9 Benefits Provided by Forests

forest

Thailand is not the only country in the world losing forestsDeforestation is also happening in our backyard. The real estate booming back in the day is to blame.

According to a recent map released by World Resources Institute, the top 10 Counties Losing Forest to Development in the US South. These counties “converted approximately123,000 acres of forest to development over 5 years.”

The 10 counties that are mostly located in the South, are prone to drought and putting forest at risk: Harris (Houston), Gwinnett (Atlanta), Fulton (Atlanta), Wake (Raleigh), Montgomery (Houston), Meckleburg (Charlotte), Bexar (San Antonio), Duval (Jacksonville), Jefferson (Birmingham), Cobb (Atlanta).

Forests provide so many benefits to humanity.

Just to revisit some of the benefits provided by forests, here are the 9 benefits, via CBD: 

1. Forests provide food and a vast array of materials for medicinal, cultural and spiritual purposes, as well as building materials and firewood.

2. They store and purify drinking water.

3. Protect watershed.

4. Mitigate natural disasters.

5. Control erosion.

Continue reading “9 Benefits Provided by Forests”

Flooding and Impact on Businesses

CLIMATE SKEPTICS need to pay attention here. This man, Richard Han, CEO of Hana Microelectronics talks to CNN how the floods impacting businesses. The water is 2 meter (about 2.18 yards) high and you have to get to the industrial park – by boat!

There’s a correlation between deforestation, climate, rainfall. When we talk about Thailand’s worst flooding in half a century, look at the impact on people and business.

Half a century ago, Thailand was not as populated as today. Probably few manufacturing companies set up shops here.

Now is a different story.

Down the chain line, since the beginning of this month Toyota, Nissan and Honda combined are losing 6,000 units/cars a day! If you add this to the overall Thailand’s exports. And calculate its impact deeper down the chain line – how it impacted their businesses around the world – the  number could be really huge!

Check this out.

Deforestation, Thailand Floods and Supply Chain

You think deforestation has something to do with “Thailand worst” floods? Because rainforests affect local weather conditions by creating rainfall.

Between 1945 and 1975 forest cover in Thailand declined from 61% to 34% of the country’s land area. Over the next 11 years, Thailand lost close to 28% of all of its remaining forests. This means that the country lost 3.1% of its forest cover each year over that period.

What happened now is Thailand going through the worst floods in half a century. The floods have disrupted the supply chain of some of the big names, i.e. Toyota, Apple, Ford, etc. For example, Toyota, Honda and Nissan – combined – they’re losing 6,000 units of car production daily since early this month.

Thailand is a big regional hub for the world’s car makers and most are suffering disruption, either because their plants are flooded or, more often, because parts makers have had to close and the supply chain has been disrupted.

The output of Japanese car makers has fallen by about 6,000 units a day because of the flooding. Germany’s Daimler AG said late on Thursday it had halted car production because of the threat of flooding. (emphasis added)

via Reuters

Moreover, Bloomberg reports that “Thailand is the world’s largest producer of hard-disk drives, the biggest exporter of rice and rubber and the second- largest supplier of sugar, according to government data.” So if you total domestic productivity, exports and its global impact down the supply chain – the impact from the floods could be huge. Really huge!

I remember when we were still a kid in Jakarta. Our house got flooded few times. When the city gets flooded, it is like snow days for us. It’s fun when it’s not too much and go on for days. Because we can play around in the thick of water! But things can get messy and people got sick after a few days of continuous rain. So enuf of it.

This flood should be a wake up call for everyone.  There is a price to everything (in life and business). That when you disrupt nature’s natural cycle of cooling system this is what could happen.

Sure by now the Japanese conglomerates may already have learned the lessons from this experience. That there’s correlation between deforestation, climate and rain fall. They do learn pretty quick. It’s about risk management and Kaizen!

The chain is disrupted (in pictures)

Pictures worth a thousands words. My friend sent me pictures of Rojana industrial park, where Toyota and other manufacturers have their plants under water siege – that you can see below the fold..

Continue reading “Deforestation, Thailand Floods and Supply Chain”

5 Population Trends that can either Disrupt or Transform Your Business (and Career)

The 7 billion questions. According to National Geographic, by the end of 2011 our population growth will reach 7 billion. What are the consequences for the shift in population? How does population growth have an impact on business and career development? This is something that we all need to think about the implications of, as we witness the shifting of population growth and economic clout from developed to developing nations.

You might not realize that big corporations have ‘quietly’ building their presence at places, where they see having the most potential to grow in the emerging markets. Because they see that emerging markets is the place to go to maintain their growth.

The 7 billion questions. According to National Geographic, by the end of 2011 our population growth will reach 7 billion. What are the consequences for the shift in population? How does population growth have an impact on business and career development? This is something that we all need to think about the implications of, as we witness the shifting of population growth and economic clout from developed to developing nations.

You might not realize that big corporations have ‘quietly’ building their presence at places, where they see having the most potential to grow in the emerging markets. Because they see that emerging markets is the place to go to maintain their growth.

Continue reading “5 Population Trends that can either Disrupt or Transform Your Business (and Career)”

4 Ways the Cleaning Product Industry Measured Sustainability and Lessons Learned

The American Cleaning Institute (formerly soap and detergent Association) recently published its first, 2011 Sustainability Report. Didn’t know much about the organization and the work they do. So I interview Brian Sansoni, Vice President of Communication and Membership, for Ecotwist.

In our conversation, we chat about variety of topics related to the industry’s sustainability efforts. We also touched on the history of the organization, lessons learned, product/design/packaging innovation, consumer education and outreach. (We’ll talk more about their consumer education and outreach in another post. Their programs deserve an in-depth look).

According to Brian, the Soap and Detergent Association became “The American Cleaning Institute,” in 2010. Because they want to expand their reach to include ingredient suppliers. In short, ACI is a trade industry association representing producers of household, industrial, and institutional cleaning products, their ingredients and finished packaging, oleochemical producers and chemical distributors to the cleaning product industry.

Many of us might not know that this organization was founded in 1926. They’ve been working on advancing public understanding of the safety and benefits of cleaning products, and protecting the the ability of its members to formulate products that best meet consumer needs – since then. In fact, sustainability has already been at the core (of the Institute) long before “the term” became popular and corporate social responsibility was invented.

In addition, ACI do a lot of work on regulatory, technical, advocacy and outreach work.

Some the household names members, include Amway, BASF, the Clorox Company, Colgate-Palmolive Company, Unilever, SC Johnson, Seventh Generation and more.

Sustainability metrics

ACI realized as there are more groups of people, government interested on how industries operate sustainability, they realized as an organization they needed to put a spotlight on what their industry is doing on sustainability front. Many of the members have been putting up their sustainability operations in and around the companies.

So in 2009, ACI and its members started a pilot project to report on a common set of sustainability-related metrics relevant to the industry for both its consumer packaged goods and raw material supplier members.

Over the course of three years, 20 companies supply data that includes not only companies that make the end products (detergent, household cleaning products) but also companies that supply them with cleaning agents (chemical, enzymes, fragances) – the supply chain. They worked with Environmental Resources Management to device an initial system so companies can track metrics in four different areas that are associated with the U.S. production of cleaning products.

The project was an initial effort to see how they’re doing and to develop some ways for companies large and small to be able to track this kind of data. It was not an easy thing to do because a lot of companies produce and supply products besides cleaning products. So they have to separate out data – just data associated with cleaning products. It was a learning process.

The cleaning product industry measured its sustainability efforts in 4 different areas:

1. Energy use (electricity, steam, and on-site operations).

2. Greenhouse gas emission (CO2 equivalent) from all sources owned or controlled by the company.

3. Water use and conservation.

4. Waste generation.

1. Energy use

The energy metric data includes electricity use, generated offsite; purchase steam use, coal use, kerosene use, fuel oil use, gasoline use, natural gas (liquid and gas form) use, biogas/ landfill gas used as fuel, other ‘green’ energy sources, and energy use from distribution.

Energy_used_aci_related_productions_1

>> Result: The total energy use (in gigajoules) for participating members decreased from ’07 to ’09 by approximately 18% per ton of production.

2. Greenhouse gas emissions

Member companies reported on greenhouse gas emissions from all sources owned or controlled by the company, including indirect GHG emissions resulting from the off-site generation of purchased electricity, heat or steam; on-site generation of electricity, heat or steam; other combustion process; physical or chemical processing; venting and fugitive emissions.

Greenhouse_gas_emissions_aci_csr

>> Result: The greenhouse gas emissions for participating members also decreased by 25% in ’07 to ’09.

3. Water use and conservation

Water is one of the key resources used across in the full-cycle of production from the water used upstream for raw material production to the manufacturing process to consumers when they use their products. The water metric tracks not only the water amount use but also water saved through conservation measures.

The water use data includes: water in product, purchased water, withdrawn from wells, surface water at plants, collected rain water, gray or reused water, steam.

Water_use_aci_related_csr

>> Result: Water use decreased by 10% for participating members from ’07 to ’09.

4. Waste generation

Members of the Institute generates both hazardous and non-hazardous waste. The waste metric tracks the amount of solid waste generated, reused, recycled and disposed by each company.

Solid_waste_aci_related_csr

>> Result: Waste generation decreased between ’08 and ’09, but increased by approximately by 2% from ’07 to ’09.

Lessons learned

Learning is part of the process, afterall sustainability is a journey:

– The data helps them understand industry’s environmental performance and the effectiveness of the policies that these companies have in place as well as other programs and their manufacturing process.

– Overtime as companies look to see where the trend is going for their particular line of business, they would put new practices or improved practices in place so they can certainly cut down on energy use and water use.

– For companies during this time of economic challenge the past couple of years, that’s a big expense when you’re paying for fuel, energy to keep the processes moving to formulate products.

– Companies are taking a number of different steps to decrease energy use, make it more efficient that varies per company depending on what they make.

– More and more companies are looking at the practices certainly to get to a point because they are responsible to their stakeholders, customers and employees to put all of these processes in place, make sure that they’re safe and effective as possible.

Innovation.. in the process 

In many cases, through R&D innovation, companies tested and put out products that require less water. For example, liquid laundry detergent. If you go a store right now, you’ll find that liquid laundry detergent are all concentrated. By concentrating and compacting this liquid laundry detergent, consumers could still wash the same number of loads, but the package doesn’t need to be as big. For companies, they don’t need as many fleet of trucks to deliver to the store. So it saves money on transportation. Less packaging means you’re not using much water anymore. And less space needed at the retail level.

You can listen to the full interview here.

Enjoy!

Check Out Environment Podcasts at Blog Talk Radio with Dewita Soeharjono on BlogTalkRadio

Continue reading “4 Ways the Cleaning Product Industry Measured Sustainability and Lessons Learned”

20 Global Trends that can Have an Impact on Your Business

Whether you run a small, midsize or large company, some of the trends will have an impact on how you do business. The question is – how ready is your business?

“We are actually within the next 5 years that I would call the great transformation,” says Daniel Burrus, a futurist, in an interview with Dr. Maira Gunn of IT Conversations.

This is not something that you should be afraid of. Instead it should challenge you! It’s about how you manage risks, especially risks that you have no control of. And see how these challenges can actually help redefine your business via innovation.

So here we go.

1. Population growth

The world’s population is pushing 7 billion (6.914 billion) by end of 2011. Asia accounts for more than 60% of the world’s population with more than 4 billion people. China and India make up about 37% of the world’s population. The U.S. is third most populous countries in the world with 308,745,538 people, according to Census 2010.

2. Technology

Four things that can impact your business: internet, mobile technologies, smart phones, and social appsonomics.

3. The world is increasingly urban

The world’s is 50.5% urban. In the U.S. 22 of the 30 fastest growing metropolitan areas are located in the fifteen most populous states, according to City Mayors. Twenty-four out of 27 megacities in the world (cities with more than 10M people) by end of 2011, are cities located outside the U.S.

4. Water scarcity

Closest to home. One-third of all counties in the lower 48 – will face higher risks of water shortages, according to NRDC study. A new report by U.S. government finds that major rivers such as Rio Grande and Colorado could see reductions in flow up to 20 percent. Water is among top 5 environmental issues that are important to business.

5. The use of social media in the world

Facebook has a global audience more than 500 million users, which is bigger than some “real” countries in the world. In 2010, Twitter added 100 million new users. According to Pew, 73% of adult profile users use Facebook, 48% have profile on MySpace and 14% use LinkedIn.

6. Supply chain

The supply chain is so interconnected globally, if something happened in one place it can affect productions in other places. Take for example in the case of Japan’s impact for the world’s major industries after tsunami and earthquake. Toyota have to adjust their May production in North America, because of parts availability after the natural disaster.

7. Climate legislations

A recent study by the Graham Institute of Climate Change found a growing commitment for climate legislations in 16 major countries.

8. Reverse innovation

Reverse innovation is innovation adopted from emerging markets, first. Companies are developing products in third world countries before they bring them to the U.S. Emerging markets been the catalyst of growth that you see in the telecom industries. The concept of prepaid was unheard of before. Now Virgin, Boost, Cricket, AT&T are in the business of offering – prepaid phone services.

9. Demographics change

In the world, the average age: 28. Han Chinese ethic group represents about 19% of the global population. In the U.S., Hispanics is the fastest growing population. The recent 2010 Census counted 50.5 million Hispanics making up 16.3% of the population, which is up from 35.3 million in 2000. This segment of the population grew over 43% in the decade.

10. The rise of value-concious shoppers

This is the silver lining of global recession. 91% of respondents from 53 countries surveyed by Nielsen (registration req.), said that they’d continue to buy private label products. More than half of Americans (55%) said that purchased more private label brands during recession and 94% said that they’d continue buy private labels even after economic improves.

11. The business of helping the poor

In economic term, this is often referred to as base-of-the-pyramid. They are the largest and the poorest in world’s socio-economic group. In scale, 4 billion people in the world living on $1 per day! C.K. Prahalad says, that “corporate sustainability and inclusive growth of poor people in the global market will become inextricably linked.” Already there’s movement in saving the poor and making profit at the same time.

12. People power

Egypt. The rise of social consumers, social commerce. It’s more likely that people would listen to their friends’ opinion than brands.

14. Government regulations

15. Rising energy prices

16. Biodiversity, the pricing of nature

Biodiversity matters more to business execs than climate change, according to a survey by McKinsey. 59% of respondents viewed biodiversity as more of an opportunity than a risk for their companies. The United Nations is pushing to put price on nature.

17. Crowdsourcing

Wisdom of the crowd. You can crowdsource just about anything. Netflix $1M prize for creating better algorithm for recommending films. Kiva, is crowdsourcing microloans. Procter and Gamble, Nike, Starbucks, Dell, Best Buy, Threadless – these cos. have created digital platforms for their customers to help them with creating new products, etc.

18. Demand for organic food, products

 According to Global Organic Market Access, the global organic food and drink sales is projected to reach $60 billion. The North American market for organic food and drink continues to show healthy grow. It has overtaken European market this year to become the largest.

19. Social, open-source learning 

Khan Academy. Open Course Ware. Open Learning Initiatives.

20. Sharing

Sharing knowledge, you see this already happening via social networking, social publishing sites. Sharing things, yes. There’s a peer-to-peer car sharing solutions. ZipCar. Bikesharing.

There’s a lot more trends that we can think of.

What else do you see happening around you that can have profound impact on how you do business?

Lessons from the Top: How Top Performing Companies get Into Sustainability

A recent Sustainability and Innovation survey of global corporate leaders conducted by Boston Consulting Group and MIT Sloan Management Review, found that sustainability is at the core of many ot the top performing businesses. BCG and MIT surveyed more than 3000 business executives and managers and organizations from around the world. The survey captures insights from individuals in organizations in every major industry.

Point of entry: waste reduction and resource efficiency

These are initiatitives that companies can start working on. Waste reduction and resource efficiency are identified as the low-hanging fruit. Respondents put the two as priorities that help them run lean and efficient operations. It is measureable and it saves money.

Via MIT Sloan Review Management.

For Clorox, it was an entry point into sustainability. “We had done the measurement on footprint and the groundwork on projects so that people could buy into the greenhouse gas reduction, solid waste reduction and water reduction goals,” says Beth Springer, executive vice president of international and personal care at Clorox. “They could see the path.”

For Johnson & Johnson, resource management is also an efficiency measure that contributes to profitability. According to its 2009 Sustainability Report, between 2005 and 2009, the company completed more than 60 energy-reduction projects, representing $187 million in capital investments, which it expects will collectively reduce carbon dioxide emissions by 129,000 metric tons annually and provide an internal rate of return of almost 19%. The projects have so far generated about 247,000 megawatt hours of cumulative energy savings a year.

During the same period, Johnson & Johnson made a 32% cut in both hazardous and nonhazardous waste. “It’s been better for the bottom line, especially in terms of energy costs,” says Al Iannuzzi, senior director of worldwide health and safety at Johnson & Johnson. “Waste is cost to the corporation … and, of course, the less waste you send out of your gates, the less expensive it is to make your product.

The top drivers

From there, the embracers expand their practice to embed sustainability into their core values, because they see the link between sustainability and profit. Among the top drivers that support sustainability-related investments are:

  • – Increase margins or market share.
  • – The opportunity for greater potential for innovation in their business models and processes.
  • – Access to new markets.

The_top_3_benefits_of_sustainability

Click on image to see larger view.

Making it happen

World_view_of_sustainability_leaders

The 7 habits of top performing businesses:

1. Move early – even if information is incomplete.

Be bold. Use your gut. This is a journey.

2. Balance broad, long-term vision with projects offering concrete, near-term “wins.”

It’s a balance between ambitious vision and areas of competitive advantage. The smart companies narrow their projects into those that they can produce early, show bottom-line results and practicality.

3. Drive sustainability top down and bottom up.

Sustainability must be driven not only from the top down, but also it must involve employees at all levels for ideas and insights from multiple sources.

4. Aggressively de-silo sustainability – integrating it throughout the company operations.

Top performers applied sustainability to all existing business processes.

5. Measure everything (and if ways of measuring don’t exist, start inventing them).

Establish baselines and develop method of assessments so that starting point can be identified and progress measured. Try to establish ways of quantifying the impact of sustainability on brand, innovation, and productivity.

6. Value intangible benefits seriously.

“Smart companies are realizing that conservation of natural resources they need is a fundamental part of risk management.” Coke and Pepsi realized that water is the key ingredient to their business. Water conservation is fundamental to their business, if they want to stay in business. Allow time to develop the ability to measure and understand fully – intangible advantages. Companies need to make investment decisions based on tangible benefits, intangibles and risk scenarios.

7. Try to be authentic and transparent – internally and externally.

Be realistic. Do not overstate motives or set unrealistic expectations. Communicate your challenges as well as your successes.

Dig deeper for Sustainability: The ‘Embracers’ Seize Advantage, here.