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  Grading Green: The Watchdogs CMOs Must Appease   Grading Green: The Watchdogs CMOs Must Appease  Mya Frazier  
         
 
In the lawless and unregulated landscape of going green, it became clear that someone, somewhere, needed to step in to provide some semblance of order and a credible means of measuring the myriad of ways companies can go, and pretend to go, green. Here are three watchdogs that deserve recognition.

Climate Counts
www.climatecounts.org

Based in Manchester, New Hampshire, Climate Counts released its first Climate Counts Company Scorecard in July 2007. The scorecard graded brands on a point scale of 0 (being the worst) to 100, based on 22 environmental criteria.

So what benchmarks are the scores based on? For starters, a brand's climate "footprint" is measured. Then, companies are judged on the work they do to reduce their contributions to global warming. Additionally, companies are evaluated according to their support for progressive climate initiatives.

In the first year of the scorecard, 18 of the 56 companies earned dismal scores—only 12 points or less. Climate Counts adds four more companies to the mix when it publicly releases its next scorecard on May 7, 2008. This time, will the group of brands scoring 12 or less points increase or decrease in size?

“That group is smaller this time,” said Wood Turner, project director of Climate Counts. “Some have even seen double-digit leaps in scores.”

In addition to number scores, Climate Counts also places brands in one of three categories—stuck, starting, and striving. "Striving" brands include Nike with a score of 73; Unilever 71; Stonyfield Farm 63; General Electric 61; Starbucks 46; and Canon 77.

“Starting” brands include consumer products giant Procter & Gamble with a score of 53. As for "Stuck" brands, Levi Strauss earned a measly 1 point out of 100.

“We’re not scoring the greenest brands in the world,” Turner noted, explaining the mission driving the organization. “If the world’s largest companies decrease their footprint by a little bit, that has a huge impact because these are the companies that need to change,” he said.

That’s not to say changing corporate behavior is the only motivation for Climate Counts. Empowering consumers is also a priority. The site offers visitors a downloadable scorecard to print out and bring on their next shopping trip.

“These companies can greenwash or lie about their actions to their peril as more engaged consumers take a closer look at what they are doing,” Turner said.

Indeed, Climate Counts makes it easier for consumers to do just that. For instance, if a consumer is upset with the Gap Inc.’s score of 39, they can send a previously written e-mail to the Gap that reads, in part, “Global climate change is one of the most important issues we currently face, and I believe the world's companies have a responsibility to take a real leadership role in fighting it." Consumers can also text the name of a company to 30644 to get climate scores before even buying one of its products.

 
Co-Op America
www.coopamerica.org

Founded in 1982, this D.C.-based non-profit doesn’t rate brands with a grading system. Since 1991 it has published a national directory of screened and approved businesses that are “growing the green economy.” Making it onto the list is not easy. When the directory launched 17 years ago, only 500 companies made the cut. Today, Co-Op America lists 4,000 companies, including Patagonia, Aveda, and Stonyfield Farm. In 2009, the list expands to 5,000, according to Todd Larsen, corporate responsibilities program director at Co-Op America.

So what does it take to make the list?

Sacrifice is required in addition to a strict approach to environmental issues and manufacturing processes. It also helps if a company’s operations are small. In fact, not a single company is on the list with sales surpassing US$ 1 billion. You won’t, for example, find Wal-Mart on the list. “We are glad they are adopting green practices, but they still have a long way to go,” explains Larsen. Also absent from the list are national retail chains; not even Whole Foods—the darling of many green consumers—is mentioned.

Companies must be “social and environmental leaders, representing the best practices of the top ten percent of their industries.” Co-Op America’s researchers evaluate a company’s impact on customers, employees (and not just the official employees, but workers within the entire supply chain), the environment, and the communities (and not just the community where a company is based, but other communities impacted by its operations).

The screening also analyzes many other aspects of corporate business such as product quality; the promotion and support of consumer health and safety; a focus on organically grown contents and cruelty-free production; energy usage and efficiency; the promotion and use of renewables; reducing waste reduction; and, well, the list goes on to address ten more areas, ending with “community impact and commitment to Fair Trade.”

Despite this expansive look at a company’s operations, asking for a cut-and-dry definition of green from Larsen reveals that the Co-Op's views on green encompass far more than just environmental actions.

“When we say green, we mean both socially just and environmentally sustainable,” Larsen said, adding: “Companies need to be careful that they are making claims they can really stand behind. If they are saying they are doing something that is green but the reality is a federal regulator is making them do that, then that’s not green.”

Indeed, the Green Business Pages are just the beginning for Co-Op America. Its mission to influence the debate on what makes a company a good corporate citizen demanded the creation of a system that keeps the bigger companies in check.

Next month, Co-Op America launches Responsible Shopper, an online feature at the non-profit’s website, coopamerica.org. Since big corporations have failed to qualify for inclusion in the Green Business Pages, the new feature ranks bigger companies against each other instead. Co-Op is rating 20 industries, from oil to banking, giving conscientious shoppers a “lesser of two evils” ranking of corporate America’s biggest brands.

“None are truly green, but some are better than others,” Larsen said.

 
Forest Ethics
www.forestethics.org

“Lots of office supply companies claim to be 'green.' The Truth is a Little More Black and White,” read the full-page ad placed by Forest Ethics that ran in USA Today on March 31, 2008. The ad went on to mildly praise FedEx Kinko’s and Staples for “making significant progress in their paper purchasing,” based on its annual “Report Card” of the industry’s major companies.

Corporate Express earned a C+; FedEx Kinko’s a B+; Office Depot a B-; Office Max a D+; and Staples a B+. Forest Ethics also mentioned that OfficeMax has been “doing the least to back up its green spin with concrete action.”

The “Green Grades” report card rates companies on five categories: post-consumer recycled content; sustainable forest management; endangered forest protection; the establishment of a chain-of-custody to determine origin of paper products; and prohibiting the conversion of native forests into tree farms or other non-forest land uses.

Founded in 1994, Forest Ethics is a nonprofit environmental group whose mission is to protect endangered forests. The group is known for using public relations and media tactics to put pressure on companies to change practices. For example, the ad referenced above ran in USA Today’s New York City edition during “Paper Week,” when paper industry executives were attending the American Forest & Paper Association’s annual meeting. The group has managed to push for changes in the business practices of major players. For instance, last fall, Staples committed to shifting the majority of the paper it sells to sources certified by the Forest Stewardship Council by 2010.

In Conclusion
The eco-movement has come a long way, but also has a long way to go. While consumers want their favorite brands to do the right thing, they also want their favorite brands to do the right thing, for the right reasons—and to be honest about it. Until then, regulation and fair systems of evaluation are needed to accurately assess going "green" claims and enforce accountability.

Perhaps, in 2009, brandchannel readers will communicate a more encouraging response to the brandjunkie survey question that asked for the name of a brand that they believed was truly going "green." What was this year's overwhelming number one answer?

None.     

[28-Apr-2008]

 
  
  

Mya Frazier is freelance business journalist. She can be reached at www.myafrazier.com.

     
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Grading Green: The Watchdogs CMOs Must Appease
 
 Co-op's Larsen gets it right by saying: “When we say green, we mean both socially just and environmentally sustainable.” Sustainability means more than "clean," "green" or "environmentally-friendly." It means having a viable economy, society and ecology. 
Michele Champagne, Designer, Interbrand - April 28, 2008
 
 Whilst I broadly agree I rather think we’re exposed to more. Which may be part of the problem.By already having such diversity, especially without any real knowledge (without a ton of digging) of provenance, objectivity and accountability of these entities all competing for consumers' and/or worried/cynical brand owners' money to pay for empires and comms budgets, what value do I think most of them actually present to the planet.... few. At least in terms of clearing things up and offering comprehensible methods of engagement for the average Joe. These may well be exceptions.The business of telling people about green has now easily outpaced, at least in terms of trying to grab attention and hence sources of revenue, any of those trying to actually do much about it.Hard to see how we can get back to simpler, trusted ways to make decisions based on meaningful enviROI. Too much, and too many, invested in competing for our eyeballs... and wallets.Who grades the graders? 
Peter, Junkk Male, Junkk.com - April 28, 2008
 
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