Sustainability is the new normal

is the new normal

Sustainability Value Matrix

STAKEHOLDER VALUE

UNSUSTAINABLE UNSUSTAINABLE SUSTAINABLE SUSTAINABLE VALUE VALUE

Opportunities

Enhanced reputation Product dierentiation Motivated employees License to operate New business models New markets

STAKEHOLDER VALUE

“Sustainability is a strategy, Risks Loss of sales Product substitution not a product or service. As a strategy, it needs Preemptive regulation Reputation damage Fines, penalties to be incorporated into the company’s core business—its DNA—with no trade-off in quality, price and profits.”

STAKEHOLDER VALUE UNSUSTAINABLE UNSUSTAINABLE UNSUSTAINABLE UNSUSTAINABLE Opportunities Risks (Lose/Lose) (Lose/Lose) Enhanced reputation Loss of sales Product dierentiation Product substitution Motivated employees Preemptive regulation License to operate Reputation damage New business models Fines, penalties SUSTAINABLE SUSTAINABLE New markets “The VALUE VALUE market strategy should not focus earth. They use smart irrigation, flow sensors, on being the ‘best’ company, but on what is soil amendments, native plants, integrated unique about the company—what differentipest management, drip irrigation and erosion ates it in the market,” says Guido. “Sustaincontrol. STAKEHOLDER VALUE They recycle and repurpose materials, ability is a great way to differentiate. Make it and plan driving routes with the least waste of known in your marketing strategy.” resources. Guido finds that many green industry pro“Train your people about the breadth of fessionals in her workshops report only enviUNSUSTAINABLE UNSUSTAINABLE sustainability in the company and teach them ronmental examples of sustainable practices to use the words to promote your company’s used in their companies. “They often focus sustainability commitment to customers and on only one of the three key components— the community,” says Guido. She reminds us environment—leaving out social (people) and that 98.6 percent of Americans want green the economics from their strategy,” she says. solutions. She encourages owners and managers to look more closely and notice where else they are alSustainability attracts customers ready doing sustainable things. “They’ve been “Once you’ve made a case for sustainabilsustainable for years but under the radar,” she ity, promote it,” recommends Guido. “Cussays. tomers want to know. They are looking for it.” She notes that most green industry comWho are these customers? Guido says 97.8 panies are already actively engaged in the sopercent of household purchase decisions are cial component of sustainability but may not made by women. Currently, baby boomer market it. Businesses regularly give back to the women are the nation’s wealthiest demographcommunity in various ways such as installing ic group. As a demographic group, boomers gardens in parks and schools. They also invest still lead in buying power. Millennials, who will in their employees by providing training, certisoon to be the largest consumer demographic, fication and advancement opportunities. choose, or will switch to, a company that is And of course, they care are about the more socially and environmentally responsi

ble. Is your marketing strategy directed appropriately to targeted core customers who value sustainability?

“Doing good for the planet is good business,” says Guido. “Customer referrals increase, which will increase your company’s name and brand awareness and valuation, and decrease marketing and sales costs.” She adds that costs for sustainable solutions are 5-10 percent lower and can add 2-4 percent to net profit.

Sustainability attracts employees, reduces recruitment costs

“People want to work for sustainable companies,” says Guido. “They want to work for a company that resonates with their own values.” Employees who enjoy working for a company refer others. Guido says recruiting costs decline and reputations are enhanced due to word mouth efforts. As a result, operating costs can decline by 6-11 percent.

New opportunities

As urban populations and mixed development increase, and more people are “living on top of one another” in these high-density communities using more water and energy, there are potentially more opportunities for green industry companies to develop solutions for customers living in smaller spaces with limited availability for green space. | CG

The future of tree health IS NOW

Davey Tree uses an ecosystem view to inform tree care

By Cherie Courtade

he green industry often relies on, and works with, the scientific research community to make its work more efficient T and effective, and subsequently, more sustainable. Fortunately, some large organizations are able to dedicate resources to this cause. One such company, The Davey Tree Expert Company, has a research and development department that works with research institutions to develop new ways to support tree health and maintain urban canopies.

By using data collected in recent years, Davey is creating plans for the next 20-25 years, based on climate and weather projections for regions where Davey operates. “[It helps us] anticipate how climate change, storm frequency, rising temperatures and changes in precipitation will affect our trees,” explains Dan Herms, Ph.D., Davey’s vice president of research and development.

These advance projections can inform the services that Davey offers. For example, in Colorado Davey offers tree irrigation services. “It is a growing service in places like Fort