It’s Easy And Free
This program is pretty easy to use. You can bring up to six devices per day into one of Staples’ 1500 retail locations. It doesn’t matter if you bought the digital devices from Staples or whether they were made by HP. You carry your devices into a Staples store and drop them off at the service desk location which from my experience is right inside the front door. The service desk associate will give you a receipt listing what you have recycled. It’s that easy and it’s free!

The digital items included in this program cover most office digital inventory including computers, mobile phones, monitors, shredders, keyboards and mp3 players. No refrigerators, stoves or similar appliances.

E-waste Recycling Process
The actual recycling is handled by Electronic Recyclers International, Inc. (ERI). They are certified e-Stewards and meet the EPA’s R2 standards.

One benefit ERI brings to this process is their close proximity to Staples’ four regional logistics centers where the e-waste is centralized for reprocessing. By choosing this “on shore” vendor, Staples and HP are creating U.S. jobs. This solution also reflects Staples’ and HP’s sustainability implementation leadership in designing a locally-focused process that reduces the environmental footprint of the logistics for annually moving millions of pounds of e-waste.

Data Security
Security of business and personal data is always a key issue in recycling computers and smart phones. Here, too, Staples and HP are trying to make this easy. The first recommendation is always wipe your data yourself. There are a number of free software solutions available to do so. To add further protection, ERI will responsibly handle computers and smart phones including the shredding of the storage components within these devices. And for those business owners who still are not sure Staples has in-store “Easy Tech” work associates who can answer questions.

How To Make Money Using Staples/HP E-waste Program
This program by Staples and HP is a huge step forward toward a more sustainable America that will create jobs and enhance American business competitiveness by reducing a business cost to free.

It is also an example of a best practice for winning new customers by going green. Recycling has emerged as the number one path customers use in determining in their minds if a company is green. Did you know that the recycling logo is one of the most recognized and remembered brands among consumers? A National Restaurant Association survey found that 3 out of 5 diners prefer to eat at a restaurant that has a recycling program. Those diners are your customers, too. One of the best practices I coach upon through the Green Builds Business program is the installation of recycling containers in all retail areas with the company’s name on the container right below the recycling logo. It is one of the most effective, and cost-effective, branding strategies you can deploy.

This Staples/HP e-waste program also can help companies trying to win contracts with larger companies and government agencies. Larger companies and government agencies are increasingly inserting sustainability bid criteria into their requests for proposals (RFPs). My economic forecast is this procurement trend could grow into a $2 trillion B2B business opportunity as early as 2017. Business owners I have coached have won contracts with national firms and government agencies by adopting green business best practices. Every RFP I have seen asks for documentation of a company’s sustainable business practices. The receipts you receive for e-waste recycling through this Staples/HP e-waste program are credible documentation that can be used within a bid response to an RFP from the large companies and governments greening their supply chain. So this Staples/HP e-waste program is not only easy and free, but it can also help you win a new customer!

Bill Roth is the founder of Earth 2017. His book, The Secret Green Sauce, profiles business case studies on best practices for making money going green.

Duke and his management team then outlined what they have done and what they plan to achieve. Their focus was on scale and acceleration. What scale means to Walmart is represented by their success selling energy efficient compact fluorescent lights (CFLs). From 2005 through 2010 Walmart has sold 460 million CFL lightbulbs that have saved their customers $15 billion in utility costs eliminating emissions equivalent to 25 million cars. How Walmart presented this feat is as important as the accomplishment itself. Walmart seeks to implement sustainability on a scale that matches their retail industry leadership – while speaking to their core business focus of saving their customers money.

Unique in my experience with corporate sustainability commitments, CEO Duke introduced his CFO Charles Holley to talk about the business case for sustainability. The focus of Holley’s message is that Walmart is making money adopting sustainability into their operations. He pointed to their earnings of $231 million in “recycling income” from diverting 80 percent of their waste from landfill and selling materials within this waste stream to earn a profit level equal to that achieved by 50 of their supercenters.

In an exclusive interview, I spoke to Andrea Thomas, Walmart’s Senior Vice President of Sustainability.  She outlined how Walmart is evolving an enterprise-scale business process for incorporating sustainability into Walmart’s operations and product offerings. The key to understanding Walmart’s sustainability commitment is to recognize they are engaging in what Geoffrey Moore in his recent book Escape Velocity defines as “The Arc of Execution” within “Complex Systems Enterprises.” What this means is that a lot work goes into turning an aircraft carrier. The sequence of steps for turning a business like Walmart are:

1) Ask Questions

This first step starts with the now infamous “15 questions” tied to greenhouse gas emissions that Walmart asked of their 1500 largest suppliers during a specially-called meeting about four years ago. It began the process of seeking answers to what Walmart and their suppliers did not know.

2) Project Innovation

Walmart’s efforts currently stand here in their maturation process toward realizing Duke’s stated goal for making sustainability “part of our DNA.”  Thomas captured this project innovation stage with an example of how Walmart is helping its consumers save money doing their laundry. She explained that Walmart is piloting sustainability across nine product categories in search of “hot spots” that offer the potential for scaleable results. One example is the laundry detergents category. Walmart realized that customers would save money and energy by washing their clothes in cold water. So, Walmart enhanced the labeling of clothing to highlight those that are fine to wash with cold water.  Accordingly, in the laundry detergent section of stores they increased their offering of cold water detergents. The combined results were increased sales of cold water washable clothing and increased sales of cold water detergents.

3) Accelerating Tools

This is the stage Walmart is now entering. They have collected data and identified best practices for moving from hot spots to results that reduce company operating costs and lower costs for their customers. This is what Moore defines as “creating a playbook.” It is the organizational learning for accelerating deployment of best practices. One such Walmart deployment tool is called a Sustainability Index Scorecard. This is the playbook used by Walmart’s merchandise buyers in finding and evaluating what to buy and who to buy from.

4) Optimization Tipping Point

During 2012, Walmart is expanding the application of Sustainability Index Scorecards from nine product categories to 100 product categories. All product categories are to have a Sustainability Index Scorecard by 2013. This is the tipping point toward realizing Walmart’s sustainability goal of making every product sold by Walmart more sustainable. This focus on the entire product line rather than a category defined as “green products” is Walmart’s strategy for more quickly gaining a scale that delivers bigger and more meaningful impacts.

5) Organizational Alignment

The final step is aligning people, performance and rewards. If an army marches on its stomach, then a company’s associates march on incentives and recognition. Walmart is implementing this enabling step by linking work associates’ compensation to sustainability performance. A strong example is Walmart’s shift in buyer compensation. Buyers are the heart of any retail operation. They are responsible for finding products that sell at attractive margins and are supplied by manufacturers who create solutions and not problems. Walmart is now tying a buyer’s compensation to their Sustainability Index Scorecard performance. This is as telling a commitment that a retailer can make. Walmart is also extending this incentive system to their suppliers.

***

Bill Roth is the founder of Earth 2017. His book, The Secret Green Sauce, profiles case studies of business best practices for making money going green. In 2011 he served as the coach for the U.S. Hispanic Chamber of Commerce Foundation’s Green Builds Business program funded by Walmart that enabled hundreds of business owners to design their project for making money and a difference.

This shift in consumer expectations is a challenge for an industry that currently only scores a 19 out of 100 on the Climate Count scorecard. Climate Count did rank Marriott highest among hospitality companies on their 2010-11 Climate Count Scorecard with a 78 score. Another industry leader, Hilton Worldwide, has achieved ISO 14001:2004 (Environmental Management) certification representing the largest-ever volume certification of commercial buildings across any industry.

Hospitality Sustainable Purchasing Consortium
What is promising for the hospitality industry and its ability to connect with its customers is the commitment by key industry leaders to the Hospitality Sustainable Purchasing Consortium. Their website’s homepage graphic is one of the best I have seen for addressing customer concerns regarding indoor air quality and health. It does so by visually highlighting sheets that ward off bedbugs, formaldehyde-free wood fiber panels used in bedside tables and non-toxic carpeting that minimizes allergens to improve indoor air quality.

The consortium’s focus is to build, furnish and supply hotels in ways that are better for the guest, the community and the planet. The consortium’s mission aligns with an Expedia survey finding that 60% of consumers will give better ratings to hotels with high indoor air quality, LEED certification, and programs in place to improve energy efficiency, conserve water and recycle.

Exclusive Interview: JoAnna Abrams, CEO of MindClick
MindClick is developing a sustainability performance index that enables sustainable purchasing solutions for the hospitality industry. Click on the video below to view an exclusive interview with JoAnna Abrams, CEO of MindClick. This is a must watch video if your company is looking to win bids to green the hospitality industry’s supply chain. The following are some of the best practices she outlines for competitively positioning your company as a green supplier:

Measure
This is the starting point. Start asking questions and find quantitative answers.

Goals
What are your company’s performance goals? These should tie to what you measure. They should reflect your customers’ expectations.

Document
Develop a written action plan. Ideally the drafting of this plan incorporates input from management, associates, suppliers and customers.

Publish
This is a key transparency step. Publish your plan for all to see.

Audit
Authenticity requires a second set of eyes auditing how what you are doing aligns with what you have published as your goals and action plans.

Report
This is the defining act of authenticity. Tell everyone, most especially your board of directors, investors, work-associates and customers. This report should be very candid on your performance status compared to your plan and your competitors.

Bill Roth is the founder of Earth 2017. He is author of The Secret Green Sauce that profiles case studies of business best practices that make money. Through the U.S. Hispanic Chamber of Commerce Foundation Green Builds Business program he has coached hundreds of business owners across the United States on their design of green projects that have grown sales, landed new customers and increased profitability by reducing emissions.

I was honored to chair this event’s first-ever panel on energy. The lead legislative panelists were Senator Robert Portman of Ohio and Congressman Ben Lujan of New Mexico. Senator Portman spoke to the combined need to increase supply and reduce demand. The Senator spoke optimistically that his bill creating new incentives for building energy efficiency was attracting bipartisan support.

Congressman Lujan spoke on the leadership role he and New Mexico are playing to create renewable energy and a more efficient electrical grid. Congressman Lujan, speaking with experience based upon his distinguished service as a utility commissioner, outlined the current electric transmission bottlenecks that limit the efficient flow of electricity. For example, the current system limits the ability of moving competitively priced solar power produced in the West to homes and factories across the U.S. And he endorsed research on advanced transmission technology to reduce the current 10% energy loss now occurring in the transmission of electricity.

Here’s what happened behind the scene. Prior to the panel USHCC President Palomarez met with the panel participants. He outlined his vision of a strong economy offering jobs for all Americans implemented through a commitment to environmental stewardship.

He spoke to a USHCC Foundation program he is justifiable proud of called Green Builds Business. Through this program hundreds of business owners in 11 cities across the U.S. have been coached on green business best practices. Every participant attending GBB is coached in their design of a project that they can implement within 90 days that will make money and a difference.

Sample programs designed and implemented by Green Builds Business participants include:

Green Auto Body Shop, Salt Lake City
This auto body shop has a strong reputation for quality workmanship and price competitiveness. Like most Hispanic businesses it took pride in environmental stewardship including the hand washing of finished vehicles to minimize water use to one bucket. But this was a business struggling to make sales connections with government and corporate customers. GBB coaches on the growing business opportunity for selling to corporations and governments that are greening their supply chain. Their GBB project was to become a green auto body shop as a sales path for engaging institutional and corporate clients that were greening their supply chains. And it worked! Within 90 days of implementing the going green steps coached at the GBB program they landed Avis and the Salt Lake City’s police department as customers.

Recyclable Drying Cleaning Bags, Long Island
This Long Island entrepreneur has a great business idea that addresses the growing trend of cities outlawing throw-away plastic bags including dry cleaning bags. Like reusable grocery bags her recyclable garment bag will save money for dry cleaners and cities facing the growing cost of handling waste. For all her enthusiasm she was facing the typical early stage resistance to change. Her project was to sell 50% of her bag inventory in 60 days. She did it following the GBB coaching best practices for selling to Concerned Caregiver who are moms focused upon the well being of their loved ones. This entrepreneur designed and implemented a high energy marketing campaign targeting women seeking to make a difference. With her sales success confirming the product’s proof of concept she is looking to raise her first round of angel funding.

Tulsa Electrical Contractor Selling LED High Efficiency Lighting Solutions
This Tulsa electrical contractor had a successful contracting business and is well respected by the Tulsa community. But like everyone in the construction industry his business was challenged by the economic recession. One of the opportunities coached on in GBB is the superior financial returns generated from improving building energy efficiency. This Tulsa contractor designed a project to grow his business revenues selling high efficiency LED lights. He was coached on how to represent his company to senior officers of LED companies. Then through GBB he was connected with two LED lighting companies that offered cost competitive made in America technologies. This electrical contractor has secured exclusive distributor status and is now installing LED lighting solutions that save money and reduce emissions.

Many GBB participants followed the GBB coaching on how to reduce costs by going green. These business owners have installed energy efficient lighting, one is installing a solar power system and they have installed water saving low flow fixtures. Each participant in GBB is provided with a free bag (recyclable of course) with sample products like CFLs and faucet aerators.

This is a picture of participants in one of the two day Green Builds Business programs implemented in Nashville, Tennessee. In front is Dr. Waldo Mikels-Carrasco, Research Associate Director of the Institute for Latino Studies at the University of Notre Dame. Walmart funded this 11 cities program including the retention of the Institute for Latino Studies at the University of Notre Dame to better quantify various business issues tied to going green including how Hispanic businesses are responding to green business opportunities.

Here’s the important insight for America regarding the leadership being implemented by the USHCC. Green Builds Business is open to all. The USHCC is dedicated to America’s success and to the key role Hispanic Americans contribute toward America’s success. They are focused upon creating jobs. They are focused upon enabling business growth. And they are committed to human and environmental health through their endorsement of environmental stewardship.

Bill Roth is the founder of Earth 2017, the company that is implementing the USHCC Foundation’s Green Builds Business program. His book, The Secret Green Sauce, profiles case studies of business best practices that make money going green.

Energy
Energy is a fast track path for saving money going green. 40% of all electricity consumption and GHG emissions come from our buildings. Over 52% of businesses report they plan to cut their electricity consumption by 25% by 2014. Here are two top green office best practices:

#1 Relamp
Investing in more efficient lighting typically produces a 6 months to 2 year return on investment generated through utility bill savings. A 2 year savings is like getting a 50% return on cash!! T-8 fluorescent lights are the current lowest-investment-cost solution. Click on this video to learn about LED lighting that is rapidly dropping in price.

Tip #2. Phantom Power
5% of your power bill is paying for all the electricity used in your office from computers, printers, microwave ovens, etc. that are not turned off during non-working hours. The solution is easy. Link all electrical uses to power strips and then make sure everyone in the office hits the off button on their power strip at quitting time.

Water
Its the toilets. Look for blue printing on your toilet between the seat and the tank. No blue writing? That means you have a water gusher that is taking money out your company with every flush. Install the low-flow flush toilets. They work and they save money.

Paper Waste.
Go digital. It costs less and enhances the efficiency of your work associates. Here are two green office tips I got from a huge law firm that has adopted green office best practices.

Tip #1
Replace all your current waste paper baskets with waste paper baskets that everyone will think are just way too small. At first your associates will be upset. Explain to them the whats and the whys. In two weeks they will have adjusted to this new normal by figuring out how to replace paper with digital solutions.

Tip #2
Recycle or sell all but one of your office printers. “Are you crazy?” is the usual response on the first day associates fight to get access to this one printer. Again, within two weeks or less they will figure out how to send or store information digitally.

People
Here’s the great news. Most of them want to go green. Especially the Millennial Generation and their moms, Concerned Caregivers. Create Green Teams of volunteers to figure out how to implement the Energy, Water and Waste solutions. They will.

Bill Roth is the author of The Secret Green Sauce that profiles business case studies on best practices for making money going green. As the Green Business Coach for the U.S. Hispanic Chamber of Commerce Green Builds Business program Bill Roth has coached hundreds of business owners on their design of projects that will make them money and make a difference within 90 days.

I am serving as panel moderator this Wednesday March 21, 2011 for the U.S. Hispanic Chamber of Commerce’s Legislative Forum. My panel is on energy and includes an Ohio U.S. Senator, a New Mexico Congressman and two executives from oil companies.

What would you like them to hear? What questions should I be asking?

I will post your comments on this link PLUS personally deliver your comments to each panel participant. Here are the rules for getting your comment posted:

Length:
No comment can be more than 150 characters (this rule-sentence has 36 characters).

Links:
No links to other sites will be posted (a quick delete is its fate).

Rants:
No rants, cursing or political posturing (let’s try to not act like politicians—this would be deleted if posted!)

Advertising:
You can tell us who you are. Some examples: Volt Owner Bill R. Or Bill Roth, California. Or Bill Roth, founder of Earth 2017. (By the way I don’t own a Volt but I do think it is a very cool technology deserving consideration by potential car buyers looking to spend north of $35K.)

I would love to hear from people who really have something tangible to share (like facts, real experiences, etc.). Here’s some ideas:

Electric car owners
Share your experience driving an electric car. How far have you driven? How much did it cost? Any problems your government could solve?

Hispanics
The U.S. has nearly 3 million Hispanic-owned businesses. Hispanic small businesses grew 114% over the last five years in the face of our country’s recession! So what are your questions on energy? What could your country offer you on energy that would support your business’ growth and community’s well being.

Solar Power Users
What’s it like to use solar power? Is it saving you money? How reliable?

Fiscal Policy Advocates
Should government be subsidizing any energy or energy company or energy technology? If yes, why and which one? If no, why not?

Millennial Generation
It’s your future. What have you got to say? Got energy? Got solutions?

Moms
Some energy is produced with zero pollution. Some energy pollution comes right at your loved ones from the tailpipe in front of you at the stoplight. And some rain pollution down from smokestacks miles away. How does energy’s human health concerns stack up in your priorities when you are also trying to balance your family’s budget?

Hybrid Car Owners
The new Prius C is outselling all electric cars combined. What is it like to drive a hybrid vs. a regular gas-guzzler? Would you buy another one?

Business Owners
If you had to choose only one, should the emphasis be upon helping your business reduce its energy consumption (like tax credits for high MPG vehicles or installing higher efficient lighting ) or should the emphasis be upon driving down energy prices? In fact, as a businessperson do you think government can reduce the rising price for oil?

Famous People
I tossed this category in just in case someone famous has something to say on energy issues in 150 characters. If its Julia Roberts I am available for a phone call to personally write down your thoughts!

Please submit your comment below. Your voice will be heard! I will personally deliver your comments to each panel participant!

Bill Roth is the founder of Earth 2017. He is the green business coach for the U.S. Hispanic Chamber of Commerce Foundation’s Green Builds Business program sponsored by Walmart through which he has coached hundreds of business owners on their projects for making money and a difference. His book, The Secret Green Sauce, profiles business case studies on best practices for making money going green.

The U.S. military is the world’s largest fuel consumer. In 2011, the U.S. military spent over $13 billion on energy. The DOD in cooperation with DOE has initiated a Net Zero Initiative with the goal of “producing as much energy (focus on renewable energy) on or near the installation as it consumes in its buildings and facilities.” The objective is to create a repeatable template for planning and developing net zero energy installations across the services. Their performance goal is to have 30 Net Zero Energy facilities by 2030.

The DOD is assuming the role of economic and technological engine of the smart and renewable microgrid. Their template model for Net Zero Energy holds the potential of lowering this key technology’s costs through economies of scale that could then be transferred into the public sector business community.

The DOD is pursuing integrated microgrid technology through a three tier process deploying energy efficiency, distributed generation and smart operating systems to achieve a cost competitive, high reliability alternative to utility supplied electricity.

Step One: Energy Efficiency
Load reduction or energy efficiency is the highest priority in the DOD approach to building a microgrid. The DOD is rightly focusing upon energy efficiency because of its superior financial paybacks. For example, replacing Edison-era lighting technology with today’s energy efficient lighting systems can generate a 100 percent return on the cost of investment in as little as six months depending upon lighting levels and utility rates. The DOD has set ambitious goal of 30 percent reductions in building energy use.

Step Two: Renewable Energy
Renewable energy is the second step in the DOD process of building an integrated mircogrid platform. They are investing in a range of renewable technologies including solar, wind, biofuels, landfill gas and fuel cells. One example is the installation of solar power at the U.S. Air Force Academy in Colorado Springs. This is a 6 MW system producing 11.6 million kWh of electricity annually at a 25-year levelized cost of 6 cents per kWh. The system is projected to save $1 million annually in electricity costs. Today this system accounts for 11 percent of total Academy electrical consumption but that percentage is expected to rise as energy efficiency actions are taken that will lower the overall electrical load at the facility.

Step Three: Smart
The real technology barrier to microgrids is getting all the various onsite systems to work together to achieve reliability at least as high as that supplied by the local utility. The technology challenge is integrating a mix of existing equipment and new equipment into one integrated smart system. Solutions to the challenge are being pursued by some of the biggest names in technology including GE, Honeywell, Cisco, MicroSoft and others as well as start-ups re-imaging how machines talk to one other through apps.

The implications of DOD’s microgrid efforts is the transformation of our country’s electrical system from a centralized power plant model using alternating current transmission and distribution we’ve been using since the age of Edison and Westinghouse. From a technology perspective, the future is now. Global manufacturing competition is plunging solar prices into price parity with utility systems. Apps are available now to download onto your smartphone to control your home or office energy consumption in aligment with your real time expectations for cost control and comfort. Appliance manufacturers are beginning to offer micro-chips built into their refrigerators, dishwashers, dryers and stoves that enable connectivity via the growing numbers of smart meters.

DOD’s Net Zero Energy Initiative is the leadership model for integrating these technologies, including the challenge of collaboration with electric utilities that have historically viewed microgrids as a threat to their revenues.

Utility regulators are also challenged by mircogrids. Customer-centric technology innovations confronts traditional utility-centric regulations focused upon financing utility owned assets. Customer-centric technology solutions hold the potential of a mega-shift in the traditional valuation of utility service away from valuations based upon a monopoly supplier offering economies of scale benefits and toward a utility being valued as a real time battery back up to local microgrids.

While the utilities and their regulators work toward answering their questions the DOD, technology companies and other pioneering customers are implementing systems in pursuit of economies of scale solutions that hold real promise for changing how your business uses energy on a scale similar to the business changes created from the computer, smartphone and the Internet.

This video with Peter Asmus, Senior Analyst for PikeResearch at the Renewable Energy World North American Conference provides additional insights and details on DOD’s strategy for reducing energy costs, emissions and force threats:

Bill Roth is the founder of Earth 2017. His book, The Secret Green Sauce, profiles how-to case studies of businesses making money going green. As the green business coach for the U.S. Hispanic Chamber of Commerce Foundation Green Builds Business program sponsored by Walmart he is coaching of hundreds of business owners on best practices for making money and a difference.

TRUTH: Price = Supply and Demand
Gasoline stations adding a mark up to supply costs do NOT set prices. Prices are established by the market dynamic of consumer demand and manufacturing supply. The price of oil is high right now because incremental world demand is growing faster than the marginal capacity for increasing oil supplies.

TRUTH: Gasoline prices will NOT come down
Because it is supply and demand that sets the price of gasoline, the price of gasoline will not fall over the long term. Does anyone really think the price of gasoline will be less in 5 years?

There are two mega-trend reasons why the long term price for gasoline will be higher:

The first is that there are no more “Saudi Arabias.” That means the world no longer has an easy-to-recover, low cost, low risk new pool of oil to harvest. There is still a lot of oil to be recovered but it costs more to do so because of very high risks and costs tied to geopolitical issues and the high potential for causing environmental damage associated with new deposits of oil. The only scenarios where pump prices could fall are a global economic collapse or breakthroughs in biofuel technologies.

The second more telling reason why prices will rise over the long term is that world demand for oil is growing faster than incremental new supplies can be delivered. The world is adding a new middle class over the next 20 years that will have a buying power equal to 1.5 times the current U.S. annual Gross Domestic Production. In economics this is called the “Income Effect.” This new middle class is expected to buy more oil even at higher prices because their incomes are higher.

FALSE: ”Drill Baby Drill” will lower pump prices
I know of no oil industry executive who thinks there is so much lower cost, lower risk oil still to be discovered that it will lower the price of oil in the face of the world’s growing incomes and the use of this income to buy more gasoline, diesel, plastic bags, fertilizer, etc. More supply may reduce the pace of price increases. It will not lower prices.

FALSE: Government oil production subsidies keep gasoline prices lower
The incentive to find more oil is tied to how much money an oil supplier can make selling their oil. The value of an oil company’s stock is based upon how much oil it has in reserves, its ability to find more oil and the market price of oil. Government subsidies are much too low compared to today’s overall value creation realized from finding commercially deliverable oil for their removal (or increase) to impact the incentive for oil companies to find and deliver more oil.

What has changed in the oil & gas industry’s pursuit of oil is oil’s higher price. At today’s price we are seeing an explosion in hydraulic fracking drilling for gas (and the refining of Canadian oil sands). Fracking is not a new technology though there have been, and continue to be, technology improvements. What is new is the higher price of oil that makes this technology economically attractive for finding more oil and natural gas. Proof of point is the current $2.50-2.75 price range per MMBTU for natural gas that is 50 percent lower than just a couple of years ago. This lower price was realized by the increased commercial use of hydraulic fracking that has generated such an abundance of supply that natural gas suppliers are now curtailing production to support natural gas prices from falling further. Why oil is not seeing a similar price decline, is because the world demand for oil is so strong compared to incremental supply capacity plus the geopolitical risk of the curtailment of current supplies.

FALSE: Politicians can lower gasoline prices
 That is only partially true. There is a lot of tax placed on gasoline at the pump. So politicians could eliminate this tax and the price at the pump would be less until this lower price sparked increased consumer demand against a static supply. The ultimate result will be the price of gasoline pushing back up at the pump.

The real price responsibility of the political system is to reflect a true cost at the pump (or meter and cash register) that includes social and environmental externality costs. The current political system includes the military cost of protecting oil supplies as a part of income taxes. Why? Economic efficiency (this is a term used by economist to describe when consumers make informed decisions) is gained if this cost is reflected at the pump. This same economic sense applies to the health cost impacts of gasoline and diesel tailpipe emissions (and the stacks at coal fired power plants). Currently these are reflected in health care premiums and Medicare taxes. What politicians should do is shift the societal and health cost impacts of burning fossil fuels from income taxes to the pump (and meter) thus enabling consumers to make better informed decisions for the economy and their health by revealing the comparative value of options like hybrid cars, electric cars, mass transit, living near work, bicycling paths, solar supplied recharging stations, cloud based retail shopping, etc.

FALSE: High gasoline prices damage the economy
Read this twice: The U.S. economy is growing with a decline in gasoline consumption.

Gasoline consumption is down almost 3 percent compared to last year. The U.S. economy is growing at an approximately 2+% annual rate.

Gasoline consumption is at a nine-year low. A major reason is that new car fleet mileage is up 14 percent in just four years. (Yes, there is a spike in consumption this week. The reason appears to be consumers attempting to beat future price increases by topping off their gasoline tanks.)

Over the short term, because America still has a huge inventory of low MPG gasoline-powered cars, higher gasoline prices will have a negative impact upon economic growth because consumers will have less money to spend on other products that can generate jobs and economic growth. The key point is this is short term.

In fact the U.S. economy is rebounding as consumers and businesses adopt sustainable economic decisions. They are buying more energy efficient cars and trucks. The Millennial Generation is shifting from their parents’ suburban lifestyles to living closer to their work. With manufacturing economics of scale the per unit cost of cleaner technology cars and trucks is gaining retail price competitiveness. That is the foundation of my projection that in 2011 a world economy of sustainable goods and services achieved a $1 Trillion annual revenue tipping point. Further, we forecast that by 2010 the global annual revenues of sustainable goods and services will reach $10 trillion representing 20 percent of the world’s annual commerce.

The final pump price truths are:

1) Gasoline is a 20th century solution that is losing its price competitiveness to energy efficiency and cleaner technology solutions.

2) No politician can lower the world price of oil.

3) Oil companies are not creating higher oil prices. Believe me, at today’s prices they are trying as hard as they can to find more oil. And they are very concerned that higher gasoline prices will permanently erode U.S. demand for oil. But oil prices will not fall over the long term because the ability of oil companies to increase supply lags the incremental increases in the world’s consumer demand.

4) High long-term oil and gasoline prices are not a product of speculative trading. Corrupt trading could cause price volatility and spikes. But the underlying cause for higher prices is that incremental demand is growing faster than the marginal capacity of production.

As painful as pump prices are this is great news over the long term for America, the environment and our economy. Price competitive sustainable product solutions are emerging. The ramification of sustainable products gaining price parity is that 85 percent of consumers will buy the more sustainable product vs. the less sustainable product if their prices are equal. Counter-intuitively, today’s higher price for gasoline is accelerating our economy’s potential for implementing sustainable solutions that will create American manufacturing jobs and restore our environment.

***

Bill Roth is the founder of Earth 2017. His book, The Secret Green Sauce, profiles case studies of business best practices for making money going green. As the Green Business Coach for the U.S. Hispanic Chamber of Commerce Foundation’s Green Builds Business program sponsored by Walmart Bill has coached hundreds of business owners on best practices that make money and a difference.

One driver in solar power’s growth are the very large solar farms being introduced such as this one in China completed in 2011. However, a large amount of program funding is available in many countries for small scale, decentralized solar systems on household roofs rather than solar farms. In the USA, there are federal grants for solar panels covering 30% of the costs of installing a system for domestic or commercial use. Feed In Tariffs are available in California, Washington, Hawaii and Michigan to decentralized systems. There are similar tariffs for home-owners in other countries including Germany and the UK.

The primary advantage of centralized solar farms is the economies of scale that this sort of system can utilise. Large system purchases of solar modules can win lower prices purchasing directly from a solar panel manufacturer. Wiring and installation costs are lower on a per panel basis in a giant array. Labor costs are lower from fewer installation employees per square foot of solar panels. Similarly, transportation costs per square foot are much cheaper for delivery to one large location rather than driving solar panels to thousands of different houses. These costs savings estimates for large scale solar in a favourable European location are €293/MWh compared to €400-700/MWh for domestic systems.

Why do governments subsidise solar for smaller installations when it seems more efficient to get large projects financed? One reason is that centralized systems incur transmission losses which can vary from 6.5% in the USA to 25% or more in countries with less developed infrastructures. For example, India loses around 24% of its electricity during transmission and a further 10-15% is lost through theft or billing issues.

There are also risks tied to electricity transported across large distances. Even small faults within the grid can lead to serious problems. For example, the Northeast blackout of 2003 affected 50 million people across 8 states and 10 million people in Ontario.

Small scale solar can also be more environmentally friendly – large solar farms take up 30 acres or more of space. This larger scale can require deforestation, impairment of natural desert environments and species endangerment. In countries with high population density where land is expensive a decentralized solar panels on rooftops saves space and money.

Arguably, decentralized solar can increase society’s awareness of energy use and efficiency as people often see houses with solar panels. This effect has already been shown where electricity meters given out to home-owners to enable their awareness of their real-time energy usage has resulted in average electricity usage drops of 7-10%.

Both centralized and decentralized solar have their places in increasing our renewable energy. The EU is legally bound to receiving 20% of its energy from renewable sources by 2020. 30 of the US states have mandatory renewable targets. Beyond regulatory mandates the economics of solar is gaining price parity with utility supplied non-renewable energy. Solar is growing as a renewable resource with small solar roof top panels as a significant contributor to the world’s renewable energy future.

This guest article was written by James Hawkins, from Talk Solar Panels – a UK solar panels cost comparison company. Check out our solar blog for the latest UK solar power news.

Water supply is critical to every business but water for The Coca-Cola Company is the enabling supply chain resource for its approximately 3,000 different products sold in over 200 countries that generates $35 billion in annual revenues. R. Paul Herman CEO of HIP Investor, Inc notes in his analysis of The Coca-Cola Company’s strategic risks that Coca-Cola uses 2.36 liters of water per liter of soda with India at a 4:1 ratio.

The Coca-Cola Company’s water management strategic focus is upon these three key issues:

Water risks
Water systems in the U.S. and around the world are at risk from growing populations and climate change. A 2010 NRDC research study concluded that one-third of U.S. states face extreme or high risk of drought. Compounding the reduced availability of water is a U.S. water demand where the average American consumes 170 gallons of water each day compared to only 5 gallons per day for the average African family.

And our water infrastructure is old. The three states of South Dakota, Alaska and Pennsylvania still use wooden water mains. High consumer demand and an aging water infrastructure suggest the need for substantial community, business and individual capital investment in water supplies, management systems and efficiency.

However, water revenues are not high enough to offset the cost of capital for infrastructure repair. Water utility revenues are being constricted due to reduced sales — drought sparks consumer conservation. In addition, American water consumers are conditioned to low prices for water from decades of receiving low monthly bills. For example, the average American household consumes about 127,400 gallons of water during a year. Homeowners in Washington, DC, pay about $350 for that amount of water. In comparison, buying that same amount of water from a vendor in Guatemala City would cost more than $1,700. The American consumer’s expectation that water should be an inexpensive resource results in significant consumer resistance to utility proposals for higher water rates. The result is a high risk scenario of potential water supply shortage plus volatile price increases as water suppliers push through rate increases that are higher in size due to the delay in gaining consumer/regulatory acceptance.

Nexus of climate, energy, water and food
To Coca-Cola’s credit, they have accepted the science of climate change as a reality impacting their customers, suppliers and themselves. They also recognize the ties that bind agriculture and water where 70 percent of the world’s fresh water is used to grow food. Their business strategy incorporates the scientific conclusions that human emissions of greenhouse gases tied to the burning of fossil fuels are negatively impacting the world’s food and water supplies. They recognize that solutions to this complex situation requiring strategic vision and long term investment.

The new water economics
If water is the next oil, then the economics of water including its price and access to investment capital are core economic issues confronting businesses and communities. Like oil, water economics are now driven by a growing demand that supply can no longer fulfill. When demand exceeds supply the result is higher prices. This scenario also portends increased price volatility in reaction to our climate’s volatile swings between drought and flood. The new economics for water will require a shift from the current pricing system of no meter or a dumb-meter toward a pricing environment that reflects the demand-generated value (vs. supply cost) of water. This new pricing system should also take into account the timing of water demands where customers who demand water in critical supply time periods pay a price premium. And the pricing of water must generate cash flows in support of investments in more efficient water supply management and technologies that result in more efficient use of water.

In response to these strategic challenges Coca-Cola has established the following four sustainable action items:

REDUCE
Improve water-use ratio by 20 percent, thus improving water use efficiency, by 2012. The Coca-Cola Company as of 2011 has improved their water-use ratio by 16.3 percent.

RECYCLE
Recycle 100 percent of their manufacturing-plant’s water to a level that returns it to the environment at a level that supports aquatic life. Currently the company is at 96 percent with the expectation of reaching 100 percent by the end of 2012.

REPLENISH
By 2020 replenish watershed supplies to produce a volumetric benefit equivalent to the Coca-Cola Company’s global beverage production volume. Currently Coca-Cola is replenishing 35 percent of the water they use.

RISK MANAGEMENT
Coca-Cola is assessing the quality and quantity vulnerabilities of the water sources serving their bottling plants to protect against adversely affecting the water access ability of other water users from being adversely affected.

Four best practices
To learn more about Coca-Cola’s best practices for managing water within their supply chain I interviewed Jeff Seabright, Vice President Environment and Water Resources. He shared the following four best practices:

1. Start at “home”
Even though water prices have risen to levels where they cannot be ignored, it is often not an expense item where many businesses have focused. Yet, it is an area of “low hanging fruit” with action items that can produce immediate cost savings. Jeff suggests looking for drips. This is your money literally going down the drain. I also recommend faucet aerators. Put one on a test faucet. If you can’t tell a difference then put them on all faucets. They cost next to nothing and save big. Finally, as Pam Evans the Green Business Coordinator for Alameda County, California points out in this video “It’s the toilet” where most commercial businesses and people can save the most money and water. Check your toilet and make sure it has blue writing between the seat and tank that says 1.6 or 1/28 GPF. If not, you have a water hog that is costing you money.

2. Understand your water risks
Water risks are often a risk assessment gap for many businesses. The assumption is that water will always be available in full supply. This is changing as evidenced by droughts like those being increasingly experienced in Texas and the Southwest. Even Coca-Cola’s headquarter city of Atlanta faces water supply issues from growing consumer demands, recent droughts and water battles between the states of Georgia, Alabama and Florida. The challenge for companies that do want to assess their water risks is a lack of measurement tools. In recognition of this situation Coca-Cola has donated their extensive water risk geospatial information to the World Resource Institute’s Aqueduct database. This database enables companies, investors, governments and others to create water risk maps with a high level of detail and resolution.

3. Develop and evolve a strategic plan
How does water fit into your company’s SWOT (strengths, weaknesses, opportunities, threats) analysis? What would your company do if its supply of water was cut in half or the price increased by 100 percent? What is the threat if your competitor invested in a clean tech water technology and you did not? These types of questions must now be included in a company’s and its host community’s strategic plans. This link to San Diego’s strategic plan provides insights on key issues and where to begin.

4. Engage associates and others as partners
Green teams are a proven path to insights on “what to do” and “how to do it” that can turn a mission statement into profit results. Seabright also points to your business partners and suppliers as resources for insights on how to protect and conserve water and save money.

Watch this interview with Jeff Seabright to learn more on best practices for addressing water’s increasing importance for all businesses:

Bill Roth is the founder of Earth 2017. His book, The Secret Green Sauce, profiles case studies on the best practices of businesses making money going green. As the Green Business Coach for the USHCC Green Builds Business program he is coaching hundreds of businesses in their design of projects that will make money and a difference.