Despite an outpouring of recent high-level corporate commitment to sustainability, a new study has shown that serious doubts about the topic are growing amongst both consumers and business leaders.

According to the July study, “2010 Gibbs & Soell Sense & Sustainability” (PDF), “only 16 percent of U.S. consumers and 29 percent of Fortune 1000 executives believe that a majority of businesses are committed to sustainability.”

The survey, which consisted of a nationally representative sample of 2,605 U.S. adults and a nationally representative sample of 304 Fortune 1000 executives, could mean a few things. Either support for these kinds of programs is waning or companies haven’t done a good enough job of proving their commitment to sustainability – to consumers, and to each other.

Obstacles to Going Green – Cost and Evaluation

According to the study:

“Most executives cite insufficient return on investment (78%) and consumers’ unwillingness to pay a premium for green products or services (71%) as the primary obstacles to more businesses ‘going green.’”

The report continues, “Additionally, more than 2 in 5 executives (45%) reported difficulty in evaluating sustainability across the entire life cycle of a product as a barrier to ‘going green.’”

A belief that going green is either too costly, or doesn’t show enough of a return has been one of the major drawbacks to corporate sustainability in recent times – especially as companies have been forced to “tighten their belts,” and prove to shareholders that their business practices are producing results.

This kind of thinking is unfortunately short-sighted. The returns afforded by corporate sustainability don’t appear over night, or even over the next quarter. Even the word “sustainability” implies a long-haul commitment.

Who’s In Charge Here, Anyway?

This poll provided valuable insight to the corporate sustainability issue – and why it’s important that we stay focused on it. It’s easy to praise the few superstars in the corporate world that are doing good things for the planet. Unfortunately, as the study shows, there are plenty of companies that aren’t doing enough.

“While more than two-thirds of executives (69%) say their companies have people responsible for sustainability, most have only added responsibilities for green efforts to the primary duties of a team of individuals (35%), or a C-suite or another senior level position (15%).”

This shows that sustainability is only a side project for a large percentage of the individuals answering for it. Dedicated sustainability teams would more likely produce better returns on investment in this sphere.

The report continued:

“Only about 1 in 10 (12%) report that their company has a C-suite or other senior level title/position dedicated solely to sustainability. 31% noted there is no one at their company who is responsible
for ‘going green’ initiatives.”

Almost a third of the individuals surveyed said there’s no one at their company in charge of green initiatives. This should serve as a wake-up call to those who think corporate sustainability is a non-issue.

Finally, one finding can be seen as positive – the study revealed that the larger a company is, the more likely it is to have resources devoted to sustainability. And the bigger the company, the larger its likely impact on the environment. It’s good news that most larger corporations take note of this. Hopefully as mid-sized companies continue to grow, they will take begin to take heed of their impact on the environment as well.

As companies are growing to understand the importance of corporate social responsibility, an increase in high-level CSR jobs has taken place. More than ever, companies are creating VPs and Directors of CSR or Sustainability, a role unheard of a few years ago. According to Ellen Weinreb of Greenbiz.com and a CSR recruiter, before 2006, such jobs never held much power, but now, as CSR has become an integrated part of corporate strategy, there is an increased “importance of positions overseeing CSR.”

But just because a company has a vast number of people with roles in environmental and sustainable positions, it doesn’t mean they are allocating the correct amount of CSR attention, dollars, and effort in the right areas.

That’s where the Chief Sustainability Officer comes in.

Not many companies have roles specifically entitled “CSO.” Rather, most are simply the highest-ranking person in charge of CSR. But for those that do, the CSO oversees the environmental health and safety of the company, maintain regulatory affairs, are responsible for human rights and workforce diversity as well as a variety of other duties. By definition a CSO “sits amongst the top leaders of the company to make key strategic decisions and oversees the SEC filing that identifies the corporation’s accountability to shareholders.“

A new report by Deloitte [PDF] which surveyed 48 executives who oversaw sustainability efforts at their companies, finds that there is a “clear gap between their leaders’ aspirations with regard to sustainability and the way that sustainability is enabled within their organizations.” What the company expects and what is actually happening are different. That’s why a chief executive in charge of sustainability is critical.

A 2008 study by Hudson Gain Corporation [PDF] found that companies with a CSO have a clear advantage over those that do not, because sustainability initiatives have short-term cost savings that induce long-term efficiencies. However, the study also found that there is a pattern of “simply handing off the sustainability responsibilities to an existing employee whose main credentials are [having] an interest in sustainability and a strong reputation in the company.” This can create mixed results because of the risk of placing people into the position without much experience to get the job done right.

But several companies have taken the initiative and gone after sustainability head-on. They have been among the first companies to create CSO positions and will hopefully lead the way for more companies to do the same.

Charlene Lake of AT&T

Lake was appointed the as Senior Vice President of public affairs and Chief Sustainability Officer in 2009, the first in the company’s history. She is responsible for leading their philanthropic and volunteerism programs as well as coordinating initiatives that connect social needs with AT&T’s business objectives. AT&T CEO Randall Stephenson emphasized that the “appointment of a chief sustainability officer reflects [AT&T’s] commitment to our long-term future and the communities where we live and work.”

By creating a position devoted only to sustainability, AT&T is hoping to move beyond a cookie cutter philanthropy approach to a more seriously sustainable company.

Linda Fischer of DuPont

The Vice President of DuPont Safety, Health and Environment and Chief Sustainability Officer, Fisher is responsible for advancing DuPont’s progress towards sustainable growth, its health and environment programs, as well its regulatory affairs.

In a recent interview with Fortune, Fischer explained how her role has changed from simply keeping operations in compliance to reduce the company’s carbon footprint but to “finding market opportunities that are going to present themselves because of evolving societal needs.”

She emphasizes that companies must stay ahead of the curve as their customers are demanding greener and more energy-efficient products. And as to the concerns that with this evolution the role of CSO will disappear she responds, “Ultimately, if companies have completely ingrained sustainability into their strategy, you could say you probably don’t need a chief sustainability officer. But sustainability is a constantly evolving concept.” In 10 years there will be a new wave of sustainability, she says. And in that future, there is an area which will need a chief sustainability officer.

Barbara Kux of Siemens

When Kux joined the Managing Board of Siemens in 2008, she was the first woman appointed to the company’s governing body in its 160 year history. She was also named the sixth most powerful international woman in business by Fortune in 2009.

Currently, she manages one of the highest grossing companies in Europe which also boasts that a quarter of its revenues, $27 billion, come from green technologies. Combining all of Siemens’ supply chains, which are generally decentralized and numbering around 110,000, into a central organization is Kux’s main goal. At a press conference last year, Kux vowed “to establish the world’s leading procurement network, push the development of technologies, and accelerate innovation cycles.”

In a recent interview with SupplyManagment.com she explained that by reducing the number of Siemens’ suppliers “means not only improved efficiency and lower administrative costs, but also greater innovative strength.” She views her role on the company’s board as one of opportunity. “As a member of the managing board, I’m responsible not only for supply chain management but also for green technologies and sustainability. In this capacity, it’s my responsibility to help our customers to protect the environment while promoting growth.”

Important Connection with the CEO

It’s important not to overlook the special connection between the CEO and CSO. As a recent article in the New York Times emphasizes, the importance of CSOs is that they report directly to the CEOs of companies, therefore ensuring they have influence over the business. In fact, Coca-Cola‘s CEO takes this connection a step farther. Coca-Cola’s CEO Muhtar Kent says “I have not appointed another one [CSO] and never will. That’s me.” Kent emphasizes that the role of overseeing the company’s sustainability is his responsibility because it starts from the top. From there, he says, it permeates through the entire organization.

Kent feels that sustainability is about values and about how the company thinks. “What will make us very successful in the next 10 years is our entire set of values, how we think of business from an accountability perspective, from an integrity perspective, how we think of the planet in terms not just of getting our house in order but of how we look at the street, and how we look at the role we play in making our city and our country and our world a better place.”

Kent’s thinking says something about sustainability. It’s growing in importance and it’s here to stay. As Frank O’Brien-Bernini, Owens Corning’s CSO says, “…few big companies operate without a CEO, COO (chief operating officer) and CFO (chief financial officer). Many have CMOs (chief marketing officer). When they are joined in the C-Suite by the CSO, we’ll know that sustainability has finally become integral to the core of business.”

In June, Accenture released “the largest CEO-based study on sustainability of its kind to date,” based on more than 100 in-depth interviews with world business leaders and an online survey of 766 UN Global Compact member CEOs.

The study, entitled “A New Era of Sustainability,” [PDF] reveals the attitudes toward sustainability held by top leadership in a variety of sectors, including “automotive, communications, consumer goods and services, energy, financial services, metals & mining and utilities.”

Said Peter Lacy, UNGC-Accenture CEO Study Project Lead 2010 and Managing Director, Accenture Sustainability Services, Europe, Africa, Middle East and Latin America:

“We hope that this study provides a rich, authentic and evidence-based platform to understand CEO views on the progress, challenges and implications of the journey toward a new era of sustainability.”

Sustainability Embedded Within Corporate Culture and Strategic Planning

One of the most surprising findings revealed by the study was the speed with which sustainability has become viewed as a major business imperative. According to the report, in 2007, the last time the study was performed, “sustainability was just emerging on the periphery of business issues, an increasing concern that was beginning to reshape the rules of competition.”

Today, the report continues, sustainability is “top of mind.”

Sustainability, the CEOs said, will play a major role in shaping in their businesses moving forward. According to the report:

“Eighty-one percent of CEOs—compared to just 50 percent in 2007—stated that sustainability issues are now fully embedded into the strategy and operations of their company. For example, we saw cases of companies beginning to integrate sustainability issues into their executive compensation packages, as well as design and innovation functions, more than in 2007.”

Accountability Key

But the CEOs face challenges in leading their companies toward a more sustainable future – from customers, shareholders, and investors. And the challenges all boil down to accountability.

First of all, coming out of the global economic slump, consumers have continued to be mistrustful of corporations. As Kaspar Villiger, Chairman of UBS AG, said: “We have lost trust, and we need to regain it with a culture of responsible behavior.”

Companies need to figure out how to regain the trust of the customer and clients they serve.

Second, shareholders, say the CEOs, have been slow to get in board. One Goldman Sachs leader said:

“We need to realize that analysts bring with them an education rooted within the green borders of Excel. But we are talking about externalities that very often are not linked directly to line items. CEOs need to be able to link these to cash flow and the balance sheet.”

The CEOs also felt that investors were not interested in less quantifiable social benefits of sustainability – only the bottom line.

Edemir Pinto, CEO of São Paulo stock exchange BM&FBOVESPA, suggested that CEOs must work harder to communicate the value of sustainability initiatives to investors. He said:

“CEOs may complain that investors do not value their sustainability activities properly, but they need to tell investors what they are doing: If they don’t communicate regularly, investors cannot incorporate these issues into their models.”

How can companies effectively embed sustainability into their strategic plans, building trust with consumers while garnering the support of shareholders and investors? The report suggests that accountability reporting can help corporations build a case for themselves regarding sustainability.

Producing metrics-based justifications for sustainability efforts can prove to mistrustful consumers that the company is actually doing the good work it claims to, while the numbers can also help sway the results-focused style of shareholders and investors. In fact, some of the CEOs who took part in the survey presented innovative solutions to the problem of quantifying sustainability efforts.

“There should be a focus on integrated reporting of CSR and financial results, which could bring about an alignment of sustainability with economic performance,” said Fulvio Conti, Enel S.p.A.

The report notes PepsiCo CEO Indra Nooyi’s suggested business model for corporate responsibility:

“Full Business Value = (Profit + loss) – (Positive + negative impact on society).”

Additionally, besides noting sustainability success as part of company-wide performance reports, Accenture’s study suggests that sustainability success be tied to pay packages for individuals within firms.

The report says:

“Embedding sustainability into the performance and remuneration packages of top executives and management was seen by many CEOs as perhaps one of the most effective means of ensuring more active management and monitoring of sustainability impacts. ‘People have a habit of doing what you pay them to do,’ one business leader told us.”

This will provide another layer of accountability to sustainability initiatives moving forward, and hopefully overcome some of the wariness regarding the implementation of these CEOs’ visions of sustainability for their companies.

Committing your company to sustainable IT policies, whether it be information and communication technology (ICT) or simply information systems (IS), is not just about recycling your paper or toner cartridges. Practicing sustainable IT without knowing the important environmental and economic benefits or risks is like running the race without a map. Your company may go through the motions, but does it understand now sustainable IT will affect not only the world of business, but also the future development of a sustainable society?

The Ethics Behind the Business of Sustainable IT

In the current economy, many businesses are exploring more ways to save money. However, instead of cutting corners, corporations are looking to sustainable IT as cost-effective policy that has the added bonus of being good business ethics.

While the environmental benefits of sustainable IT are obvious, what are the social and economic implications of IT development? In the April 2009 issue of the Journal of Business Ethics, the article by Claudia Som et al “The Precautionary Principle as a Framework for a Sustainable Information Society” defines an information society as “the prospective outcome of a structural change in society stimulated by the close interaction between social practices and ICT [information and communication technology]” (495). We have been an information society since the Internet was first introduced to the public, and we are a society that is constantly changing as new technology is developed. As we advance technologically, so do the risks associated with IT.

The risks involved in developing information technology are those that may make a negative impact on many levels if its growth remains unchecked. As the Journal of Business Ethics points out, new ICT can be seen as “sources of impact” (494) for not only the environment – but also society. Sources of impact? Essentially, this is the same age-old game of man against machine, except the reality of our early 21st century relationship with technology is much more subtle. The negative impact of machines on the lives of today’s employees is not so much that of robots rising up against us and more so the inadequacy of the legal system in the face of such rapid technological growth. By focusing this new technology in a sustainable direction—socially, economically, and environmentally—we can reduce the potential negative impact.

That said, the realm of sustainable IT should include not only considerations of the environment, but of society as well. And for the 21st century corporation, sustainable IT and a sustainable society are one in the same. As such, sustainability becomes not only an effort to save money but also corporate social responsibility. By understanding where even the smallest corporation stands in the development of a sustainable society, business leaders have a responsibility to know what positive or negative impact their company is producing.

Case Study: How Universities Are Taking the Risks, but Saving Money

Considering the long-term profits of implementing sustainable IT policies in your office or business, which might or might not outweigh the costs, it is no surprise that state universities are able to take on the potential risks where corporations might wait for a sure thing. All the ways in which the IT departments at universities across the nation are using sustainable IT are explored in a recent report from University Business published June of this year. The report, “Sustainable IT,” lists 30 ways that you or your business can also develop sustainable IT, but it also provides successful examples from universities for each tip.

Number one is to save power by initiating a step-down program for your computers, where after a certain time of inactivity the computer shuts down by degrees to conserve energy. “When not actively in use,” University Business describes the Green Computing Initiative started by the University of Minnesota, “computers step down: 10 minutes, monitor turns off; 15 minutes, hard drive turns off; 60 minutes, computer enters stand-by mode (this has the largest impact on energy savings).” Additionally, University Business explores the potential long-term benefits from similar sustainable IT programs at the Lone Star College in Texas, where “leaders estimate their Desktop Advance Power Management will save LSC $750,000 in power costs over a three-year period.”

By tip number 14, University Business not only advises you to use recycled paper and toner, but also describes an interesting experiment conducted by St. Edward’s University IT department where the school compared the performance of recycled vs. standard.

“With toner, it was found that the recycled toner produced a higher page yield than standard toner and was purchased at a lower cost than its counterpart. With paper, 30 percent-based recycled paper was found to print almost identically to new paper.”

Those are just a few of the positive results coming from the sustainable IT testing ground at universities from all over the U.S. Where big corporations are unable to take the risk of experimenting with new sustainable IT programs, university students are more than willing to step up to the plate—all in the name of education. So if you are looking to improve your company’s bottom line, but you also want to join the increasing number of corporations jumping on the sustainable IT bandwagon, follow the pioneering efforts of our higher education system.

Have you heard about the behavioral economic idea of the “nudge”?

Popularized by economists Richard H. Thaler and Cass R. Sunstein, a nudge is basically an arrangement that points people in a certain direction when they are given a choice. For example, in Thaler and Sunstein’s book Nudge: Improving Decisions About Health, Wealth, and Happiness, the two authors explain how putting fresh fruit, rather than desserts, closer to eye level in a cafeteria serving line influences students to make healthier lunch choices. The placement of the fruit doesn’t take the choice of dessert away – it just “nudges” students toward the healthier decision.

A new report by Ecoalign, an energy and environment marketing agency, details how businesses can employ nudges to help consumers improve energy conservation. The report, prepared by Dean Karlan, Professor of Economics at Yale University, explains that nudges do not change behavior. They serve as helpful reminders for an individual, of what he or she, in theory, wants to do – making it easier to overcome a short-term moment of weakness or laziness in the face of a long-term decision, for example, to eat better or recycle more.

Here are four ways that you can use nudges to help make your office more environmentally sustainable.

1. Make it Easy
A simple way to keep your staff recycling is simply placing recycling bins close to the trash cans. Most employees want to do the right thing and reduce waste – but if it’s more difficult to recycle, individuals are less likely to do it. It seems obvious, and it is. That’s all nudges are – ways to make a good choice easier to do.

2. Keep Them Informed
The report explains how informing consumers about how much energy they are actually using can help decrease energy use.

For example, the report discusses a study in which individuals were asked to set goals for natural gas use, and then given different levels of feedback on their performance. The ones given the most feedback were the most successful at meeting their goals. The frequent reminder that they were working to decrease energy use nudged them toward more energy-efficient practices.

Set a goal for energy reduction with your team, and keep them informed about progress – the more feedback the better. Keep your team updated on their energy usage once a day or once a week and let them know how they’re making progress.

3. Use Default Settings
In their book, Thaler and Sunstein talk about how default settings can be used to influence behavior – most people simply go along with defaults rather than make other choices. You can take advantage of this kind of behavior to green your office.

For example, set printer defaults to eco-friendly options (like front and back printing to decrease paper use) or computer power options to the energy-saver default. Individuals still have the choice to change these options to suit their needs – like changing printer settings to one side only for presentations or client deliverables – but on the whole, using default settings is an easy way to be more green.

4. Point Out Compliance Levels
Thaler and Sunstein point out how positive social influence can nudge people in the right direction. For example, they discuss a real-world experiment in which groups of Minnesota taxpayers were given reasons for fulfilling tax obligations – that the money went to public works, the penalties for non-compliance, and that 90% of Minnesotans followed the tax law.

The last reason – that most people followed tax laws – was the only one that had a significant effect. Thaler and Sunstein write:

“Apparently some taxpayers are more likely to violate the law because of a misperception – plausibly based on the availability of media or other accounts of cheaters – that the level of compliance is pretty low. When informed that the actual compliance level is pretty high, they become less likely to cheat.”

You can take advantage of this principle in your office – if you already have a pretty high percentage of employees taking part in sustainability initiative, communicate that to your entire staff and the laggards will be more inclined to join. For example – keep track of employees using reusable water bottles instead of disposable ones.

Most of these seem easy and obvious – that’s because they are. Nudges are the little things we can do to help make the right decision easier. Most employees are willing to help the planet or help the company save on energy costs. But a busy, hectic workday can keep them from taking the extra steps to do so. Making it easy for your staff to make sustainable choices can improve participation in green initiatives and yield better results than a top down directive to “be more green.” Nominate an enthusiastic team or office champion to implement the nudges and see what happens. They’re not labor intensive and generally cost-free – what do you have to lose?

A report recently released [PDF] by Best Buy’s explains how the company approaches sustainability – from three standpoints: people, technology, and power. The company combines employee engagement and sound environmental practices under the sustainability umbrella – explaining that they are what make the company grow sustainably.

In a bnet article, Carol Tice explains, When Best Buy talks sustainability, it’s not just talking environmental impact — it’s talking about designing the culture of Best Buy so that the company thrives, from worker treatment to supplier and factory relationships.

Of course, Best Buy recognizes that there are challenges ahead – there are always improvements to make. In fact, in many ways, the numbers listed in the report are not stellar – for example only a 75% retention rate or an 82.8 customer satisfaction score (although both of these numbers have risen over the past year). Brian Dunn, Chief Executive Officer, writes, in the report:

“For me, unleashing the power of our people captures the core idea that has always driven Best Buy, and, in my opinion, every great human organization: that a group of ordinary people can accomplish extraordinary things when they work together. In fact, it’s the only way anything extraordinary ever happens.”

At the same time the company is working to energize its employees and improve working conditions across the chain, Dunn says that the company is also cognizant that technology and energy use go hand in hand. Best buy is working hard to increase recycling efforts and build more energy efficient stores.

It’s a looming task, but, Dunn says:

“optimism isn’t just my genetic set-point; it comes from my objective observation that once people understand a set of challenges, they are capable of creating solutions that eventually surpass anything we can imagine.”

Setting Goals: One Billion Pounds

One of the notable things about the report is the transparency with which the company states its sustainability goals. Best Buy is setting aggressive goals for itself in recycling and energy-effiency. For example, the report says:

“We operate the most comprehensive recycling program in retail. In fiscal 2010, we helped to prevent
more than 140 million pounds of appliances and electronics from ending up in landfills around the world. We have set a goal to collect 1 billion pounds.”

Noting that the company has met its carbon footprint reduction goal three years ahead of time – “an 8 percent reduction per U.S. retail square foot.” Best Buy plans to set even more aggressive goals. Not just carbon reduction, but looking for ways to improve energy efficiency across its stores and green its product offerings. The company is working with BSR to set firmer goals.

People: Part of Sustainability

When the company says “sustainability,” it’s not only talking about the environmental impact of its stores and products. To Best Buy, sustainability describes how the company grows and operates year over year – and the environmental component (including technology and power) is only one part of that. The other part is its people – how the company keeps employees coming back to work, and ready to serve the customers in the communities in which it has stores.

According to the report, the company’s retention rate is rising: “Percent of employees who maintain employment with Best Buy for at least one year: 75% — a 6% percentage point improvement over fiscal 2009.”

Employee engagement was challenging in FY2009, the company explains, because of the economic turbulence which saw consumer spending drop and fewer customers in the store. The company worked to keep employee energy up by performing employee surveys, paying bonuses mid-year, helping employees save for retirement, building affinity groups, and focusing on diversity.

Recognizing that people are part of the sustainability equation too is one way the company is continuing to grow during hard times – a year that also saw volunteer activity and philanthropic donations drop.

But as Tice writes:

“Best Buy’s open attitude and philosophy of thinking about all these operating metrics as aspects of sustainability is refreshing. It also provides a guide for any company looking for the best way to thrive in the current tough economy. It’d be great to see more big companies thinking about sustainability in this type of comprehensive way.”

Hopefully we’ll see more companies talk transparently and holisticaly about sustainability moving forward.

We’ve all heard about the wave of more environmentally friendly automobiles that have been built in the past few years. Hybrids, electric cars, cars that run on bio diesel and ethanol, cars that run on hydrogen, the list goes on. Auto manufacturers across the globe have begun designing these in response to the exploding worldwide concern for the environment. But beyond creating products that are green, car companies are manufacturing them in green ways too, even in this tough economic time.

According to a study conducted by Gartner Research [PDF] in 2009, “sustainability will be a strategic theme beyond the recession.” Automobile companies are proof of this. Even as the recession crippled markets and companies alike, consumers began to demand better and more eco friendly cars. So the automobile companies stepped up to the plate and started investing even more money into making them. This means that they will “increasingly be justified to meet stakeholder expectations, to build trust and compliance, and to manage risk related to the business’s reputation” when it comes to sustainable cars.

Federal Influence Bolsters Green Auto Production

Two years ago, when the automobile industry was being bailed out by the US government, a portion of what Detroit was asking for was money to help make their companies more green to meet the new environmental standards. So when the Department of Energy loaned $25 billion to the auto manufacturers, it did it with the stipulation that the companies would use it to create factories that would produce vehicles that would meet the new emissions and fuel economy standards.

Luckily for us and the planet, this has translated into not only eco-friendly cars, but the creation of eco-friendly factories and plants to build them in. According to the Bureau of Labor Statistics, automobile technology is changing rapidly – and more rapidly than it has in a long time – due to environmental concerns and regulations.

And all the major car companies are on board. Both BMW and Lexus have recently received LEED (Leadership in Energy and Environmental Design) certifications from the U.S. Green Building Council. This means that the buildings that housed or produced their cars were built in an environmental and sustainable way, from reduced water usage to using recycled and locally sourced materials. One BMW distribution center successfully used methane gas from a coal landfill to serve 60 percent of the plant’s energy needs. One Lexus dealership on the other hand created a preferred parking program that rewarded employees who car pool or use alternative fuel or hybrid cars to work.

And why is this important? Because ten percent of a car’s lifetime environmental impact comes from its building. And consumers are taking notice.

Cutting Costs through More Sustainable Manufacturing

In Ford’s 2010 Blueprint to Sustainability, the company has reduced their total facilities-related carbon dioxide emissions by approximately 50 percent and well as reduced facilities-related carbon dioxide emissions per vehicle by 27 percent. Determined to perform better, Ford saved $15 million by improving energy efficiency in their 2009 operations. Their target is to improve their facility energy efficiency by 3 percent in North America this year. The car company has also created a system that shuts off all desktop and notebook computers at night, with an expected savings of $1.2 million in annual energy costs.

Wind turbines, low mercury lighting, drought tolerant landscaping, reusing packaging, even recycling flawed parts all are part of what different automobile manufacturers have been creating in the past few years to decrease overall cost and increase sales. Never before has there been such an influx of environmentally conscious construction.

A brand new Volkswagen plant that is currently under construction in Chattanooga, Tennessee is one of the best examples of this. For every tree displaced by construction they are replanting a sapling. Things like automated machinery, smart ventilation systems, and improved air circulators will save the plant an annual energy use of 1,880 households. Storm water will be collected to be used in restrooms, saving 359,999 gallons of fresh water. The plant’s insulation in the walls is 100 percent recyclable. All in all, it’s what companies are striving to become.

About 27 million cars are disposed of every year. And according to the US Environmental Protection Agency, more than 95 percent of all those vehicles are processed for recycling and then about 80 percent of that is recycled. Auto recyclers supply about one third of scrap metal to manufacturers, which when used instead of ore, can reduce air and water pollution by more than 50 percent. In 2007, Ford became one of the first automakers to be recognized for car recycling requirements. And it’s only time before other car companies follow suit.

It’s unfortunate that it took the near collapse of the economy and the US auto industry for car manufacturers to really get on the band wagon when it comes to creating a product that is more eco friendly, and producing it in a way that is eco friendly. They are finally realizing that going green means saving money. Which means it’s around to stay.

What’s new in CSR? Here’s what we have been reading this weekend.

BP’s still not on the ball…

Chrystia Freeland from the Washington Post speculates who’s to blame for the oil spill. She says it has taught us that the heart of the relationship between business and society doesn’t lie with the charitable deeds that companies do in their off-hours, but whether they are doing their day jobs in ways that help — or hurt — the rest of us. While BP was winning plaudits for being the first oil company to accept global warming as a scientific fact, the old-school Texas oilmen at ExxonMobil were unfashionably unapologetic about their core mission: to produce oil. Chastened by the Exxon Valdez disaster, however, they also became religious about safety standards. With hindsight, that attention to safety turns out to have had much greater social value than any number of creative CSR drives.

India creates voluntary CSR guidelines

JustMeans writes how for the first time in its history, the government of India, through its Ministry of Corporate Affairs, issued a set of voluntary CSR guidelines. Their intent is to add company value, focus on long-term sustainability contributions and provide benefit to stakeholders and society.

Will colleges soon start teaching CSR in school?

Aman Singh of Forbes.com questions how job seekers and business school graduates view the rising awareness of concepts like triple bottom line, corporate responsibility, and ethical management. Turning to four MBA candidates for some answers whether recent Wall Street shortcomings were redefining MBA curriculum at their schools. Each of the candidates agreed that a complete embedding of corporate responsibility within company cultures across America would require a coordinated push from employees and job seekers as well as students.

The truth about CSR compensation

Leon Kaye writes that more professionals have become interested and passionate about sustainability, judging by the growth in related academic programs and, anecdotally, the surge in networking and other professional events that have a corporate social responsibility theme.  Idealism and the genuine desire to accomplish good, however, may conflict with the reality of paying the mortgage or rent check.

Walmart’s green strategy raises some questions

Bob Lurie explores Wal-Mart’s vow made earlier this year to eliminate 20 million metric tons of greenhouse gases from its supply chain over the next five years. he says it turns out the promise may be more of a form regulatory vigilantism.

Last month Google hosted an event launching the Green Products Innovation Institute, an organization that “promote[s] an innovation-oriented model for eliminating toxic chemicals and other negative environmental impacts. The GPII prescribes a set of design principles, based on the laws of nature, to help businesses create products that are safe for people and the environment.”

The GPII will provide certifications for sustainable product design based on the Cradle-to-Cradle design philosophy and framework. According to an article written by by William McDonough and Michael Braungart, founders of the design philosophy, Cradle-to-Cradle:

“rejects the assumption that the natural world is inevitably destroyed by human industry, or that excessive demand for goods and services is the inevitable cause of environmental problems. Conventional industrial design is flawed because it developed in a time when few understood the dynamic relationship between economy and ecology, or the principles of the earth’s natural systems.”

They continue,”Cradle to Cradle Design, on the other hand, is modeled on the perpetual flows of energy and nutrients that support biodiversity. The intention: to apply the intelligence and effectiveness of natural systems to product, process and facility design.

Inspiring and Enforcing Sustainable Design

The Cradle-to-Cradle (C2C) framework, outlined in McDonough and Braungart’s 2002 book Cradle to Cradle, will now be used by GPII to (according to the organization’s website):

“work with leaders from academia, the NGO environmental community, government and industry to establish a rating system for assessing and constant improvement of products based upon five (5) categories: (1) safe and appropriately sourced materials; (2) material reutilization; (3) renewable energy; (4) access to and release of abundant, clean water; and (5) social responsibility. Products that meet the transparent criteria of this rating system will receive the Cradle to Cradle certification mark.”

One C2C early adopter is Alcoa‘s Kawneer plant attended last month’s GPII launch event. According to Eddie Bugg, Director, Sustainable Solutions for Kawneer, “Sustainability is at the heart of Kawneer’s product line, which is made up of aluminum, one of the earth’s most recyclable metals. C2C provides an important framework for selecting materials that are environmentally responsible.” He continued, “Several Kawneer products that are C2C certified are manufactured at our Visalia, California, plant using a renewable energy source – solar power.”

California, said Governor Arnold Schwarzenegger, is the perfect home for GPII. “California has the most comprehensive Green Chemistry program in the world, and our leadership in ensuring the products we use every day are safe for our families and environment has resulted in the Green Products Innovation Institute choosing to headquarter here in California.”

He explained, “This Institute will revolutionize the way we design products and serve as a benchmark for those who aspire to set new standards of environmental and human health and safety for all products sold in California.”

Framework for Innovation

The framework will effect more than Californians, though, as the state’s programs and initiatives usually spread throughout the US. As Jim Carlton explained in his Wall Street Journal article, “Like most other industries, consumer products makers have come under intense pressure in recent years to improve their green practices. In fact, the 2008 consumer products mandate by Mr. Schwarzenegger helped lead to formation of the institute in December 2009…”

The framework should lead to innovation in product design as a whole – new regulatory challenges have often been key to innovation in the past. It will also help companies attract more loyal and enthusiastic employees. As product designers become more interested in and driven by sustainability, they’ll choose to work for the companies supporting their ideals.

Of course, writes Carlton, there will be challenges:

“…safer alternatives to some materials are not always available or in abundant supply. That’s one challenge officials of the institute say they hope to help overcome. Other green techniques would be shared, such as a scorecard Wal-Mart has come up with that rates packing materials on how green they are. ‘We will collaborate on information like this,’ said Matt Kistler, senior vice president of sustainability for the Bentonville, Ark. retail giant.”

Can sharing ideas, along with the stricter enforcement of sustainability standards, lead to more innovation, as well as the attraction and retention of quality employees? Creating ways to funnel your employees’ passion into your company’s push for innovation can be a win-win.

One of today’s most widely used buzz words is “innovation.” Everyone’s innovating – or they want to! As Intel CEO Paul Otellini said at the recent World Congress for Information Technology, “Returning to sustained economic growth means taking a long-term view with a mindset of investment.”

He continued, “Innovation results from combining people who have good ideas with investment. These are the guiding forces that lead to ideas which spawn new businesses that create new jobs, and ultimately lead to wealth creation and higher standards of living.”

Several companies in the US and around the world are taking it upon themselves to encourage innovation. In the long run, they hope, encouraging innovation can help themselves grow and improve standards of living, as well as improve economies globally.

The Intel Challenge: Seeking Innovative Entrepreneurs

“In the next decade, another half billion people will enter the workforce, and we will need to create the conditions to generate meaningful jobs for them and for the existing workforce,” said Otellini. “Intel has been in the business of delivering amazing innovations for more than four decades and we know that some of the best ideas are yet to come. The right investments today to create the innovators and industries of the future will put the world on the path toward economic growth.”

Otellini used his spotlight at the WCIT to announce Intel’s 2010 challenge: a chance for college students to test their entrepreneurial skill. Students will submit business plans, with the best receiving money toward their own start-up venture. According to a press release, “Business plans will be judged on their potential for positive societal impact and return to investors through the commercialization of new technologies in areas such as semiconductors, mobile and wireless, nanotechnology and life sciences.”

Intel has shown strong support for science and technology education. According to Otellini, the company plans to expand its education outreach globally, through its World Ahead program, which, according to the company, aims to bring sustainable and affordable computing and connectivity to “the next billion users” in emerging economies around the globe.

Rambus’s Commitment to Passion for Technology and Science

But innovation doesn’t start at the college level. Many companies award students for strength in innovation at the high school level – or even younger. For example, Rambus, a technology licensing company based in Los Altos, California, recently awarded two high school students, Malvika Verma of St. Francis High School and Edward Gu of Los Altos High School, its annual “Innovator of the Future” scholarships.

The $10,000 scholarships are provided “to broaden the educational opportunities of students who, by virtue of their academic and extracurricular achievement, demonstrate a passion for science and technology that extends beyond the classroom.”

Harold Hughes, president and chief executive officer, said, “At Rambus, we are committed to the future of innovation and are proud to foster the next generation of innovators.”

DuPont: Awarding Innovation and Sustainability

Last month, DuPont announced the winners of its 22nd annual DuPont Awards for Packaging Innovation. Most notable about this year’s awards was that top honor went to a design prized for its sustainability.

Alcoa and Exal won the Diamond award for their lightweight, sustainable Coil-to-Can®, or “C2C”, aluminum bottle. According to Carolann Haznedar, global business and market director, DuPont Packaging & Industrial Polymers, “This year we focused the DuPont Awards program on the essential elements needed to drive breakthroughs in packaging. Innovative new developments, along with cost/waste reduction and improved sustainability, are what packaged goods companies and retailers are seeking to respond to consumer needs.”

She continued, “These winners demonstrate the kind of collaborative innovation that is needed to solve such multi-dimensional problems.”

The Coca-Cola Company also received high honors, receiving a Gold award for its new PlantBottle Packaging, made up of 30% plant-based materials. According to a press release, “It is the first of its kind – beverage packaging made from renewable sources that is 100 percent recyclable, like traditional PET (polyethylene terephthalate) plastic. PlantBottle packaging can be recycled in the existing commercial recycling infrastructure.”

The awards show that sustainability is an issue moving into the forefront of innovation drivers. As employees grow to expect innovation in their companies, finding new ways to award and foster innovation both internally and externally is growing more important. What is your company doing to encourage innovation?