How to be a leading green company

I am starting to get overwhelmed with various definitions of “green”. I am rapidly coming to the conclusion that the green movement is lacking leadership (I know this is not a new thought). But it is now causing problems for corporations. What is a corporate leader to do? They have to show that they are aware and working on climate change issues. But what is green and how to be a perceived leader? Ever different group has its issue – saving the forests, bio-fuels, carbon reduction, clean water, wild animals, or alternate energy. In some cases, these goals are in conflict with each other or have other risks…for example for the recent news…

• Using Bio-fuels hurts forests ((http://www.nytimes.com/2009/10/23/science/earth/23biofuel.html?_r=1&scp=2&sq=Forests%20climate%20change&st=cse0. )
• Wind farms hurt birds (http://greeninc.blogs.nytimes.com/2009/10/20/two-states-two-paths-to-clean-energy/?scp=2&sq=Wind%20energy%20birds&st=cse)
• Geothermal causes earthquakes. http://www.nytimes.com/2009/10/12/business/media/12askthetimes.html?scp=1&sq=Geothermal%20energy%20earthquakes&st=cse)
  

Also, you have multiple groups scoring corporations on their green credentials. There is Carbon Discloser Index, several stock market indexes of social responsibility, Green seal, tree hugger, and a dozen single issue groups. How do you please all of them? You can’t. So, what are leading companies doing? Look at how some of the largest companies with the lowest reputations have gone about it? BP, Exxon, and Walmart.
They have picked a couple of key initiatives. The big oil companies have looked at renewable energy. These tie in with their strengths and corporate interests (if we really have reached Peak Oil, then these companies still want to make money in the post oil world and do have the expertise in very large energy projects – whether huge solar installations or deep sea oil platforms). Walmart has focused on efficiency and supplier relationships. They are building high efficiency stores and warehouses. They are also pushing their supplier base for efficiency. As many have noted, Walmart’s efforts in its supplier base may have a bigger effect than any government initiative or law. The key is if an initiative does not save money or grow new markets, then it is not a good initiative and will probably come out as green washing or worse as a waste of money. The other thing is that it takes years to gain a perceived leadership positions. So, pick a strategic focus (good for the environment and good for the company), focus your efforts, and work for the long haul. It also doesn't hurt to educate/lobby key environmental organizations on your efforts. That is also why you are seeing most large corporations expand their external relations organiztion in this area. The sustainability report for most companies is now as thick (and as slick) as their annual report.