Earth Resource Foundation’s
Zero Waste
Social Enterprise Program
Business Plan Overview
January 2007
Social Impact
Earth Resource Foundation’s Zero Waste Program targets a reduced consumption of our natural
resources and waste practices by businesses and governmental agencies. In doing so, we strive to
reverse the growing depletion of the earth’s resources and the attendant effects on global climate
change, worldwide health issues, landfill consumption and the pollution of our air and water.
Our goal is to create a community of Zero Waste certified businesses and community agencies as
staunch advocates for advancing Zero Waste practices. Regulatory requirements will drive the
process as will the desire to create substantial cost reductions and the corporate responsibility to
shareholders concerned with environmental issue compliance.
Earth Resource Foundation has put together a powerful team of Zero Waste experts. These advisors,
staff and volunteers have worked to create Zero Waste businesses and communities around the
world. Our partnership experts have been very effective in this endeavor and have relied upon Earth
Resource Foundations’ expertise. We have an existing client interested in expanding their program to
a Zero Waste program. Additionally, Earth Resource Foundation has held two successful Zero Waste
conferences with considerable positive response from businesses in attendance.
Business Positioning
Our Zero Waste enterprise is a consulting business specializing in the education, training,
implementation, monitoring and certification of businesses seeking regulatory compliance and cost
savings as pertains to natural resource optimization. We also conduct conferences and seminars to
educate businesses and governmental agencies to promote environmental regulatory awareness and
drive the demand for compliance.
Although the Zero Waste concept is relatively new, many businesses and governmental agencies
have adopted Zero Waste practices, or at least instituted certain portions of the concept as a means
of achieving efficiency and/or as an effort to be a good corporate citizen.
Practitioners include:
San Luis Obispo County
Hewlett Packard
Annheuser-Busch
San Francisco
Vons-Safeway
Burbank
Seattle
Epson
Fetzer Vineyards
Boulder County, CO
Berkeley, CA
Apple Computer
Canberra, Australia
Pillsbury
XEROX
Playa Vista
Buenos Aires, Argentina
Toronto, Ontario
Ricoh
Santa Cruz County, CA
Halifax, Nova Scotia
San Diego Wild Animal Park
Zero Waste is primarily a regulatory driven program. However, demand by the public and
shareholder pressure for environmentally sound business practices has influenced the need to go
Zero Waste. The impact on the bottom line is by far the most quantitative benefit for an organization
employing Zero Waste practices. Companies have realized millions of dollars in savings each year.
Ricoh, as an example, saves approximately $2.1 million annually.
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Earth Resource’s approach to the market is that of offering a comprehensive, interactive package.
We begin with education through our highly regarded seminars and conferences in which
participants include local, state and federal government agencies; Zero Waste services providers
including consultants, equipment manufacturers, re-use companies, recyclers and composters; and
green business organizations and other environmental non-profit organizations focused on reducing
wastes.
Following an appraisal of a potential client’s operations and a strong commitment from senior
management that they support the concept and will do whatever it takes to instill the culture
necessary to make the program successful, Earth Resource will launch a company-wide educational
effort; develop schedules, manuals, tracking systems, audit standards; and establish reporting and
feedback mechanisms.
The Market
The world is the market. Zero Waste is a goal to guide people to emulate sustainable natural cycles
where all discarded materials are resources for others to use. Zero Waste means designing and
managing products and processes to reduce the volume of toxicity of waste and materials, conserve
and recover all resources and not burn or bury them. Any action or transaction between individuals
or businesses that consumes the earth’s natural resources creates the opportunity to promote Zero
Waste.
The need to implement Zero Waste practices emanates from the concern for the growing depletion
of natural resources, regulatory requirements designed to reverse the depletion and the efficiencies
and related savings gained.
To attack the market as a whole would not be prudent or manageable. Earth Resource believes that
the food industry, specifically the supermarket sector, presents a viable market in which to begin.
Many of the supply chain providers have adopted stringent recycling programs and created
awareness to the public. The organic segment is particularly in tune with the use and preservation of
natural resources and is growing considerably.
We are currently training Whole Foods in the reduction of plastic utilization and Zero Waste 101
throughout their northwest region. We believe Whole Foods is an ideal customer in our start-up
venture. They currently operate in 11 regions throughout the U.S., Canada and the UK with 189
stores, 39,000 employees and plan to open 88 additional stores in the next 24 months.
The entire market is overwhelming and every segment of industry is a potential participant in a Zero
Waste program. Our success as a start-up is closely tied to our ability to focus on a very small
segment of the market and as the segment grows we will grow with it and/or expand into other
markets when feasible.
Our Solution
Zero Waste has a direct benefit to the company’s bottom-line which can be in the million of dollars
per year. Zero Waste also provides businesses with a positive change in corporate culture,
enhanced employee moral, better community image, decreased risk (hazardous waste, employee
accidents, etc) and increased customer loyalty and purchasing.
Unlike most environmental compliance programs, Zero Waste takes the business far beyond current
required environmental regulations while increasing efficiency and the bottom-line. It addresses the
whole system of the corporation looking both upstream at suppliers and downstream to retailers,
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customers and the environment. Businesses who have implemented effective Zero Waste program
are able to achieve the triple bottom-line: people, planet and profit.
Since Zero Waste is a relatively new and unknown concept, the first solution is to provide awareness
and education to business. This is completed through our “Zero in on Zero Waste – Don’t Let Your
Bottom Line Go to Waste” businesses conferences. Businesses who have diverted over 90% of their
waste from landfills present their successes, methods of implementation and challenges. This “peer
to peer” presentation style is highly motivating to other businesses.
Once the businesses are engaged in the principle of Zero Waste the real work begins. In order to
have a successful zero waste policy, top management must fully embrace, fund, implement and
support zero waste throughout every aspect of their company. Having worked with the successful
Zero Waste companies and having a zero waste experts on our advisory, we are in a unique position
to provide businesses with the most effective strategies and programs available.
Certification of businesses and professional accreditation is of utmost importance to the success of
the Zero Waste movement and Earth Resource Foundation’s program. By becoming the leader and
resource for the industry, as demonstrated by the U.S. Green Building Council model, we provide
consistency within the industry while providing a benchmark for all to achieve. U.S. Green Building
Council provides certification to buildings along with certification and training for individuals. They
have seen an increase from 500 building certifications in 2003 to 5,000 building certifications in
2006 and expect to reach 50,000 per year by 2010.
Below is an overview of the three segments:
Conferences
 2 Successful Conferences in 2006 in Southern California
 Peer to Peer Presentations
 Marketing and Educational Tools
 Principle to Practice
 Direct Financial Opportunity
 Registration fees
 Sponsorship
 Partnership & Geographic Expansion
 Clearinghouse of Case Studies and Presentations
 Recognition of Successful Zero Waste Businesses
Consulting
Developing Zero Waste Programs:
Supported from the Top to the “Bottom Line”
• Leadership…Leadership…Leadership
• Examine the current system of waste management
• Change the business culture
• Implement a strong process
• Keep it going
Steps for Implementation
• Initial Introduction
•
and Buy-in from all levels
• Employee trainings
• Waste Audits and Potential Savings
• Define procedures for implementation
• Cost/benefit analysis
• Establish Tracking Methods / Baselines
• Customer Relations and outreach
• Ongoing training, public relations, etc
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Certification
• Follow US Green Building Council model
– Zero Waste Certified Businesses
– Zero Waste Professional Accreditation
• Establish consistent standards
• Establish “Zero In on Zero Waste Certification Program”
as the benchmark
• Additional education and business opportunities
Earth Resource Foundation has designed the logo and name for our “Zero in on Zero Waste”
program and is in the process of having them trademarked and copy written. Funding is currently
being sought for the development of training manuals and documentation of processes.
Initial funding is required to fully develop the program and determine the investments required,
comprehensive market surveys and a complete businesses plan.
Although desired, no investment is needed for the conferences. Two conferences have been
completed and are already in the planning process for 2007. The conferences were breakeven last
year and we expect to net a profit of $20,000 to $30,000 per conference this year. As demonstrated
from last year, this is the most effective way to educate and secure new clients.
With no initial funding and in less than one year, we have already trained and received payment
from our first customer, Whole Foods, and are in the process of expanding that contract and meeting
with other potential clients. Seed money received will be first utilized to secure Whole Foods
Northwest and Mid-Atlantic regions to immediately generate income.
The development of the certification process is the largest area of development and could require
anywhere from $100,000 to $300,000 for market research, zero waste criteria development, testing
standard and trainings. Because of the enormous growth of the U.S. Green Building Council, we feel
the certification process is needed and will generate the sustainable revenues desired.
Competition
Competition in this field is both limitless and limited. Any business or governmental agency can take
it upon themselves to implement a program or portions of a program to reduce waste, increase
efficiency and comply with environmental regulations. Many do. However, to implement a
comprehensive program properly, the mandate needs to be carried out by an independent, outside
organization that will maintain the integrity of a total Zero Waste program and qualify the
organization as certified. Most businesses prefer to utilize the expertise and proven practices of
outsourced professionals as opposed to developing costly overhead internally and slowly ramping up
the process.
Earth Resource has entered into informal partnership and collaboration agreements with several
industry experts, Zero Emissions Research Initiatives (ZERI), Grassroots Recycling Network (GRRN),
US Green Building Council (USGBC), and California Resource Recovery Association (CRRA) among
others. These relationships exist to enhance all of the players’ participation and the sharing of
expertise.
As in all new business products and services, this arena will start to see more competition in the
future. Some of this will be mitigated by being first to the market with a proven product and a cadre
of satisfied clients. At some point consolidation will occur.
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Earth Resource will have positioned itself as one of the leaders and in a strong position to survive by
virtue of its partnerships, performance and certification program as an industry standard.
Marketing
Our Zero Waste program will be promoted through typical channels such as:
Industry Forums
Educational conferences
Referrals
Partnership collaboration
User recommendations
Industry speaking engagements
Trade Publications
Industry Specific Collateral Materials
Since this is a start-up operation with intensive customer contact, one customer at a time, we
expect to allocate limited resources to marketing and rely upon referrals to grow the business.
Business Strategy and Goals
We have structured our Zero Waste program into three distinct disciplines. They are Zero Waste
Conferences, Zero Waste Consulting and Zero Waste Certification.
Zero Waste Conferences are income-generating forums where attendees include industry experts,
regulatory agencies, and existing and potential end users. It is an educational forum focusing on the
exchange of regulatory information, case study results and award recognition for those users who
meet or exceed established benchmarks in any or all of the Zero Waste program components. This is
designed to be a breakeven or better product, which primarily promotes Earth Resource Foundation
and generates qualified leads for our Zero Waste program. (5%-10% Net Income Range)
Zero Waste Consulting is by far, the most important product we offer from a social enterprise
perspective. It begins with a fee-based appraisal ($15,000 to $25,000) for which our analyst and the
client company develop the benchmarks for the overall project of incorporating Zero Waste
practices. With those benchmarks determined, Earth Resource presents to the company a three-year
contract with several options for our fee. The fee can be a Flat Fee billed monthly constructed to
cover all potential costs and a reasonable profit. The fee can be a substantial upfront payment to
defer our costs for the first year and a percentage of the savings realized by the client.
These percentages are typically, 30% to 50% of the savings in the first year and 10% to 15% of the
savings realized in each ensuing year of the contract. Any combination can also be created to
accommodate the client. (30%-40% Net Income Range)
Zero Waste Certification will be designed to become the industry standard in terms of certification as
a Zero Waste organization, quite similar to ISO or the US Green Building Council. Earth Resource
analysts will qualify organizations that have been audited and submit all the required paperwork.
This is also a fee-based service. (10% net Income)
These fees and profit projections are based on actual performance by Earth Resource or its partners.
We intend to almost double the number of conferences, consulting contracts and certifications each
year for the next three to five years.
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Milestones
YEAR
One
P
R
O
D
U
C
T
S
Conferences
Consulting
Contracts
Certifications
3
1
0
Two
Three
5
8
2
4
30
100
We are currently involved in creating the financial projections but as a very early stage start-up,
resources to complete the financial projections have been limited. We are convinced that the viability
of the market exists as a result of our involvement with our partners and the limited revenue we
produced with our Zero Waste program to date. A very basic proforma income statement is included
as Schedule A.
Management
Stephanie Barger
 Executive Director and Founder Earth Resource Foundation
 Developed self-sustaining environmental education programs
 Certified Public Accountant
 Builder of collaborations among Civic, business and public
 Considered an expert in the field
Michael Huls
 CA Registered Environmental Assessor
 35 Years experience in recycling systems and storm water management programs
 Co-founder of the national Recycling Coalition
 Co-founder of the California Resource Recovery Assoc.
 Advisor to the 7th World Recycling Congress and International Environmental Forum
 Developed the Zero Waste Assessment Module
Gary Liss
 30 years experience in solid waste and recycling field
 Certified ZERI System designer
 Co-founder of many international and national waste/recycling organizations
 Advisor to public and private sector on solid waste and recycling policy and program analysis
Rick Anthony
 40 years experience as accomplished researcher and innovator in Zero Waste management
 Lecturer at universities on solid waste management and careers in resource management
 Developing Zero Waste Communities in England, France and Italy
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Earth Resource Foundation Board and Advisory Board
Stephanie Barger, Executive Director, Earth Resource Foundation
Michael Huls, President, Huls Environmental
Gary Liss, President, Gary Liss & Associates
Rick Anthony, Richard Anthony & Associates
Jonathan Parfrey, Physicians for Social Responsibility
Steve Mosko, PHD, Co-Chair CAPP
Debra Hagstrom, Indigenous Peoples Coalition
Ray Halowski, Surfrider Foundation
Megan Drda, Non-profit Consultant
Neil Seldman, Institute for Self Reliance
Anna Cummins, Crossroad School
Funding Sought and Exit Strategy
Funding sought for this enterprise is $200,000 seed money and a second round injection of
$200,000 eighteen months out for certification program. A viable exit strategy will be developed as
the financial projections are completed.
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