> TE Home
> About TE
> Contact Us
> Editorial Info
> IEEE-USA

06.08

Opinion: Green Business is Good Business…and May Become the ONLY Business

By Jill Buck

I had the pleasure of serving as the keynote speaker for the IEEE-USA Annual Meeting in Indianapolis during Earth Week. The Meeting was on a Saturday, and on the preceding Tuesday of the same week (Earth Day), I had been a featured speaker at the Inaugural Annual Green Business Summit in Beijing. The juxtaposition of the two speaking engagements was serendipitous, because what I learned in China, I was able to share with IEEE-USA members.

Green Business in China

Donghua Liu, head of the China Entrepreneur Club and Editor of the China Entrepreneur Magazine, was the host of the Beijing Summit event. His vision for China-based companies is to consider green business practices as a competitive edge, and he urged action on the part of China businesses to create a “carbon-free economy.” His leadership drew participation on the part of the Chinese government, Chinese media, international NGOs, and luminaries in the Chinese business community. He left no doubt that each consecutive annual China Green Business Summit would be marked with even greater achievements than the last.

Shi Wang, Chair of China Vanke Co., Ltd., of which Mr. Wang was Chair and General Manager from 1991 to 1999, was also a speaker at the Summit. Besides being one of the most successful and respected businessmen in China, Mr. Wang is an avid mountain climber. His PowerPoint presentation included photos of famous peaks worldwide that have been affected by climate change over the many years he has crested the peaks. He encouraged Chinese businesses not to be “worried about being early movers” in green business practices; “it means you will soon be the leaders,” he said to enthusiastic applause. Mr. Wang founded the Shenzhen Exhibition Center of Modern Science and Education Equipment in 1984, which is the predecessor to China Vanke Co., Ltd.

IEEE and the Emergence of the Chinese Economy

Coincidentally, even before I traveled to China, I found an article through the IEEE Web site called “Technology indicators show China ahead of the U.S. in technological standing,” written by John Toon, and released in January of 2008 by the Georgia Institute of Technology, an organization which as been gathering high tech indicators since the mid-1980’s [www.gatech.edu/newsroom/release.html?id=1682&source=1].

The following are excerpts from the article discussed at the IEEE-USA convention:

A new study of worldwide technological competitiveness suggests China may soon rival the United States as the principal driver of the world’s economy — a position the United States has held since the end of World War II. If that happens, it will mark the first time in nearly a century that two nations have competed for leadership as equals. …The study’s indicators predict that China will soon pass the United States in the crucial ability to develop basic science and technology, turn those developments into products and services — and then market them to the world. …Four major input factors help build future technological standing: national orientation toward technological competitiveness, socioeconomic infrastructure, technological infrastructure and productive capacity. …The 2007 statistics show China with a technological standing of 82.8, compared to 76.1 for the United States…Just 11 years ago, China’s score was only 22.5. The United States peaked in 1999 with a score of 95.4…Alan Porter, one of the study’s co-authors says, “When you take China’s low-cost manufacturing and focus on technology, then combine them with the increasing emphasis on research and development, the result ultimately won’t leave much room for other countries.” ... Most industrialized countries reach a kind of equilibrium in the [ongoing] study, moving up slightly in one data set, or down slightly in another. But the study shows no interruptions in China’s advance. …China’s emphasis on training scientists and engineers — who conduct the research needed to maintain technological competitiveness — suggests it will continue to grow its ability to innovate. In the United States, the training for scientists and engineers has lagged, and post-9/11 immigration barriers have kept out international scholars who could help fill the gap. …Nils Newman, co-author of the study concludes, “It’s like being 40 years old and playing basketball against a competitor who’s only 12 years old — but is already at your height. You are a little better right now and have more experience, but you’re not going to squeeze much more performance out. The future clearly doesn’t look good for the United States.”

I also found a White House press release [www.whitehouse.gov/news/releases/2007/08/20070809-1.html] that gives a more optimistic, solutions-oriented reflection from President Bush as he discusses his American Competitive Initiative:

Since we began cutting taxes in 2001, our economy has expanded by more than $1.9 trillion. Since the tax cuts took full effect in 2003, our economy has added more than 8.3 million new jobs…Our economy is growing in large part because America has the most ambitious, educated and innovative people in the world — men and women who take risks, try out new ideas, and have the skills and courage to turn their dreams into new technologies and new businesses. To stay competitive in the global economy, we must continue to lead the world in human talent and creativity. So in my 2006 State of the Union address, I announced the American Competitiveness Initiative… I asked Congress to expand America’s investment in basic research, so we can support our nation’s most creative minds as they explore new frontiers in nanotechnology or supercomputing or alternative energy sources. I asked Congress to strengthen math and science education, so our children have the skills they need to compete for the jobs of the future. I asked Congress to make permanent the research and development tax credit, so we can encourage bolder private-sector initiatives in technology. Today, I’m going to sign into law a bill that supports many of the key elements of the American Competiveness Initiative. ... [however] I will continue to press Congress to approve the remaining measures of the American Competitiveness Initiative … I believe Congress ought to make the research and development tax credit a permanent part of the tax code, to encourage investment. The bill I will sign today will help ensure that we do remain the most competitive and innovative nation in the world.

Based on this information, I have reached two important conclusions for U.S. IEEE members:

1. The evidence is clear…Chinese business leaders intend to be role models for the world in sustainability and profitability. They have made the connection between economically feasible and environmentally responsible business models, and they are working together to set the standard for others to follow. U.S. IEEE members already know that IEEE membership in China and India is growing quickly. I believe there is a connection between this membership trend and the stated goals of business leaders in China.
    

2. U.S. IEEE members will need to incorporate green technology into every discipline, field and standard, and advocate for public policy that supports research and development, to protect the U.S. economy and its position of world leadership. As the leading organization that sets international standards for every field and discipline in the electrical engineering spectrum, IEEE cannot ignore the world trend and expectation of sustainable business practices and products as a competitive edge.

IEEE’s Pivotal Role in U.S. Economic Stature

IEEE members are at the vortex of America’s global economic status in the 21st century. In order to help American business remain competitive, it is vital that IEEE members understand sustainable business operations. Each U.S. election cycle brings new ideas for governmental regulation on the environmental impact of businesses. IEEE members’ innovations can help their industries stay ahead of, and supersede, the need/justification for costly government intervention. Additionally, through basic environmentally responsible business practices (e.g., water and energy conservation, and waste reduction), business can avoid costs that can be applied to business expansion and job growth opportunities.

Furthermore, sustainable business practices are becoming a customer expectation, whether the industry is consumer-oriented or business-to-business-oriented. Much like company Web sites became a “must” in the 1990s, a commitment to sustainable business practices is rapidly becoming an important variable in the decision-making process for customers. And just as important, “green” business is playing an increasingly important role in employee recruitment and retention. Polling of Generation “Y” workers shows that they strongly prefer to work for companies that share their values and vision for the future.

What It Means To Be A Green Business?

Volumes could be written to outline in detail what it means to be a “green business,” but the following suggestions provide a general outline I follow with my Buck Consulting [www.jillbuckconsulting.com/] clients:

Conserve Natural Resources

IEEE members understand that ample supplies of natural resources form the basis of a strong economy. As the world population continues to expand, the amount of available natural resources per capita is reduced. Future generations will need reliable and affordable energy sources in order to fuel our economy and maintain a high standard of living. IEEE members and their companies can conserve natural resources by: (1) reducing the amount of waste they produce and dispose of; (2) conserving energy through less consumption and through innovative ways of producing renewable energy; (3) purchasing environmentally preferable supplies and producing products that allow their customers to do likewise; and (4) using alternative fuel to power their operations.

Reduce Carbon footprint

If the Chinese embrace and attain the vision of a “carbon-free economy,” U.S. IEEE members can certainly help the United States move in a similar direction. To reduce the U.S. carbon emissions rate, we first must quantify it. Though carbon emissions can be calculated in numerous ways, and are industry-specific, the four primary starting points for carbon emissions calculations are analysis of utility, water and waste hauling bills, and by calculating the impact of transportation (both by private vehicles and company fleets). Achieving measurable reductions in each of these categories will result in cost avoidance for the company, but can also help companies quantify their environmental benefit through such reductions.

Inter-Climate – External

Becoming a “green business” does not generally happen in a vacuum. It requires a coordinated effort on the part of business, government, service companies and the supply chain. Strategic partnerships with utility companies, waste haulers and recycling brokers, chambers of commerce and local government are vital to accomplishing optimal “green business” conditions. In many cases, tax credits and rebate programs are available for businesses that help support community goals. Examples of such programs include increasing the local utility’s portfolio of renewable energy supply, optimizing community recycling rates, and cooperation in lowering peak energy demands. The most successful green businesses are those who work in conjunction with community stakeholder groups that can help them reach their sustainability goals. These partnerships also serve as excellent public relations and marketing material, and therefore, media partners should also be included in green business collaborations.

Intra-Climate – Internal

Inasmuch as it is important for companies to be mindful of the external environmental impact, it is just as important for companies to recognize the significance of their internal environmental impact. The U.S. Green Building Council’s (USGBC) Leadership in Energy and Environmental Design (LEED) certification process pays particular attention to optimizing the effectiveness of a company’s workforce through measures to improve indoor air quality, and human-centric atmospheric conditions. Studies have shown dramatic rises in productivity and reductions in worker absenteeism when companies engage in activities such as “green cleaning,” habitual HVAC system maintenance, reduction of VOC emissions from paint, carpeting and furniture, task lighting aimed at human comfort, and so on. The USGBC has superior guidance and training for companies of any size or industry, and I highly recommend that IEEE members consider joining that organization to learn more.

IEEE-USA Advocacy Efforts — Focus for the Future

Inherent in the mission of IEEE and IEEE-USA is advocating for public policy that will support the membership of the broader organization. When it comes to sustainable, or “green,” business practices — particularly as those practices relate to global economic competitiveness — IEEE has an imperative role to play in supporting effective public policy.

There is no shortage of trendy public policy that centers on climate change and global warming. However, I believe that IEEE will have a more lasting and important impact on public policy if the organization supports legislation that accomplishes the following three objectives:

• Expand investment in research

• Strengthen math and science education

• Make research and development tax credits permanent

Long before the modern environmental establishment procured a position of power with members of the U.S. government, IEEE members were working to develop products and technology that demonstrated an appreciation for nature, a desire to preserve our national treasures, and a recognition that our natural resources serve as the foundation of our economy and a high standard of living. Most importantly, IEEE members have adhered to the age-old axiom from the man who could have easily been a founding father of IEEE, as well as a founding father of our nation, Benjamin Franklin, when he simply said, “Waste not. Want not.” In those four words, we find all the inspiration and motivation necessary to create a sustainable economy while creating a sustainable society. I firmly believe that IEEE members will be the leaders of this movement, and look forward with anticipation to the achievements and innovations yet to come!

Jill Buck formed Buck Consulting in 2004. She has become one of the nation's leading advocates for 21st century, business-friendly environmental public policy. She is one of the premiere speakers on creating a culture of conservation in schools, businesses and government. Buck speaks across the nation on positive vs. punitive environmental public policy, and is a leader in promoting profitable green business solutions. Comments may be submitted to todaysengineer@ieee.org.

Opinions expressed are the author's.