‘Brilliant! The most comprehensive and Written by renowned green business expert practical business guide I have ever read Gareth Kane, this practical ‘how to’ guide about environmental issues.’ contains everything you need to know about Jo Bennison, Director, Daxi Environmental making your business green and increasing profits. Key features include: ‘A must-read for enterprise managers who OT THE THREE want to move towards sustainability, but • The Three Secrets of Green Business H believe they can’t or don’t know how. With all Success. F the down-to-earth guidance available in the E • Preparing To Go Green – change G book, that excuse can no longer stand in the T SECRETS OF management, indicators, communication R way of action.’ H and marketing. E Dr John Ehrenfeld, Chief Executive, R E International Society for Industrial Ecology • Small Steps – the easy actions that will cut NE GREEN BUSINESS waste of materials, water and energy and E ‘Provides business, whether large or small, save you money. B with all the information necessary to be at S U the forefront of sustainability. This publication • Huge Leaps – the really big changes that E is more than a handbook, it will lead to a will make your business truly green by SC UNLOCKING COMPETITIVE I change in philosophy for any company that changing your processes, products and NR takes the time to read it and implement business models. E E ADVANTAGE IN A LOW its ideas.’ ST Professor Graham Street, Emeritus • Hundreds of handy hints and tips. SS Professor of Environmental Technology, • Checklists and a brainstorming tool. CARBON ECONOMY University of Teesside Packed with examples, this book provides ‘An essential reference source for anyone a highly accessible, practical guide to those who is interested in the environment and who want to introduce sustainability into developing sustainable solutions. As a their business or organization quickly and professional and as an individual interested effectively. in environmental issues the content is high learning delivered in an easy style Gareth kane, an environmental consultant, G and format. If you’re interested in the has worked with hundreds of organizations a environment for business, interest or political to improve their environmental performance. R E reasons, you need this book to strengthen He has appeared as a media pundit on T your knowledge and credibility.’ sustainability issues on the BBC Six O’Clock H Graham Mills, GPM Network News, Countryfile and The Politics Show. In 2008 The Journal newspaper named Gareth k ‘[Gareth Kane has] very nicely encapsulated a as a ‘Rising Star, Future Leader’ for his work every main feature of the whole environ- N on sustainability. mental tale and I like his honest and light- E hearted writing style! There is something there for everyone – from the person looking Business / Environmental Management for simple practical help right through to the deep thinker.’ Doug Harris, Stride Environmental Cover image credits: ‘Hedge and blue sky’ © istockphoto.com ‘Doorhandle © istockphoto.com Earthscan strives to minimize GaRETH kaNE www.earthscan.co.uk its impact on the environment Green Business Prelims.qxd 19/11/2009 08:32 Page i The Three Secrets of Green Business Green Business Prelims.qxd 19/11/2009 08:32 Page ii Green Business Prelims.qxd 19/11/2009 08:32 Page iii The Three Secrets of Green Business Unlocking Competitive Advantage in a Low Carbon Economy GARETH KANE London • Sterling, VA Green Business Prelims.qxd 19/11/2009 08:32 Page iv First published by Earthscan in the UK and USA in 2010 Copyright © Gareth Kane 2010 All rights reserved HB ISBN: 978–1-84407–873–8 PB ISBN: 978–1-84407–874–5 Typeset by Saxon Graphics Ltd, Derby Cover design by Rob Watts For a full list of publications please contact: Earthscan Dunstan House 14a St Cross St London, EC1N 8XA, UK Tel: +44 (0)20 7841 1930 Fax: +44 (0)20 7242 1474 Email: [email protected] Web: www.earthscan.co.uk 22883 Quicksilver Drive, Sterling, VA 20166–2012, USA Earthscan publishes in association with the International Institute for Environment and Development A catalogue record for this book is available from the British Library Library of Congress Cataloging-in-Publication Data Kane, Gareth. The three secrets of green business : unlocking competitive advantage in a low carbon economy / Gareth Kane. p. cm. Includes index. ISBN 978-1-84407-873-8 (hardback) – ISBN 978-1-84407-874-5 (pbk.) 1. Business enterprises- Environmental aspects. 2. Management-Environmental aspects. 3. Green products. I. Title. HD30.255.K357 2009 658.4(cid:2)083-dc22 2009021283 At Earthscan we strive to minimize our environmental impacts and carbon footprint through reducing waste, recycling and offsetting our CO emissions, including those created through publication of this 2 book. For more details of our environmental policy, see www.earthscan.co.uk. This book was printed in the UK by TJ International, an ISO 14001 accredited company. The paper used is FSC certified and the inks are vegetable based. Green Business Prelims.qxd 19/11/2009 08:32 Page v For Harry and his generation Green Business Prelims.qxd 19/11/2009 08:32 Page vi Green Business Prelims.qxd 19/11/2009 08:32 Page vii Contents List of Figures, Tables and Boxes ix About the Author xi Acknowledgements xiii List of Acronyms and Abbreviations xv Introduction xvii Chapter 1 Setting the Scene 1 The big picture 2 A sustainable future 4 Business and the environment 8 Chapter 2 The Three Secrets of Green Business Success 13 Secret No 1: Understand the business case 14 Secret No 2: What to do 20 Secret No 3: How to do it 27 Chapter 3 Preparing To Go Green 31 The essentials of change 32 Creating a culture for change 35 Environmental management systems 45 Measuring performance 50 Creating a strategy 56 External communication 61 Green Business Prelims.qxd 19/11/2009 08:32 Page viii The Three Secrets of Green Business viii Chapter 4 Small Steps 75 Doing things right 76 Pollution incident prevention 78 Waste minimization and recycling 81 Energy efficiency 87 Water conservation 91 Greening your supply chain 94 Transport 99 Carbon offsetting 104 Chapter 5 Huge Leaps 109 Doing the right thing 110 Cleaner production 112 Renewable energy 117 Green buildings 124 Industrial Symbiosis 130 Eco-design 135 Product service systems 146 Exploiting synergies 150 Conclusion 153 Final Thoughts 154 Appendix 1: Sources of Help 157 Appendix 2: Checklists 165 Appendix 3: Brainstorming Tool 185 Notes 189 Index 195 Green Business Prelims.qxd 19/11/2009 08:32 Page ix List of Figures,Tables and Boxes Figures 1.1 The technical definition of an environmental impact 3 1.2 Sustainable development and sustainability for dummies 5 1.3 Traditional model of sustainability 5 1.4 ‘Fried egg’ model of sustainability 6 1.5 One business’s impact on the environment 10 1.6 The product value chain 10 2.1 Sloping staircase model of innovation 29 3.1 The components of the Green Business Bible change management system 34 3.2 Behavioural change 40 3.3 ISO14001 and the Deming Cycle 47 3.4 Different scopes of carbon footprints 52 3.5 Incremental policies resulting from forecasting 56 3.6 Backcasting 57 3.7 Cultural theory: Fourfold typology 62 3.8 Arnstein’s Ladder of Public Participation 67 3.9 European Union energy label 71 4.1 The relationship between added value and the cost of waste 81 4.2 The waste hierarchy 82 5.1 Simplified diagram of Industrial Symbiosis at Kalundborg 132 5.2 The product life cycle 136 5.3 Materials selection matrix 140 5.4 Product service system versus a traditional product 146 A3.1 Terra Infirma brainstorming tool 186