A century ago, the idea of conservation, preservation and sustainability was still fairly novel.  Manufacturing was changing the way the world made and consumed goods.  Assembly lines and piece work were becoming the norm.  Manufacturing lowered the price of goods making it possible for the multitudes to afford tools that allowed them to live easier, more comfortable lives.   Thanks to manufacturing and technological advances, men and women became more independent, self-reliant and free to pursue education and opportunities.  Free from the grind to survive, people could focus on taking care of “me/I” and worry less about taking care of the greater good.  With all the advances, population soared.  What emerged was consumptive consumerism, waste and pollution.

However, in recent years, it has become clear that a planet with over seven billion people must focus more on the good of all in order to ensure the well-being of individuals.  To ensure that there are enough resources to sustain billions of people long-term, it has become clear that the focus must shift back to the collective well-being of “our community, our planet and our resources”.  What activist Peter Seeger said a half century ago, which was revolutionary then, is now becoming the norm, “If it can’t be reduced, repaired, rebuilt, refurbished, refinished, resold, recycled or composted, then it should be restricted, redesigned or removed from production.”  Many economists, such as Kate Raworth, agree that “the challenge is to create economies – local to global – that help to bring all of humanity into the doughnut’s safe and just space.  …It is time to discover how to thrive in balance.”  So the shift is to go from “I look out for me” to “I look out for my world”, and in doing that, I am looking out for me too.

To do that, companies are finding new business models that focus on doing good, and thus doing well.   Case in point:  Brambles, a global supply chain solutions company.  Operating in nearly 60 countries under the brand name, CHEP, Bramble specializes in the pooling of unit-load equipment, pallets, crates and containers used to transport products…. a company that used a huge amount of lumber for its operations.   In 2015, the company created new 2020 Sustainability Goals, which was based on their Better Business, Better Planet, Better Communities Program and aligned with the United Nation’s Sustainable Development Goals.  One of their ambitious goals was to achieve zero-deforestation so that 100% of the wood the company used would be sourced only from sustainably-managed forests globally.  They achieved that goal by 2020.  Currently, all of the wood used in their pallets, crates and containers come from forests that are certified by either the Forest Stewardship Council (FSC®) or the Program for the Endorsement of Forest Certification (PEFC™).  These two non-profit organizations only certify forestry operations that follow the international best practice of planting new trees to replace those harvested, which is having a positive impact on the surrounding communities and local wildlife.  According to the World Wildlife Fund, forests are the largest terrestrial store of carbon, and deforestation is the third-largest source of greenhouse gas emissions after coal and oil. Certified Forests ensure procedures are in line with a recognized management standard that conserves and increases biomass, ensures land restoration and protects soil and water sources. The programs also has a positive social and economic impact for local communities in terms of human and workers’ rights.

Bramble’s new “share and reuse” model for wooden pallets began saving an estimated 1.7 million trees each year.  But achieving this goal was good not only for the planet, it was also good for the company’s bottom line.  They reported that not only were they were taking care of the scarce natural resources of the planet by eliminating deforestation in their supply chain, they also made the world’s supply chains, suppliers and customers more efficient and competitive.  Apparently, when they started the project, they had suppliers using their own technology and processes in different manners. The certification process simplified the entire supply chain thereby making them more efficient.  Bramble was named the Most Sustainable Company globally by Barron’s Magazine and awarded an overall A Rating from the Ellen MacArthur Foundation’s ‘Circulytics’ circulator economy assessment tool.  By focusing on their “my”, they were able to benefit their “me.”

Business Models that Support Doing Good and Doing Well

There are five different business models that companies are embracing to merge their My and their Me.

1. Circular Supplies – This business model is used by companies dealing with scarce commodities, in which scarce resources are replaced with fully renewable, recyclable or biodegradable resources.  For example, Royal DSM developed a cellulosic bio-ethanol fuel that converts agricultural remains, like baled corn cobs, husks, leaves and stalks into bio-based succinic acid, a renewable fuel that is now manufactured by Roquette under exclusive license. This cellulosic bio-ethanol is a new source of revenue for DSM.  It also allows them to reduce emissions, create jobs and strengthens Dutch national energy security.
2. Resource Recovery – This business model leverages technological innovations and capabilities to recover and reuse resource outputs that eliminate material leakage and maximize economic value… a cradle-to-cradle approach in which waste materials are re-processed into new resources.  For example, Walt Disney World Resort collects food waste — including grease, cooking oils and table scraps — from select restaurants in its Resorts and sends it to a 5.4 MW anaerobic digestion facility owned and operated by Harvest Power.  This organic waste is converted into a renewable biogas (a mix of carbon dioxide and methane) which is used to generate electricity.  The remaining solid material is processed into fertilizer.  The electricity and fertilizer generated are both then used at their resorts which ultimately generates more food waste… and the virtuous cycle continues.
3. Sharing Platforms – This business model shares products and assets that have a low ownership or use rate.  The goal is to maximize the use of products sold, enhance productivity and create value.  For example, while there are many rideshare companies – such as Lyft, Uber, Via, Ghett, and Wingz, which are leveraging the power of underutilized vehicles, this does nothing for sustainability.  In fact, it puts more drivers on the street.  However, there are some companies where the shared economy also embraces sustainability.One such company is Blablacar, which operates an online platform and an app in which transactions – shared rides – take place offline. The platform itself does not own cars but connects individual drivers and passengers who need to go to the same destination (peer-to-peer) and are willing to share a vacant seat in the car (underused capacity).  It is a win-win for both the driver and passenger(s) and consolidates how many vehicles are needed to get people, who are going to the same place, to their destination.
4. Product Life Extension – This business model extends the lifecycle of existing products and assets to ensure they remain economically useful longer. Material that otherwise would be wasted is sustained, maintained or even improved, such as through remanufacturing, repairing, upgrading, re-marketing or by just extending the product’s life.  By extending the lifespan of the product for as long as possible, companies can keep material out of landfills and produce new sources of revenue.For example, a new technology created by Chicago-based Hazel Technologies Inc. extends the shelf-life of grapes.  Their goal is to achieve greener and more turgid stems of grapes, with no signs of shriveling, and to maintain superior storage life under transit and warehouse conditions.  Hazel’s technology uses grape sachets that release active, shelf life-enhancing vapors to slow food waste during transit and storage, such as with seedless red grapes shipped from South America to Los Angeles.  Grapes treated with the grape sachets have a crisper texture, show no signs of dehydration, are greener and look stronger than the untreated fruit.  This type of technology is being tested with various other fruit and vegetables. Instead of frozen and canned foods, more perishable foods can potentially be eaten fresh thanks to shelf life-extension technology.

   In the U.S. alone, about 30% of all food that is harvested is thrown away, often due to early spoilage. By reducing spoilage during transport and storage, suppliers, farmers, and retailers all ultimately benefit by having more product available to the market. There’s also the significant environmental factor related to food waste as well, which is mitigated by this technology.   It opens up the possibility of bringing new products to markets that otherwise might not have been feasible – products that are typically too fragile to survive a long transit time.  In addition, shelf life technology enables some growers to alter their harvest or handling practices slightly in order to offer a better-tasting product to the marketplace.  This is good for the public, farmers and the planet by reducing food spoilage.

5. Product as a service – The service business model allows customers to use products through a lease or pay-for-use arrangement versus the conventional buy-to-own approach.  Companies that have high operational costs and an ability to manage maintenance of that service are able to recapture residual value at the end of life.  This is done with a lot of expensive or large equipment.  But it doesn’t have to be.One example of a company that is offering a product as a service is NYC’s Citi Bikes.  It was one of the first places in the U.S. to adapt a bike share program on a large scale.  Starting with around 6,000 bikes and 330 stations, it has grown to over 20,000 bikes located at over 1,300 stations.  While it is not as large as bike-share programs in China or Europe, it is the largest bike share in the U.S., even though started just eight years ago, in 2013.  And Citi Bikes began without any subsidy from the municipal government, which is extremely rare for bike share programs. Most programs are a joint effort from local business sponsors and the government. Capitalists and fiscal conservatives have pointed to this as the reason for the Citi Bike’s impeccable quality and maintenance.   Modeled after Montreal’s Bixi, Citi Bikes is efficient and well-received by New Yorkers, praised for alleviating New York’s rampant traffic problems before the pandemic.  The bike system is likely to be cheaper than renting a car or using public transit.  And, biking is healthier than driving or riding transit. It burns more calories and builds more muscle.  But most importantly, it saves on fossil fuel, tires, and other resources used when getting around by taxi, mass transit or car.

Clearly, there are companies and leaders who are figuring out new ways to allow their My to fuel their Me… and prove that a rising tide really does raise all boats.  So how is your business doing good while also doing well for itself?

Quote of the Week

“Sustainability is no longer about doing less harm. It’s about doing more good.” Jochen Zeitz

© 2021, Keren Peters-Atkinson. All rights reserved.