The Power of Contracts for a Green Business

Here's what you may not clearly understand. The die has been cast, the plans drawn up, and the decision has been made about where business will be in the next five years. If your company expects to be in business and hopefully profitable in this emerging economy, the realities of these mega-forces needs to be brought home to those who do not yet see the light at the end of the tunnel.Every five years after the Kyoto Accord, the agenda is ratcheted up and more far-reaching. The WRI (World Resource Institute in D.C.) refer to the next five years as the "Post 2012" period. On the global scale, environmentalism has gone well beyond signing an agreement to reduce CO2. In fact, if your business was anywhere but America, this business reality would be a much higher level of expectation. Global efforts are moving forward, and every business will encounter their impact at unexpected levels.Here in America, we have a glimmer of what to expect with Executive Order #131514. This was signed in the fall of 2009 by President Obama and signaled a further shift into a Green commitment. Though far from the comprehensive program that is seen elsewhere in the world, it sends a signal of expectation throughout the economy. The message is: "It is time to get your Green House in order."In America, the impact is likely to see a more form of Green transition rather than socialistic mandates. One example came a few years ago when Governor Charlie Crist mandated that no government business would go to hotels that were not Green. Guess how long it took for hotels to turn into a Green hotel? Contracts are the lifeblood of many businesses, so a small requirement in an RFP can have profound effects on a company's attitude about Going Green.Due to the expanding influence of FAR (Federal Acquisition Regulations) started under President George H Bush and strengthened by Presidents Bill Clinton and George W Bush, the ripple effect is being felt in government contracts. More and more environmental requirements are turning up in contracts with the government.The trucking industry is one of the latest examples of this dynamic. Unless the newer, and Greener diesel engines are used; governmental contracts are not awarded. LEED facilities demand Green janitorial or service providers. Larger corporations have not only made the transition to sustainable status, they now follow the Green supply chain protocols seeking Green service and product suppliers.The EPA is promoting its "Environmentally Preferred Purchasing" program that asks businesses to make preferential decisions for Green certified companies. This is not going without notice. Conferences and seminars are echoing the EPA's message with the call for Green Supply Chain and Life Cycle Analysis studies.Pressure from environmental program, the world market, the government, and large corporations has an extremely obvious conclusion. Any company that is planning on earning good contracts in the future must become more than greenwashed, but Green certified.The hesitation felt by companies considering a transition to a Green and sustainable program is usually a concern for the cost and interruption to the business. That is like claiming that the pain of childbirth would prevent repopulation. In fact, the rewards for Going Green are often mistaken or simply ignored. Nearly any business would be willing to pay the cost and go through the trouble to win a lucrative contract.Here are the best reasons to Go Green as a company: First, a properly developed sustainability plan will save the company a great deal of money. Cutting operational costs makes your company more viable. Secondly, there will be more and more requirements tied to contracts, good jobs, and your industry. Why wait until your company is punished by missing a contract worth tens of thousands of dollars? Thirdly, no matter how we try to deny the reality, there are going to be more and more environmental regulations. Smart companies are getting ahead of this curve and getting ready for business in this new economy.The only question is when and how your company will finally make its transition to Green. The answer to this question is clearly laid laid out in EO #13514. Essentially, every business needs to train an in-house Green Officer (Certified Sustainability Officer or CSO) whose primary duty is to develop a sustainability plan tailored to your company's unique situation. Thirdly, the company needs to facilitate and implement the sustainability plan as part of the ongoing operational expectations.Fourth, is the recognition of the company as a Green certified business. This is an area that has two important choices. The first choice is called "Easy Green" where certification comes from a sham website offering certification through "blind audits" or those community green business certifications that have negligible compliance or oversight.Companies that wish to demonstrate a serious commitment to sustainable operations should seek certification from audited programs like LEED, ISO, or Green Business League. The CSO prepares the company for such an audit, but the highest praise and value comes from the ability to demonstrate the environmental value of the company through a credible Green certification.Installing a CSO or Green Officer need not be a serious expense. In most cases, someone in the company can be trained online. While this is an area of special knowledge, it is not a difficult task to learn how to develop a well-designed sustainability plan. Why hire a Certified Sustainability Office when one can be trained internally? It is important, however, that the CSO is part of the company planning discussion and that the sustainability plan is included in the general operational plan of the company.On that inevitable day when your company encounters a deal, contract, or bidding opportunity that requires Green certification; your company need not walk away empty-handed. The number of contracts tied to Green certification will continue to increase. The non-Green marketplace will shrink. What course should your company take if it hopes to compete in the marketplace over the next five years?

Incremental Green Business Programming Works Best

In life, we have all found that we can either do the job ourselves or pay someone to do it for us. The major reason that we hire someone to do the job is that this person does the job better or does the work faster than we can. It makes sense to hire someone to handle the task if it is a big distraction to your work or outside your competencies. However, there are times when it makes sense to do the job yourself.Installing a Green program for your company is an example of this two-fold choice. There is a growing army of firms and consultants that will arrive at your door and take over the Green agenda. Today, energy auditing firms are popular. Other consultants are building specialist. Then, there are solar and wind power experts and remodeling firms looking to insulate the building or install more efficient windows. We must not forget the carbon accounting programs that are related to the energy sector as well.It may help to remember that Going Green is not the "Just One Thing" spoken of by Jack Palance in the City Slicker movie. Each of the items mentioned are one piece of a much larger process. We have a lot of misdirected Green in the business world. By grabbing onto one environmental element, businesses eagerly proclaim that they have "Gone Green." This is a step in the right direction, but it is not a Green business certification by itself.Like going out to eat, it is convenient and pleasant to have someone else prepare your dinner; most of us believe that "home cooking" is best.. and probably healthier. There is a growing realization that it is possible to create a holistic Green and sustainable program for your business with a modest amount of guidance and training.Referring to Executive Order #13514 which was signed in the fall of 2009 by President Obama, we see that there is a ca for sustainable operations to include carbon reduction, energy reduction, paperless systems, reduced waste, water demand reductions, and Green fleet ideas. So, it is easily seen that the sustainability plan should include a broad array of applications.Also found in this executive order to the call for each organization to install a sustainability officer as the key man or liaison for the Green program in the company. This is the core issue for many small, medium, or large size companies. While this appointed person should be trained as a Certified Sustainability Officer, the minimal cost of training is small change compared to the fees of an environmental consulting firm.The sustainability office has one primary task, and that is to prepare a tailored sustainability plan for the company. And, this plan is frankly a step-by-step process of environmental improvements that can be phased in at a comfortable pace. With training and guidance, the sustainability officer can maintain an ongoing program that does not disrupt the business and also rewards it with savings from these Green improvements.Companies now have even more help in the implementation of a Green program. The Green Path software recently introduced provides an extensive checklist of Green business ideas. By working through the software, any company can improve its operation and earn points toward a credible and transparent Green business certification. The combination of this software and a trained sustainability officer seems to be both logical and appropriate.Remember, the building is not the same as a business. Some believe that Going Green is about making capital improvements to the building. In fact, the vast majority of businesses do not own their own building; but they can certainly Green Up their routine operations. It is obvious that a Green business is more about operation than building improvements. Therefore, as seen in the executive order, companies have been encourage to Green Up their operations. The message is clear, Green buildings are great, but Green practices are how any company can get on Green Path.