Shoppers who pull up to Walmart’s new “environmental demonstration” store in Burlington, Ont. are probably unaware there’s 15 feet of piping buried beneath the parking lot. It supports a massive geothermal system, which captures and stores excess heat from the building which will be used whenever the building needs it. Like a lot of Walmart’s green strategies, this one happens behind the scenes.
Indeed, for many companies, going green means making sweeping operational changes—not simply promoting eco-friendly products or creating ads that incorporate climate change disasters. (Diesel’s sleek but absurd “global warming ready” ads from 2007 cringingly come to mind).
In Marketing’s third annual Green Issue, we highlight 10 green leaders that have implemented sustainability practices into their operations to the benefit of both their businesses and the environment. Certainly, these companies weren’t built on an eco-friendly premise and it would be misleading to label companies like Walmart and Rona “green.” But whether it’s shrinking their carbon footprints, sourcing sustainable products, reducing packaging or saving energy, these companies have turned environmental responsibility into smart business strategies.
“There are different ways to look at the commitment,” says Walmart spokesperson Kevin Groh. “As a human being, it’s the right thing to do. As a business, we’ve proven it has benefits. And pragmatically, it just makes sense. It links to our business so seamlessly that we would be stupid not to do it.”
But does green still matter when consumers and businesses alike are worried about that other kind of green? “It matters more,” asserts Groh. “We’re at the very least saving money and in many cases making money by operating a greener business.”
Clearly, for those turning green there’s no turning back.
—REBECCA HARRIS, MANAGING EDITOR
Canadian Tire
Toronto
This is “Earth Month” at Canadian Tire, but the iconic retailer is determined to be known as earth friendly 12 months a year.
“We’ve done a lot of work over the last year… to take a really good look at our carbon footprint,” says Lisa Gibson, associate vice-president of media and public relations.
“We actually mapped out our carbon footprint right back to where we are sourcing our products and how they are shipped… All with the long-term goal to increase the profitability of our business without growing our carbon footprint.”
To do that, Canadian Tire has changed how it operates day to day—everything from how a product is sourced and shipped to how it is packaged.
With its flyers, for example, Canadian Tire has introduced policies that support sustainable forest management, conservation and recycling. Suppliers have to report quarterly on recycling practices and paper volume. In the supply chain, the company is choosing rail over road more often, and instead of shipping to a distribution centre, it looks at moving product directly from a vendor to the store.
While new stores are being constructed to meet Leadership in Energy and Environmental Design standards, changes are also being made at existing stores, including retrofitting them with more efficient lighting.
Not only is efficiency good for the environment, it’s also good for the bottom line, says Gibson. The switch to energy-efficient lighting will result in a 9,480-tonne reduction in the CO2e emissions in 2009 but also save the company $14 million.
For Earth Month, the company has struck a partnership with Trees Ontario that will see as many as 100,000 trees planted across the country, one for each purchase from its Blue Product line of environmentally friendly products, which include lawn care products, cleaners, light dimmers and timers, energy meters and CFL light bulbs.
Not only are these changes good for the environment, they also save the company money and help build stronger relationships with customers who want environmentally friendly products, says Gibson.
“Quite frankly it really is smart for businesses to do this.”
-DAVID BROWN
Fairmont Hotels & Resorts
Toronto
“Green luxury” isn’t an oxymoron at Fairmont Hotels & Resorts. In fact, with its water-saving efforts, sustainable cuisine and support of local environmental programs, a stay at one of Fairmont’s high-end hotels is decidedly guilt-free.
Fairmont’s Green Partnership program, launched in 1990, focuses on improvements in waste management, sustainability, and energy and water conservation. For example, the Fairmont Kea Lani in Maui installed a wastewater recycling facility in the hotel’s laundry which recycles 75% of the water used to launder the hotel’s linens.
“For us, it’s not something that was aflavour-of-the-month or in vogue,” says Mike Taylor, spokesperson at Fairmont. “We’ve had a program in place for nearly 20 years. This is something that’s core to Fairmont. It’s part of our DNA.”
Fairmont’s Eco-Innovations program encourages each of its properties to adopt a project that addresses the needs of the local ecosystem. For example, the Fairmont Copley Plaza in Boston supports research and educational programs for snowy owls through the Blue Hills Trailside Museum. Hotel employees are encouraged to volunteer with researchers who attach transmitters to the owls to track migratory routes.
Fairmont’s Green Cuisine program, meanwhile, focuses on using sustainable, locally sourced and organically grown products whenever possible. This year, the company removed Chilean sea bass and bluefin tuna (which are over-fished) from its menus worldwide. “Each hotel will be aligned with a local seafood-watch organization to help guide us on how we can continue to offer sustainable seafood choices on our menus,” says Taylor.
This past March, Fairmont became a member of World Wildlife Fund’s Climate Savers program, joining companies like Coca-Cola, IBM and Nike in an effort to reduce carbon emissions. Fairmont has pledged to reduce operational CO2 emissions at its existing hotels by 20% from 2006 levels by 2013.
According to the company, whose carbon footprint is 375,766 metric tonnes of CO2e (carbon dioxide equivalent), that’s the equivalent of removing 19,777 cars from the road annually. As part of the program, Fairmont will also develop a green procurement policy to encourage suppliers to provide more eco-friendly products.
“With the current economic situation, certainly green is a way to achieve cost-savings,” says Taylor. “There is in some cases some cost outlay, but for the most part a lot of these environmental initiatives pay for themselves very quickly.”
-REBECCA HARRIS
Grand & Toy
Toronto
According to Kevin Edwards, vice-president of marketing for Grand & Toy, the office solutions company sees itself as an “eco-coach” for the corporate world. But before it could play the role of mentor, Grand & Toy had to look critically at its own operations, an internal examination that, among other things, led the company to question its 24-hour delivery model, which put more trucks on the road each day and, in turn, more pollution into the atmosphere.
Last year, Grand & Toy launched the “48-Hour Button,” a graphic that appeared at the conclusion of an online order that allowed customers to choose between 24- and 48-hour delivery. Now, 42% of customers choose the second option and nearly half of that group have made it the default setting for future deliveries. Grand & Toy will soon make the 48-hour delivery option available through its offline ordering channels.
Elsewhere on the green front, Grand & Toy launched its Green Office microsite in 2008. In addition to promoting Greenguard-certified and Leadership in Energy and Environmental Design (LEED)-certified products, the site also includes tips on small steps offices can take to minimize their environmental footprint, a glossary of green terms and information on what Grand & Toy is doing in its own backyard. These initiatives include the switch to air bags instead of Styrofoam for packaging and internal use of paper made from 30% recycled fibre. Grand & Toy also partners with Core Recycling for Think, a program for the collection, remanufacturing and recycling of ink and toner cartridges that recovered 285,000 cartridges in 2008. And since 2007, the company has reduced the total number of Order Guides it prints by 130,000 copies, saving 151 tonnes of paper in the process.
Edwards says his company has been rewarded for its expertise in green office solutions—which often have the added benefit of saving customers money. “Our sustainability platform is winning business,” he says. “Organizations look and they say, Grand & Toy can have a serious impact not only on streamlining my procurement, but taking my organization to the next level in terms of sustainability.”
-MATT SEMANSKY
Hewlett-Packard
Toronto
If environmental commitment was measured in awards, few would rival Hewlett-Packard’s green credentials. For four years running, the company has been named one of
Last year, the IT firm launched its HP Eco Highlights label, which will be found on an increasing number of products in the coming year. And at the local level, Hewlett-Packard—a global partner of WWF—recently held a joint campaign with Staples that aimed to raise $100,000 from the sale of Hewlett-Packard products for WWF Canada.
Also on the local front, Hewlett-Packard has assisted York University-based NGO Learning for a Sustainable Future in developing sustainability-related education tools and has encouraged its own employees to promote these tools to Canadian teachers.
Frances Edmonds, director of environmental programs for Hewlett-Packard Canada, says this emphasis on employee involvement has yielded better returns for both the environment and Hewlett-Packard itself.
“An IT company is really its people, and attracting and retaining the best people is very critical,” she says. “And most people want to work for a company that is doing the right thing.”
-MATT SEMANSKY
Loblaw Companies
Brampton, Ont.
Loblaw is attempting to be a really green greengrocer. The company is charging customers five cents for a plastic bag and even banning the crinkly culprits from a handful of stores altogether. Loblaw predicts it will reduce the number of disposable bags that leave its stores by 5%. The goal is to divert one billion bags from landfills this year.
The company also wants to eventually divert 70% of its waste from landfills, and claims it’s already at 45%. And its three-year, $7-million investment in energy audits across the chain resulted in $10 million in energy savings.
The grocery giant took another giant step forward last July, when it opened a 120,000-square foot superstore in Scarborough, Ont. with the goal of making it the largest LEED-certified (Leadership in Energy and Environmental Design) food retailer in the country. The store design is a prototype Loblaw wants to roll-out nationwide that features more efficient refrigeration technology, motion-sensor display lighting and energy-efficient parking lot lamps that direct light downwards, not up, cutting down on light pollution. During winter months, some areas of the store will be heated with energy recycled from coolers and refrigeration units.
This prototype played a central role in Corporate Knights magazine’s decision to include Loblaw in its 2008 50 Best Corporate Citizens list. Loblaw ranked fifth overall.
“One of the major impacts any retailer has [on the environment] is through the management of its buildings,” says editor Toby Heaps. “That’s a major part of our country’s environmental footprint—heating, cooling and [construction].” Heaps adds that while investing in a single store alone won’t save Earth, “that one store was evidence of a thoughtful approach to responsible management.”
-JEROMY LLOYD
Rona
Boucherville, Que.
When a tree falls in the forest… Rona wants to ensure its lumber comes from a supplier with a proven record of environmental awareness, is progressive in its environmental and sustainable management practices, and does not contribute to deforestation.
These are among the stipulations of the comprehensive Forest Products Procurement Policy the home-improvement chain introduced last year. The policy’s objectives include increasing the amount of SPF lumber sourced from Forest Stewardship Council (FSC)-certified forests sold in its stores to 25% from the current 2% by the end of 2012, and increasing the amount of wood bearing a certification label to 30% by the end of 2010 from less than 5% currently. The company will also require suppliers to provide “chain of custody” or traceability of their fibre back to the forest area of origin by 2011.
No less than Greenpeace has hailed it as “the strongest procurement policy for wood products in North America” and calls Rona “a leader” in forest sustainability.
Also last year, Rona introduced its Eco line of environmentally friendly products—which will add 40 new products this spring—and expanded the paint recovery program it launched in Quebec in 1998 into Ontario and the Maritimes (it is also looking to expand the program into Alberta and New Brunswick). In March, Rona began recovering single-use, rechargeable and power tool batteries.
This is not about adding to Rona’s bottom line, says Claude Bernier, executive vice-president of marketing and customer innovations, pointing out that the company actually loses money on its paint recovery program. “The idea is how we can be a better Canadian citizen.”
Rona recently introduced a new marketing campaign touting its green efforts featuring the tag “Doing it right,” a phrase intended to underscore the 700-store chain’s commitment to the environment. “It’s more doing the right thing than doing it the right way,” says Bernier.
-CHRIS POWELL
Royal Bank of Canada
Toronto
Green is more than just the colour of money for RBC. The environment factors into all aspects of its business, colouring everything from its lending policies to the type of paper it uses.
RBC opened 36 green-powered branches in Canada last year, and had 76 branches powered by emission-free power as of last fall—representing a reduction of about 2,095 tonnes of greenhouse gases. It also converted all office paper purchased in its Canadian and U.S. branches to Forest Stewardship Council (FSC) sources, and expanded its electronic statement program, switching over 1.3 million accounts from paper to electronic statements.
RBC’s most visible green undertaking, however, is the RBC Blue Water Project. Launched in late 2007, the 10-year, $50-million program comprises the largest charitable commitment in RBC’s 145-year history. It provides grants to projects dedicated to water conservation, watershed protection, providing access to clean drinking water, and other water-related issues (a total of $16 million has already been donated to 119 organizations worldwide, including the Royal Botanical Gardens, the World Wildlife Fund and Friends of the Mississippi River in the U.S.).
“We wanted something we could really rally behind in all our markets… something that was ubiquitous,” says Lynn Patterson, RBC’s director of corporate responsibility. “Water is all of those things, and it’s getting to crisis mode in many parts of the world as well.”
The Blue Water Project has been supported by print ads, while an animated TV spot created by BBDO Toronto appeared in the 2008 Beijing Olympics and will run throughout April and May this year. RBC also launched the “RBC Clean Water Quiz,” which ran online until Earth Day and featured the “Arbie” character from its TV ads. It recently partnered with Unilever on the Canadian Water Attitudes Study and later this year will sponsor the Montreal Science Centre’s “Aqua” exhibit, created by the One Drop Foundation (a recipient of the Blue Water Project grant).
“The world only has so much water and we’ve got to take care of it—for humanitarian reasons and for financial reasons as well,” says Patterson.
-CHRIS POWELL
Toyota
Boucherville, Que.
When asked about Toyota’s positive association with the very au courant environmental movement, Stephen Beatty says his company has been building to this point for a long time. “Let’s correct the impression that this is recent. This goes back to (Toyota’s) Earth Charter back in 1992,” he says.
According to the original charter, Toyota will “evaluate the potential environmental impact at every stage in a motor vehicle’s life cycle, from product development through design, manufacture, and marketing, to disposal.”
And while Toyota’s connection to the green movement is strong today largely because of its Prius—a virtual generic moniker for hybrid vehicles—Toyota’s reputation for efficient cars goes back to the oil shock of the mid-70s. “We have a whole generation of consumers who look to the Toyota brand as being high quality and fuel efficient.”
But today, when the environment is front-and-centre of the public consciousness, consumers are also really savvy about false sustainability promises, says Beatty. “You have to align everything with that promise… It is not just the product; you have to align absolutely everything you are doing.”
At Toyota Canada that means setting up better systems to recycle high-voltage batteries, and making sure all operations are ISO 14001 certified—the standard for environmental management systems. On a more local level, Toyota encourages participation in Earth Day and tree-planting events, and at head office, all utensils in the cafeteria are now compostable—coffee cups are made from potatoes and plastic containers are made from sugar cane.
The philosophy at Toyota about the environment and how cars fit into everyday life is different than at other automakers, says Beatty. “The reality of it is cars for most Canadians are tools that get you where you need to be and back home again.”
That insight is reflected in Toyota Canada’s “Make things better” brand positioning (by Saatchi & Saatchi) that often downplays the cars themselves to emphasize how Toyota can help customers improve their lives. That included a Quebec campaign last year that urged car owners not to drive their Toyotas if they didn’t have to.
“Toyota was the first company to advertise deals related to ecology, not economy,” says Gaétan Namouric, creative director and executive vice-president at Bleu Blanc Rouge, the agency that created the campaign. The result: Toyota had record sales in Quebec, up 25% from the year before. By telling people to drive less, Toyota sold more cars.
-DAVID BROWN
Vancity
Vancouver
For the staff at Vancouver City Savings Credit Union—Vancity, as it’s known— being green is old news. “We’re focused now on redefining wealth, thinking about how the wealth of the community is far more [important] than individual wealth,” says vice-president of marketing Richard Seres. “If you can’t breathe the air, but you’re wealthy, what good is that?”
Many of its financial products, like the Clean Air Car Loan, are meant to push clients towards the greener side of life. All of its home insurance policies now ensure that, in case of property damage or loss, replacements for things like windows, toilets and furnaces will be environmentally upgraded.
This follows a quest to become a carbon-neutral enterprise, which it accomplished last year after retrofitting its facilities with more efficient windows, office lighting and branch signage. The company strives to locate branches near transit lines and sells discounted transit passes to employees. Those who need a car to get to meetings are provided with Smart Cars, and showers are available for those who bike to work.
The changes have resulted in a 62% drop in waste and a 50% drop in energy consumption since 1997.
The company’s many environmental efforts are managed by Andrea Harris, director of community leadership, and members of the 12-person community leadership group. This team is charged with implementing the company’s many socially conscious policies (it’s also mandated to fight poverty). They also offer consultation to employees and business partners looking to lessen their own carbon footprints. Since 2007, 170 businesses and non-profits have sought their advice.
The result? The Canadian Investment Awards named it Green Company of the Year for 2008.
-JEROMY LLOYD
Walmart
Mississauga, Ont.
When the world’s biggest company hitches its starburst to the green movement, the impact is huge.
Walmart launched its “For the Greener Good” sustainability strategy in 2007, overhauling every aspect of its business, from packaging and shipping to store design and construction. Walmart claims great strides in eliminating waste, using renewable energy and carrying more green products: its head office is a zero-waste facility, for example, and the company is now Canada’s largest purchaser of green power (purchased from Bullfrog Power). Additionally, its selection of “environmentally preferable” products has grown from 300 to 1,000 items.
This April, Walmart launched Earth Month to educate consumers about its eco-friendly products, which are third-party certified and flagged under its For the Greener Good program. (The company is currently developing a green private-label line that will include a broad range of products.)
“We’re dedicating [main aisle] space to products that help sustain resources or the environment,” says Kevin Groh, a spokesperson at Walmart. “It sounds like a small change but it will make a massive difference in the number of green products that end up in the hands of Canadians.”
In January, the company’s “environmental demonstration” store opened in Burlington, Ont. It features motion-activated LED lights in refrigerator and freezer cases, and a “daylight harvesting” system that uses skylights to refract daylight throughout the store, allowing the store’s lights to dim and brighten based on the presence of natural light.
While Groh says Walmart is enjoying a “reputational renaissance” because of its green strategy, the goal is to save (and make) money by becoming a greener company.
“Walmart spent decades trying to become the most efficient business on the planet,” he says. “It’s not a major change of course to say we’ll be the most sustainable business on the planet.”
-REBECCA HARRIS
