2 Montana Business Quarterly/Summer 2011

Thebusinessesinterviewedforthisarticlehaveadaptedtotheemerging,greenbusinessmodelandtherewardsareprovingtobesubstantial(seesidebars,pages5-9).

Balancing Economic, Social, and Environmental Goals Sustainabledevelopment,or“meetingtheneedsof thepresentwithoutcompromisingtheabilityof futuregenerationstomeettheirownneeds”wasthethemeof Our Common Future,the1987reportpreparedbytheWorldCommissiononEnvironmentandDevelopment.KnownastheBrundtlandCommission(sonamedafteritschair,NorwegianPrimeMinisterGroBrundtland),thegroupexaminedescalatingconcernsaboutdeterioratingglobalecosystemsandthepotentialimpactonhumandevelopment,biodiversityloss,degradedwatersheds,anddecliningfisheries/forests.Theresultingreportwasacleardirective:Theinternationalcommunitymustsetalong-termagendaforactionthatbalanceseconomic,social,andenvironmentalgoals,orrecognizethatthefutureof theplanetanditspeoplecouldbesignificantlyimpaired. Theideaof socialjustice(consumerrights,sweatshop-freeworkenvironments,etc.)asanintegralcomponentof abusinessmodelwasacknowledgedonlybythemostprogressiveforerunners–YvonneChouinardof PatagoniaandRayAndersonof InterfaceCarpets,forexample. Overtime,companiesbegantorealizethatthreeequallyimportantandinterrelated“bottomlines”needtobemaximizedtoachievetruelong-termsustainability.The“triplebottomline”(alsoreferredtoasthe3Psandthe3Es) capturestheideathatasustainablebusinessconsiderstheneedsof

GREEN BUSINESSReducing Carbon FootprintCuts Costs and Provides Opportunities by Lisa Swallow and Jerry Furniss

Montanabusinessesarediscoveringthatengaginginsustainablebusinesspracticesincreasesworkerproductivity,reducescosts,preservestheenvironment,offers

opportunities,andprovidescompetitiveadvantages. Sustainability–orgoinggreen–isbecomingatoppriorityformanyof thestate’sbusinessmanagersandownerswhohavedevelopedgreenbusinessstrategies,implementedgreenbusinessprograms,andhiredsustainabilitycoordinatorstooverseethem.Fromsmalloperationstohigh-techstartupsandmajorcorporations,Montana’sbusinesssectorisusingrecycledandrenewablematerials,makinginvestmentsinenergyefficiencyimprovements,developinginnovativetechnologiestosolveenvironmentalproblems,andattemptingtoreduceitscarbonfootprint. Theimpactthatbusinesseshaveontheenvironmentandsocietyisbecomingmoreimportanttocustomers,employees,andinvestors.Manycompaniesarerealizingthesignificanceof thisnewdynamicandseeingfirsthandtheimpactof notrespondingtovariousstakeholdergroups.Customersandshareholdersareshunningcompaniesthatdonotincludereportsabouttheirprogresstowardsustainability,orgoodcorporatecitizenship,orthatfailtoliveuptoconsumerorshareholderexpectations. Atthesametime,businessesareexperiencingshifts,someradical,intheavailabilityandpricingof naturalresourcesthatfeedtheirbusinesses.Manyoperationsmanagersaresensingthatcontinuedrelianceonincreasinglyexpensivefossilfuelsputstheircurrentmodeof doingbusinessatlong-termrisk.Theimperativetorevisitthetraditionalbusinessmodelhasneverbeenstronger.

3Montana Business Quarterly/Summer 2011

allstakeholders–thepeople,theplanet,andorganizationalprofitability–insteadof solelymaximizingprofitsforshareholders.Hereishowthevariousterminologyrelates:

Three Ps Three Es What is it?

People Equity HumancapitalPlanet Environment NaturalcapitalProfit Economics Financialcapital

Analyzingbusinessstrategies,products,andprocessesthroughatriplebottomlinelensishelpfulforbusinessespushingtowardsustainability.

More Consumers Preferring Green Products Moreandmorecustomersareswitchingtocompetitorsthataremakingmovestowardasustainablemodeof operation.The2011ImagePowerGreenBrandsSurveyof morethan9,000peopleineightcountries(conductedbetweenAprilandMay2011)revealedanumberof keyfindingsrelatedtosustainabilityandconsumerinterest,including:

• Themajorityof consumersacrossallcountriessurveyedsayit’simportanttobuyfromenvironmentallyfriendlycompanies;

• Greencertificationsfoundonpackaginginfluencebuyingbehavior;

• Consumersindevelopingcountriesaremorewillingtopayapremiumforgreenproducts(intheU.S.20percentof consumersarewillingtospendmorethan10percentmoreongreenproducts);

• Consumersbuymoregreenproductsinthegroceryindustrythanothersectors,andthereisanindicationthatgreenproductsinthetechnologyandautoindustrieswillbeontheincrease;

• IntheU.S.,72percentof consumersbelieveitisimportanttobuyfromgreencompanies,and30percentplantospendmoreongreenproductsin2012;

• IntheU.S.,consumersviewenergyuseandchemicals,toxins,andheavymetalsasthemostsignificantgreenissues;

• ThelargestchallengetobusinessesintheU.S.whenmarketinggreenproductstoconsumersistheextracostwhencomparedtothenon-greenalternative;and

• Someof thetopgreenbrandsamongU.S.consumersincludeSeventhGeneration,WholeFoodsMarket,Tom’sof Maine,Burt’sBees,TraderJoe’s,WaltDisney,SCJohnson,Dove,Apple,Microsoft,andStarbucks.

Asmillennialconsumersageandhavemoredisposableincome,thevalueof acompanyhavingagreenimagewilllikelyincreasedramatically.

Growing Trend Toward Sustainability Strategies and Reporting Morebusinessesarefindingthatdevelopingasustainabilitystrategyandreportingsuchresultsmakegoodbusinesssenseaswell.SustainabilityreportingisnowbecomingmainstreamwiththeFortune500companies.AccordingtoKPMG’sInternationalSurveyof CorporateResponsibilityReporting(completedtriennially),in2008,80percentof suchcompaniesissuedsustainabilityreports. “Theevidencethatsustainabilityisbecomingacoreconsiderationforsuccessfulbusinessesaroundtheworldgrowsstrongereveryday,”accordingtoa2011jointly-issuedprogressreportbyKPMGandThe Economist.“LeadingglobalbrandssuchasProcter&Gamble,Anheuser-BuschInBev,UPS,orCLPHoldingsareexamplesof marketleadersthataresettingthepaceandstandardsbywhichtheirpeerswillsoonbeheldaccountable.” AccordingtotheOct.10,2010,EconomistIntelligenceUnitsurveyof globalbusinesses(asurveyof 378seniorexecutivesencompassingarangeof industriesandevenlysplitamongNorthAmerica,AsiaPacific,andEurope),62percentof companiesrepresentedhaveastrategyforcorporatesustainability,upfrom50percentin2008.Only5percentof companieswithoutplanshadnointentionstocreatesuchplans.Thesurveyalsorevealedthatlarger,publiclylistedfirmsaremorelikelytodevelopasustainabilitystrategythansmaller,privatelyheldfirms(79percentversus49percent).Itisnoteworthythatamongconsumergoodsfirms,80percenthavedevelopedasustainabilitystrategy.Thismayindicatetheimpactof consumerpressureonfirmsthathavemoreday-to-dayproductcontactwithconsumers. Inanenvironmentalrankingof the500largestpubliclytradedU.S.companies,Newsweekassignedgreenscorestocompaniesderivedfromthreecomponentscores:theenvironmentalimpactscore,thegreenpoliciesscore,andthereputationsurveyscore(Table1,page4). Evidenceof thegrowingsignificancebeingplacedonsustainabilitycanbefoundinthecorporateworldbythe

4 Montana Business Quarterly/Summer 2011

Table 1Green Rankings: U.S. CompaniesTop 15, 2010

Rank Company Industry Sector Green Score Environmental Impact

Green Policies

ReputationSurvey

1 Dell Technology 100.00 81.49 100.00 84.33

2 Hewlett-Packard Technology 99.32 90.60 94.09 95.35

3 International Business Machines Technology 99.20 98.71 89.52 98.42

4 Johnson & Johnson Pharmaceuticals 99.02 74.95 98.86 80.34

5 Intel Technology 97.57 95.74 88.79 92.71

6 Sprint Nextel Technology 94.98 99.70 94.58 44.72

7 Adobe Systems Technology 94.15 89.61 88.08 72.57

8 Applied Materials Technology 92.67 91.98 87.33 60.06

9 Yahoo! Technology 92.67 68.62 89.07 59.74

10 Nike Consumer Products 92.66 67.63 77.53 97.39

11 Accenture Industrial Goods 92.04 89.80 84.63 65.89

12 Advanced Micro Devices Technology 91.17 99.51 81.46 55.78

13 Cisco Systems Technology 91.07 69.41 77.56 83.87

14 Johnson Controls Consumer Products 90.94 90.79 81.73 64.97

15 Baxter International Health Care 90.59 91.78 81.80 61.02

elevationof sustainabilitytothe“C-suite.”DuringtheInformationTechnology(IT)revolution,companiesaddedtheexecutive-levelpositionof theChief InformationOfficer(CIO)tothelistof existingexecutivelevelpositions–theChief OperatingOfficer(COO),Chief FinancialOfficer(CFO),Chief ExecutiveOfficer(CEO)–andnow,assustainabilitycomesof age,companiesarecreatingthepositionof Chief SustainabilityOfficer(CSO).OnMay19,2011,Coca-ColanameditsfirstCSOtoheaditsnewglobalOfficeof Sustainability.

Competitive Advantages of Going Green Forcompaniesstraddlingthesustainabilitydividebetweenideologyandoperationalchanges,itisimportanttoconveyexactlyhowthesustainabilitymovementwillenhancecommercialvalue.Therationaleformovingtowardgreenerpasturescanbeclearlyoutlinedwithaubiquitousbusinesscaseforchange.Thewayeachorganizationpursuessomeorallof thesesustainabilitytenets,however,willlookradicallydifferent.Thesustainabilitydrivervariesbycompany–rangingfromregulatoryenvironmenttovisionaryleadersorcompetitivepressures–butthebenefitsof goinggreenarepatentlysimilar.OriginallyreleasedbyBobWillardin2002,“TheSustainabilityAdvantage”compelseventhemostreticentexecutivebyoutliningthequantitativeandqualitativebenefitsthataccruetoacompanyfromsustainablepractices(Willard,2002). Followingaresomeof theadvantagesof becomingasustainablebusiness.

Increasing Market Share and Diversifying Product Lines through Sustainability Innovation. Harvard Business Review’s2009portraitof 30largecorporationsdedicatedtogreeningresearchanddevelopmenteffortsindicatesthatearlyadoptersof sustainabilityprinciplesaredevelopingcompetenciesthatcompetitorswillbehard-pressedtomatch(Nidumolu,Prahalad,andRangaswami,2009).Theauthors’researchfindingsaptlysummarizesustainabilityasakeydriverof innovation.

“Our research shows that sustainability is a mother lode of organizational and technological innovations that yield both bottom-line and top-line returns. Becoming environment-friendly lowers costs because companies end up reducing the inputs they use. In addition, the process generates additional revenues from better products or enables companies to create new businesses. In fact, because those are the goals of corporate innovation, we find that smart companies now treat sustainability as innovation’s new frontier.”

InMissoula,RivertopRenewables’innovationsinchemistryareopeningmarketsrangingfromdishwashingdetergentstode-icingadditives(seesidebar,page5).NearHavre,cuttingedgetechnologyisallowingtheEastEndColonytogrowsalmonintanksinaprocessthathasbeenratedasenvironmentallyfriendlyandsustainable.LargecorporationslikeWalmartandTargetexclusivelypurchaseseafoodproductsthataresustainablyharvested,effectivelychangingvendors’fishingpracticesonagloballevelandofferingopportunitiestoinnovativecompanies.(seesidebar,page7).

Source: 2010 Green Rankings, Newsweek (www.newsweek.com).

5Montana Business Quarterly/Summer 2011

Otherexamplesof usingsustainabilityprinciplestofindmarketopportunitiesandenhancecompetitiveadvantageinclude:

• Businesseswithexistingproductsarerollingoutcomplementarygreenproductlines.Checkthelocalgrocerystoretoseepremiumshelf spaceincreasinglyallocatedtonaturalbodyproductsandlocalandorganicfood/wine/brews.

• Energyauditandmonitoringcompaniesareexperiencingsignificantgrowthbecauseof increasingconsumerdemandfortightly-managedenergyusageintheirhomesandbusinesses.

• Organizationsdesignedtomaximizeabusinessoperation’svalue,orsupplychain,arepoppingupeverywhere.Forexample,undertheWesternSustainabilityExchange’s“SteertoSteakProgram,”ranchersfollowingcertainsustainabilitypracticesareassistedinconvertingtheircattleintoamarket-ready

product(beef)destinedforpremium-basedmarketsforsustainablyraisedcattle.

• CompetitiveadvantagesthataccruefromdesigningproductsforthegreeneraareclearlydemonstratedbysimplylookingaroundMontanacities.Theinfluenceof sustainability-mindedarchitectsandgreenbuildersisevidencedbythefactthatMontanahas28certifiedLeadershipinEnergyandEnvironmentalDesign(LEED)buildingsandnineresidentialhomes.

Capitalizing on Green Branding and Imaging. Theemergingdemographicof greenconsumershasgoldenpurchasingpatterns,worthyof concentratedattentionbymarketingcampaigndesigners(DeloitteTouche,2010).These“consciousconsumers”spendanaboveaverageamountatpointof sale,areintenselyloyaltotheirbrands,arehighlyeducated,andarenotassusceptibletopricepointchangesasothersectors.Thenumberof vibrantcompaniesdesigningforconsumers’desiresforthenext

Doyourdrinkingglasseslookcloudyanddirtyeventhoughtheyhavejustgonethroughthe

dishwasher?Chancesaretheyarenotassparklyastheyusedtobebecausethenation’sdishwasherdetergentmakersarereformulatingtheirproductstoreducewhathasbeenthecrucialingredient,phosphates,tojustatrace. Manufacturersarefacingincreasingscrutinyoverphosphateuse,whichcanlingerinwatersuppliesandhavenegativeimpactsonecosystems,killingfishandplants.CompanieslikeProcter&Gamblearedesperatetofindasolution,andthechief financialofficerof Missoula’sRivertopRenewablesthinkshehasananswer. RivertopPresidentandCFOJereKolstad,whogrewuponafarminGlasgow,Montana,saysthathiscompany’stechnologyallowsthemanufacturingof environmentallyneutralproductsmadefromsimpleplantsugarsthatwillsolvemanyproblems. RivertopRenewablesgrewfromresearchatTheUniversityof MontanaandwasfoundedbyDonKiely,aformerUMchemistryprofessorwhodevelopedthetechnologyovera40-yearperiod. Industrialchemicalslikephosphatesandpetrochemicals–usedinproductslikedetergents,roadde-icerstomeltsnowandice,fireretardants,andcosmetics–pollutetheenvironmentandlackbiodegradability. “Therearebigblackproblemsliketheseallovertheplacewheretherewardforsolvingthemishuge,”Kolstadsays.“Greenbusinessesofferhugeopportunities.”

Rivertoprecentlyreceiveda$3.5milliongranttobuildlabs,offices,and“semi-works”initsMontanaTechnologyEnterpriseCenter,orMonTEC,location.Outof that$3.5million,$1.75millioncamefromtheU.S.CommerceDepartment’sEconomicDevelopmentAdministration,andtheother$1.75millioncamefromamatchinggrantfromUM.Rivertopwilladdanadditional$2.5millioninprivatecapitaltoequipitsnewlabsandsemi-worksareaattheMonTECfacility. Everyweek,amajorcorporation–likeNike,SherwinWilliams,DowChemical–contactsRivertoptotalkaboutthegreensolutionstheMissoulacompanyoffers. Kolstadsaysthatentrepreneursneedtohaveavisionof 10to50yearsdowntheroadtobesuccessful.HeexpectsRivertop’ssalestoreach$100millionby2015.

Rivertop RenewablesInnovationsinChemistryOpeningNewMarkets

Someemployeeslikethenaturallightandcomfortableworkspaces.Someliketheopen,airyspaceandthecommunityartworkonthewalls.Mostlikethefactthat

thematerialsusedintheirworkplacearerecycled,reusable,andrenewable–andgreen.Whenemployeesareinabuildingeighttotenhoursaday,lighting,heating,cooling,

andacomfortableworkenvironmentareimportant,accordingtoJoniWalker,seniorvicepresidentof theMissoulaFederalCreditUnion.

Employeecomfortwassomethingthedesigners,architects,andcreditunionmanagersspentalotof timethinkingaboutbeforebeginningthegreenbuildingprocessontheRussellStreetsite.TheRussellStreetbranch,whichopeneditsdoorsin2009,earnedthefirstLeadershipinEnergyandEnvironmentalDesign(LEED)platinumcertificationinthestate.

LEEDisaninternationallyrecognizedgreenbuildingcertificationsystem,whichratesbuildingsonenergysavings,waterefficiency,indoorenvironmentalquality,andcommitmenttousingrenewableandlocalmaterials.Platinumisthehighestrating.

Employeesareproductiveandhappyintheirgreenenvironment,Walkersays.Infact,thereisawaitinglistof employeesfromotherbrancheswhowanttotransfertotheRussellStreetbranch.

Managersarepleased,too.Becauseof theinnovativeideasimplementedinthebuilding–suchassolarpanelsandotherenergyefficiencymeasures–managersexpecttoreducelong-termoperationalexpenses,Walkersays.

Theseniorvicepresidentenjoystellingthestoriesaboutthebuilding.Forexample,insteadof usingcement,contractorsusedflyash(awasteproductof coal-firedpowerplants)andrecycledglassaggregate“concrete.”Forframingandtrim,theyusedsunkenlogsexposedduringtheremovalof theBonnerandMilltowndams.Nativeanddrought-tolerantplantspeciesthatwillnotrequirepermanentirrigationsystemswereplantedaroundthebuilding.Bicyclestorageandshoweringfacilitieswereprovidedtoencouragenon-vehicletransportationtowork.

“Wewanttobedoingthingsthataren’tgoingtobeharmfulandthatwillbebeneficialtoourcommunities,”Walkersays.“Wejustaddedsustainabilitytoourmissionstatement,andthatisahugestepbecauseitreinforceshowimportantsustainablebusinesspracticesareforus.”

Missoula Federal Credit UnionWorkEnvironmentPositiveandProductiveinGreenBuilding

6 Montana Business Quarterly/Summer 2011

7Montana Business Quarterly/Summer 2011

Farfromtheocean,attheEastEndHutteriteColonyjustnorthof Havre,50,000salmonare

growinginoneof Montana’sfirstcommercialfishfarms. MarkWaldner,thefishfarmmanagerattheEastEndColony,saysthecolonyreceivedthesalmoneggsandtheequipmenttoraisethefishafewmonthsagofromAquaSeedCorp.inSeattle.Thecolony’sneighbors,theMillerColonynearBynum,begantheirsalmonoperationinDecember2010. Whileitmayseemoddtoraisesalmonfarawayfromsaltwaterinaland-lockedstate,itprobablywillbehappeningmorefrequently.Withinthepastyear,theMontereyBayAquariumSeafoodWatchapprovedaland-basedapproachtoraisingsalmonusingtanksandfiltersandrateditasoneof themostenvironmentallyfriendlyandsustainablemethods.

generationof energy-andresource-efficientproducts,isgrowingaccordingly.Membership-drivenorganizationslikeBillings’GreenDirectoryMontanaandMissoula’sSustainableBusinessCouncilarelinkingcustomerswithcompaniesandcontributingtoanothercriticalsustainabilityconcept:buyinglocally.

Capitalizing on Eco-Efficiences. Arguablytheeasiestpathforenterprisesjuststartingthesustainabilityprocessisthenotionof beingmoreenvironmentallyefficient.Regardlessof productline,if acompanycanreduceitsuseof water,energy,rawmaterialsand/orgeneratelesswaste,operationalexpenseswilldecrease.Usingrecycledmaterials,reducingrelianceonvirginnonrenewableresources,andinstallingsimpleenergy-savingdevicesandlightingretrofitscanhaveveryshortpaybackperiods.Someof thesearedonewithlittleinitialcostortimeinvestmentandothersaresubsidizedbysignificanttaxcredits,makingiteasiertoinvestinhighercostprojectsatthefrontend.Evenmore

interesting,theseprojectsshowstrongtriplebottomlineresultsastheydecreasewaste,reducecarbonemissions,anddiminishwaterusage.Oftentimes,newlyemployedspecialistsinenergyretrofittingoralternativeenergyinstallationareemployed,therebymaximizingthe“people”portionof thetriplebottomlineaswell.

Reduced Risk and Easier Financing. Enhancedaccessibilitytodiscountedcostsof borrowingmoneycanbeadvantageousforbusinesseswithsustainabilitycharacteristics.Increasingly,riskmodelsindicatethatbusinessesthathavesustainabilitypracticesinplacesuchasclimatechangemitigationplans,alternaterawmaterialoptions,andaccesstorenewableenergyandlocalmarketsarelessriskyandthereforeshouldbevaluedaccordingly.Thesebusinessesareoftenmoreappealingtonewinvestorsandmayenjoyincreasingaccesstocapital.Infact,agrowingnumberof venturecapitalistsandtraditionalbanksfocusonlyoncompaniesthatcandemonstratetriplebottomlineperformance.

High-endrestaurantsandlargecorporationssuchasWalmartandTargethavepledgedtobuyonlysustainablefishafterthecontroversyoverfarm-raisedfishthataregrowninlargeopen-oceanaquaculturepens.Thepracticehasbeencriticizedbecausethenonnativespeciescanescapeintotheocean,spreadingdiseasetootherfishandpollutingthewaterwithsealice.Anothermajorcriticismaboutfarm-raisedsalmonisthatitcantakeuptofivepoundsof wildfishasafoodsourcetoproduceonepoundof salmon–aratethatdoesnotmakesensewhenconsideringsustainability. AttheEastEndColony,thesalmongrowinsteeltanks,whichare30feetindiameter.Innovativetechnology,whichAquaSeedCorp.developed,filtersthewastefromthewaterandre-createsastream.Thewateriscontinuouslycirculatingandgoingthroughanumberof cleaningprocesses.TheWashington-basedcompanyadvocatesaspecialfishfood,whichusesaminimalamountof fish,alongwithbeans,grains,andotherprotein. Raisingsalmonseemslikeagoodideaforthecoloniestosupplementtheirincomethatcomesfromcropsandlivestock,Waldnersays.Ittakesthesalmonayeartogetto6pounds,atwhichpointthecolonywillsellthembacktoAquaSeedCorp.tomarkettothefoodserviceindustry. “TheU.S.isimportingmillionsof poundsof seafoodperyear,”Waldnersays.“Whynotdoitlocallyandsustainablywithoutdepletingtheoceans?”

East End Colony Salmon FarmHutteritesUseCuttingEdgeTechnologytoRaiseSalmonSustainably

8 Montana Business Quarterly/Summer 2011

Inthesummers,theircustomerscomeinoff theriver–suntanned,wet,happy,andthirsty.Inthewinters,theycomeoff localskihills–wind-burned,cold,happy,andthirsty.Manyof theircustomersareoutdoorsy,environmentallyminded,andalwaysinsearchof agood,cold,locallybrewedbeer. “Wemakeproductsthatjibewithourclienteles’belief systems,”saysAlPils,whospecializesinsalesatMissoula’sKettlehouseBrewingCo.Someof thebrewsareoutdoor-themed:“EddyOut”isacopperypalealeandhasakayakingorboatingreference(pulloff theriverintotheeddy).“ColdSmoke”isaheartyalethathasaskiingreference(coldreferringtosnowandsmokereferringtopowder)andis“perfectafteradayof rippin’linesonareaoryourfavoritebackcountrygetaway.”“DoubleHaul”isbrewedwithlotsof hopsandsolidbodyandisnamedafterafly-castingtechnique. Reusableandrecyclableproductsareof utmostimportancetotheKettlehouse’scustomers,whooftenridetheirbikestothebrewerytoconserveondriving.WithtwolocationsinMissoula,customerscanhaveapintortwointhetaproomandthenfilluptheirreusable

growlerstotakehome.TheKettlehousealsosellsitsbeersincans,whichare,unlikeglass,“river-safe,camping-safe,notbreakable,andeasilyrecyclable,”Pilssays.GlassrecyclingislimitedinMissoula. Becauseof theKettlehouse’sdedicationtousingMontana-grownmaltedbarley,thebreweryreceivedaGrowthThroughAgricultureProgramgrantfromtheMontanaDepartmentof Agriculturetofurtherdevelopitsbusiness. Inadditiontousinglocallygrownproducts,theKettlehousebelievesingivingbacktothecommunity.EveryWednesdaynight,thebreweryhostsadifferentcommunitygroup,donating50centsfromeverypintsoldbacktothenonprofitorganizationthatisholdingthesocial. EmployeeturnoverattheKettlehouseislow,Pilssays.Employeeslikeworkingforacompanythathassustainablevaluesandisengagedingreenbusinesspractices,andtheywanttostayaround.Eventhoughitisexpensiveforsmallbusinesses,theKettlehouseoffersemployeeshealthanddentalinsurance,whichmaybeanotherreasonemployeesstay.

Finding and cultivating top-notch talent. Employmentcosts(particularlyrecruitingandretention)decreaseinsustainably-mindedcompanies.ResearchshowsthatgreenfacilitiessuchastheMissoulaFederalCreditUnioncontributetoenhancedproductivity,andhighly-evolvedsustainableorganizationsliketheKettlehouseboastalmostnoturnover,greatlyreducinghumanresourcecosts.Vibrantemployees

migratetoareasthatareknownfortheirgreenethosandcontributetorobustgrowthinthenumberanddiversityof greenbusinesses.TheMontanauniversitysystemcontinuestobuildcurriculumsdevotedtoenergytechnology,climatechangestudies,greenbuilding,andsustainablebusiness,whichpositionsMontanatoattractcompaniesneedingemployeeswiththeseskillsets.

Kettlehouse Brewing Co.LocalBreweryGivesBacktoCommunity

9Montana Business Quarterly/Summer 2011

St.PatrickHospitalhaswongoldforbeinggreen.TheMissoulahospitalrecentlyreceivedthenational

HealthyHospitalGoldAwardforsaving$352,293anddivertingmorethantwotonsof single-usedevicesfromlandfillsin2010. Becauseof excessiveenergyneeds,toxinuse,andwasteproduction,thehealthcareindustrymakessignificantnegativeimpactsontheenvironment.BethSchenk,coordinatorof theWomen’sHealthprogramandthesustainabilitycoordinatorforSt.Pat’s,isproudof theprogressthehospitalhasmadeingreeningupitsoperation. St.Pat’swontheawardforkeepingmedicalwaste–likeusedsurgicalgloves,bandages,needles,andsurgicalinstruments–fromthelandfillbyrecyclingandreusingitems.Whilemostmedicalwastemustbethrownout,theEnvironmentalProtectionAgencyhasalistof medicalequipmentthatcanberecycled.St.Pat’swontheawardfromAscentHealthcareSolutions,theleaderinreprocessingandremanufacturingmedicaldevicesintheU.S.Byrecyclingandreusing,thehospitalalsosavedmorethan$300,000. Lastyear,St.Pat’swasabletokeep31percent–or281tons–of allwasteoutof thelandfill,Schenksays,addingthathergoalistogetitupto50percent. Inadditiontoreducingwaste,conservingenergyisatoppriorityatthehospital,andsheestimatesthatSt.Pat’swillsavenearlyaquarterof amilliondollarsperyearbecauseof investmentsinenergy-efficientsystems. SustainablepracticesareimportanttoSt.Pat’semployees,whodowhattheycantoreducethehospital’s

Sustainability Planning for the Future Corporatesustainabilityisaproactiveandefficientapproachtodecreasingorganizationalexposuretothechanginglandscapeandisbecomingincreasinglycriticaltocompaniesinterestedinstrategicpositioningforthefuture. Focusingonsimplycomplyingwithregulationsseemedadequateinthelastcentury;however,amajorityof theFortune500companiesandprogressiveMontanaentitieslikeTheUniversityof MontanaandtheCityof Bozemanareactivelylookingtowardthefuturethroughsustainabilityplanning.BothhaveconductedgreenhousegasinventoriesandhavepreparedClimateActionPlans,whichservetoreducepricingriskforfuturebondingandbudgetarypurposes,prioritizecapitalprojects,andprojectoperationalneeds/costsmoreefficiently.

Althoughasustainablebusinessstrategymaybeconsiderednovelinsomevenues,manyof thestrategiesemployedandbenefitsderivedfromthisapproacharejustcommonsense.Sustainabledevelopmentisaboutacknowledginglimitsandenvisioningthefutureaccordingly.q

Lisa Swallow is a professor at The University of Montana College of Technology. Jerry Furniss is a professor at The University of Montana School of Business Administration.

ReferencesNidumolu,Ram,C.K.Prahalad,andM.R.Rangaswami.2009.“WhySustainabilityIsNowtheKeyDriverof Innovation.”Harvard Business Review.

DeloitteTouche.2010.“SustainabilityinBusinessToday:ACross-IndustryView.”

Willard,Bob.2002.“TheSustainabilityAdvantage:SevenBusinessCaseBenefitsof aTripleBottomLine.”

ecologicalfootprintbywalking,bicycling,andcarpoolingtowork,aswellasrecyclingandconservingenergy. Employeesarepassionateandmanagementissupportiveof makingthehospitalagreenerandhealthierplacetowork,Schenksays.Asanexperimentalproject,St.Pat’splantedasmallpatchof sedumontherooftop.“Livingroofs”aresometimesinstalledtoprovideclimatecontroleffectsandencourageurbanbiodiversity,buttheexperimentalpatchistoosmalltohavethateffect. “Rightnow,itjustforfunandbringsalittlebitof naturetothestaff andpublic,”Schenksays. Likemanylargecorporationsthroughoutthenation,St.Pat’shasagreeningstrategyandcompletesasustainabilityreport.ThereportlistsSt.Pat’scorevalueof stewardshipas:“Westrivetocarewiselyforourpeople,ourresources,andourearth.”

St. Patrick HospitalSustainabilityPracticesSaveMoneyandImproveEnvironment