Some businesses once considered
‘bad actors’ by environmentalists are now being
praised for leading the ‘corporate greening’
movement. Lester Graham spoke with an advisor who
helped some of those companies, John Elkington.
Elkington is the founder of the consulting firm
SustainAbility. He says not all corporations have
realized the importance of becoming more
environmentally-friendly at the same time:
Transcript
Some businesses once considered
‘bad actors’ by environmentalists are now being
praised for leading the ‘corporate greening’
movement. Lester Graham spoke with an advisor who
helped some of those companies, John Elkington.
Elkington is the founder of the consulting firm
SustainAbility. He says not all corporations have
realized the importance of becoming more
environmentally-friendly at the same time:
JE: Around the world, different regions are in very different places
and companies are in different places as a result of that. In the
United States you’ve had a period of, to some degree on issues like
climate change, denial. And that’s beginning to break down, and it’s
breaking down very rapidly. So you see companies, for example in the
financial sector like Goldman-Saks, talking about the environment and
green issues in a very, very different way than they would’ve done a
few years ago.
You see General Electric, which hasn’t been a great ally of
environmental movement, launching it’s Ecomagination initiative. And
initially, people dismissing that very much as greenwash, but when you
look at the numbers, very serious growth going on inside that business
and some of these areas. And then, perhaps to top it all, you see Wal-
Mart, most peoples’ sort of bogey company in a way, announcing some if
its initiatives around renewable energy, energy efficiency, sustainable
fisheries and so on. And in a sense, it almost doesn’t matter whether
Wal-Mart is serious or genuinely wanting to go green or whatever. This
stuff is starting to cascade through the supply chain. They have 61,000
vendors, these companies around the world. And the work that we do with
companies, they’re saying, whether they’re 3M, or Dupont, or Dow…
they’re saying this company is serious and it’s driving us to do things
we hadn’t previously thought were possible.
LG: Let’s look at consumer level. I think typically, most people are
not spending a lot of time researching which brand of corn flakes is
most carbon-free or sustainable. I think most people make their
decisions on commercials or packaging at the store. How can they make
better choices about sustainable products or companies?
JE: You’re absolutely right. I think most people rely on things like
brands. I mean, they trust a brand or they don’t and they hope a brand
will deal with environmental or fair trade or whatever issues
appropriately. But there are certain moments when things start to speed
up, and this is one of them, and then a different set of actors come
in.
I mean, traditionally, the activist campaigning groups, the NGOs, and
so on, play an incredibly important role in denting brands or building
the credibility of particular brands. And increasingly you get these
standards around environmental and fair trade issues. But I think
actually the key actors at the moment – this is certainly true in
Europe and my own country, the United Kingdom – you’re seeing
supermarkets getting involved again. They did it in the late 80s, early
90s, they played a very important role. That has a huge knock on
impact.
LG: Let’s talk about the energy sector for just a moment. We’ve seen a
lot of renewable energy being built around the world lately. But we
seem to see a lot of power companies, some oil companies still digging
in their heels and fighting tooth and nail to keep things just the way
they are. Are we going to see a sea change in the energy sector like we
are beginning to see in many of the other sectors of the economy?
JE: That’s a very difficult question to answer because I think you’re
going to see several different trends at the same time. You’re going to
see for example, the coal industry, Peabody and people like that,
digging in and saying basically, we’re going to burn a huge amount of
coal. Yes it’s going to have to be clean coal but you’re going to have
that trend. You’re going to have the Exxon Mobiles of this world trying
to look a bit more civilized and say we’ve been misunderstood, we’ve
got to communicate better and so on… But basically still, anti-
climate change is a big issue.
And then you’ve got a bunch of actors. In Europe, you’ve got companies
like Statoil, BP, Shell, who’ve actually gone through that tipping
point quite a number of years back, basically believe climate change is
a reality… Still thing fossil fuels is a very large part of our
energy future, but still starting to explore renewables and energy
efficiency and so on. So I think you’ve got a differentiation and I
don’t think this is an issue of leopards changing their spots. I mean,
some of the companies that are finding this very difficult to deal with
will continue to find it very difficult to deal with even if they
become a bit more sophisticated on the communication front.
HOST TAG: John Elkington is the founder of the consulting firm
SustainAbility. He spoke with the Environment Report’s Lester Graham.