A new approach to sustainable business

Take the environment out of sustainability, argues former Sierra Club chief 4

Adam WerbachAdam WerbachAdam Werbach’s career is something of a lodestar for the trajectory of the 21st century American environmental movement. A student activist tutored at the knee of the Archdruid himself, the legendary David Brower, Werbach was elected the youngest president of the Sierra Club in 1996 at age 23. 

Then business beckoned and he launched a startup, Act Now Productions, to advise companies like Wal-Mart on going green. Global advertising and marketing goliath Saatchi & Saatchi acquired Act Now last year, rebranding it as Saatchi & Saatchi S (for sustainability) and installing Werbach as the CEO.

Now he has written Strategy for Sustainability: A Business Manifesto.

“The book came from a basic frustration with the business dogma I confronted as someone who had what I thought were some very simple ideas about how business should work,” says Werbach during an interview at Saatchi & Saatchi S’s offices in San Francisco’s Mission District. “It became clear to me they didn’t hold the same fundamental business notions I did. They lacked a singular strategy that brought in the concepts of sustainability.”

The book, which joins a shelf of sustainable business titles published in recent years, is essentially a how-to guide for companies to reframe the way they do business in a carbon-constrained, Twittering world.

“To be successful, you need to peel off the green blinders and start thinking of sustainability as a new tool set, like information technology or globalization, that can help you reinvigorate a business,” Werbach writes.

In fact, Werbach would like to take the environment out of environmental sustainability.

“The battle I’m trying to fight in the business world is to adopt a broader definition of sustainability that is not just about environmental sustainability,” says Werbach, who at 36 sports a touch of gray in his hair. “That’s a limiting factor to sustainability. What are the tools you need to be around for the long term? What is your long-haul strategy?”

In other words, casting sustainability as a green thing allows companies to compartmentalize such efforts rather than make them part of the corporate DNA.

Still, even in an era when mainstream environmentalists are more likely to lunch with corporate suits than file suits against them, such talk is sure to rankle.

cover of "Strategy for Sustainability"But the message may resonate among the younger generation for whom the thought of corporate environmentalism does not cause cognitive dissonance. For instance, the MBA students I talked to who signed up for the Environmental Defense Fund’s Climate Corps saw nothing incongruous about pursuing green goals from within the Fortune 500. In fact, the point was to change corporate America from within.

And those are exactly the people Werbach is trying to recruit with his book. “The world of corporate change is still underpopulated with people who have a sustainability mindset and experience,” he says. “There’s a better chance I’ll be arguing with six people about who has the best idea when I’m with activists, which is great. It’s more likely I’ll be lonely and looking for help when I’m working with a company.”

In his book, Werbach lays out “Seven Tenets of a Strategy for Sustainability”:

  • Natural resources will become increasingly scarce and expense.
  • Massive demographic change is coming.
  • People are the most important renewable resource.
  • Cash flow matters more than quarterly earnings.
  • Every organization’s operating environment will change as dramatically in the next three to five years as it has in the past five.
  • A chaotic external world requires internal cohesion and flexibility.
  • Only the transparent will survive.

Like other books of the genre, Werbach’s contains his own PowerPoint-friendly jargon—sustainability-speak, if you will. He advocates an approach he calls “STaR mapping” to analyze a company’s strategy in terms of social, technological, and resource changes. Then a company needs to decide on a “North Star goal”—“the strategic direction toward which an organization drives to reach greater sustainability.”

Werbach presents case studies of companies that have pursued sustainable strategies, like Clorox, whose Green Works natural cleansers have been endorsed by the Sierra Club.

It remains to be seen whether corporate America embraces sustainability as way to gain a long-term competitive market advantage or just as a marketing strategy. But signs of change abound.

Late last month, Werbach was invited to give a talk on sustainability at Apple’s headquarters in Silicon Valley. The iPhone and Mac maker has long been a whipping boy of groups like Greenpeace for its lack of environmental disclosure and reluctance to jump on the green bandwagon crowded by Dell, Hewlett-Packard, and other tech stalwarts.

Apple also came in for a fair share of criticism in Werbach’s book.

“I don’t know a lot of people who have strict critiques of Apple who are invited to go speak there,” he says. “A friend from a previous incarnation invited me down. His instructions were to say whatever I wanted. I was shocked they would say that. We had a really open conversation about what I thought they could do better.”

And Werbach at least practices what he preaches: I learned about the Apple meeting through his Twitter feed.

Find out more at the Strategy for Sustainability website.

Read Todd Woody’s past Green State columns.

Todd Woody covers green technology and the environment from Berkeley, where he’s a contributing editor at Fortune Magazine and writes his Green Wombat blog. He’s one of the few people on the planet who has seen the rare northern hairy-nosed wombat in the wild.

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  1. William Verde Posted 7:39 pm
    20 Aug 2009

    I haven't read it, but by all accounts there's a lot of good, common sense in this book.  But I wonder if the success of the book, along with the success of the author's company, one of the largest advertising agencies in the world, in helping to "green" the largest retailer in the world, will lead to unintended consequences.  Let's start with the premise that Walmart, and all the big box chains for that matter, co-evolved with the process of globalization.  The big box business model relies on mass quantities of the most inexpensively manufactured goods on the planet, stores with very large footprints that require siting outside of small towns or in suburbs, and of course, the ubiquitous automobile.  We now know very clearly the consequences of this economic history:  few domestic manufacturing companies nor their living-wage jobs, decimation of Main Street locally-owned retailers, and, arguably, more carbon and other pollutants in the atmosphere.  Most of the people who run the big box businesses are good people, so let's assume then that these are all unintended consequences.  

    That Satchi, or anyone else for that matter, is working to "green" big box retailers is a good thing.  Because of its enormous scale, there's little doubt that Walmart's initiatives, such as the supplier scorecards, rooftop solar panels, and employee education, will create positive ripples throughout the global economy.  However, as large and extremely powerful corporations begin to adopt and integrate "sustainable business" frameworks, they also begin to shape the "sustainability agenda".  Walmart's latest "sustainable business" project, the Sustainability Consortium, will attempt to define what constitutes a "green" consumer product, and while the process will be science-based and transparent, one can't help but wonder at this surprising state of affairs.  Among the Consortium's members are Cargill, Monsanto, Pepsico, and Tyson, all of which contributed as much as $250,000 for a seat at the table.  And the Consortium's good work is not due for years.  Will this lead other businesses to wait until the results are in until they themselves make a move?

    The "greening" of Walmart has made it THE "green business" news story.  Many activists, consultants and business folk in the "green movement" heap buckets of praise on Walmart's projects and seem ready to defer to their leadership.  And perhaps for good reason.  But I can't help but think of the possible unintended consequences of all this attention, media buzz, and now this book, which seeks, at least in part, to redefine corporate sustainability.  If the sustainability agenda becomes the agenda of global corporations, isn't that a good thing?  Or is it simply that "sustainability", whatever it means, will become part of the corporate agenda, and therefore they will decide what it means.  Might we be heading for a false sustainability regime, a Puppet Sustainability Regime, if you will, that appears legit with legions of willing believers, but where trying to change "the System" from the inside amounts to little more than collaboration.  Can Walmart or other big box retailers ever really be "sustainable" by any definition other than their own when their very business models are based on inherently unsustainable prerequisites?  Unless and until their "green" initiatives include measures for sourcing goods from local producers, rebuilding small town economies, finding ways to get their shoppers out of their cars, radically improving their employment practices, and reducing the impacts of their retail buildings to minimal, it's hard to see how they could be.  
  2. jimprues Posted 11:40 am
    21 Aug 2009

    Agreeing with William Verde, can the paragons of globalization remake themselves into 'local first' businesses? And if true is it preferable to commerce that is truly local?The whole business model of this culture is irresponsible and destructive, with two to five conglomorates controlling 90% of any given market. Might it be wiser to let the Monsantos, Walmarts and Conagras wither as we take responsibility for meeting our needs locally?
  3. Tyler Durden Posted 12:05 am
    22 Aug 2009

    Of course getting big companies -- that do massive environmental destruction as a matter of course -- to less of that destruction is a good thing.  But as Jim hints, it would be exponentially better for the Earth to just get rid of those companies altogether.  (And BTW, don't forget the massive amounts of oil consumed and burned in order to transport everything on which globalization depends.)Adam Werbach personifies everything that's wrong with mainstream environmentalists.  Instead of fiercely defending species and habitat, he's grossly anthropocentric and totally willing to compromise away everything.  I knew David Brower personally, and he must be turning over in his grave over what Werbach's become.

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