sustainable Apparel Coalition, with the first impacts on nature. The shoe and sportswearitem on their agenda being the creation of a tool company is measuring its use of ecosystemsto measure the environmental impacts of cloth- and plans to determine its economic impactsing. Similarly, the Sustainability Consortium— on ecosystem services, which is basically any-convened in 2009, initially by Walmart and now thing that nature provides: clean water, crops,boasting a membership of nearly 80 retailers soil formation, wildlife habitat, protection fromand consumer packaged goods companies— storms, and the like. Puma’s effort comes clos-has set out an ambitious agenda to create stan- est to the original notion of understanding one’sdards and tools to collaboratively develop life- full ecological impacts and, if emulated by oth-cycle–based standards and measurement tools ers, stands to bring the idea of footprinting backfor consumer products. in step with reality.9. Sustainable Cities Take Center StageWhile national governments grapple with eco- climate-related actions at the local level. Thenomic issues and policy gridlocks, pushing sus- combined group, in turn, formed a partnershiptainability measures to the side, cities are pick- with the World Bank to help cities accelerateing up the mantle. Some of the world’s largest actions to reduce greenhouse gas emissions.cities are emerging as laboratories of innovativetechnologies, business models, and efficiency A sampling of cities’ sustainability initiatives,measures, many of them with salutary environ- courtesy of C40:mental and social outcomes. To the extent thatthe green economy flourishes, it is becoming • Seoul plans to retrofit 10,000 buildings byclearer that it will likely be a bottom-up, grass- 2030.roots evolution. • Austin has a zero-waste plan for 2040.It makes sense. Cities are where more thanhalf the global population lives. In developing • London aims to have 100,000 electric vehi-countries, urban growth is exploding, stretch- cles on the streets by 2020.ing demands for food, water, energy, jobs, andmobility to the breaking point and beyond. In the • Buenos Aires is implementing a network ofdeveloped world, the need for upgrading older dedicated bus and taxi lanes to improveinfrastructure is driving leaders to invest in new, fuel efficiency.cleaner and more-efficient technologies. • Tokyo is introducing higher energy-During 2011, the role of cities in sustainability efficiency standards for large urbanbecame increasingly evident. New York City developments.Mayor Michael Bloomberg and former PresidentBill Clinton merged their respective sustainable • São Paulo plans to reduce the use of fossilcity initiatives to create the C40 Cities Climate fuel on public transportation by 10 percentLeadership Group, a network of large cities each year, aiming for 100 percent use ofaround the world committed to implementing renewable fuels by 2017.© 2012 GreenBiz Group Inc. (www.greenbiz.com). May be reproduced for non-commercial purposes only, provided credit is given to GreenBiz Group Inc. and includes this notice.

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