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Central Ostrobothnia

University of Applied Sciences


BK MG 301 Green Business Practice
Course type Assignments, Case studies
Credits 3 ECTS
Books No book
The aim is to focus students on the emerging role of
environmental management as it integrates the environmental
questions into the decision-making process of factors such as:
environmental marketing management and its required tools,
environmentally friendly manufacturing process, new changes
in the organizational culture, the informational role of
marketing. Students will discuss the role of business as
responsible and contributing members of changing society.
1
Central Ostrobothnia University
of Applied Sciences
BK MG 301 Green Business Practice

Lecture: Environmental Management


The examination will be held on the last week of the study
period and question will cover this Environmental
Management and Green business –lectures.

HTT & PhD Juhani Palojärvi 2


1 Environment and Management
1.1 Why is the Environment Part of
Management Practice?
Environmental issues have become increasingly important in
business decisions during 1990’s. There are many reasons
such us:
* The number of environmental regulation is steadily
increased.
* The number of environmental organizations that did not
exist in the 1960’ now have large number of members.
* Many European countries have green parties with
parliament representation, and the general public claims
to be interested in environmental issues.
3
1.1 Why is the Environment Part of
Management Practice?
* Business magazines have special issues on the
environment, ‘environmental manager’ is an established
professional title, and corporative environmental
management is on the curriculum of an increasing number of

universities.
* The business organization consider environmental issues
to be increasingly important, the media tell us that the
state of the world is continuously deteriorating, and
companies are accused of being responsible for this
development.

HTT & PhD Juhani Palojärvi 4


1.2 The enterprise is in gross-pressure of its
interest croups:
workers owners
management
deliverers
trade
unions

compe-
titors
Enterprise
state

financiers
customers
neighbor- civic and
political environmental
hood’s organization
parties
inhabitants
1.3 Important Environmental Management
Issues of 21 st century:

- Poverty
- Wars / Terrorism
- Environment

• Can respond to environment at personal,


governmental,
or business level (Welford)
• Major internal change to business as well
• Environmental Management represent an organized
response to environmental challenge 6
1.3.1 The Missionary Approach

* Common cause (beliefs)

* Influence and convince (“do onto others …)

* Visionary (future happiness)

* Make business sense (daily bread)

* Build local networks (“go out and make …)

* Support from above (staff unit, the network)

HTT & PhD Juhani Palojärvi 7


1.3.2 The elements of the
Environmental Change Program (ECP)
Strategy

Insight
Knowledge
Skill Intention
Master Will

Competence Commitment

HTT & PhD Juhani Palojärvi 8


1.3.3 Four key aspects of
Environmental Management System
The questions below should be considered and answered
by the enterprise before starting EMS system.

* To what extent are enterprise adopting EMS ?


* What motivates enterprise to do so ?
* Are EMS an effective tool for managing environmental
costs and risk inside and outside the factory,
particularly for managing key stakeholder groups and
community relationships ?
* Are EMS effective tool for sharing information with
interesting with stakeholder groups in the community ?
9
An environmental ideology in
Electrolux
The core environmental network in Electrolux had the view
that environmental initiatives were to be business driven: i.e.
business and environmental issues were to be considered
inseparable.

Electrolux’ environmental ideology can be presented


according to the three key words ‘is’, ‘should’ and ‘how’.
The quotes under each heading below are taken from the
core environmental network’s internal documents. The
quotes do not give an exhaustive description of the
ideology, but serve as illustration.
HTT & PhD Juhani Palojärvi 10
‘Is’
“Economic and environmental potential is not maximized”

“Business and environmental issue are not seen as


completely inter-linked throughout the organization”

“We risk being forced to take action due to legislators and


environmental organizations”

“There is a trend toward global warming”

“Increasing shareholder value is not the objective of our


environmental activities”
HTT & PhD Juhani Palojärvi 11
‘Should’
“Increasing number of international environmental treaties”

“Environmental activities are seen as sources of competitive


advantages”

“Market awareness regarding environmental issues


increases”

“Our products are more resource efficient”

“Environmental issues have increased shareholders value”

HTT & PhD Juhani Palojärvi 12


‘How’
“Taking action now makes us better prepared for the future”

“We have to maximize economic and environmental


potential”

“Environmental issues shall be integrated in general


business strategies”

“We have to decide upon strategic direction”

“We only take actions that increase shareholder value”

“We must actively develop demand for environmental


product”
13
1.4 Perspectives in the Environmental
Challenge

• Technological

• Economic (i.e. Environmental Economics)

• Managerial (i.e Environmental Management)

• Philosophical / Ethical

HTT & PhD Juhani Palojärvi 14


1.4.1 Topics in forth International
Conference on Environmental Problems

• Environmental management
• Environmental impact
• Erosion and dirt
• Water quality issues
• Hydrodynamics
• Transport modeling
• Atmospheric pollution and control
• Cleanup methodology for oil spills
15
1.4.2 A Description of Environmental
Problems Can be Based on Traditional Topics

• Pollutant-oriented issues
• Sector-oriented issues
• Environmentally-oriented issues
• Effect-oriented issues
• Actor-oriented issues
• Planning and decision-making issues

HTT & PhD Juhani Palojärvi 16


1.4.3 Key Environmental Management
Issues
• Regulatory framework
• Pollution prevention
• Liability and financial issues
• Risk assessment and public health
• Life-cycle analysis
• Resource management
• Environmental business strategies
• Global perspectives
Source: Kolluru
17
1.4.4 Core Content is Balanced Between

• Concepts and “how to”

• Technical and business information

• Finnish and global issues

HTT & PhD Juhani Palojärvi 18


1.4.5 Current Conditions

• Health advances – cancer, exposures


• Shortcomings of environmental health research and policy
• Science: negotiations and politics
• The rise of market-based policy
• Remediation: better decisions, science
• Pollution prevention: a mixed bag
• Technology: international competition
• Limitations of current health policy
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1.4.6 Emerging Frontiers
• In situ (paikan päällä tapahtuva) remediation technology
• Bioremediation
• Life-cycle assessment: state-of-the-art
• Molecular biology
• Exposure analysis, complex mixtures
• Policy: industrial ecology, equity
• Risk-based decisions
• The downside of cost-benefit analysis
• Improvements in health risk assessment
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1.4.7 Priority Concerns
• Groundwater contamination
• New diseases
• Ecosystem degradation and biodiversity
• Health concerns: non-cancer effects
• Reducing exposures
• Carcinogenicity (cancer) testing
• Remediation: DNAPLs, acceptable endpoints
• Pollution prevention: can it be regulated?
• Policy: prevention, flexibility, values
• Barriers to technological innovation
• Aftermath of a diminished EPA (Environmental
Protection Agency)
21
1.4.8 Managing the future

• Remediation: more productive R & D (Research and


Development)
• Fostering collaboration, cooperation
• Educating the environmental professional
• Health: relevant research
• Research resources: making do with less?
• Federal policy: experimentation, consolidation

HTT & PhD Juhani Palojärvi 22


1.5 The idea of Sustainability
* The problem of finding the best way to protect our
environment is one the most difficult to solve;
unfortunately fighting against pollution or save endangered
species (uhanalaiset lajit) is not enough: we need a global
environmental strategy.
* The developed nations, whose population is one fourth of
the world total, consume 80% of world goods.
* The developing nations consumer their environment and
their renewable resources faster than one can rebuild them.
* The concept of “sustainable development” can lead us
towards a strategy that will consider the environmental
problems, the hopes of the developing nations and the needs
of future generations as well. 23
1.5 The idea of Sustainability …
Possible guidelines for the sustainable development are:
• Protecting of the agriculture soil
• Reforestation (Reafforestation Br)
• Demographic control
• Energy saving
• Development of renewable energy sources

HTT & PhD Juhani Palojärvi 24


1.6 Legitimate vs. Illegitimate impact

Legal Extraction
and Production Emissions into
Activities Environment
Legitimate path

Enterprise (i.e.
Manufacturing Ecological
Extraction) Illegitimate path Damage

25
1.6.1 Four views of business-
environment interaction
Organizations and their manager act in different ways when
confronted with environmental pressure. Managers in different
organizations may see environmental issues completely
differently.
The difference may be result of contextual variation: manager
treat environmental issues differently because the
requirements vary between organizations. Classification
regarding how active organizations are regarding
environmental issues has been presented by many researches.
Companies that do the minimum of what is expected from
them, or conduct lobbying activities against environmental
legislation are put at one end of a continuum, and classified as
reactive or proactive.
At the other end of the continuum are creative or proactive
companies. As such, they take environmental consideration
than that which is expected from them. In between are
companies that are receptive and adaptive; i.e. doing about
what is expected from them and perhaps a bit more.

Supposedly, the vies of the relationship between business


and environmental goals are based on theories of how
environmental problems are to be found. According to
Lidskog (1998) two such theories to be found.
The first is business and technology avert. Business
organizations and politicians are considered to have created a
risk society which is impossible to protect citizens from.
Citizens are given a false sense of security through emission
limits and environmental information.
27
The technology avert theory entails that economic
growth implies further environmental degradation.
Sustainable development is according to this theory
achieved through a radical change of the economic
system.

Corporations have to take future generation into account


in their planning, and take on responsibilities that have
been previously neglected. Equity and equality are
necessary components; wealth needs to be distributed, etc.
Economic growth, as it is measured today, and
environmental conservation are hence contracted.

HTT & PhD Juhani Palojärvi 28


The second theory regarding the solution of environmental
problems is what Jänicke (1985) called “ecological
modernization”. The view implies that the solution to
environmental problems is technological development.
Society in its present problems is technological
development.
Society its in present form need to be changed, pressures
from customers, environmental groups, legislators etc., will
force organizations to take environmental responsibility
and come up with technological solutions.
Technological innovations and economic growth are hence
according to the ecological modernization theory the
solution to the environmental problems, while the
technology avert view sees it as the very root of
environmental degradation. Rikhardsson and Welford even
consider business to 29
“have taken the environmental agenda and adjusted and
manipulated it to suit their own traditional business
objectives. This has had the effect of producing a style of
environmentalism more in line with the continuation of
growth and the globalization trend than with a move towards
sustainable development”.

The theories concerning how environmental problems are to


be solved seem to be central in understanding why and how
environmental activities are carried out the way they are.

The theories on solution from a basis for managers’ views of


the business-environment relationship. Managers’ views are
linked to what actions they consider necessary to undertake .
30
Bearing the technology avert and the ecological
modernization theories in mind, actors in business
organizations can have four basic views regarding the
business-environmental relationship.

1. Environmental above all. In the first mode,


environmental concern is of superior importance to business
objectives. Traditional business objectives stand back and
the primary goal of the organization is to take environmental
consideration. This mode is different from traditional for-
profit behavior. An organization with this view need to be
judged based on other criteria than those that dominate in
economic institutions of a market economy, or else it will be
considered unsuccessful. One could expect that an
organization with this view would transfer itself into a non-
profit organization. 31
2. Business above all. When the second mode is applied,
environmental concern is considered to be of no concern to the
organization. The dominating device is that the business of
business is business. Organizations with this view are
unaffected by all types of pressure to become more
environmentally considerate.

3. Business-environment trade off. In the third mode, the


organization recognizes that there is a pressure to become
more environmentally considerate. The dominating view is
that there is a trade-off between environmental and business
objectives. To take environmental consideration involves
costs, and is contradictory to business objectives. Nevertheless,
inertia in the environmental field will be harmful to the
organization to undertake action.
32
• Business-environment inseparability. The fourth mode
implies a view where environment and business go hand
in hand, and be tokens ecological modernization as a
solution to environmental problems. Environmental
consideration and business objectives are complementary
and must be seen in isolation. To take environmental
consideration is a prerequisite for business, and all
environmental change efforts involve business
considerations. This view may be driven by the increasing
pressures on business organizations.
• Legislation is getting stricter, environmental organization
exert pressure, and customer demand more environmental
friendly product. Environmentally friendly products
sometimes sell better than other, and environmental
concern may be a source for potential differentiation and
increased revenues. Also, environmental initiatives which
waste and energy reductions may be considered to be, at
time lower cost.
33
1.7 Why Good Environmental
Management is Crucial

Lawmaker Engineers /
Scientists

Managers &
Executives
Net
environmental
performance
Biologist /
Botanists

34
1.7.1 The foam of the organization
makes a difference
Environmental issues can be seen as a strategic issue. Where in
organization environmental staff is, makes a difference also on
emotional level. See Electrolux’ Organization (1995) below:

CEO Corporate
Environmental
Staff Unit

Product Line Product Line

Environmental Environmental
Co-ordinator Co-ordinator

35
Electrolux’s Vision
Electrolux will be the world leader in our products, which
make everyday life more comfortable, easy and safe.

We will provide products, services and marketing of such


excellent value that customers will actively choose to do
business with us. From this we create shareholder value.

To reach our goals of providing value to customer and


shareholders, we will continue to develop an Electrolux
culture build on the strengths of the multicultural
organization and embraced by all our team members. Kay
values are cooperation, people development, environmental
concern, professionalism and speed.
36
Electrolux’s Values
Cooperation Responsible, Trusting, Open-Non-
protective, Borderless-International,
Externally oriented

People Respect and encourage Diversity, Team


Development Members, Equal Opportunities

Professionalism Intellectually Sound, Advanced-Simple,


Result Oriented, Communicative
Environmental Lifecycle Analysis, Strategic-Proactive
Concern
Speed Non-bureaucratic-Disciplined, Willingness
to Change 37
1.7.1 The foam of the organization
makes a difference …

Electrolux pledges to:

* Be a leader and driver in environmentally sound


technology, products and processes

* Actively develop demand through use of


environmentally sound products

HTT & PhD Juhani Palojärvi 38


1.7.1 The foam of the organization
makes a difference …
Environmental board of Electrolux has accepted the mission
of the staff unit, to:
* Further develop environmental strategies and policies at
the Group level for approval by the environmental board.
* Accelerate integration of environmental strategies into the
business strategies of production lines.
* Develop and coordinate environmental competence and
experience.
* Assume responsibility for external communications on
environmental questions.
* Insure that the environmental policy is observed, and in
certain cases, make operational decisions.
39
1.7.2 Environmental Management

* The philosophical foundation of environmental


management is sustainable development, which started
already in 1990, but will be in this millennium crucial
factor for business success.

* Companies like DuPont, IBM and Xerox has already


started to fix environmental damages caused by their
production.

* According to professor Toivo Lipiäinen (2000, 976)


environmental management is green, healthy, and
profitable for the companies although it requires
investments, but most of all it requires new attitude and
know-how. 40
1.7.2 Environmental Management …
• Large companies have the environmental program and
the results have been surprising good. According to
research (World Bank) benefits for, suppliers are:
- savings in raw material usage
- saving in energy usage
- development of operations
- improvement in working environment
- quality improvement in production
- improvements in productivity and in profitability
- decreasing in pollution
41
1.7.2 Environmental Management …

Advantages from environmental programs for buyer are:


- better product quality
- better reliability in delivery of products
- supplier’s operations development
- better image of the company

* Better the environmental program works, the better is


the quality of product/service experienced by
the ultimate customer.

HTT & PhD Juhani Palojärvi 42


1.8 Framework for Green Decisions
Marketing:
What do / will customers
want us to make?
How will they use / re-use /
dispose of and when ?

R&D
What product / processes / Manufacturing:
materials technology is What / how do we make
needed to support / drive store, deliver, maintain,
this ? recycle, dispose out of/
customer’s product /
components / materials ?
Source: Vandermerwe et.al (1990) Customer Drive
Corporations 43
1.9 Alternative Position for
Environmental Advantage
Process
Clean Resource
technology efficiency

Minimize Maximize
damage advantages

Cradle to grave
management Green
consumerism
Product
Source: Beaumont et. Al (1993)
managing the Environment
44
1.10 The Environmental Value Chain
Board of Organizational Participation Environmental
Management Top relationship to from shop elements in
and management’s Directors’ environmental floor employee
support involvement
organization functions performance
evaluation
Research Pollution Energy Waste
Technology and control conservation minimization Recycling
Development

Communication Employees Customers Local Public / media


community Shareholders
and suppliers

Stages in
product Product Raw materials Manufacturing, Product Final
design sourcing sales,
life-cycle user disposal
distribution

Source: Arthus D Little (1991) Seizing Strategic Advantage

45
1.11 The Roast Scale for Environmental
Performance

• Resistance: oppose change


• Observe & comply: do minimum possible

• Accommodate: begin to adapt


• Seize & preempt: set the agenda
• Transcend: complete long-term thinking

Source: Welford, R (1998) Corporate Environmental Management

HTT & PhD Juhani Palojärvi 46


1.12 Cost Reduction & Production
Differentiation
Cost reduction

Reduce Energy Emission Waste


materials usage And effluent management Distribution

Supply chain management

Figure 2.7 Cost reduction through environmental management

Product differentiation

Sound Education,
Marketing Distribution Stakeholder
environmental campaigns and
capability changes accountability
performance projects

Figure 2.8 Key elements in product differentiation 47


1.13 Hutchinson’s Strategic Framework
Make
Analyze Present
external acceptable
trends

Threats,
Long opportunities, Identify &
term strengths, Realize
weaknesses potential
vision

Analyze
company Change to
activities sustainable
business

Source: Simplified from Hutchinson (1992), as quoted in Welford, R (1998)


48
1.14 Model of Interaction with Natural
Environment

y
ar
nd
Institutional

u
Infrastructure
Bo
Environment

Physical
Infrastructure

HTT & PhD Juhani Palojärvi 49


1.15 Environmental scanning
* is the considering of events and trends that present either
threats or opportunities for the organization. Generally these
include competitors’ activities; changing consumer needs;
legal-, economic-, political-, and environmental issues, the
potential for new markets; and the like.
* depending on the nature of an organization and the location
of its customers, these issues may be global, national,
regional, or local.
- Thus, the disintegration of the former Soviet Union in
1991- 1992, the reunification of Germany, and the
formation of the European Union would have major inputs
into the strategic planning of such global companies as the
Ford, General Motors, Kodak, Coca Cola and IBM, but
would have little direct impact on local business such as
supermarkets or landscaping firms.
Progression of Environmental
1.16 Progress Damage
of Environmental Damage
Taken from Waller (1999), p.119.

HTT & PhD Juhani Palojärvi 51


1.17 Erosion Control

* When riverbanks erode, a chain of environmental problems


can occur. As the land on the bank of the river is washed
away, sediment from the bank is deposited in the river,
causing shallow depths that can recreational and commercial
boating. In addition, shallower depths can be detrimental to
the native aquatic species.

* Erosion control is often implemented to protect and stabilize


streambanks from damage caused by water, vehicles, or
livestock. States uses both structural and biological method´s
of control. Structural measures may include rock riprap,
interlocking concrete blocks, gabions, geosynthetics, or
formed concrete. 52
1.17 Erosion Control …
* Vegetative or biological measures may include log
(bioengineering) which can withstand high
velocity flow while the roots from a protective net for the
soil.
* Bioengineering uses living plants and organic materials as
construction elements for erosion control, habitat
enhancement, bank stabilization, and wetland restoration.
Bioengineering establishes a vegetative cover which is more
attractive than bare piprap or other “hard” elements.

- This approach is especially preferred along streams and


rivers located in parks and populated areas.
53
1.18 Situation in Alaska
* Alaska is still one of the most pristine areas in all the world,
yet environmental problems frequently make the headlines.
Air, water, soil and sound pollution affect areas throughout
the state, even hundreds of miles away from civilization.
* Contaminated areas in Anchorage can affect areas in the
Interior. For instance, traditional spawning areas for salmon
can become highly contaminated with waste from nearby
factories, sewage treatment plants, or pesticides from farms.
* The salmon come in to spawn as usual, but the salmon are
killed due to the new contaminants. The eggs laid by the
female salmon may get fertilized, but the salmon never reach
a healthy enough state to make their return journey to the
ocean. Native fishermen who rely on these salmon as a
source of food must look else where. Thus, a whole village
could be in jeopardy.
In the rest of this page you will learn of the different types of
pollution and how it affects the land and people.

Types of Types of What it


Pollution Definition Areas cause
Affected
On or near
environments Acid rain, smog
An airborne substance
that have a change in
that adversely
Condensed way temperature,
Air affects the well-being
Of living or damage growth
Pollution of organisms or the
Where fossil of all plant life,
life-support system
Fuels are used lower air quality,
On which they depend
at an increasing water pollution
rate

HTT & PhD Juhani Palojärvi 55


Types of Types of What it
Definition Areas
pollution affected causes

Places that have Death of animals,


A substance
multiple ships that lower quality of
that change
are operated on fossil
Water the environment drinking water for
fuels. Also, from animals and humans,
Pollution around water
garbage by plant life near
inhabitants
irresponsible shorter to decline
humans.

HTT & PhD Juhani Palojärvi 56


1.19 Population Trends
• Currently, rapid growth in absolute terms
• Declining birth rates lead to stabilization
7

6
Population (Billions)

1
0
1850 1875 1900 1925 1950 1975 2000 2025

Source: World Almanac (1996)


57
Growth in World
1.20 Growth Energy
in World EnergyUsage
Usage
Source: International Energy Agency (1998), data on website www.iea.org.

300
10e18 Joule [ExaJoule]

250
200

150
100
50
0
1910 1930 1950 1970 1990

HTT & PhD Juhani Palojärvi 58


Growth in Cultivated
1.21 Growth Land
in Cultural Land
Source: Worldwatch Institute, "State of the World 1998", p.81

Percent of total surface area

80%

60%

40%

20%

0%
1950 1970 1990 2010

NB Dashed line represents approximate upper limit due to deserts, mountains, etc.

HTT & PhD Juhani Palojärvi 59


Decline in Forest Cover
1.22 Decline in Forest Cover
Source: US Environmental Protection Agency [1989], "Policy Options for Stabilizing Global Climate."

40%
P ercent of total land area

35%
30%
25%
20%
15%
10%
5%
0%
1900 1925 1950 1975 2000

NB Dashed line represents approximate lower limit due to agroforestry usage

HTT & PhD Juhani Palojärvi 60


Rise Rise
1.23 in Average Global
in Average GlobalTemperature
Temperature
Source: Worldwatch Institute, "State of the World 1997”

15.4

15.2
Degrees Celsius

15

14.8

14.6

14.4

14.2
1860 1880 1900 1920 1940 1960 1980 2000

HTT & PhD Juhani Palojärvi 61


1.24 Rise in Average Global Temperature …
* Global warming was put at the top of an international
agenda at the Earth Summit in Rio in 1992, in an effort
to save the planet from greenhouse gas emissions.
* Five years later (June 1997) at Earth Summit + 5,
global warming still topped the agenda with little
progress achieved towards the global of reducing
emissions to 1990 level by the year 2000.

- At both of these summits, two points of view were


evident. The developing nations essentially want
money (a reduction in debt) and technology. The
industrialized nations want to reduce greenhouse
gases and conserve ecologically critical recourses
such as rain forests. 62
1.24 Rise in Average Global Temperature …
- The main problems seem to revolve around major
industries of the industrialized countries that are
heavy users of fossil fuels like coal and oil.

- A sudden change in energy usage could have serious


implications for their global competitiveness as well
as the jobs of the large number of workers they
employ.
- A second major sticking point is the idea of giving financial
aid to developing nations “to support energy efficiency,
develop alternative energy sources, and improve recourse
management to promote growth that does not have an
adverse effect on the climate.”
63
1.25 Greenhouse effect and Climate Change
* Some gases in the atmosphere produce the “greenhouse effect”,
trapping the heart of Earth without allowing it to escape in the
outer space

* The greenhouse effect is normally natural and beneficial:


gases without it Earth would be at least 15 C colder, it is
becoming more and more important due to the increasing
concentration of the gases in the atmosphere due to human
activity.

* The main greenhouse gases are: carbon dioxide (CO2),


methane, nitrous oxide (N2O), chlorofluorocarbons (CFCs;
also water vapor (H2O) is producing the greenhouse effect.
HTT & PhD Juhani Palojärvi 64
Eco-efficiency vs Eco-sufficiency
1.26 Eco-efficiency vs eco-sufficiency

Two different measures of 2.00


environmental performance:
– Efficiency: minimising impact 1.50
per unit of output (e.g. energy Veh-km
per vehicle-km)
1.00 Tot. energy
– Sufficiency: minimising/
attaining total impact (e.g. Litre/100km
total energy from vehicles) 0.50

Achieving eco-efficiency does not


0.00
always satisfy env goals (e.g.
USA auto fuel use 1970-90, 70

75

85

90
80
19

19

19

19

19
shown in figure)

HTT & PhD Juhani Palojärvi 65


2 Marketing and Consumer Behavior
2.1 What is ‘Green’ ?

• Attention to the environment


• Awareness of ecological issues
• Sensitivity to environmental impacts and
environmental costs
• Concern over ecological destruction and environmental
costs
• Thinking again about Man and his/her relation to nature

HTT & PhD Juhani Palojärvi 66


2.2 The Environment

* Marketing, business and economic models treat the

‘environment’ as:
- an external variable
- a source
- a source of competition, opportunity, threats etc.
* A need to remember the ‘natural environment’

HTT & PhD Juhani Palojärvi 67


2.3 Why have ‘green’ issues become more
relevant over the last few decades ?

* Widespread increase in concern for


- Ecological problems
- Global warming
- Pollution

- Depletion of natural resource


- Concerns over health

HTT & PhD Juhani Palojärvi 68


2.4 ‘Green’ Marketing ?

• Located within a broader project:

- Interested in more environmentally sensitive lifestyle

- Debates over ‘green’ business practice

- The pursuit of ‘sustainable’ social practices

HTT & PhD Juhani Palojärvi 69


2.4.1 Marketing green products
• Green product marketing is based on different kind of eco-labels as:
- Eco-Label of Nordic Countries, (Pohjoismainen ympäristömerkki),
award by Suomen Standardiliitto SFS
- European Eco-Label ( Euroopan ympäristömerkki) (awarded by SFS)
- Organically-grown Label (Luomumerkki) (awarded by
Kasituotannon tarkastuskeskus)
- Organically-grown Label of Ladybir (Luomu Leppäkerttu) awarded by
Luomu-liitto)
- Demeter Label (awarded by Biodynaaminen yhdistys)
- Fair deal elephant label (reilun kaupan norsumerkki) Awarded by
Reilun kaupan edistämisyhdistys
- Eco-Energy label (ekoenergiamerkki) awarded by Suomen
Luonnonsuojeluliiton energiavirasto 70
2.5 What has marketing got to do with
being green ?

• As an opportunity: Emergence of the ‘green consumer’


• As an activity: marketing function can be adapted to be
‘greener’
• As practice: Marketing methods can be used to installing
change
• Ideologically: The ecological critique of capitalism

HTT & PhD Juhani Palojärvi 71


2.7 Opportunities in a green marketplace

• Large groups of consumers have greater ecological


awareness
• Abandoning stereotypes about the ‘ecowarrior’
• Concerns for personal health and prosperity
• Concern for the planet & future generations
• Adopting new lifestyle ,
• Economically and politically important group

HTT & PhD Juhani Palojärvi 72


2.7 Opportunities in a green marketplace …

• Increased demand for ‘green(er) products and services


• Modification to existing products
• Opportunity for new product development
• Entirely new ‘green’ marketing emerging
• A potentially lucrative and profitable sector

HTT & PhD Juhani Palojärvi 73


2.8 The Green Consumer definition
• Endanger the health of • Cause unnecessary waste
consumer and other through over-packaging,
• Significantly damage the excess product features or
environment in production, an unduly short lifespan
use or disposal
• Involve currently to, or
• Consume disproportionately
needless exploitation of
during production, use or
animals
disposal
• Use materials derived from • Adversely affect other
endangered species from countries, particularly
endangered species or developing countries
environments 74
2.9 Greening the marketing function

• The micro level


• Marketing practices have an ecological impact
- Product packaging
- Materials used in products
- Discriminatory pricing strategies
- Environmentally harmful distribution network
- Promotion

HTT & PhD Juhani Palojärvi 75


2.10 Ecological impact of marketing

• The macro level


- Promoting and encouraging excessive consumption
- Shorter product lifecycle
- Endless minor variations and product modifications
- The fashion system
- Encouraging ‘throw-away’ culture

HTT & PhD Juhani Palojärvi 76


2.11 Greening the product

• Careful attention to materials


• Responsible approach to packaging
• Longer product lifespan
• Services to support green practices
• Consideration for the entire production process
• Integrated approach to production disposal
• Adherence to green standards

HTT & PhD Juhani Palojärvi 77


2.12 Greening distribution systems

• Source materials and products from local suppliers and


agents
• Rejection of exploitative practices
• Strategies to cut down on inefficient delivery
• Use of ecologically sensitive channels

HTT & PhD Juhani Palojärvi 78


2.13 Greening communications

• Communicating a green message


• Supporting ecological initiatives
• Monitoring and reduce wasteful communication
techniques
• Sponsorship and other association methods
• Towards ‘Sustainable communication Sreategies’

HTT & PhD Juhani Palojärvi 79


2.14 Green pricing policies

* Pricing benefits paced onto the consumers:


- reduction in raw materials / distribution
- benefits of more efficient energy costs
- reasonable pricing policies: including environmental
costs in pricing strategies
* A ‘Green premium’

HTT & PhD Juhani Palojärvi 80


2.15 Marketing as practice: a tool for
increasing change

• Improving general awareness of green issues


• Social marketing: Changing attitudes and behavior
• Sales promotion to encourage consumers to consider
green product and service
• It starts at home: Selling the green agenda to the entire
organization and supply chain

HTT & PhD Juhani Palojärvi 81


2.16 Ideological problems with green
marketing

• Green marketing: An oxymoron

• Relationship between capitalism and the environment

• Can western capitalism ever be ‘sustainable’

HTT & PhD Juhani Palojärvi 82


2.17 Three levels of green marketing

* 1) the product level


- Environmentally ‘sensitive’ products
- CFC free
- Re-cycled product
- Bio-degradable production
- ‘Green’ packing

HTT & PhD Juhani Palojärvi 83


2.17 Three levels of green marketing …

* 2) the social level


- To solve environmental problems we need to
solve broader social problems
- Fair trade goods
- Energy production and conservation
- Resource allocation

HTT & PhD Juhani Palojärvi 84


2.17 Three levels of green marketing

* 3) the ecological level (ecocentric)


- Environmental consumer behavior requires much more
than this
- Less consumption, not different types of consumption
- Different types of consumption behavior
- Different lifestyle
- Alternative philosophy of marketing

HTT & PhD Juhani Palojärvi 85


2.18 The environments makes a difference
to your customers

• More than 75% of the public will switch to a brand

associated with the environment when price and


quality are equal

• Nearly 60% of the public favors organizations that


support the environment

HTT & PhD Juhani Palojärvi 86


2.19 Make Environmental Claims Specific

Be specific. Avoid implying significant environmental benefits


if the benefit is slight. Vague claims, such as environmentally
friendly, or environmentally safe may lead consumers to believe
that the product has environmental benefits it doesn’t actually
have. Quality those term to clarity the environmental attribute
you are claiming.

Be clear. Use words that consumer understand. If the words


are industry jargon – or if they can be misinterpreted - don’t
use them.
Be definitive. Your claim should specify whether the
environmental benefit refers to the product or its contents, or
both. 87
3 The Wellness of Consumers is Adding
Value through Environmental Marketing

3.1 The only Constant is Change

• How they live


• What they buy
• How they shop
• How can you be an effective change agent ?

HTT & PhD Juhani Palojärvi 88


Societal
3.2 How they live
Factors/Influence Consumer
s Lifestyle
Compressed Cultural
Sense of Shift
Time Individual

Les of Wellness
control Wellness
“Natural
sensibility”
Technology WMHS Natural Regimes
product house-
world holds
Choices product
Integrated
Organic
Health Natural foods
care HABA

Health Aid 89
Beauty Aid
3.3 Lifestyle Components

• Loss of place / sense of community

• Experience

• Knowledge

HTT & PhD Juhani Palojärvi 90


3.4 The New Wellness Paradigm

• Intellect / Soul

- cerebral power Vs. spiritual power


- rational Vs. mystical
- the Modern Age Vs. the Millennial Age

• Authority / Authenticity
- economic or military power Vs. values and priorities
- overt dominations Vs. relationships of trust
- synthetic Vs. natural

HTT & PhD Juhani Palojärvi 91


3.4 The New Wellness Paradigm …

• Hot / Cool

- Nixon Vs. JFK


- films Vs. Internet
- Dennis Rodman Vs Michael Jordan

• Reactive / Proactive
- treatment Vs. prevention
- health Vs wellness

HTT & PhD Juhani Palojärvi 92


3.5 What they buy (USA)
Vitamins, Minerals Herbals & Dietary Supplements

• In the last 12 months there were almost a billion


purchases of VMHS products, 685 vitamins and
minerals, 32% herbal and other supplements
• Already in 1998 VMHS products reached sales of
over $14 billion
• 71% of US. Householder reports using a dietary
supplement in the last three months

HTT & PhD Juhani Palojärvi 93


3.5 What they buy (USA) …

Organic Food and Beverage

• Organic sales reached over $5 billion in 1998

• Organic food sales are growing at over 20% a year, while


overall food industry sales are only 3-5%
• Of those shoppers that shop at the both health food and
grocery outlets, 78% would rather purchase all their health
food products at the supermarket
Remember also that Consumers Buy Brands, Not Labels!

HTT & PhD Juhani Palojärvi 94


3.6 Alternative Healthcare

• Over two-thirds of U.S. householders are using alternative


medicine products and services
• in 1997, Americans spent $21billion on alternative care
services
• Over 50 health condition are treated with alternative
medicine modalities

HTT & PhD Juhani Palojärvi 95


3.7 Functional Foods

• 19% say they consume functional foods


• The most common items cited as functional foods
were vegetables, (such as vitamin-rich broccoli and
carrots), fruits (potassium-containing bananas and
vitamin c-rich oranges), and certain beverages (tea,
100% juice, and milk).
• Only 35% of consumers said they know what
functional foods are, and only 10<% know what
nutraceuticals are.

HTT & PhD Juhani Palojärvi 96


3.8 Internet Wellness retailing

• About one-third of the U.S. population turns first to the


Internet for health related information.
• Of people who frequent health and medical web sits, 90%
said they could manage their own health and 82% believe

the web offers better information on new medication than


what their doctor or pharmacist has in their office.
• Traditional coupons average less than 2 % redemption
while Internet coupons average 20%.

HTT & PhD Juhani Palojärvi 97


3.9 How they shop
Change in Consumer / Retailer Relations

• Knowledge Transfer
• Lifestyle Linkage
• Value Generation

HTT & PhD Juhani Palojärvi 98


3.10 How to be an effective change agent
Understanding a Dynamically Changing Consumer through
New Research Methods
• Ethnography
- decision three modeling
• Anthropology
- retail experience design
• One-on-One Semi Structured Interviews
- semantic and neurological measurement
- perceptual mind maps
99
3.11 How to be a Change Agent

• Influencing behavior is expensive and time consuming.


• Rather, find out about attitudes of your consumers.
• Don’t underestimate the importance of lifestyle
participation.
• Most consumers are pragmatic, not idealistic, you
should be too.

HTT & PhD Juhani Palojärvi 100


4 Understanding clear production

Clean production is about considering entire life cycle of


products, including:
• product design
• selection of raw materials
• production and assembly of the final product
• consumer use
• managing all used products at the end of their life

HTT & PhD Juhani Palojärvi 101


4.1 Conventional production

• Processes not designed for waste prevention


• No use of by-products
• Expensive end-of-pipe pollution control technology
• Expensive waste treatment, transport and disposal

HTT & PhD Juhani Palojärvi 102


4.2 Cleaner production

• Processes designed for minimum waste


• Maximum use of by-products
• Savings through reduced pollution control technology,
and reduced waste treatment, transport and disposal
• Minimum impact on the environment

HTT & PhD Juhani Palojärvi 103


4.3 Clean production

• Zero waste

• Total use of by-products

• Zero impact on the environment

HTT & PhD Juhani Palojärvi 104


4.4 Cleaner production and sustainable
development
• healthy environment is important to our future
• clean production can help protect our natural environment
• by reducing our demand on non-renewable resources, and
recycling and re-using products and resources, we can
reduce our impact on the natural environment
• present production systems are linear
• cleaner production systems are cyclical and try to imitate
nature’s processes
• wastes are used as secondary material so that few new
material and less energy water are required
105
4.5 Business benefits of cleaner production
• leads to improved products and processes
• saves on raw materials and energy, reducing production
processes
• increases competitiveness through the use of new and
improved technologies
• reduces the need for more environmental regulation
• reduces risk from on- and off-site treatment, storage and
disposal of toxic wastes
• improves the health and safety of employees
• improves staff morale, leading better productivity
• improves a company’s public image
• reduces the cost of increasingly expensive en-of-pipe 106
solutions
4.6 Getting started
The following steps are a guide for managers who would like
to move from conventional production to cleaner production
• Develop and implement a comprehensive, corporate
environment policy. This should be based on preventing
pollution, minimizing waste and reducing environmental
risk generated by all corporate activities.
• Develop regular pollution prevention and waste reduction
audit procedures
• Develop a plan containing specific environmental goals and

timetables for achieving them


• Educate and involve employees at all levels. Employees
should be in involved in identifying and solving 107
environmental problems at their source.
4.6 Getting started …

• Often employees on the shop floor can develop better


solutions to waste problems than executive not involved
in day-today production
• Allocate responsibility for achieving goals to specific
employees. Management should allocate sufficient
employee time and support to ensure that work can be
accomplished. The Clear production Coordinator should
be a senior management position.
• Gather the best management and technical information
to help the business take advantage of waste reduction
opportunities
HTT & PhD Juhani Palojärvi 108
4.6 Getting started …

• Evaluate progress continually


• Inform employees, shareholders and the public of the
progress being made.
• Establish environmental award program to foster and
reward creative problem-solving
• Review and update goals and timetables regularly

HTT & PhD Juhani Palojärvi 109


5 Green Business Makes Good Business
Sense!

• Improves employee morale and the health of the


workplace
• Holds a marketing edge over the competition
• Strengthens its bottom line through operating
efficiencies
• Is recognized as an environmental leader

HTT & PhD Juhani Palojärvi 110


5.1 Being a Green Rewards
It Makes Good Business Sense!
A Green Business...
~ Improves employee morale & the health of the workplace
~ Holds a marketing edge over the competition
~ Strengthens its bottom line through operating efficiencies
~ Is recognized as an environmental leader
Get recognized for being Green - sign up to become a Green
Business today!
The Green Business Program recognizes businesses that:
• Comply with all environmental regulations
• Take steps to conserve natural resources and prevent pollution,
such as using more efficient lighting, purchasing in bulk, watering
landscapes efficiently, recycling cardboard, using less toxic
products, etc. 111
5.2 Become a Green Auto Repair Shop
It's Easy
"Pam Evans made it so easy. There is no reason not to sign up.
She helped us save time on the compliance part and the
program is free, unlike hazardous waste programs with
manuals and monthly retainers costing $200-1500 a month."
That's what Dana Meyer of Dana Meyer Foreign Car Service
in Albany had to say about his shops turning green.

How can auto repair shops "green" their businesses? First bring
their operations into compliance with all environmental
regulations, then adopt pollution prevention and resource
conservation practices. The program checklists offer a variety
of options for meeting program standards Here are some
examples of what you can do. 112
5.3 Top Ten Green Auto Repair
Practices

5.3.1 Good Housekeeping & Pollution Prevention

1. Minimize the liquids you use and discharge. Clean up


spills immediately and use dry clean-up practices.
2. Cut out the use of absorbent (kitty litter, rice hulls, and
dry sweep). Instead use a squeegee and dust pan or
an oil mop.
3. Replace your petroleum naphtha solvent sink with an
aqueous-based sink or parts washer.

HTT & PhD Juhani Palojärvi 113


5.3 Top Ten Green Auto Repair Practices …

5.3.2 Solid Waste Reduction

4. Order recycling containers for newspapers, cardboard,


plastic, and glass.
5. Order motor oil, anti-freeze, and other fresh fluids in
bulk, rather than in multiple, individual containers.
6. Eliminate the use of spray cans. Replace with brake
cleaning sinks or refillable spray containers.

HTT & PhD Juhani Palojärvi 114


Top Ten Green Auto Repair Practices …
5.3.3 Energy Savings

7. Replace T-12 bulbs and fixtures with T-8s


whenever feasible to produce good lighting with
lower energy use.
8. Install timers or motion sensors to shut off lights in
rooms that are not in constant use throughout the
work day.

HTT & PhD Juhani Palojärvi 115


Top Ten Green Auto Repair Practices …

5.3.4 Water Savings


9. Eliminate unnecessary car washing. For exterior cleaning
use only plain water or prevent soapy water from entering
a storm drain.
10. Check your water bill monthly to look for and investigate
spikes in use that may indicate a leak in your plumbing.

HTT & PhD Juhani Palojärvi 116


6 Become a Green Hotel
6.1 It's Easy
In May of 2000, Garratt Mansion, in the Gold Coast
District of the City of Alameda, became the first hotel to be
certified as a Green Business in Alamada County. Innkeeper
Betty Gladden had long practiced conservation, conserving
energy and water, eliminating harsh chemical cleaners and
reducing both household and green waste. Said Gladden, "I
do this already, why not have it documented?"
How can hotels "green" their businesses? First bring their
operations into compliance with all environmental
regulations, then adopt pollution prevention and resource
conservation practices. The program checklists offer a
variety of options for meeting program standards. Here are
some examples of what you can do.
6 Top Ten Green Hotel Practices

6.2 Good Housekeeping and Pollution


Prevention
1. Monitor, record and post rates of energy and water use.
Watch for changes that may indicate a need to repair or
change equipment.
2. Evaluate cleaners, sanitizers, paints, pesticides and
other chemicals used throughout your facility. Can a
safer product be substituted? Can a product be
eliminated? Are chemicals being stored safely?

HTT & PhD Juhani Palojärvi 118


6 Top Ten Green Hotel Practices …
6.3 Solid Waste Reduction
3. Buy recycled-content products for the office, construction
and remodeling projects.
4. Buy in bulk, whether it's guest amenities or food for the
kitchen.
5. Start a recycling program for trash from guest rooms, the
kitchen and your business office. Target materials: paper
of all kinds, bottles and cans, plastics and cardboard.

HTT & PhD Juhani Palojärvi 119


Top Ten Green Hotel Practices …

6.4 Encourage Green Practices in both


Employees and Guests
6. Provide incentives to encourage staff participation in efforts
to "green" the establishment.
7. Institute a linen reuse program in guestrooms.

HTT & PhD Juhani Palojärvi 120


Top Ten Green Hotel Practices …

6.5 Conserve Energy and Water


8. Install energy efficient lighting fixtures and bulbs, heating
and air conditioning, washers and dryers, and other
electrical equipment.
9. Install water conserving showerheads and toilets in
guestrooms

6.6 Minimize Food Waste


10. Donate leftover food, amenities and other "extras" to local
shelters or other recipients.

HTT & PhD Juhani Palojärvi 121


7 Become a Green Landscaper

7.1 It's a Natural...


"I was already using many of the green practices because they
make good business sense. Now that I'm certified, I'm getting
the added benefits of advertising and business recognition,
which helps me attract clients."
- Nate Silin, New Growth Landscaping
"Practices like grass-cycling, water conservation, and selection
of appropriate plants have helped me save money by reducing
plants that need to be installed, the materials that need to be
removed from sites, and water use.“
-Tom Del Conte, Del Conte Landscaping
HTT & PhD Juhani Palojärvi 122
7.2 Top Ten Tips for Landscapers
How can landscapers "green" their businesses? First bring
their operations into compliance with all environmental
regulations, then adopt pollution prevention and resource
conservation practices. The program checklists offer a
variety of options for meeting program standards. Here are
some examples of what you can do.

1. Right Plant, Right Place


Use hydrozoning (grouping plants with similar water
needs), use drought tolerant and disease resistant plants
(native plants!).

• Landscape for Less to the Landfill


Mulch or compost green waste on site, avoid plants that
require extensive pruning, grasscycle, separate green
waste for recycling. 123
7.2 Top Ten Tips for Landscapers …
3. Integrated Pest Management
Use IPM techniques: monitor pests and their natural
enemies, use best-resistant plants, evaluate damage vs.
need to treat, use least toxic alternatives, spot treat if
needed.
4. Reduce water use at your job sites
Use drought tolerant plants, hydrozone, mulch, monitor
irrigation schedule and system and in your office -
install low flow devices on sinks and use water-
conserving toilets.
5. Nurture soil health
Minimize tillage and chemical applications, use compost
and mulch. 124
7.2 Top Ten Tips for Landscapers …
6. Prevent storm water run-off
Keep pesticides, soil, leaves and debris out of storm drains,
keep vehicles and equipment leak-free.
7. Buy recycled-content products
In your office, buy recycled content paper products; in
landscaping, use recycled lumber and other recycled content
materials.
8. Reduce energy usage
Use energy efficient lighting in your office and monitor your
energy bills.
9. Reduce emissions
Keep vehicles well-maintained and encourage employees to
125
take public transit or carpool.
8 Become a Green Printer

8.1 Clear and Easy

Laura Rider, Owner of Anderson Printing stated, "We have


always been concerned about our impact on the
environment, but we were getting confusing and
conflicting information from the compliance agencies.
The Green Business Program worked with the agencies to
help us develop an environmentally safe and compliant
plan. We are proud to be a `Green Printer' and encourage
every print shop to take advantage of this program."

HTT & PhD Juhani Palojärvi 126


8 Become a Green Printer …

How can printers "green their businesses? First bring their


operations into compliance with all environmental
regulations, then adopt pollution prevention and resource
conservation practices. The program checklists offer a
variety of options for meeting program standards.
Here are some examples of what you can do. And by the
way, many of the listed practices will save you time and
money. The Green Business Program consulted with
printers, and representatives of Printing Industries of
Northern California (PINC) to develop this list of Green
Printing Practices.
127
8.1 Top Ten Green Printing Practices
1. Computerize pre-press operations
• Eliminates photochemicals
• Saves water and energy

2. Establish a solvent recycling program


• Saves material
• Reduces air pollution

3. Use alcohol-free printing


• Improves air quality
• Improves worker health and safety
128
• Reduces chemical use
8.1 Top Ten Green Printing Practices

4. Print on "treeless" and recycled content
papers
• Saves tree, energy, and water
• Encourages new agricultural development
• Keeps paper out of the landfill

5. Educate customers on "green printing"


• Printers produce a "greener" product
• Helps in pollution prevention, compliance, resource
conservation
HTT & PhD Juhani Palojärvi 129
8.1 Top Ten Green Printing Practices

6. Use low VOC inks
• Reduces air pollution
• Improves employee safety

7. Sequence print jobs by ink color


• Saves ink changes, labor, ink waste

HTT & PhD Juhani Palojärvi 130


8.1 Top Ten Green Printing Practices

8. Establish inventory control
• Reduces waste to landfill, saves money

9. Communicate without paper


• Cuts cost and use of paper and solid waste
• Saves time, postage, and/or fax costs

10. Use energy efficient equipment


• Saves energy and money

HTT & PhD Juhani Palojärvi 131


9 Become a Green Restaurant
Becoming a Green Restaurant is Rewarding and Saves
Money
"Working in an organization which is environmentally
responsible is extremely important to me... Extreme Pizza is
proud to provide a superior product to our customer while
surpassing the environmental compliance requirements."
- Stephanie Parent, Extreme Pizza
"I care about the environment, and am excited to implement
this project in my business. It comes free to me, which is
important to any business, but more importantly, it saves me
money. I will be saving upwards of $6,000 per year in the
upcoming year on my energy bill, and more than $1,000 on my
garbage pickup fees."
- Chintala Reddy, Kamal Palace
9 Become a Green Restaurant …
How can restaurants "green" their businesses? First bring
their operations into compliance with all environmental
regulations, then adopt pollution prevention and resource
conservation practices. The program checklists offer a
variety of options for meeting program standards. Here are
some examples of what you can do.

9.1 Top Ten Green Restaurant Practices


1. Conserve Energy and Water 1. Use low flow pre-rinse
spray nozzles at the dish machine. (Your water company may
provide free low flow pre-rinse nozzles.)
2. Use Energy Star compact fluorescent lamps (CFLs) instead
of incandescent bulbs in store-rooms, break rooms, offices,
wall sconces, kitchen exhaust hoods and walk-in refrigerators.
3. Use ultra low-flow toilets and flow restrictors on restroom
faucets.
9.1 Top Ten Green Restaurant Practices …

4. Reduce, reuse, recycle. Buy products in returnable, reusable


or recyclable containers.
5. Recycle food*, cardboard, paper, glass, metal and plastics.
(*food waste, along with waxed cardboard, paper napkins,
paper beverage cartons and wooden crates can be picked up for
off-site composting in many parts of the Bay Area.)
6. Buy recycled-content paper products whenever possible,
including hand towels, napkins, office and food service uses.
7. Use take-out containers that can be composted (paper) or
recycled (#1 and #2 plastics, aluminum) instead of styrofoam.

HTT & PhD Juhani Palojärvi 134


9.1 Top Ten Green Restaurant Practices …
Pollution Prevention 8. Properly maintain grease traps and
kitchen hoods to prevent overflows and emissions to the
sewer and storm drain systems.
9. Keep outdoor waste storage, parking and sidewalks free of
litter, grease spills and other potential pollutants. Use
sweeping and spot cleaning for most clean ups. If washing is
needed, use a cleaning method that keeps cleaning water out
of storm drains.
10. Use organically or sustainably produced foods in the
kitchen.

HTT & PhD Juhani Palojärvi 135


10 Become a Green Winery
10.1 It's Easy
The Benziger Family Winery used a variety of different
approaches to conserve resources, reduce pollution and become a
Green Business. A recycling program reduced their solid waste
generation by 41%. A Process Wastewater Management System
allows them to treat and reuse their wastewater for irrigation,
which saves between one and one-and-a-half-million gallons of
water per year. In addition, the winery has reduced annual energy
consumption by 33%.
How can wineries "green" their businesses? First bring their
operations into compliance with all environmental regulations,
then adopt pollution prevention and resource conservation
practices. The program checklists offer a variety of options for
meeting program standards. Here are some examples of what you
can do.
10.2 Top Ten Green Winery Practices

Encourage Green Practices in Employees


• Start "Green" committees which meet monthly.

Solid & Hazardous Waste Reduction


2. Recycle cardboard and shrink wrap through the use of
balers.
3. Install ozone systems to sterilize barrels. This eliminates the
use of hazardous chemicals.
HTT & PhD Juhani Palojärvi 137
10.2 Top Ten Green Winery Practices
Conserve Energy & Water
4. Use high pressure/low volume cleaning equipment to reduce
water usage.
5. Reduce energy usage for cooling tanks by using refridgeration

jackets.
6. Purchase new equipment, such as:

a. Vacuum pumps to eliminate water used in bottling operations

b. Self-cleaning presses used in crush operations which reduce


water use
138
Both these purchases reduce energy usage.
10.2 Top Ten Green Winery Practices

Green Farming Practices


7. Use pumice and diatomaceous earth as compost in the
vineyards.
8. Protect against pests in vineyards naturally using
permaculture gardens.

Beneficial Byproduct Use


9. Reuse waste water on vineyards and landscaping.
10. Convert waste wine into marketable vinegar.

HTT & PhD Juhani Palojärvi 139


11 Becoming Green business in General
The Bay Area Green Business Program has developed general
Green Business Standards which apply to all businesses and
agencies that want to "green" their operations and be certified.
Any business or agency in a participating county that meets
program standards can join.
Using the general standards, the Program has certified a bank, a
hardware store, and a number of other office-based businesses. A
diverse range of other businesses, including silicon wafer and
electronic product cleaning service reclamation firms, a data
processing and software operation, and a custom photo graphics
company are well on the way to becoming Bay Area green
businesses. If you are interested in joining the program, use the
links below to contact your county coordinator.
140
11.1 Compliance Plus
To be a green business, first bring your operations into-
compliance with all environmental regulations. Then go
beyond compliance to meet the general practices and
targeted resource conservation and pollution prevention
measures which are summarized below.
General Practices
3 Monitor, record, and post rates of water and energy usage and
solid and hazardous waste generation.
2 Provide three on-going incentives or training opportunities to
encourage management and employee participation.
3 Inform your customers about your business' efforts to meet
the Green Business Standards.
4 Assist at least one other business in learning about the Green
Business Program and encourage them to enroll.
11.2 Resource Conservation and
Pollution Prevention

Water Conservation
1. Conduct an indoor/outdoor water balance or assessment.
2. Implement all applicable simple conservation measures. &
3a. Implement 3 of the suggested or industry specific water
conservation measures. or
3b. Demonstrate a 15% reduction in your annual water use.

HTT & PhD Juhani Palojärvi 142


11.3 Resource Conservation and
Pollution Prevention …
Solid Waste Reduction & Recycling
1. Conduct a waste reduction assessment of solid waste streams.
&
2a. Implement solid waste reduction and recycling measures:
• Reduce paper waste in 5 different ways.
• Incorporate waste reduction methods into your business in 5
ways.
• Segregate and recycle or reuse 5 types of materials from
your solid waste streams.
HTT & PhD Juhani Palojärvi 143
11.3 Resource Conservation and
Pollution Prevention …
• Purchase 3 recycled or used materials/products for
your business. or
2b. Demonstrate a 25% diversion of annual waste
generation, implement a source reduction measure
and purchase a recycled-content product.
Energy Conservation
1. Have your local energy utility or an energy service
company conduct a commercial energy assessment.
2. Perform regular maintenance on heating, ventilation and air
conditioning (HVAC) system. &
3a. Implement 2 alternative technologies and 5 behavioral
changes. or
3b. Demonstrate a 15% reduction in annual energy use. 144
11.3 Resource Conservation and
Pollution Prevention …
Pollution Prevention
1. Conduct an assessment of your facility to identify pollution
prevention opportunities.
2a. Implement pollution prevention measures:
• Implement 6 good housekeeping and operating practices.
• Implement 3 material, product, technology or process changes.
• Reuse or recycle hazardous materials/wastes in 3 ways.
• Prevent contamination of storm water and runoff by
implementing 4 measures.
145
11.3 Resource Conservation and
Pollution Prevention …
• Implement at least 3 measures with the goal of reducing
vehicle emissions. or
2b. Demonstrate a 25% reduction of annual pollutant releases
(hazardous waste generation, industrial discharges, air
emissions), and implement one vehicle emissions reduction
measure.
There is great flexibility in how the standards can be achieved.
The Green Business Program provides additional information
and lists of suggested implementation measures for each.
Measures previously implemented will be considered towards
achievement of standards, and participants can request
alternatives or exemptions for measures which are not feasible
for their company. 146
12 In Case of Emergency
12.1 When The Power Goes Out
A. Emergency Supply Kit
Maintain an emergency supply kit for you home, office and
car including:
• Battery-powered radio, flashlights, and batteries
• Extra set of car keys
• Supply of easy-to-prepare, nonperishable foods
(packaged snacks, fruits, water and juices)
• Manual can opener
• Wind-up or battery-operated clock
• Cash, coins and credit cards 147
Continues …
• Change of clothing, rain wear, and useable shoes
• Blankets or sleeping bags
• If you have a baby, include extra diapers and other
infant care items
• First aid kit
• Essential medicines and prescription information
• Names, addresses, and telephone numbers of doctors
and pharmacist
• Extra pair of glasses, hearing aid batteries, extra
wheelchair batteries, oxygen, medication, catheters,
food for guide or service dogs, or other special
equipment you might need
• A list of the style and serial numbers of medical
148
devices such as pacemakers.
B. Helping Children Cope
Children depend on daily routines: regular times for meals,
school and play. At night, they are accustomed to having light
and entertainment available at the flick of a switch. When a
power outage interrupts this routine, children may become
anxious and look to you and other adults for help.

How you react to a power outage gives children clues on how


to act. If you react with alarm, a child may become frightened.
When talking with children about an outage, be sure to present
a realistic picture about what has happened and the expected
outcome.

Explain the Situation -- Your calming words and actions will


provide reassurance.
B. Helping Children Cope …
Listen -- Concentrate on your child's emotional needs by asking
the child what's uppermost in his or her mind. Encourage children
to describe what they're feeling. Listen to what they say. If
possible, include the entire family in the discussion.
School Plans -- Ask your children's teachers and caregivers about
power outage emergency plans for schools and day-care centers.
Emergency Number -- Post emergency telephone numbers near
telephones and teach your children how and when to call for help.
Entertainment -- Keep flashlights, light sticks, playing cards,
books, notebooks, magazines, board games and craft supplies
handy.
HTT & PhD Juhani Palojärvi 150
C. Security Issues
Family Reunification -- Have a plan for checking on and
reuniting family members.
Stay Home -- If possible, stay home and be safe during a power
outage. Stores and gas stations may be closed. Don't add to the
confusion by driving around.
Security Gates -- Find out the steps needed to open and close
security gates without electricity.
House Numbers -- Ensure house numbers are readily visible
from the street for emergency response.
Reset Appliances -- When power comes back on you may have
to reset your clocks, VCR's, microwave ovens, programmable
thermostates, burglar and/or fire alarms.
Suspicious Activity -- Watch for suspicious activity. criminals
may decide to take advantage of the power outage. Always call
112 if you notice suspicious activity.
151
D. People With Disabilities
If you have a disability, being prepared can reduce the fear,
panic, and inconvenience that surround an emergency.

Backup Power Supplies -- Learn what you can do in a


power outage. Know how to start or connect a backup
power supply for essential medical equipment.

Flashlights -- Keep a flashlight or light stick handy to


signal your whereabouts to other people and for
illumination to aid in signing or written communication.

Self-Help Network -- create a self-help network or


relatives, friends or co-workers. Discuss your disability and
ask for their assistance in an emergency. Arrange for
someone to check on you in an emergency.
D. People With Disabilities …
Teach Others How To Help You -- Teach others how to
operate necessary equipment. Give a key to a neighbor or
friend who may be able to assist you. Make sure they know
where you keep emergency supplies.
Hearing Impaired -- Remind friends that you cannot hear
warnings or emergency instructions. Ask them to be your
source of emergency information as it comes over their
radio.
Medical Alert Systems -- Consider getting a medical alert
system that will allow you to call if you are immobilized in
an emergency. If you have a severe speech, language, or
hearing disability, learn how to use TDD telephone services.
Wear medical alert tags or bracelets to identify your
disability. 153
D. People with Disabilities …
Wheelchair -- If you use a wheelchair, show friends how to
operate your wheelchair so they can move you if necessary. Make
sure your friends know the size of your wheelchair in case it has to
be transported.
Personal Attendants -- If you use a personal care attendant
obtained from an agency, check to see if the agency has special
provisions for emergencies such as power outages.
Life Sustaining Equipment -- Know the location and availability
of more than one facility if you are dependent on a dialysis
machine or other life-sustaining equipment or treatment.
Pets -- If you have an assistance dog, be aware that the dog may
become confused or disoriented within emergency. Store extra
food, water and supplies for your dog. 154

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