Eco-Advantage Strategies
A Guide for Sustainable Business Innovators
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May 7, 2007

The Four Pillars of Sustainable Innovation

Welcome to the inaugural issue of Eco-Advantage, your guide to the ever-changing world of sustainable business. Why now? In short, the business world is facing pressures it's never seen before. Planet-wide environmental problems, globalization, the Web and the transparency it creates, fast-growing markets in India and China . . . these mega-forces are driving constant change. On top of this already tricky mix comes a sea change in thinking about business and its role in society. Companies are increasingly expected to compete hard and operate sustainably (no more "or"). The winners will be the ones who quickly adapt and help the world deal with issues like climate change.

Our goal with Eco-Advantage is to provide you some much needed guidance in these turbulent times. We won't simply report on the latest news in green business. Instead, we'll provide a lens for helping you understand how today's sustainable business leaders are creating advantage by thinking and acting green. We'll provide real-world case studies and interesting frameworks from a wide-range of perspectives. Business, academia, the blogosphere -- no source of good ideas will be pushed aside. It's our hope that these unique stories of innovation will help you spot risks and identify opportunities in your own business.

We launch today with a big-picture focus on innovation for sustainability itself, the basis of every successful attempt to go green. When business people talk about innovation they usually focus on new products and revenue generation (see, for example, the CEO of Philips connecting innovation with sustainability). But the most innovative companies create value in four fundamental ways. On the upside, yes, they drive revenues by creating new products that help customers reduce their environmental impact. And they find innovative ways to enhance intangible value by connecting sustainability to their brands to help drive customer and employee loyalty. But they also innovate to reduce downsides by cutting costs and reduce risks -- by being smarter about their own resource use, and by focusing more on the the impact they have on the communities and value chains in which they operate (what GE's Jeff Immelt has called being "ambidextrous").

In this short guide we give you a few examples of successful innovators. Some stories date back a bit (because often only in hindsight is the value of a strategy clear), and some are stories of the moment, but all help put the new mandate for green business in perspective. And, we hope, help you think about how your company can seize an environmentally driven competitive advantage today.

Please enjoy, and tell us what you think.

~Andrew Winston, Co-founder, Winston Eco-Strategies,
Co-author, Green to Gold (Read his "Eco-Advantage" blog here.)

Comments or questions? Join Andrew and other readers online at the Eco-Strategies Forum.

Driving Revenues: The Birth of the Prius

The Toyota Prius is one of the most successful eco-products of all time. Here's an excellent overview of how it all came to be, and the key roles that both an innovative culture and environmental thinking played. (Just how much of the innovation mantle does Toyota own? Thanks to its well deserved reputation for cutting-edge technology, the company is enjoying a sales boost for cars in every category, says this article from the Wall Street Journal.)

Enhancing Brand: GE's "ecomagination"at Work

General Electric's ecomagination program is driving revenues and pushing products, but it's also a big brand play: The proof is in the kind of products GE is advertising -- see these TV ads. Things like jet engines, locomotives, or clean coal -- products that have a few, big buyers. But the company took its message to the masses with national ads, a brand-building play. Here's head honcho Jeff Immelt's appearance on Charlie Rose shortly after the project launched back in March 2006. And here he is discussing GE's approach to ecoinnovation at the grand finale of last year's "C-Suite Strategies" series hosted by Fortune magazine.

Cutting Costs: Adobe's Story

You can't argue with the hard numbers. This Business 2.0 article shows how eco-efficiency initiatives at Adobe's San Jose headquarters are paying for themselves. Click the "see how the greenest office in America works" link for a slide deck itemizing costs and money saved for each initiative. It's a great example of a company taking a holistic approach and realizing significant savings.

Controlling Risk: Cell Phone Makers Dump Toxics

As Nokia, Motorola, and Palm have discovered, not managing for regulation risk from hazardous materials can create a ripple effect of negative consequences ranging from steep fines to loss of market share. (Just how much do these companies stand to lose? By my calculation Palm lost $470 million in market cap thanks to legal barriers to the toxic materials in a single product.) Watch the leaders in the electronics industry -- once they have their ducks in a row they may well begin lobbying for higher toxics-reduction standards as a barrier to market entry for slower-moving competitors.

Innovation Idea of the Week: "Reverse Vending"

Put your empties in the slot and wait for the coins to drop. Most popular in places with government mandated recycling laws, reverse vending machines identify, sort, and process used beverage containers on-site. Norway-based Tomra Systems is the current market leader.

Eco-Advantage Salons

Eco-Advantage Live! Watch for our upcoming national tour of Eco-Advantage Salons, hosted and moderated by Andrew. Join our mailing list to learn more...

Case Study of the Week

Now in its fourth decade, 3M's Pollution Prevention Pays (3P) program is the granddaddy of eco-efficiency and cost savings. It's no coincidence that this early mover in the pursuit of ecocost saving is also known for its innovation in general. While "hot" companies come and go, 3M is on everyone's list of innovators year after year.

Tools & Frameworks

Business Innovation: Overcoming the "Dominant Logic"
Put best-of-breed innovation techniques into action as you undertake your own efforts to innovate for sustainability. Here's one model to try.

Books & Media

Buy This Book!

"No executive can afford to ignore the green wave sweeping the business world. [Co-authors] Esty and Winston show how to make sustainability a core element of strategy-and profit from it." -Chad Holliday, CEO, DuPont

Solution Providers

Sustainable Life Media is home for business professionals looking to build new value and competitive advantage by innovating more sustainable processes, practices and products. We bring you top stories related to the what, who and how of environmental and social innovation, and help you connect with thought leaders, peers, partners and solutions providers that can help you quickly reach your goals.

This work is licensed under a CreativeCommons License. Copyright Sustainable Life Media Inc. 2007