"Green IT": Why Environmental Sustainability and Profits Go Hand in Hand

By Meg Mitchell Moore

PAGE 2

Get Ahead of the Curve In 1998, Patagonia officially incorporated the environment into its core mission with this pledge: "To use business to inspire and implement solutions to the environmental crisis." Among its goals was switching to renewable energy. "In 1998, we did a lot of research in anticipation of California deregulating," says Patagonia’s Zilligen. Today, Patagonia uses energy from freshly constructed renewable energy plants in its headquarters and four California stores. Wind powers the Denver store. Solar powers the customer service center in Reno, Nev.

Atone for the Past "Let’s face it, we had a lot of improving to do," admits Samuel L. Smolik, vice president for environment, health and safety for Dow Chemical. Since 1996, Dow has published an annual report on the state of its 10-year environment, health and safety goals set in 1995. The most recent update, issued in May, claims the company reduced waste-to-production ratios by 25 percent between 1994 and 2000, chemical emissions by 43.5 percent and emissions of ozone depletors by 72 percent. In 1996, Dow recruited five local environmental activists to take part in an initiative to reduce toxic emissions at its Midland, Mich., site. By 1999, the project had reduced air and water emissions by 43 percent and reduced the waste stream by 37 percent with a potential annual savings of $5.4 million. In 2000, Dow gave a $2.5 million grant to the University of Michigan to establish a professorship in sustainable science, technology and commerce.

Embrace the New Although FedEx’s business relies on gas-guzzling trucks to move its customers’ packages, it is working to change that. Its current fleet of delivery trucks includes 570 EPA-certified low emissions vehicles. And, working jointly with the Boston-based Alliance for Environmental Innovation, FedEx has put out an RFP for a hybrid electric vehicle that will reduce air emissions by 90 percent and increase fuel efficiency by 50 percent. The goal is to have energy savers enter the fleet in 2005 and eventually replace FedEx’s fleet of nearly 40,000 vehicles.

Are you Experienced?While the green approach ultimately benefits the environment, companies would not be taking such action if it didn’t benefit their own bottom line. "In large part, companies have begun to understand that there is a connection between a good environment and good business results," says UPS’s DiSantis. Those results can mean a better relationship with customers. "Our consumers have told us and others consistently for the last 20 years, ’We expect you to deliver what you’re delivering in the most responsible way you can,’" says S.C. Johnson’s Georgeson.

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