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CSRwire Weekly News Alert
2.06.2008 ET
CSRwire Weekly News Alert:
How Green Are Green Business' Pastures?
By Bill Baue
The State of Green Business 2008 report unveils the GreenBiz Index to
establish benchmarks for measuring the progress of green business.
You know a trend has hit its stride when it starts being quantified. Such
is the case for green business as of 2007. For example, Fortune
named "Ten
Green Giants" in April and Fast Company listed "50
Ways to Green Your Business" in November. On the other side of the
coin, TerraChoice listed the "Six
Sins of Greenwashing" in November, a study that astoundingly found
only a single verifiable green product claim amongst more than a thousand
that were shown to be "demonstrably false" or that risked Òmisleading
intended audiences." And economist Eric Janszen warns in a recent
Harper's that the stellar growth of
cleantech investing may be feeding the economy's need to inflate the next
financial bubble.
Green business guru Joel Makower and his team at Greener World Media
decided to take a step back to survey the green business landscape. "What
yardstick measures green business?" they asked themselves. Logically, they
examined the thousands of headlines appearing on their four websites -
GreenBiz.com, ClimateBiz.com, GreenerBuildings.com, and
GreenerComputing.com - to identify the "Top Ten Green Stories of 2007."
Released in the inaugural State of Green Business
2008 report, the list starts to quantify the status of corporate
environmental initiatives last year--such as increasing climate
commitments from the likes of Nike, which intends to go climate-neutral by
2011, and Green Mountain Power, which is nearing zero-carbon status with
just two percent of its 2006 fuel mix from carbon-emitting sources
(compared to 70 percent for U.S. utilities.)
However, even these first examples from the report point to landmines
buried beneath the surface. In its infamous "Little Green Lies" issue,
BusinessWeek critiqued the "fuzzy
math" of Nike's "eco-accolades" from WWF, unearthing anomalies in the
company's claim of 18 percent carbon reductions such as claiming carbon
cuts achieved by public schools it funded through a Oregon Energy
Department tax-credit program. And almost
half (43 percent) of Green Mountain Power's 2006 energy mix came of Vermont
Yankee nuclear plant, which may be "carbon-free" but does not qualify
as "green" for many environmentalists.
To measure this uneven ground, Makower and his colleagues created the
GreenBiz Index, grading environmental progress in 20 categories on a
three-tier ranking of "swimming," "treading," or "sinking." Half of the
categories stand on even ground ("treading"), with eight gaining ground
("swimming") and two - e-waste and carbon intensity - losing ground.
Carbon intensity illustrates a primary problem identified by GreenBiz -
that economic growth can offset, or even erase and negate, incremental
improvements in lowering carbon emissions.
"The good news is that we've become more efficient," Makower said in an interview
with me on Corporate Watchdog Radio. "It's dropped some seventy
million tons of C02 per dollar of GDP since 2001."
"The bad news is that the overall amount of carbon hasn't dropped much -
it just started dropping a little bit in 2006 for the first time, and we
don't yet know about 2007," he added. "Going down 1.5 percent in one year
is a good thing, but we need to be making much bigger changes. If we
continue to do business as usual - gradual efficiency - it's not going to
get us anywhere close to the goals that we need to be achieving."
Perhaps the biggest finding of the report (which Fortune writer Marc
Gunther characterized as a "must-read for anyone interested in green
business") was what it couldn't find. There is insufficient data
available on such hot-button issues at the intersection of business and
the environment as green job creation and water efficiency. If "what gets
measured gets managed," as the well-worn saying goes, then this report
should act as a kick-in-the-seat-of-the-pants not only for improving the
trajectory of green business statistics, but also for generating the
metrics necessary to track progress toward business sustainability.
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Dorothy Schnure
2008-02-13 11:49:28
On Feb 8, 2008, at 6:10 PM, Schnure, Dorothy wrote:
Dear Mr. Baue:
I wish you had done a little research into Green Mountain Power before you criticized us for greenwashing in your recent article. While we are very proud that only two percent of our power supply comes from fossil fuels, we have never referred to our power supply mix as "green." We do, however, offer our customers the opportunity to choose 100% renewable electricity and to offset their home heating and driving carbon footprint through our "choose2bgreen" program. In addition, Green Mountain Power has committed itself to reduce the carbon footprint of its operations where possible and offset the remainder. Finally, we are very transparent about the role nuclear power plays in our portfolio. Should you wish to read about it, I would refer you to our sustainability report at .
I strongly object to your claim that our statement about our low use of fossil fuels is greenwashing and expect that you would correct it in a future article. We have been very careful not to overclaim. Perhaps you confused our program where people can choose 100% renewable power (which would be rightly called "green") with our overall, low emission, portfolio. If you wish to discuss it further, please contact me at your earliest convenience.
Dorothy Schnure
Manager, Corporate Communications
Green Mountain Power
Bill Baue
2008-02-13 11:52:16
From: Bill Baue
Sent: Friday, February 08, 2008 6:42 PM
To: Schnure, Dorothy
Cc: Joe Sibilia; Greg Schneider
Subject: Re: comment from Green Mountain Power
Dorothy,
Thank you very much for taking the effort to engage with me on this. I certainly did not intend to represent Green Mountain Power as "greenwashing," nor do I believe I was criticizing you. In fact, I recently praised your disclosure on the "positive effects" and "negative effects" of nukes on your website to my students in the Marlboro Sustainability MBA program (one of whom works for VT Yankee), especially in comparison to FPL, which I had recently researched in writing a chapter for a book sponsored by Ceres. FPL doesn't even really acknowledge the negative effects--so I consider you much more transparent and honest than FPL.
While you use the term "greenwash," please note that I did not use that term in the article, so it's unclear exactly how I could correct something that isn't there. What I did say is that the examples of Nike and GMP "point to landmines buried beneath the surface." I think it seems reasonable to suggest that nukes represent a "landmine" in the environmental community right now, with such luminaries as James Lovelock supporting them, academics such as John Holdren of Harvard taking a middle ground by suggesting that they may play a role in climate change mitigation when economic, storage, and security issues are solved, and Amory Lovins likening the revitalization of the nukes as "trying to defibrillate a corpse." Given this landscape, I believe my description that nukes "may be 'carbon-free' but [do] not qualify as "green" for many environmentalists" is accurate. And please note that I say that "many environmentalists" do not consider nukes to be "green"--I did not say that GMP has called nukes green, as you suggest.
So, I regret that my writing opened up to the perception that I was accusing GMP of greenwash, though I hope we can agree that I was not making such an accusation.
I would love to share our exchange with my Marlboro students in my Communications class, as we are studying greenwash as compared to valid claims (and I would say that GMP conducts best practice in your sector on addressing the thorny issue of nukes) as well as how reader perception can differ from author intentions, so please let me know if I have your permission to do so.
(I'm cc'ing Joe Sibilia and Greg Schneider of CSRwire so they are aware of our exchange.)
Again, thanks for speaking with me directly about this, and let me know if you'd like to engage further.
Bill
Bill Baue
Writer, SocialFunds.com and
CSRwire.com
Co-host/producer,
Corporate Watchdog Radio
Adjunct Professor,
Marlboro Sustainability MBA
Dorothy Schnure
2008-02-13 11:54:28
On Feb 11, 2008, at 4:37 PM, Schnure, Dorothy wrote:
Bill --
Thanks so much for your quick response to this. Interesting communications issue. After reading your explanation, I can understand your point of view, and you did not, in fact, say that Green Mountain Power was greenwashing. However, given the context it was in, I'm sure I'm not the only one who read it as a criticism. In fact, the article was brought to my attention by a friend who said, "you guys are featured in this piece on “greenwashing.” I suppose you could argue that I was predisposed to read it as a criticism, since that's the flavor my friend put on it. However, I still feel the "but does not qualify as green..." sentence implies that we tried to qualify it as green.
I am very pleased to hear that you have found and used our disclosure on Vermont Yankee. Interestingly, it was the Ceres stakeholder process that encouraged us to put that detailed information in, as some of the stakeholders criticized our first sustainability report as not having enough nuclear disclosure. I have since participated in reviews of other utilities where I was pleased to see ours held up as a good example.
You are most welcome to use our exchange in your class. It is good for students to see how differently people can read the same words if you are approaching it from a different point of view. The beauty of continuing an exchange is that misperceptions can be cleared up. Unfortunately, we'll never know how many others may have read it the way you did not intend. Thanks for writing back and feel free to be in touch if there is any information about Green Mountain Power I can help you with.
Dorothy Schnure
Manager, Corporate Communications
Green Mountain Power
Bill Baue
2008-02-13 11:57:23
From: Bill Baue
Date: February 11, 2008 4:51:43 PM EST
Subject: Re: comment from Green Mountain Power
Thanks Dorothy. I do see more clearly how you may not be the only reader who interpreted this section as criticism of GMP instead of pointing out the complexity of green business, as I intended. In the end, reader perception is more important than authorial intention.
Yes, interesting communications issue--thank you for permission to share this with my students.
And perhaps Joe and Greg, you could turn on the "Commitment to Transparency" feature on that article so Dorothy could comment if she wishes.
Thanks,
Bill
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