An Interview with Business Sustainability Expert Tim Greiner
Tim Greiner is the co-founder and managing director of Pure Strategies, based in Gloucester, Mass., with a satellite office in Reston, Va. He has pioneered approaches to building environmental and social integrity into products, brands and businesses. His experience spans the spectrum from developing corporate strategy for multinationals, designing product sustainability programs, creating strategies to transform supply chains and fostering collaborative mechanisms to lift the sustainability performance of entire industries. He is currently working with several progressive businesses on deepening their corporate responsibility efforts through product innovation and supply chain engagement. Current and former clients include Annie’s, Walmart, Seventh Generation, The North Face, Stonyfield Farm, EMD Millipore and U.S. EPA.
Greiner holds master’s degrees in environmental policy and business from the Massachusetts Institute of Technology and a bachelor’s degree in materials science engineering from Rensselaer Polytechnic Institute. He is a founding member of the Massachusetts Toxics Use Reduction Planners Association. He is also founder of the Cape Ann Climate Change Network and is a research associate at the Lowell Center for Sustainable Production.
Please tell me a little bit about Pure Strategies. What is its specific mission and who does the company serve?
Pure Strategies is a leading U.S. sustainability consulting firm. We help organizations improve environmental and social performance through setting goals, developing strategies and creating effective changes to products and supply chains. Founded in 1998, we did our first carbon footprint for Stonyfield Farm in 1999 and have been working with forward-looking companies on sustainability ever since. Our consultancy team includes experts in corporate sustainability strategy, green product design, green manufacturing, and assessments of materials and chemicals.
Pure Strategies works with corporate clients to create strategic value through implementation of sustainable business strategies. For some companies, this means offering new value to their customers by producing products with smaller environmental footprints. For others, it means reducing bottom line costs through energy, waste and other lean auditing approaches. As consultants, we tailor our approach to the needs of our clients. As professionals with experience in business, we draw on the many lessons learned from our work with companies large and small. Our client list includes firms across the U.S. in a variety of sectors: Walmart, Ben & Jerry’s, Annie’s, Colgate-Palmolive, RB, Timberland, Merck Millipore, Stonyfield Farm, Seventh Generation and numerous other companies.
Why is it so important for small-business owners to consider sustainability when it comes to their business practices?
Sustainability is being driven by large forces at play. Consider that we have a global population of more than 7 billion people who all want to live like we do here in the U.S. That puts incredible strain on our natural resources. Add to that the fact that the climate is warming at an unprecedented rate and changing weather patterns across the globe. At the talks in Paris last December, 195 countries agreed to take action to reduce greenhouse gas emissions. These global forces present an ethical challenge for us all, but they also present a business opportunity. The businesses that get out ahead and help to solve these issues will be the businesses that will prosper.
Taking it down a notch, there are three reasons for small businesses to consider sustainability in their business practices: productivity, risk reduction and growth. From a productivity perspective, increasing energy efficiency, reducing waster waste and reducing solid waste make the business more efficient. From a risk perspective, we know that, with climate change, energy costs are on the way up. Already, California and eight Northeastern states have put a price on carbon, making electricity more expensive. This trend will continue in the coming years and apply to fuels as well. Investments in efficiency reduce this future risk. Lastly, from a growth perspective, research on consumers and millennials of all income levels shows that they want to be affiliated with brands and businesses that share their values. So those small businesses that communicate these shared values with their customers can build loyalty with existing customers and attract new ones as well.
With regard to the self-service laundry industry, what does sustainability actually mean? What does it “look like” in a laundromat setting?
Sustainability in a laundromat setting would cover three main areas: efficient equipment, responsible operations and customer communication. Let’s pull these apart. Water and energy-efficient washers and dryers have a big role to play here. They can reduce the owner’s costs and reduce the time the customer spends in the laundromat. LED lighting is another cost-effective technology that can make the laundry experience better. The light quality is much better than florescent bulbs. Responsible operations includes offering recycling and giving customers choices on eco-friendly detergents. Lastly, communicating with customers the actions you are taking helps them understand how they can make a contribution to sustainability while doing their laundry at your store. There are additional opportunities beyond the ones I’ve described here – like engaging in social programs in the community, such as the Lions Club, fundraisers and so on, or the use of renewable energy like solar hot water and photovoltaic panels.
What are some of the major trends you’re noticing with regard to business-level sustainability?
The large businesses have already integrated sustainability into their operations. They all have made significant reductions in energy use, water use and waste generation. The current trends are to make changes in their suppliers’ operations and to make improvements in their products. They are moving outside of their own factories’ and distribution centers’ operations, and seeking to influence their value chain partners. The leaders are connecting with the consumer and developing a trust relationship that is increasing customer loyalty. A few companies that come to mind include Patagonia, Unilever and Ben & Jerry’s.
You’ve pioneered a number of approaches for building environmental and social integrity into products, brands and businesses. Will you elaborate on some of your past work?
My work in sustainability started out with what I call the “angel” brands – companies like Stonyfield Farm and Seventh Generation. They were the pioneers of the movement. We were doing carbon footprints with them back 15 years ago. We continued to work with both them – looking at their supply chains and products. During that time, both companies increased sales more than 10 times. Stonyfield save millions from these sustainability efforts. They were bought by Dannon and the parent company is using them as a learning laboratory to integrate sustainability into the larger parent company.
Our work with Walmart started five years ago. Walmart jumped into sustainability to reduce costs in their supply chain. We have been working closely with them on supplier engagement in laundry detergents, apparel, food and beverage, and many other product categories. In many ways, Walmart has mainstreamed sustainability and they’ve engaged thousands of suppliers to work with them on this journey. Our role has been to develop supplier scorecards to evaluate supplier sustainability performance. We also work with internal teams in Walmart – merchants, sourcing staff and sustainability staff – to help them prioritize and execute these programs. Walmart’s view is that every product should have sustainability built into it, not just a few “green” products.
What factors go into developing a corporate strategy for sustainability?
Leadership engagement is critical. When the leaders of the business understand the business value and drive their direct reports, we see sustainability flourish and companies achieve the productivity, risk reduction and growth benefits I mentioned earlier. Beyond leadership engagement, it’s critical to align all the functions in a business, including logistics, manufacturing, sourcing and product design. This means develop goals, piloting programs and showing the business benefits so that sustainability gets integrated into the fabric of the business.
What are some prime examples of areas in which laundromat operators can become more sustainable? And, specifically, how can they achieve this?
With equipment – upgrade washers and dryers to reduce energy and water use and reduce your customer’s time in the laundromat. Install efficient LED lighting.
With supplies – offer detergents that work in cold water and are more eco-friendly.
Introduce recycling into the laundromat. Customers recycle at home, so why not where they wash their clothes?
Engage and educate – introduce signage where your customers can learn more about your efforts. Building systems – if you own the property, look at heat pumps to provide efficient heating and cooling. There are many state utility and tax incentives out there to insulate your building and heat and cool it more efficiently.
Consider renewable energy – solar systems have a four- to six-year payback depending on the incentives in your area. And you don’t need to finance it yourself. You can use a bank loan. In addition, nearly every solar installer has its own financing package.
Typically, what are the biggest hurdles to sustainability on a business level?
Time and money. We are all very busy, and it’s easy to put off the kinds of activities that don’t warrant our immediate attention. It’s important for the owner to make sustainability a priority, otherwise little will get done. Access to capital is the second-biggest barrier. There are many financial demands on any business. The key is to incorporate sustainability into the places you plan to invest anyway – be that new equipment, rehabbing the exterior, putting on a new roof or upgrading the interior. Each of these investments have opportunities for you to make progress from a sustainability perspective.
What are some common misconceptions that most small-business owners have about sustainability, as it relates to their operations?
Perhaps the biggest misconception is how much sustainability costs. Having worked with Walmart for the last five years – one of the most cost-conscious businesses I’ve ever worked with – I can tell you that this notion is outmoded. You need to consider the full costs when you look at opportunities. Lighting is a great example. LED lights do have a higher upfront capital cost. But they last more than 10 years and don’t need any maintenance. They don’t break. Those savings alone could justify an investment in LED bulbs, beyond the energy savings.
Don’t get me wrong – there are some sustainability opportunities whose capital may be out of reach of the small-business owner. That’s why it’s important to look at any federal and state incentive programs that can help you out. Here in Massachusetts, the utilities provide free energy audits and cost-share the installation of a number of technologies, including heat pumps and LED lights. Small businesses should check with their utilities to see if similar programs are available in their areas.
What does the future look like for sustainability among businesses, especially small businesses? In what ways will sustainability grow and develop?
The opportunities to engage in sustainability will continue to present themselves. Vendors will sell more energy- and water-efficient equipment. HVAC contractors will offer you better products. The cost of renewable energy, LED lights and other technologies will continue to come down. Lastly, local government building codes and higher energy and water costs will make old, inefficient approaches outmoded. Small-business owners can be the innovators and early adopters of these technologies and reap the economic savings and customer benefits.
What’s the best advice you could give self-service laundry owners regarding this important topic?
Educate yourself. If you are having a tough time making progress, set yourself a goal of driving progress in one area of your business this year – be it energy-efficient equipment, heating and cooling, recycling or customer engagement.
What would you like the store owners reading this interview to take away from it? What’s the big message you have for our industry?
The cost reduction and customer benefits of making sustainability investments have never been greater. Develop your personal vision of what sustainability can mean for your laundromat. Work with your trade association, your equipment vendors and local contractors to help you realize that vision.
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