Study: Consumers Want to Reduce Carbon Footprint Despite Economic Woes

Not surprisingly, the economic downturn has not diverted consumers from their environmental concerns. Check out Carbon, a new report by Forum for the Future, a UK sustainability organization, tells us that consumers would like to make good decisions that benefit the environment and have reliable and trustworthy information to support solid decision making.

Check out Carbon summarizes the findings of a research project exploring the role carbon labeling plays in increasing consumer awareness. A survey of 1,000 consumers reinforces that concern, with 85 percent of respondents saying they want more information about the environmental impacts of products.

The report, which was launched at the London headquarters of Lloyd’s Register during an event that attracted some of the UK’s top sustainability and climate change experts, also highlights the importance of educating consumers about opportunities to reduce carbon emissions that result from their purchases. Carbon labeling is a vitally important tool to help consumers reduce their carbon footprint when making shopping decisions.

Carbon labeling, of course, would require consumer product businesses and their suppliers to conduct extensive monitoring and management of water, waste and air emissions (including GHGs).

Jurisdictions need to carefully review these efforts, to make sure labeling regulations don’t become too demanding for business. The best way to deal with the source of major carbon impacts is at the manufacturing level. Rushing headlong into a major labeling effort could sideline a concept that has promise. Hopefully, government decision makers will find the best way to balance these concerns.

Add comment October 22nd, 2008

Google Leads Tech Companies Spearheading Sustainability

When you think of companies with sustainable operations, it’s hard to imagine that such a list would include technology companies that use massive amounts of electricity to run data centers.

However, a consortium of high tech companies and nonprofits is turning that assumption on its head. The Climate Savers Computing Initiative, spearheaded Google and Intel and supported by organizations like Dell, Microsoft, Lenovo, HP and the World Wildlife Fund (WWF), has shown that technology companies can be leaders in sustainability and energy efficiency.

Climate Savers members demonstrate their commitment to green IT operations in two ways: manufacturers produce products that meet specified power-efficiency targets; and corporate participants purchase power-efficient computing products.

Google, in particular, has demonstrated exemplary leadership as a company that both generates healthy profits for its shareholders and maintains sustainable operations. The company powers a portion of its operations using electricity from renewable sources, operates efficient PCs and servers and invests in carbon generation offset projects when it can’t reduce emissions.

Google’s successful implementation of green-friendly practices has motivated its executives to boldly promote an ambitious goal of being carbon neutral by 2010.
That will be a steep challenge, because its data centers run all over the world and consume electricity in quantities almost unheard of ten years ago. However, the company started focusing on its sustainability initiatives very early in its growth. Green-friendly operations and energy efficiency are now an important part of its operational model.

Climate Savers members, including Google, are at the forefront of climate change activism because, as tech companies, they understand the power of software platforms to deliver the information they need to make changes. With our carbon management solution, ESS is showing industrial companies that energy efficiency isn’t just the domain of the tech sector.

Add comment October 20th, 2008

Experts Cite Growing Popularity of Integrated Platforms

For quite a while now, I’ve been advocating that companies move to a unified software platform to simplify EHS risk and compliance, centralize data into a unified repository and manage data enterprise wide.

Last week, I received a briefing about the capital markets from a firm in our space that specializes in M&As and got a clearer picture of how they view compliance software. The presentation traced the history of compliance initiatives back to pre-SOX days (when we started ESS). It showed the hockey stick growth of compliance as a tactical matter, characterized by information silos, duplicate entities and limited compliance visibility. It shows that compliance has now emerged as a strategic imperative in the enterprise. Industry analysts like AMR have long ago embraced the concept. Now it’s gaining acceptance among other compliance software companies.

The presentation goes on to say that the compliance space is growing 2-4 times faster than any other in software and “no other software application category is growing as quickly. The next generation of compliance software will transform ‘converging’ point solutions to fully integrated compliance platforms, which will sustain and accelerate the rate of growth and demand in the coming years.”

AMR Senior Research Analyst Simon Jacobson, the keynote speaker at ESS EXPO.08, recommended that EHS data should be consolidated in a common database that efficiently collects information, ties it together and communicates it throughout the enterprise. Dow Chemical successfully leveraged that strategy to save more than $2 million and enabled all of the company’s U.S. facilities to use a common reporting process.

Ultimately, this affirms that growth in our space will occur not only because compliance is a strategic objective of nearly every company. It will happen because executives worldwide have discovered that compliance helps companies lower costs and reduce operational risk.

Add comment October 14th, 2008

Corporate Responsibility Gaining More Visibility in the Enterprise

Wall Street is being called on the carpet for doing what Milton Friedman told it to do: maximize profits and nothing else. However, in the current financial climate, investors and stakeholders want more. They want companies to move toward sustainability.

Wall Street may be the last to know that investors, employees, governments and Main Street require more of corporations. Stakeholders require companies to implement corporate responsibility best practices that are comparable to or exceed the performance of their industry peers. That’s because executives now regard corporate responsibility as a business differentiator that separates companies based on their ability to effectively manage operational risks.

Therefore, climate change occurring on the planet mirrors the climate change concerns that are addressed by the enterprise. This is magnified by the global connectivity provided by the internet and the increasing ability of stakeholders to form activist groups demanding change in emissions policies and manufacturing processes. These groups cannot be ignored because they affect a company’s ability to raise capital for operations and expansion.

Corporate responsibility itself has changed, becoming at once a more inclusive and a more specific term. It used to refer to philanthropy — the volunteerism of employees coupled with the pet projects of the CEO. But now, according to Jeff Hitner of IBM Global Business Services, corporate responsibility is an investment that can bolster a company’s performance. That’s because customers are demanding that the companies they buy from maintain sustainability practices that are measurable. Earth911.com, a consumer recycling site, even has a series called “CSR for Dummies” that evaluates and comments on the sustainability reports of major consumer-facing companies.

In this atmosphere, it is best for companies to be transparent and provide accurate, comparable reporting that shows investors and stakeholders that they are working to achieve sustainable operations. Be proactive, rather than reactive. Companies can set themselves apart by demonstrating leadership in environmental, health and safety best practices. It’s always best to be a leader in times like these.

Add comment September 29th, 2008

ESS Makes Big Splash at Oracle’s OpenWorld

I’m just returning from Oracle’s OpenWorld conference in San Francisco, which was a huge success for ESS on several fronts. During a conference filled with major Oracle announcements about its new hardware and software products, we garnered significant attention for our software solutions.

The big kahuna event was a joint presentation in which I joined Oracle’s Vice President Product Strategy, to provide details about the joint solution that ESS and Oracle will deliver to meet growing demand for operational sustainability information management systems. It was a big draw and generated some buzz in the media and the blogosphere. This was a big deal and I’ll talk more about it later.

I joined Oracle’s Vice President Supply Chain Execution and Product Lifecycle Management Strategy and Senior Vice President of Application Development to present a powerful presentation — the first at OpenWorld — announcing the partnership and presenting ESS as the “Eco-Hub” of the Oracle’s GRC solution. An Oracle press release and joint solution description were distributed in conjunction with the presentation.

ESS Vice President Ian Achterkirch was a featured presenter, along with panelists from Intuit, Intel and other companies, in a lively discussion on sustainability issues. Ian delivered a great presentation explaining ESS’ accomplishments in this arena.

Also, ESS and Alcoa were recipients of Oracle’s inaugural “Empower the Green Enterprise” which recognized companies for adopting green business practices, including effective use of Oracle advanced information technologies in order to protect the environment, reduce costs and risks and enhance operational efficiency.

Throughout the week we continued building the relationship at meetings and offsite events with senior Oracle executives.

Our success at OpenWorld confirms that there’s tremendous market interest in enterprise sustainability. We’re excited about partnering with Oracle to help more companies reach their sustainability goals.

Add comment September 25th, 2008

Chinese Energy Companies Showing Leadership in Sustainability

While I was in Asia last week, I met with the CIO of PetroChina and China National Petroleum Company (CNPC) and learned of his desire to expand on our great success consolidating all applications in the Environmental Health and Safety arena into one platform for efficiency and centralized reporting. I was really impressed when he told me they have more than 70,000 users.

This has to be the largest EHS sustainability platform ever deployed. He also told me it was the first and “only” software within PetroChina and CNPC that has been deployed across the entire company. We want to enhance our value to their business users by providing tools like role-based Key Performance Indicators to help them improve performance within their specific business units.

I also met with the CIO of China Light and Power (CLP) in Hong Kong. This is meaningful because CLP is followed and benchmarked as best of breed throughout Asia for its best practices in using information technology to enhance business value. He gave me a tour of the company’s technology center, which was quite impressive, and we spent a good deal of time talking about translating technology investments like ESS software into real business value.

These CIOs are true thought leaders and our plan with them in the area of GHG emissions management and corporate responsibility reporting will set the standard not only in Asia but across the world. For those of us who think our companies are in the vanguard of sustainability, here’s a word of caution: Look out. You may just find yourself following leaders from Asia.

Add comment September 25th, 2008

Oracle Honors Alcoa with Award for Sustainable Operations

Oracle’s OpenWorld is underway, and the conference started out with a bang for our client, Alcoa, which was recognized with Oracle’s Empower the Green Enterprise award during a luncheon ceremony.

Oracle Board Chairman Jeff Henley and CIO Mark Sunday presented the award to Alcoa, which is being honored for adopting green business practices, including effective use of advanced information technologies in order to protect the environment, reduce costs and risks and enhance operational efficiency. Alcoa was one of 15 organizations selected to receive the award. We are so proud today, both of the enormous steps they have taken toward sustainability, and of our own part in supporting their achievement.

Oracle chose Alcoa for the award based on its successful implementation of ESS enterprise software, installed on Oracle 10, as its unified platform for EHS sustainability management throughout the company’s global operations. By using ESS and Oracle systems, Alcoa has been able to:

• Simplify ISO 14001 compliance to reduce workload and ensure continued certification.
• Improve its data analysis capabilities for improved decision making and reduced emissions.
• Move from annual to daily data evaluation of emissions reporting.

In addition, Alcoa officials gained tighter control over the company’s chemical usage and inventory storage.

When a company receives recognition like this for a job well done, it’s an impetus for other organizations to do the same. Alcoa’s leadership has generated significant momentum for sustainable operations worldwide. That’s why they are a worthy recipient of Oracle’s Award. We salute Alcoa for its outstanding accomplishments as a sustainability leader.

Add comment September 23rd, 2008

ESS Attends Oracle OpenWorld to Promote Enterprise Sustainability Issues

I’ve just returned from a trip to China, where there are some new developments taking place in that market. I’ll be sharing details with you later; but for now, I’m really pleased to be in San Francisco to attend Oracle OpenWorld this week. Oracle is doing some exciting things at this year’s user conference, including launching an enterprise sustainability program called the Green Room. There is an entire track of Green Room sessions exclusively focused on sustainability, environmental stewardship and the business of green. ESS will be participating in several Green Room activities.

Here’s a list Green Room programs, including:

• The Green Room
• The Green Marketplace
• Empower the Green Enterprise Awards
• Ready. Set. Connect.

But wait, there’s more. Tomorrow, I am going to participate in a pair of presentations with Oracle senior executives on important sustainability issues: I’ll join Ed Abbo tomorrow morning to present a session entitled, Empowering the Green Enterprise; after lunch I’ll co-present with Hardeep Gulati on Environmental Health and Safety in the Context of Enterprise Applications. We’re pleased for the opportunity to share the stage with these respected IT experts.

Also, I’ll be on hand this afternoon to attend the inaugural “Empower the Green Enterprise” Award ceremony, where Oracle executives will recognize organizations that have successfully used information technology to achieve sustainable operations.

Finally, ESS is going to make a big announcement at OpenWorld on Tuesday. I’ll be blogging about the details shortly after the announcement. Suffice to say it’s a big deal and we’re all pretty excited about sharing the news with you.

If you are attending OpenWorld, I encourage you to stop by ESS’ exhibit booth at Oracle’s Green Marketplace at the Yerba Buena Center for the Arts, adjacent to the Moscone Convention Center. We look forward to seeing you here.

Add comment September 22nd, 2008

Regulations Pose Potential Risks to the Enterprise

We have provided our customers with important updates to help them stay on top of key regulatory activities that could impact their operations. It’s worth noting that there has been increased activity recently, focused on GHG management, and not all of those proposals are coming from environmental regulators. Here are three examples, courtesy of Jeff Ladner, Director of ESS’ Climate Change Solution Practices:

Binding requirement to disclose climate risk for energy company

• “Under a first-ever binding and enforceable agreement with New York’s Attorney General Andrew M. Cuomo, Xcel Energy will have to disclose the financial risks that climate change poses to its investors in its annual SEC filings.” The deal also commits Xcel to a broad array of climate change disclosures including: projected increase in CO2 emissions from planned coal-fired power plants; strategies for reducing emissions; and corporate governance actions related to climate change.
• Important tip for you: This agreement is expected to set a precedent for climate risk disclosure requirements from the SEC.
• On a related note, 70 institutional investors are following up on earlier petitions to the SEC. The institutional investors are driving the requirement to disclose climate change risk for all public companies.

FASB proposing new standard for disclosing loss contingencies, including environmental liabilities

• The proposed accounting standard seeks to modify the rules currently governing loss contingencies [financial reserves]. The new amendment reflects the growing pressure that large investors are placing on FASB to force companies to come clean about their liabilities in the name of increasing transparency.
• If the rule remains unchanged, it will become effective for annual financial statements issued for fiscal years ending after December 15, 2008.

Climate related shareholder proxies

• You can now track climate/environmental related proxies demanding improved disclosure and transparency. Numerous companies with whom we are actively engaged are involved in addressing shareholder issues THIS YEAR. The file for the proxies is available for download.

Although we’ve been talking about these issues for many years, they seem to be accelerating, and the regulatory environment is changing daily. That’s why we continue to remind decisions makers that integrated information technology is an essential tool for companies that want to successfully navigate through today’s complicated regulatory environment.

Add comment September 12th, 2008

China Adopts Law Promoting Sustainable Economic Growth

Prior to the Olympics, some experts were concerned about whether the Chinese government would withdraw from its commitment to addressing climate change once the games ended. However, Chinese officials recently made good on their pledge when the National People’s Congress (NPC) passed a law, signed by President Hu Jintao, that is expected to boost sustainable development through energy saving and emission reduction measures.

The law, which takes effect Jan. 1, contains provisions including tax breaks, special spending and other measures to promote sustainable economic growth.

Chinese officials will conduct closer monitoring of resource-intensive and heavily polluting industries such as steelmaking, non-ferrous metal production, power generation, oil refining, construction and printing, according to Xinhua, China’s official news industry.

Much of China’s pollution is caused by the use of coal as a power source; China consumed 1.16 tons of coal every 10,000 Yuan of GDP in 2007, down 3.66 percent from 2006, and the government has set a 2010 target of reducing energy consumption per unit of GDP by 20 percent and major pollutant emissions by 10 percent from 2005 levels.

The law will also encourage industries to adopt water-saving technologies and use cleaner sources of energy such as natural gas and alternative fuels and promote recycling of waste materials such as straw, livestock waste and farm by-products to produce marsh gas.

The pollution control portion of the law is especially important for slowing the impact of further climate change. Studies by American scientists at the National Oceanographic and Atmospheric Administration have revealed that pollution from manufacturing, as well as cooking and heating in Chinese homes could create summer hot spots in Europe and the U.S. by mid-century.

Add comment September 9th, 2008