The Green Imperative

Why the Fast-release Green Imperative?

It’s no coincidence every newspaper, magazine, TV special, and online news site has had at least one “Green” reference lately.  America is demanding it.  Once led only by non-conformists like Ben & Jerry’s and Whole Foods, corporations are embracing the sustainability movement by leaps and bounds.

Why has this become one of the fasting growing trends in the history of marketplace adoption?  Why after decades of quiet complacency, with the exception of the Birkenstock clad tree-huggers, are consumers moving to zealot green status at the speed of sound?  Accelerated adoption occurs when multiple pressure points merge at the same time speeding up a more natural “trial to demand buyer cycle”.  To date we see – not two, not three, rather eight factors converging simultaneously creating the momentum behind a faster pace of acceptance which leads to adoption.

In 2006, Energy Pulse Survey reported a resounding 88% of those surveyed felt it was important or very important to conserve energy.  In addition, over three quarters (77%) of those polled agreed that increasing energy efficiency coupled with reducing consumption is the best solution. The anticipated shift to behavioral change is in motion.

The 20-30 something factor.

McGraw Hill found in a recent survey (May 2006) that 89% of the “Millennials” (the 18-24 crowd) said they choose brands aligned with a cause. 74% listen to brands aligned with a cause beyond a brand’s specific category; 69% said they consciously choose brands aligned with a cause; 66% actively recommend brands aligned with a cause.  The Cone Millennial Cause Study conducted in 2006 found that 63% of Millennials feel personally responsible for making a difference in the world. Considering the Millennials, also known as the Echo Boomers, and Gen Y’s, grew up “green”, are about 100 million strong, and have estimated spending power of $300 billion, they’re worth paying attention to.  Not only that, they indulge in luxury items like coffee, wine, fashion, image-driven technologies, while walking the talk to prove what they stand for.

Activation of the legacy-driven boomer.

The fast emergence of the wealthy boomers is also driving the green imperative.  77 million legacy-driven people many of whom are healthy, wealthy, and wise are pushing for change. They want to do something important after retirement.  They tend to be well educated and technologically savvy. In fact, according to a recent report by the Corporation for National and Community Service, they are expected to boost the number of older adult volunteers by 50 percent by 2020.

They aren't sitting in their rockers. They're taking things into their own hands. They figure if it’s not getting done, they should do it. Considering boomers in their 50s and 60s are the revolutionaries who catapulted us all into the technological boom with personal computers, mobile phones, and the Internet some would say they’ve done plenty already.  However, now they have the money to do even more. And they want to put it where they know it will do the most good.

Boomers born a little later on the spectrum feel the same way.  Bill & Melissa Gates started a foundation back in 2000 to reduce inequity in the U.S. and around the world. It has shown incredible results – so much so that long-time friend Warren Buffett, committed 10 million class B shares of his company, Berkshire Hathaway, to the foundation. To put that in perspective, based on the current value of the stock that’s more than $30 billion. Needless to say, this is a movement with clout. These consumers are powerful people who want to give back to their community and many are still company leaders ready to make major changes in the way they do business. 

Sustainability – the driver of game-changing futures.

So it’s no surprise in the last six months EdgeDweller has seen sustainability shift from concept building blocks to key strategic drivers in one out of three game-changing future initiatives. This is an amazing consideration rate for game changing plays, primarily driven by those businesses led by visionary boomers. And it’s not happening in a small set of industries, it’s happening everywhere. The breadth of industries we’ve been working with demonstrate the extreme range of application for sustainability:  media, real estate, manufacturing, professional services, personal services, energy, healthcare, distribution and delivery, communications, and others.

Finally high-performance green at price parity.

Almost 20 years ago, consumers made it quite clear that while they would like to help environmentally, they were not willing to purchase inferior products nor were they willing to pay more for green - purely for the sake of the environment.  Since then visionary manufacturers and other businesses have been heavily investing in R&D to achieve compatible “green” product quality that performs well in aesthetics and customer experience at a competitive price.  While it has been a long haul, many “green” products have achieved the goal of price point parity.

Today products in classifications such as organic, recyclable, biodegradable, reduced or cleaner energy use are coming to market at record speed.  Manufacturers and others are meeting the demand for earth-conscious products that stand up to the quality of regular brands for everything from biodegradable toilet paper to energy efficient computer servers.  New products are being produced and priced to draw even the most scrutinizing high-demand, green consumers.

Media and Hollywood help advance the cause.

Celebrities have been taking a stand for years. Recently covered in the annual “green edition” of Vanity Fair, Leonardo DiCaprio, the king of Hollywood “greens” is seen as one of the many influentials representing the green lobby.  The magazine is not far off when it claims a “green revolution”. Everyone from Bono to Travolta are getting involved in the cause in one capacity or another. Look for DiCaprio’s documentary film on the state of the environment titled, “The 11th Hours”. To date he has dedicated over a decade to the cause and is currently on the board of the Natural Resources Defense Council and Global Green USA.

So whether it’s all of the celebrities diving deep into the green waters or the controversy surrounding Gore’s recent movie, “Inconvenient Truth”, the huge public drive to build awareness and take a stand for the earth is accelerating at an unbelievable rate.

Unequivocal scientific evidence cuts through the controversy.

60% believe that global warming has begun to affect the climate according to a recent USA TODAY/Gallup Poll and even more think in the next 50 years global warming will cause major or extreme changes in climate and weather. The latest evidence as presented in the February 2007 report by United Nations: The Intergovernmental Panel on Climate Change now shows scientific proof that human activities since 1750 have been directly linked to climate change. From 1995 to 2005 we have seen the largest change in any decade in at least the last 200 years with an increase of 20% for what is called carbon dioxide radiative forcing. It is now evident from observations of widespread melting of the snow and ice, global rising of mean sea level, along with increases in global average air and ocean temperatures that warming of the climate system is unequivocal.

With wavering controversy as to whether global warming is a real threat or simply part of a natural cycle, and increasing scientific proof on growing issues like air pollution, water pollution, and the need for energy reduction, the American public is moving the environment higher up in the national agenda.

The American “way” is broken - now fix it. 

Yet, there’s also something else beneath this amalgam of green, lurking below the surface of our society:  the realization of the deficiency in our traditional American approaches. We are all witnessing it - in private, as much as in public with everything from our dysfunctional healthcare and educational systems to our declining rate of gross domestic product. The ubiquitous push to war, once thought to create an economic boom, doesn’t anymore. We are seeing the real cost, in lives lost and oil prices soaring. It’s a different playing field now.  The methods we relied on to control our own destiny are no longer working or trustworthy.  

Money and market share on the green horizon.

In an effort to demonstrate to the world that you can build wealth and still be environmentally conscious, Goldman Sachs astonished many in November of 2005 with a very ambitious environmental policy that entailed everything from considering the environmental and social impacts of investments to encouraging development of environmental markets. Our paradigm is shifting albeit at an almost uncomfortable pace and we’re demanding change, which is why many corporations are seeing dollar signs.

Take Sun Microsystems for example. After years of losses, they launched a computer server that’s up to five times more energy efficient than standard systems and experienced record sales of $400 million this past year. While most companies are calculating energy savings vs. market share gains, EdgeDweller’s work with Interface helped it to become a company that has been consistently growing at above average market place rates with 50%+ improvements in share in the modular carpet segment.  

Entering the race is not an option - how you enter is.

This is not a slow-to-market imperative. Sustainable solutions are a fast “go” without controversy.  In many cases, the drive for action is so immediate it is causing fast-mover companies to spit shine their image with what is known as “greenwashing”.  Though very alluring, the short-term fix rarely leads to market share gains and often results in tarnishing image more than polishing it.  While it is crucial for companies to change, there is even more urgent need for them to consider more thoughtful social and environmental change that opens the door to longer-lasting strategic change.

The careful vying for sustainability leadership is happening now.  The key players will take, then own positions soon.  In just the last six months EdgeDweller has helped businesses in multiple industries (energy, media, labor, beverage, healthcare, services) with a long-term growth strategy that incorporates sustainability in a way that achieves social, environmental and financial goals. So if you aren’t already, start thinking now of sustainability as an unmet need in the market place that just might be your fastest engine to growth and market share.

EdgeDweller, a game-changing innovation firm, puts a vast range of industry expertise to work for companies to create an authentic path to sustainability that not only builds image and revenues – it builds market share.