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Posts Tagged ‘Best Buy’

Sustainable consumption: Opportunity or oxymoron?

Thursday, August 19th, 2010

Imagine that you’re the chief sustainability officer of a FORTUNE 500 company. During a meeting with your CEO, you say: “We need to talk to consumers about using less.”

Improbable? Sure.

Impossible? Perhaps not.

An important conversation to start? Absolutely.

So, at least, says Aron Cramer, the CEO of Business for Social Responsibility (BSR), a nonprofit association of companies, whose mission is to promote a just and sustainable world.

“The American model of consumption cannot be extended to the entire world, and won’t be, because the planet simply can’t support it,” Aron told me, when we spoke by phone the other day. Yet billions of people around the world want to improve their standard of living. Figuring out how they can enjoy a better life, without destroying the environment, “is the mother of all innovation challenges,” Aron says,

Last month, BSR published a 26-page report called The New Frontier in Sustainability: The Business Opportunity in Tackling Sustainable Consumption [PDF, free download). It’s an attempt to get business leaders to think about what sustainable consumption might look like.

The topic “has been the third rail of sustainability politics,” Aron told me, but he added, with his usual optimism, that “more companies are ready to have this discussion.”

If nothing else, the report makes clear the urgency of the issue. Citing a WWF report [PDF], it says:

By recent estimates, our global footprint now exceeds the world’s capacity to regenerate by about 30 percent, and if our current demands continue, by 2030 we will need the equivalent of two planets to maintain our lifestyles.

And yet:

…countless people have insufficient access to basic needs like food, clean water, and adequate shelter, and they also lack access to the resources they need to improve their lives. In 2006, the 1.2 billion people in the OECD countries had an average annual income per capita of US$30,580, while the 5.4 billion people in the rest of the world earned an average of US$3,130. Of those, 19 percent suffer from hunger, 28 percent are drinking polluted water, and 29 percent are illiterate.7 More than 2 billion people continue to rely on less than US$2 per day to meet their needs.

The question is, what business opportunities, if any,  await companies that figure out how to give poor and middle class people what they want in a sustainable way? (more…)

Best Buy: An emerging green giant

Tuesday, December 1st, 2009

best_buy_5th_ave.home By now, everyone paying attention to the greening of corporate America knows about Wal-Mart’s sweeping sustainability programs. Big-box rival Best Buy has not been nearly as visible about its efforts to become more environmentally and socially responsible. But I recently visited Best Buy’s headquarters in Richfield, Minnesota, on assignment for FORTUNE, and came away impressed with what the $40-billion a year company has been doing.

My story, headlined Best Buy Wants Your Electronic Junk, appears in the current issue (December 7) of the magazine, as the latest in a series on FORTUNE 500 companies. This one showcases a corporate responsibility leader, and we settled on Best Buy.

Why, you may wonder? Predominantly because Best Buy is a pioneer when it comes to electronics take-back, which is the focus of the story. (more…)

Smart Grid: On its way…slowly

Tuesday, October 27th, 2009

Today, President Obama travels to Arcadia, Florida, home to one of the nation’s biggest solar power plants, to announced 100 grants providing a total of $3.4 billion in recovery-act funding for the smart grid. The federal money will unleash $4.1 billion of private investment that, according to the government, that will bring smart meters to about 18 million American homes, or 13% of homes. It’s a big deal.

Nelson_River_Bipoles_1_and_2_Terminus_at_RosserWhat would a smart grid mean to you? In theory, you could save money by running appliances like dishwashers or dryers at night when electricity is cheaper. You’d know how much it costs you to watch that big-screen TV. (Care to take a guess? Read on.) If you installed solar panels on the roof, you could sell electricity back to the grid. Or recharge that electric car you may buy in 2010 or 2011.

The laudable goal is to empower consumers to buy electricity the way we buy groceries or gasoline or airplane tickets –where we know what we are getting and what it costs when we make purchasing decisions. Right now, we consume electricity without knowing how much we are using, understanding where it’s going or knowing the price until an unintelligible utility bill arrives in the mailbox once a month.

The trouble is, layering intelligence and transparency into the electricity grid requires action by two of the slowest-moving entities in all of America–the federal government and the regulated utilities. So you can be certain this won’t be an overnight transformation.

In fact–irony of ironies–the news that Uncle Sam was going to be subsidizing smart-grid rollouts has inadvertently slowed down the process, albeit temporarily. About 570 applications were filed seeking a total of $14 billion in grants. While waiting to see who got the grants and who didn’t, some utilities put their plans on hold. (more…)

Small steps

Sunday, June 8th, 2008

To save the planet, we need to take a handful of big steps, like regulating greenhouse gas emissions. We also need to take many, many small steps, like recycling, buying paper from sustainably-harvested forests and using less packaging. Last week’s high-profile defeat of the Lieberman-Warner bill to regulate greenhouse gases was a significant setback, a big step that won’t happen for at least another year.. So this posting will look at some small steps towards a cleaner planet that have not gotten as much attention.

We’ll start with Best Buy. Thanks in part to the work of an effective shareholder activist group called As You Sow, Best Buy announced last week that it will test a free recycling program that will offer consumers a convenient and safe way to get rid of old TVs, computers, cell phones and other unwanted gadgets. The trial will be offered at 177 Best Buy stores in eight states. The company already had an active recycling program, available when consumers bought a new product from Best Buy. The big change here is that Best Buy will take back e-waste that it did not sell.

Conrad McKerron, an activist with As You Sow, told me via email:

As You Sow has been in dialogue with Best Buy, the largest U.S. electronics retailer for several months, and filed a shareholder proposal with the company last fall asking it to look at using its stores for free take back of electronic waste, including TVs, and to partner with electronic manufacturers to develop a workable, convenient national collection system. We withdrew the proposal in exchange for an agreement by the company in April to develop a large scale pilot to test in-store recycling of electronics. They are now ready to roll out a pilot that will offer free take back of most consumer electronics, including TVs, at 117 of their stores in three areas – here in the SF Bay Area, Minneapolis and Baltimore. We believe this represents the first on-going large scale take back of consumer electronics offered by any major retail chain.

This is especially significant because of next February’s switchover from analog to digital TV broadcasting, which could render millions of old TVs obsolete. The ultimate goal—and we are gradually getting there—is for all manufacturers to assume responsibility for take-back all their products, as Dell and HP have for their hardware. (I recently shipped a couple of old printers back to BP, and the system worked well.) Sony’s the leader in the TV industry; its competitors have yet to come along. Best Buy could give them a push.

Speaking of HP, the company recently announced a comprehensive new paper-buying policy, developed in cooperation with NGOs Forest Ethics and World Wildlife Fund. We’ll spare you most of the (boring) details; suffice it to say that HP will set goals for all of its worldwide operations, maximize the use of recycled paper, give preference to papers certified by the Forest Stewardship Council, and report publicly on all of this. The paper products covered under HP’s new policy amount to more than 300,000 tons, including its retail printing paper, all packaging, promotional materials, and internally used paper.

Will Craven of Forest Ethics tells me that a growing number of companies are taking responsibility for the environmental impact of the paper they use. Among them are Limited Brands (after an activist campaign targeting the Victoria’s Secret catalog), Patagonia, REI, Crate & Barrel, Williams-Sonoma, Timberland, Nordstrom’s, and LL Bean and Dell. Visit www.ForestEthics.org or www.catalogcutdown.org for more info.

Finally, Wal-Mart marked a milestone recently—it now sells only concentrated liquid laundry detergent in all of its U.S. and Canadian stores, having phased out those wasteful, oversized jugs of Tide, All and the like. Essentially, Wal-Mart muscled its suppliers to ship their detergent in more compact containers, saving water, plastic, shipping costs and shelf space (in the stores and in your laundry room). It’s part of the company’s ambitious goal to reduce the packaging (and waste) of everything it sells.

Since about 25% of all the liquid laundry detergent sold in the U.S. is sold at Wal-Mart stores—yes, the company is THAT big—this means the beginning of the end of those oversized containers.

I’m interviewing Matt Kistler, Wal-Mart’s senior vice president of sustainability, later this week at a conference called Greener By Design organized by my friend Joel Makower. After we talk, I’ll report back on other WMT initiatives aimed at reducing packaging and designing products with a lighter environment footprint.

Given the reach of Best Buy, HP and Wal-Mart, these aren’t really small steps—they’re major steps. But let me be clear: They are no substitute for the big steps, like climate-change legislation, that will be required to bring about the change we need, at the scale we need, in a hurry.