Jon Warren Lentz, Inc

What is Sustainability Consulting?

The acme of green is sustainability. Sustainability is achieved when a process or industry is clean, has no carbon footprint, and is infinitely repeatable without resource depletion, toxicity, or other damage to the environment.

That said, it is better to be environmentally responsible than irresponsible, just as it’s better to be operating a clean technology rather than a technology that’s simply environmentally responsible. And carbon-neutral is preferable to clean tech, while renewable is a notch above carbon neutral. But, if we want our species and planet to thrive, then the level of attainment to which all human activity should aspire is sustainability.

So when we talk about green, we should be mindful that while green is good, only sustainability is sustainable; all other levels of green lead to eventual collapse. In the “Hierarchy of Green™” sustainability sets the bar properly high. Only sustainability is sustainable.

If we don’t set the bar high, it becomes a stumbling block. Now, at the close of 2008, after decades of inaction due to lies and misinformation it is critically important that we green our economies, our cities and our homes. Humanity doesn’t have any more time to be stumbling towards green.

So today I want to talk about the business of greening business. If we agree that it is imperative for large scale business activity to go green, then it should be obvious that a change from the old gray to the new green economy can’t be limited to businesses that operate in the green sector or are either environmentally focused or already working responsibly.

Businesses change for many reasons. External factors, such as the recent economic downturn, often change businesses without their willing participation. But there are other changes which, even when chosen, can be difficult to achieve. This may often be the case with the project of changing a business to become green. Since most executives have built their careers on issues of market share and business development, they are not prepared to ride the green wave; rather, they are likely to wipe out. As such moving from gray to green is not going to be easy.

Many businesses will want to hire an outside consultant to guide them through the transition. If a business is large enough, it may make sense to create a high level position within the company such as a Chief Sustainability Officer. Even so, the services of a qualified consultant may provide valuable knowledge about green issues. The consultant must understand the risks, challenges, and opportunities inherent in transitioning from gray to green and will motivate the business to commitment and action. The consultant will serve as a guide to competing and succeeding according to new, green rules and will be alert to act on opportunities while avoiding the risks of emerging environmental issues. Additionally, a strong consultant will ensure compliance with regulations: both existing regulations to reduce pollution, as well as proactively addressing future legislation, such as pending Federal & State RES (renewable energy standards)

Increasingly, publicly-traded businesses will have an incentive to exceed the letter of the law in reporting their environmental footprint. That’s because prudent investors want to be informed of risks that may jeopardize their investment; responsibility for a company’s contributions to climate change, environmental degradation and related issues may constitute exposure to lawsuits for a range of consequences, such as failing to mitigate activities that contribute to climate change. In order to qualify at any level in the “hierarchy of green™,” businesses need to limit their exposure and engage these issues by proactively remediating past environmental transgressions while also publishing and initiating plans to reduce, resolve and abate their contribution to climate and environmental problems. Soon, under the current rules of financial disclosure, annual reports are likely to address these issues and will describe the company’s current climate footprint as well as the programs either in effect or in planning to either offset or reduce their environmental footprint. Businesses that aren’t already moving in this direction run the risk of losing investors. A top-notch sustainability consultant will lead the change in this area as well.

As regards proactive change, while it is still true that far too many businesses have adopted a wait-and-see attitude, both consumer-driven change and legislative directives are inevitable. Businesses that adapt early and substantively (without merely greenwashing their image) will have a competitive advantage. As such, the value of a consultant will be best measured in terms of the long-range results that will be delivered as a result of their intervention.

It’s also true that smart entrepreneurs and business leaders have always found tremendous opportunity in a change. Change is the fulcrum of good business. Good business always translates into a strong bottom line.

Furthermore, enlightened business leaders understand that reducing their company’s carbon footprint is not only essential to remain competitive, but that it’s also the right thing to do. As Glenn Croston states in his book, 75 Green Businesses You Can Start to Make Money and Make a Difference, “Business leaders are realizing that being green is something they want and need to do to build a better world and a better business.” Besides, he continues, “Businesses without a good handle on their environmental footprints may lose customers.”

Increasingly, over this coming century, at the end of each day, when the receipts are counted, green will matter in two ways: for our species to survive, we must green our economies. For our businesses to survive and thrive, we must make money. Both are green, both are good, both are compatible.