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The Brody Hunch

Eric Brody of outdoor-apparel company Nau answers readers' questions


26 Jan 2007
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question To what extent are your products produced in the U.S.? How do you intend to inventory environmental cradle-to-grave impacts from manufacturing where no regulations exist?    -- Jeanne Cahill, Northburrow, Mass.

Eric Brody
Eric Brody, Nau Inc.
answer Our sourcing team has worked diligently to develop business relationships with U.S. and overseas sources that meet our environmental, social, delivery, quality, and price requirements. We are currently sourcing fabrics from two mills in the U.S. We are developing domestic factory sources for some of our less technical products like denim and T-shirts. The factories with the expertise to do technical products have long been in Asia; the price point for technical products developed in the U.S. would be many times greater than customers are willing to pay.

To ensure that requirements are being met, our factory partners must maintain on file all documentation necessary to demonstrate compliance with our code of conduct and required laws, agree to make documents available to Nau or its designated monitor, and agree to submit to inspections with or without prior notice.

In addition, Nau has partnered with Verité, an independent, nonprofit auditing and research organization, to help ensure the requirements are met. The mission of Verité is to ensure that people worldwide work under safe, fair, and legal working conditions. If Verité auditors identify human-rights, environmental, or health and safety violations in the workplace, we will together develop concrete steps to correct them through a combination of trainings for management and workers, education programs, and remediation programs.

question What are Nau's rules regarding livable compensation?    -- Christopher Juniper, Indian Hills, Colo.

answer We have a code of conduct in place with which all of our factory partners must comply. This code of conduct focuses on three key areas: human rights, environmental practices, and issues of transparency and reporting. In developing our code of conduct, we did extensive benchmarking of industry best practices and worked to ensure that our code continued to push forward important issues such as compensation and overtime. Regarding employees based in the U.S., we established rules that they are to be compensated an amount that is not less than 1.5 times the U.S. federal minimum wage, and no officer of Nau shall receive a salary in excess of 12 times the compensation paid to the lowest paid full-time employee.

question Using sustainable materials has priced the entire line of apparel companies like Nau, Patagonia, and Ibex in a luxury price tier. Can the U.S. really count on a meaningful shift in pollution or raw-material consumption if we are relying on consumer-driven environmental reform?    -- Eric Aldinger, Portland, Ore.

answer You are correct that Nau can't change the world on its own. We are doing everything we can do in our realm to challenge others to think differently, but it will take more than just a few companies to create marketplace shifts. It will take a much larger cultural-values shift in our society, characterized by an intensified search for balance, harmony, meaning, ethics, and authenticity -- as well as a belief that it is increasingly important for businesses and corporations to have additional responsibilities beyond increasing shareholder value.

A handful of great companies are trying to do the right thing, but the truth is the vast majority of companies are doing business as usual, creating advertising campaigns that "greenwash" consumers, and lobbying governments to reduce regulations. Without proper environmental and labor regulations, many countries and industries will continue to race to the bottom. Producing more for less money without concern or knowledge about the impacts to people or the planet continues to be the trend. Many people don't realize the scale of the impacts the decisions they make at work have on the planet or communities.

The brands you identified have begun to integrate the true costs of creating products that meet quality, performance, durability, and environmental factors. At Nau we are building durable products with classic styles intended to have a long life. The idea is that you won't have to replace them as often, which is better for the environment and saves you money over the long run. In order to promote sustainability, we have made the commitment to share the materials we develop with other apparel companies. Our hope is that as these materials become more widely used in the industry, the price will come down.

Use the power of the dollar by spending your money only on food, products, and services that reflect your values. In addition, you would be amazed at the power customer questions and feedback have at a company. Contact companies and tell them your concerns.

question What's the biggest avoidable irksome thing you see people do that is harmful to the environment?    -- Josie Norris, Portland, Ore.

answer It's annoying when people don't participate in the political process. If that applies to someone you know, be sure to encourage them to sign up for the email action alerts from your state chapter and national chapter of the League of Conservation Voters. Their mission is to advocate for sound environmental policies and to elect pro-environmental candidates who will adopt and implement such policies.

question I often get my outdoor gear secondhand. Even then I have a hard time with the chemicals they are made of. What is Nau doing to make their apparel more environmentally sound?    -- Joey Gates, Ithaca, N.Y.

answer We have taken a life-cycle approach to product development that considers environmental and social factors throughout the entire life of the product. We examine issues relating to product design, materials, production, logistics, customer use, and end-of-product life, taking concrete steps to minimize negative impacts at each point in the product life cycle.

Nau has a Restricted Substance List and protocol to ensure that our products are safe for our workers at the factories, safe for our customers to wear, and that Nau meets the strictest legislation globally. The substances included on the list are either restricted by legislation or voluntarily selected for elimination by Nau. Nau requires our suppliers to comply with our RSL and our products are tested to be sure they do not contain any of the compounds on the list.

There is a wonderful two-part article published on TreeHugger that goes into much more detail on all of our practices at Nau.

question I advocate that companies put a legally enforceable commitment to sustainability and a triple bottom line in their articles of incorporation or bylaws. I have read that Nau has language to this effect in its bylaws. What is the language? Has this language helped or hindered Nau in raising capital?    -- Stephen Filler, Tarrytown, N.Y.

answer Even before Nau had raised any money to fund its efforts or had designed a single product, the team began to examine how to set the company on a deliberate social and environmental trajectory.

Corporate attorney Robert Hinkley influenced Nau's founders. Hinkley incorporated the work of management expert W. Edwards Deming and systems theorist Peter Senge to develop new ideas pertaining to the notion of a corporation as citizen. Deming had written that "most of the time it's the system that causes the problem, not the people in the system." He combined this idea with the insight of Senge, who said that to change any system you should "look to make the smallest change possible that will generate the biggest effect." From these theories, Hinkley created a code for corporate citizenship. In only 28 words, it stated that henceforth the "duty of directors shall be to make money for shareholders but not at the expense of the environment, human rights, public health and safety, dignity of employees, and the welfare of the community in which a company operates." Nau chose to follow Hinkley's guidance and include similar language in its corporate bylaws.

This issue has come up in the process of raising capital to fund the company. In fact, people have advanced the point of view that the language suggested a greater degree of responsibility and therefore could lead to the company being devalued. We have taken the opposite point of view and have been able to resolve any objections that we have received to date.

If you would like to see the exact language of Nau's Rules of Corporate Responsibility, please see the March/April '07 issue of GOOD magazine. Subscribe to GOOD magazine for a year and they will give 100 percent of your subscription fee to the nonprofit organization of your choice.

question What future role does Nau see for the use of hemp fiber for product manufacturing?    -- John Barry, Tucson, Ariz.

answer There are many exciting developments in the fabric world, hemp being one of them. Hemp is not a material we are currently using in our product line, although we are actively following the developments to determine if there is something we can use in the future that meets our performance, quality, and sustainability requirements.

While hemp has some great environmental attributes compared to other crops, it is important to recognize that there are a range of environmental impacts associated with any large-scale agriculture. These impacts include land clearing, land degradation, and the use of biocides, pesticides, and fertilizers. Also, some hemp suppliers use environmentally clean processes, but many are using chemicals and processes that we want to avoid.

No material is perfect from an environmental perspective, but sustainability is about making strides in the right direction.

question Looking back at your childhood, was there a memory or activity that made you want to go into the environmental field?    -- David Vanderbrook, Canadaigua, N.Y.

answer Growing up, my best friend's dad would take several of us on a weeklong fishing trip in the Northern California redwoods every year. The type of awe-inspiring nature you find in the redwood forest is enough to turn almost anyone into an advocate for the environment.

question How do you define "environmentalist"?    -- Josie Norris, Portland, Ore.

answer If you are reading this, you are an environmentalist.

question Are there any good resources for small companies that advise on how to be green?    -- Kirsten Oleson, Pacific Grove, Calif.

answer Here are books that address both how and why to be green:

For networking, connect with local chapters of Net Impact and Green Drinks.

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