SKAN TALK

Comments on CABN Rampant Greenwashing Thread

This post is in response to a dialog occurring over at the Co-op America Business Network listserv, addressing issues related to greenwashing, reverse environmentalism and how there are too many "followers" in the green/sustainable movement.

Read on...

The SKAN Factor -- Culligan

CULLIGAN INTERNATIONAL COMPANY (Privately Held)

(http://www.culligan.com)

Background

$745MM 4700 Employees (about 400 based in Chicago)

Formed in 1936 (Emmett Culligan)

Sells through network of over 800 dealers worldwide

Noteworthy Events

None.

Reported Sustainability Initiatives

Culligan’s water softener and drinking water systems were instrumental in converting the water management processes of the world’s first LEED for Homes™ Platinum Certification for a home remodel – a 1948 rambler. The project is headed by Live Green, Live Smart, an educational organization focused on creating a global “green community”.

“We believe in the environmental direction that the home is trying to promote, and we know that our products support this type of initiative. It is the wave of the future. Culligan has some of the most environmentally friendly water conditioners and filters available on the market today, and our involvement was a testament to the quality and capabilities of our products,” said John Packard, president.

Summary

Remember that catchy phrase “HEY CULLIGAN MAN!” Well it’s time to scream that again yet in a different context. Culligan is resting solely on its ability to provide an alternative to the current water bottle debacle and has done little to clean their own house (we called…and called and called, asking for a report on their sustainability initiatives – still nothing). You simply have to like the fact that they are so intensely focused on in-home filtration systems (the obvious solution to both the “plastics” (including recycling) and “leeching” issues that are all the rage today) and that even the 5 gallon polycarbonate bottles (time to return to glass) are being re-used close to 90 times before they hit the landfill (or hopefully the recycle bin). However, sustainability is not simply about a product, it’s about how the product is made; it’s about the commitment to energy, water and waste reductions in manufacturing, it’s about transportation and it’s about people. It’s also about access to information. Other than proprietary information that makes a product unique, nobody should have to beg a company to learn about how they operate. The tight-lipped folks that I spoke too had an opportunity to show their commitment and didn’t. The weight of this component on the overall sustainability rating is significant.

The SKAN Factor Sustainability Rating: <.30> (Scale: 0.00 - 1.00)

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The SKAN Factor -- Steelcase, Inc.

STEELCASE (NYSE:SCS)

(http://www.steelcase.com)

Background

$3.4Bil (up 10.5% from prior year)

$133.2 net income (up 24.6% from prior year)

13,500 Employees Worldwide

800 independent dealers

80 locations globally

31 plants

Over 500 product lines

Most recognized Brands:

                Steelcase

                Brayton International

                The DeSigntex Group

    Nurture Healthcare

Noteworthy Events

Steelcase began their business in 1912 creating the first metal office wastebasket and later steel desks and moveable walls. Located in Grand Rapids, Michigan, the company was motivated to turn green in 1970, resulting in a strong focus on their use of air, energy, water, and waste. Steelcase has more cradle-to-cradle certified products than any company in their industry.  They have remained global leaders since 1979 in the office furniture industry.  By 2012, Steelcase wants to reduce its environmental footprint globally by 25%, its Greenhouse gas emissions by 41%, its VOC emissions by 95%, its water consumption by 54% and its Energy consumption by 46%.

Reported Sustainability Initiatives

• Wood furniture plant in Michigan was the first manufacturing facility in the world to be certified under LEED (US Green Building Council Leadership in Energy and Environmental Design program)
• Created Designtex Group of textiles, reportedly among the greenest fabrics available in office furnishings
• EPS’s Green Power Leadership Club-largest purchaser of US wind power credits in the industry
• (helps to eliminate 61M lbs of CO2 energy per year)
• Uses LCA development (Life Cycle Assessment)  identifying ways to use less energy and reduce waste and environmental impact
• 1983 won National Award from President’s Council on Environmental Quality for pioneering a manufacturing process that curbs pollutants in painting process
• 2002 Fortune Magazine rated Steelcase #6 in the nation for social responsibility and #1 in the furniture industry in that category
• In 2004 eliminated the emission of almost all volatile organic compounds (VOCs) from its metal finishing operation before regulatory mandate
• 2004 introduced Steelcase Environmental Partnership, a company- wide program designed to help customers determine best strategy for disposal or reuse of their product
• 2006 joined USEPA’s Climate Leaders program pledging to reduce GHG emissions
• Shingo Prize for implementation of lean principles and continuing sustainable efforts
• In 2007, over 20 product lines received certification for SCS (Scientific Certification System) for indoor air quality emission
• Recently completed  2-1/2-year effort to assess every chemical in its North American portfolio for environment impact
• Certification of the contract furniture industry's first "Cradle-to-Cradle" product;
• Wildlife habitats at various manufacturing plants
• Implementation of one of the first-ever, 100 percent water-based, UV finishing lines
• In June at the NeoCon 2008 World's Trade Fair in Chicago (National Exposition of Contract Furnishings), all of the new and existing Steelcase branded furniture and architecture products in the showroom, including walls, storage, furniture and seating, were Cradle to Cradle certified by McDonough Braungart Design Chemistry (MBDC). Won seven Best of NeoCon awards, including three Gold.

Summary

There are plenty of “lists” out there now that purport to identify the most sustainable companies in the world.  However, most of these lists fall far short in their assessment of true sustainability.  To be truly sustainable, a company needs to weave environmental and social responsibility into its very fabric, not just product to product and not just to market the company as being “green” (known as Greenwashing).  Steelcase presents an example of sustainability at the core.  Since 1970, this company has shown a genuine, highly conscious effort to become a better company through environmental and social initiatives throughout the organization.  Entire teams of people spend their working day addressing everything from materials, to processes, to transportation, to re-purposing, to social programs and even to the development of natural habitats around their manufacturing plants.  VERY FEW companies (most of whom are on these so-called lists of the world’s most sustainable companies) undertake this level of commitment to the earth and its inhabitants.  Interestingly, one of Steelcase’s biggest competitors, Herman Miller, also rates among those that are out to truly make a difference.

Neither of these two companies, though, is going to set records on Wall Street.  However, each has shown solid performance, especially when they committed to sustainability.  It’s fascinating to see that neither company blasts internet surfers with claims of how “green” they are – they just exist that way.  The question, though, is whether they’ve sufficiently tied their sustainability initiatives to their commitment to also make a buck.  In the end, perhaps the sustainable companies that don’t talk “green” will outperform the unsustainable companies that do.  Until then, Steelcase’s stock has a little catching-up to do.

The SKAN Factor Sustainability Rating: <.85> (Scale: 0.00 - 1.00)

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The SKAN Factor -- Lifeway Food

LIFEWAY FOOD, INC (Nasdaq:LWAY)

(http://www.lifeway.net)