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Monday, October 6, 2008

Going Green or Green Washing?

I wrote this in response to a post by Marguerite at her blog about how consumers are unwilling to spend extra for green.

Some of the same arguments apply to companies too, which are huge consumers of energy and electricity. I just saw an article about a recent survey (albeit of 16 companies only) that lists the various advantages of going green. However, I have been really disillusioned for the most part about corporate America's attitude towards climate change; Google's efforts being more an exception than the rule. The bottom-line being what drives companies, these tough times and the recent focus on sustainability and 'green' has led to many cases of green-washing or merely pasting a 'green' or sustainability sticker on their cost-cutting measures. Without making any conscious attempt to curtail excesses or even simple measures like setting up recycle programs at the work place, many just ride the 'green' bandwagon because it is the expedient or opportune thing to do today.

I am not denying that some companies have taken genuine steps in this regard. The most unlikeliest of companies one would think of - Wal-Mart - has shown some great leadershipin this regard. Of course, they do it to bring their own energy costs down. I believe, that after the US government, they are the highest electricity purchaser in the US (or maybe the world) and their energy costs to keep their buildings going are enormous. That alone would not be impressive. I am impressed, however, from what I have heard and read about their ongoing efforts to drive change through influencing consumer and consumer choices. For eg: I have heard a Vice-President from Wal-Mart say that they plans to have CFL and other energy efficient lighting measures in all their stores as a first step but they plan to go beyond that and take out all regular bulbs from their shelves and have only CFLs (even if it is their own Great Value brand predominantly!)
[Note: The Walmart VP which I heard was at a keynote address (heard in its entirety at the link) given at a solar conference last year in Long Beach. This year the conference begins in San Diego next Monday. I wish I was going! The talk was given by Charles Zimmerman, VP of Prototype and New Format Development at Wal-Mart and I believe that is where I heard the point about rolling out only CFLs in Walmart.]

A large portion of the US shops at Wal-Mart. They have the power to influence consumer behavior and choices significantly. So, I hope they continue this effort and roll out their own efficiency and energy management measures to ALL their stores soon, beyond the two show-n-tell fancy stores they have in Texas and Colorado.

Also, they have a huge suppliers list of companies who would (and probably do) bend over backwards to have supply arrangements with Wal-Mmart. I believe Wal-Mart has already started affecting their suppliers' attitudes regarding packaging and other choices by demanding a 'greening' of the suppliers corporate decisions and choices. Again, I am not aware of how rigorously this is greening or green-washing the supply-chain but this is an example of how corporate leadership can influence particular companies as well as the companies they do business with, in addition to directly affecting their consumers and hence the world at large.

Slowly but steadily, change is happening but we definitely need more of them to happen for this to be not a fringe movement or a oh-look-what-those-great-guys-at-Google-did news item but a way of life!

Disclaimer: I own neither WMT or GOOG stocks; other than what some mutual funds I own may have in their portfolio.

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