What Every CEO Should Know About Greening

By Vistage member Frank J. Priznar , President and CEO, PRIZIM Inc.

Many CEOs feel increasing pressure from employees, customers, shareholders, suppliers, and even the community in which they operate to become greener. But, too often, CEOs are not certain of what they can or should be doing.  A successful CEO maintains their focus on core business objectives and to most, greening seems irrelevant or a distraction.

Under any circumstance, but especially in today’s down economy, being green is viable only if it can be proven that it’s good for business. This means greening must add measurable value, differentiate your brand, increase your competitive edge, or account for the financial impact of an increasingly complex set of green mandates such as environmental regulations.

Here’s some general advice that can help any organization take steps toward going green. The advice demonstrates that by taking the right approach, greening is not only good for the environment; it is good for your bottom line: 

Reduce waste, because all waste is lost profit
Generally, when you reduce the waste your company produces, you save on recurring costs and you use less resources which by de facto means you’re being green. When you extend the life of electronic equipment before buying replacements, buy used equipment instead of new, or when you mandate video conferencing instead of business trips, you are making green decisions that save you money. Avoiding electronic waste, packaging waste, and the unnecessary carbon emissions associated with moving products and people are green initiatives that can help you be perceived as a green leader while also conserving your budget.

Note the ways in which you are already green
Most organizations, regardless of size or age, probably have some existing green practices in place. For example, local regulations may mandate recycling that is occurring or, even if it is not required, employees may be recycling anyway. After looking around, most CEOs are surprised by the large number of ways in which their organizations are already green. So before launching a new initiative, a simple assessment of existing practices will usually yield an inventory that as a collection can be packaged as the organization’s green program. Because most businesses are at least a little green already, it is unnecessary to create an entirely new program. By organizing existing practices, and giving the collection a new identity, you can legitimately take credit for having been in the green game for years.  Simply move forward from this point to create a more advanced greening program.

Focus on Energy
Though “green” can mean different things to different people, most agree that energy efficiency and energy conservation must be part of a sustainability or green program. Fortunately, paying attention to both of these topics often results in measurable cost savings so it is relatively easy to demonstrate that you are doing something good for the environment and the bottom line.  To quantify current energy use, consider having an energy audit conducted.  The audit process generally involves an external auditor who spends time on-site examining facility conditions that affect energy consumption and reviews data and records on current energy use. Aspects of an organization’s operations that are examined may include HVAC equipment, lighting, insulation, and building air infiltration. The audits are designed to identify cost-effective and environmentally preferable measures to decrease this use.

For a list of office energy saving tips see: Office Energy Checklist  or Office Energy Saving Tips. In many cases, employees will volunteer to save energy at work so the cost is minimal.

Find and ride the green wave
Even if you don’t think that you or your organization can have a significant impact, it’s vital to understand that there is a green wave moving the market and you must find a way to ride it. Advertising your green commitment is one way to ensure your business will be relevant in the future.  To find the wave, look to younger generations.  Though green matters may seem unimportant to many over 40 (the age of most CEOs), most people under 30 believe greening is critical.  This means that your future customers and future employees will make choices based on green issues. That future is upon us. 

Stay focused on core business goals
As CEO your best bet is to stay focused on your business goals and lead the entire scope of your organization. Consider asking one of your employees to become the Chief Greening Officer.  Most CEOs achieve optimum greening results without a significant commitment of their precious time. As CEO all you have to do is help create a vision of a future that includes greening and ask your employees to help get the company there. Chances are you’ll be amazed at the incredible commitment and positive results throughout the entire organization, not just in greening.

Get a jump on your competitors
How will you feel when a key competitor launches a new business initiative that is clever, inexpensive and green? More importantly, how will your customers and employees feel? I can guarantee, customers will be at least be a little curious about the competitor’s initiative, and employees may want to go work for them–two things you definitely do not want.