SUSTAINABILITY IN
WISCONSIN
Tom Eggert
- Business, Environment & Social Responsibility Program
WI School of Business
- WI Sustainable Business Council
- Bureau of Cooperative Environmental Assistance
WI DNR
Thomas.eggert@wi.gov
Sustainability Trends:
2010 – 2011
The Importance of Tracking Trends
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We can learn from the past, but we can’t
be successful living there
There is often more risk in maintaining the
status quo than in changing
This moment in history really might be
unique in that our systems have largely
been upset and much greater change is
possible.
From economic collapse to a
green economic recovery
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About 34 percent of people are now more likely
to buy environmentally responsible products
and 44 percent of consumers indicate their
environmental shopping habits have not
changed as a result of the economy (Cone
Consumer environmental survey 2009)
Venture capitalists and corporate investors
invested $4 billion in green start-ups and the
Dept of Energy has allocated $36.7 billion to
energy efficiency and alternative energy
projects in 2009.
From energy excess to energy
efficiency
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The July 2008 edition of The McKinsey
Quarterly estimated that $170 billion a
year will be invested in energy efficiency
between now and 2020, which could halve
forecasted growth in global energy
demand.
The International Organization for
Standardization (ISO) is planning to
create an energy management standard
(ISO 50001) by 2011.
From energy efficiency private
standards to legal requirements
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The European Energy Performance in
Building Directive (EPBD) [this would be a
rule in the US] is now finalized.
The USGBC, in conjunction with ASHRAE
and DOE, is developing a LEED energy
performance standard for the US.
These will outline standards for calculating
energy consumption and energy audit
methodologies
From commercial energy
efficiency to residential energy
efficiency
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Legislation in the United Kingdom will
require an energy efficiency rating to be
published for homes advertised for sale
beginning in 2012.
The legislation will effectively put a green,
amber, or red energy efficiency grade on
every “For Sale” sign in the UK, helping
the government in its plans to reduce
household carbon emissions by 29% by
2020.
From environmental
sustainability to embedded
sustainability
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In 2010 we will see stronger links between
sustainability and well-being.
The UN Development and Happiness Index,
and the Genuine Progress Index integrate
human well-being and environmental impact.
The credibility of these indices will continue to
increase, with the $200 billion Lifestyles of
Health and Sustainability (LOHAS) market
expected to double by the end of 2010 (from
2008 levels) and quadruple by 2015, according
to the Natural Marketing Institute
From carbon confusion to
carbon regulation
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California’s stringent carbon dioxide
reduction law requires 1990 emission
levels be reached by 2020.
The US EPA issued their endangerment
finding in December, 2009, paving the
way for regulating CO2 and requiring
reporting on CO2 emissions starting in
2011.
From cheap to costly carbon
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European taxes on carbon emissions for new
cars are increasing.
In late November, 2009, the state of California
announced plans to charge businesses 16.5
cents per metric ton of greenhouse gas
emissions. The rule will be implemented starting
late 2010.
The industries which will be the most affected
include major refineries, cement factories and
power plants but even other businesses like
auto shops, restaurants and coffee roasters will
feel the impact of the rule.
From carbon trading doubt to
carbon market development
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Point Carbon’s Market Outlook expects
the global carbon offset market to grow 20
percent in terms of volume in 2010.
They forecast that 5.9 gigatons (Gt) of
carbon dioxide equivalent (CO2e) will
trade this year, compared to 4.9 Gt in
2008.
The Chinese announced in summer,
2010, that they will be developing a
carbon cap and trade program.
From fossil fuels to renewables
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According to Morgan Stanley’s Green Market
Penetration forecast (2007), the renewables
trend is going to continue developing; revenue
from alternative energies could top $500 billion
in 2020 and world-wide sales from alternative
energy sources could reach $1 trillion by 2030.
The hottest investment sector for Venture
Capitalists is CleanTech and Alternative Energy,
with over $4 billion flowing into the sector in
2009.
CleanTech investments
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According to the head of Deutsche Asset
Management, his bank is making
CleanTech investments in China, in
Europe, in Korea, but not in the US
because of the continued regulatory
uncertainty in this country.
The Chinese government has developed
policies to support a boom in private
sector investments in clean technology,
while here at home Congress fails to
advance any meaningful legislation.
Renewable wind energy
In 2009, during one of the worst
financial crises in recent history, the
wind market grew 39%.
 The industry installed over 10,000
MW of new wind power facilities in
2009.
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From carbon reduction to
carbon neutral
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Kohl's Department Stores has
committed its U.S. stores,
distribution centers and corporate
offices to operate with net-zero
greenhouse gas emissions by the
close of 2010.
From carbon-centric to
water-centric
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About 2.6 billion people have no access to
clean water (FairHome 2008), a problem
not isolated to developing countries.
This has pushed water issues up the
environmental agenda, and will become a
new focus for 2010-11.
From regulatory programs to
leadership programs
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The majority of the Fortune 500 now
voluntarily produce a sustainability report.
70% of the 100 largest companies in WI
have a sustainability strategy and 70%
have an identified executive champion.
Programs like Green Masters and Green
Tier appeal to companies regardless of
size, sector or location, and exist in over a
dozen states
From trash to treasure
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Trash is being looked at as a new, less
expensive feedstock.
People are now opting to reuse, resell,
donate or recycle old goods.
Millions of us sell used goods on Ebay,
which has recently launched “green team”
and “world of good” websites to help users
buy, sell and think green
From knowing your business to
questioning what business you
are in
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How much of Starbuck’s success is due to
their mission: “to inspire and nurture the
human spirit”?
Why does Ford CEO Bill Ford talk about
being in the transportation business, as
opposed to the car manufacturing
business?
From printed papers to digital
development
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the development of online videos, social
networks and podcasts highlight the
impact of the digital marketing space.
Brands will increasingly use social media
to communicate with consumers.
The brands that win, will be those whose
consumers tell the best stories. It’s no
longer a one-way narrative, it’s about a
two-way conversation.
From offline to online
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Consumers can find information about
anything, anytime, and they are actively
seeking information about the brands with
which they interact.
It is going to be increasingly important for
brand image to match company behavior.
From telling to engaging
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Issuing a press release or finding a
reporter to write a story will be replaced by
two way dialogue with stakeholders.
The influence of “word of mouth” has
never been more relevant than in today’s
world of blogs, tweets and Facebook.
From regulating to relating
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State environmental regulatory agencies
are developing beyond compliance
programs to supplement traditional
regulatory programs.
In many businesses, environmental (and
social) performance is being driven by
customer pressure, investor pressure,
supplier pressure, or the pressure to find
and hire the best and brightest.
Green Masters Program
The Green Masters program is an objective, points
based certification program that will allow
businesses of any size and from any sector to
understand what needs to be done to justifiably
claim that they are “on the road to sustainability.”
The program was launched at the WI Sustainable
Business Council Conference in December, 2009,
and the first cohort of companies will be announced
at the 2010 conference.
Sustainability Areas
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Energy
Climate Change
Water
Waste Management
Transportation
Purchasing
Natural Resources
Educational Outreach
Systematic Evaluation of your Business
Addressing Social Stratification
Conclusion
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The world is changing and the market is
changing
What starts in Europe almost always
makes its way to our shores
There will be winners and losers
Green is here to stay
Thank you!
Tom Eggert
Green Tier Program, WI DNR
Business, Environment & Social Responsibility Program
WI School of Business
Thomas.eggert@wi.gov