 Discuss Science Paper
 Business Environmentalism vs. C&C
 life cycle analysis; design for environment
 Why Business go green
 competitive advantage vs. social license
 Achieving product differentiation
 Corporations are actors with best knowledge about
markets, products, inputs, production processes, capital,
supply chains, and available technologies.
 Apple – all renewable energy; exceed energy star
 Pepsi- reduce water usage 20%
 If given proper incentives, corporations can achieve gains
never imagined by regulations and more efficiently.
 Who needs Clean Water/most concerned hydrofracking
 Coke or Clean Water Action
ECO-ADVANTAGE PLAYS
1. Cut costs
2. Lower eco-risks
3. Drive revenues
• Green markets
• New market space
4. Promote intangible
value
• Brand building
3
© YALE CENTER for ENVIRONMENTAL LAW & POLICY
Why do companies go green?
Social License Theory
Caveat #1
(your moment of skepticism)
 Corporations #1 Responsibility?
Caveat #2
Zespri® Organic Green Kiwifruit is grown to the strictest organic standards, and is certified
by Bio-Gro, New Zealand’s organic protocol organization. New Zealand’s reputation for its
clean, green environment is internationally acclaimed. Our growers are constantly striving to
ensure that their horticulture practices are environmentally friendly and the fruit they
produce is safe beyond doubt
http://zesprikiwi.com/home-consumers/zespri-kiwifruit/organic-kiwifruit
BP
 Sustainability
 We strive to be a world-class operator, a responsible
corporate citizen and a good employer. We believe
we have a positive role to play in meeting growing
energy demand around the world
Two green business strategies
 Talk: Broad statements about major directions that focus on reducing
depletion and pollution, and increasing sustainability
 BP: Beyond Petroleum
 Action: Specific decisions about major investments that focus on
reducing depletion and pollution, and increasing sustainability
 TXU: Cancel 8 coal plants, spend $400M on energy efficiency
 Thought Experiment
 Nature’s First Paper Company
 Northern Atlantic Paper Company
8
For firms to achieve differentiation based
advantages through green production
Millenial Survey
 https://skidmore.qualtrics.com/SE/?SID=SV_ebuY7B7WtuQ5ypn
 Labels are hard to read.
 implication?
 Environment commitment may matter
Lumber Shopping Dilemma
 American Forest and Paper
Association
forest product consumers and traders
Would you trust the American Forest and
Paper Association?
At stake…
 Social license theory...
Labels can be real, and not matter
Should Skidmore Go Green
Why Should Skidmore Go Green
 cut costs
 achieve product
differentiation in a highly
competitive marketplace
 Skidmore
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community bikeshare
community garden
solar
microhydro
tray less dining
geothermal
sustainability coordinator
etc
Who’s the Greenest of them all?
 Getting Skidmore to go
green?
 Product Differentiation
 President’s Climate
Commitment
 Divestment?
 Revoking the Social License
Intersection with Public Policy
 Labelling- 3rd party or government certified enables
product differentiation based on environmental
attributes
 Industry association
EPA Partnership Programs
 address a wide variety of environmental issues by
working collaboratively with companies,
organizations, communities, and individuals.
 more than 13,000 firms and other organizations
participating in EPA Partnership Programs
Partnership Model
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Dissemination of information
Public recognition
Modest subsidies
Regulatory benefits
Agriculture
 The AgSTAR Program
 voluntary outreach and educational program that
promotes the recovery and use of methane from animal
manure.
 http://www.epa.gov/agstar/
 Pesticide Environmental Stewardship Program
Reduce risk from the use of pesticides and to go
beyond regulatory requirements to a higher level of
environmental stewardship.
Sixth AgSTAR National Conference,
taking place in Boise, Idaho!
 The conference will include technical presentations
on a variety of topics related to anaerobic digestion,
expanded networking events, and an exhibit hall. We
are also planning a tour of an anaerobic digester
system
Pennsylvania Digester Workshop
Market Opportunities for Biogas Recovery
Systems at U.S. Livestock Facilities.
Anaerobic Digestion Potential at Swine Farms
(June 2010)
USDA Financial Assistance
 Rural Energy for America Program
 Bioenergy Program for Advanced Biofuels
Protocol for Quantifying and Reporting the
Performance of Anaerobic Digestion
Systems for Livestock Manures.
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Steve Dvorak, GHD, Inc.
Thomas Fiesinger, New York State Energy Research and Development Authority
Curt Gooch, Cornell University
M. Charles Gould, Michigan State University
Richard Hegg, USDA Cooperative State Research, Education, and Extension Service
Darren Hickman, USDA Natural Resources Conservation Service
John Katers, University of Wisconsin—Green Bay
Joseph Kramer, Energy Center of Wisconsin
William Lazarus, University of Minnesota
Norma McDonald, Organic Waste Systems, Inc.
Steffan Mueller, University of Illinois at Chicago
Jenny Pronto, Cornell University
Kurt Roos, U.S. Environmental Protection Agency
Diane Saber, Renewable Energy and Environmental Consultants
Joe Schultz, Wisconsin Focus on Energy
Daniel Scruton, Vermont Agency of Agriculture, Food, and Markets
Melissa VanOrnum, GHD, Inc.
Information
 What to Expect When You Clean Out a Plug Flow
Digester
 Anaerobic Digestion of Flushed Dairy Manure
 Anaerobic Digesters Control Odors, Reduce
Pathogens, Improve Nutrient Manageability, Can be
Cost Competitive with Lagoons, and Provide Energy
Too!
Number of Operating Digesters
(November 2010)
Success?
 Green Racing Initiative
 Working with SAE, EPA created a work group that has
developed a set of draft voluntary protocols that will
turn racing into a laboratory for energy efficiency and
reducing greenhouse gasses and auto emissions
without slowing the cars or spoiling the sport.
 Responsible Appliance Disposal Partnership
 The Responsible Appliance Disposal (RAD) program is a program where
partners recover ozone-depleting chemicals from old refrigerators, freezers,
air conditioners, and humidifiers. Using best practices, RAD partners ensure
that: refrigerants are recovered and reclaimed or destroyed; foams are
recovered and destroyed, or the blowing agent is recovered and reclaimed;
metals, plastic, and glass are recycled; PCBs, mercury, and used oil are
recovered and properly disposed. As part of the RAD program, EPA serves
as a technical clearinghouse on responsible appliance disposal program
development and implementation; calculates annual and cumulative
program benefits in terms of ODS and GHG emission savings and
equivalents and, provides partner recognition for achievement, such as
through press releases, brochures, articles, and awards. RAD partners
include utilities, municipalities, retailers, manufacturers, universities, and
other interested organizations.
 GreenChill
 EPA and the supermarket, refrigeration equipment and chemical refrigerant
industries have established the Greenhill Advanced Refrigeration
Partnership – a voluntary program to promote green technologies,
strategies, and practices that protect the stratospheric ozone layer, reduce
greenhouse gases, and save money. Partners must pledge to go above and
beyond regulatory requirements by establishing an inventory of current
refrigerant emissions that may affect climate change and the stratospheric
ozone layer, and then setting reduction targets for these emissions. EPA
estimates that widespread adoption of advanced refrigeration technologies,
best practices, and improved equipment design and service could reduce
refrigerant emissions. To counteract the depletion of stratospheric ozone,
which protects earth's citizens from the sun's ultraviolet radiation, partners
guarantee to use only ozone-friendly alternatives and advanced
refrigeration technologies in all new and remodeled stores.
 GreenScapes
Unifies government and industry, thereby influencing
the reduction, reuse, and recycling of waste materials
in large-scale landscaping by providing cost-efficient
and environmentally-friendly solutions that conserve
natural resources and energy.
 Carpet America Recovery Effort
To increase the amount of recycling and reuse of
post-consumer carpet, and reduce the amount of
carpet going to landfills.
Thoughts on Partnership Model
33/50 Program
17 Targeted Chemicals
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Benzene
Carbon tetrachloride
Chloroform
Dichloromethane
Methyl ethyl ketone
Methyl isobutyl ketone
Tetrachloroethylene
Toluene
1,1,1-Trichloroethane
Trichloroethylene
Xylenes
Cadmium and cadmium compounds
Chromium and chromium compounds
Cyanide compounds
Lead and lead compounds
Mercury and mercury compounds
Nickel and nickel compounds
Percent Change in Releases and
Transfers of 33/50 Program
Chemicals:
Ozone Depleters vs. Others, 19881995
Business School
 Businesses seek competitive
advantage by reducing costs &
product differentiation. M.
Porter
 Social License theory
 Esty and Winston
Political Economy (Chicago
School)
 Corporations seek competitive
advantage via public policy. G.
Stigler
Baptists
Bootleggers
 Companies
 Industries
 Countries