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Genzyme, a world leader in biotechnology, wanted its new corporate headquarters to reflect the company's mission of making a positive impact on people's lives. The design of the corporate headquarters is a leading-edge, green facility powered by renewable energy sources and controlled by http://www.tac.com/Navigate?node=8614 " target="_blank">integrated building systems that lower operations, maintenance and energy costs, while providing a work environment that honors employees' need for natural light and fresh air. The Genzyme center achieved the Leadership in Energy and Environmental Design (LEED) Platinum rating from the U.S. Green Buildings Council -- an organization the drives standards for sustainable facilities. The return on this investment can be measured in increased revenue and market awareness, hiring of top talent and increased employee productivity.
Level 3: Greening the Plant
Level 3 would include corporations with high brand exposure and some risk of market backlash. These businesses would be looking for some investment opportunities to make their business sustainable because they feel pressure from shareholders to do so, but do not plan to offer green products or services to the market. Level 3 companies would include those with increasing potential for legislation (like Intel) and those in extremely competitive markets for talent (Citigroup, Intel or Microsoft). Level 3 greening operations can include advanced energy projects for building or manufacturing but also delve deeper into the culture of the company.
Level 3 companies integrate sustainability into the business mission. Because of high impact on the environment, high brand recognition or high social responsibility, these companies take incorporate environmental planning into daily activities and may even measure corporate progress on a triple bottom line. The triple bottom line not only measures the economic bottom line but also social and environmental results.
Sustainable operations goes beyond the traditional mantra of "Reduce, Reuse, Recycle" but adds "Redesign" and "Re-imagine." These activities include closing manufacturing loops, redesigning the supply chain and tracing the environmental footprint of your products and services from raw materials, suppliers, manufacturing, distribution, use and end of life.
This process, called Life Cycle Assessment (LCA), allows manufacturers to truly see the environmental impact of their product and manage their footprint at all levels. "Green to Gold: How Smart Companies Use Environmental Strategy to Innovate, Create Value and Build Competitive Advantage" (2006), offers an insightful perspective on LCA. In this book, Daniel Esty and Andrew Winston compare a typical lifecycle assessment to an extended value chain assessment. In an extended value chain, you can begin to understand the true impact that your products may have on the environment.
For example, Esty and Winston offer this product lifecycle from a typical car manufacturer:
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However, we have seen in the past with the Ford Explorer and Goodyear tires for example, car manufacturers can feel the backlash for suppliers in their value chain. To manage this process, it is important to create an extended value chain such as the one Esty and Winston also offer:
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