Recent green reports indicated that Timberland, the American manufacturer and retailer of outdoor wear, had a carbon footprint that increased by 11 percent last quarter. Alarming news for a company that boasts landing the 78th slot in the 2007 CNN Money “One hundred best companies to work for” list and prides itself on corporate social responsibility.
This news was not taken lightly by the powers-that-be at Timberland, and they had answers for why greenhouse gas emissions increased in the second quarter of 2011 and continued to commit to reducing these emissions in the future.
As the US economy improves, this is a trend we will see more often among even the most earth-friendly companies. As executives at Timberland cited, there is usually a direct correlation between business growth and greenhouse gas emission growth due to factors such as increased energy output to operate new stores or expand operating hours in existing stores, increase in employee air travel, and increased shipping needs to keep store shelves stocked.
As a green-conscious company, Timberland will aggressively monitor greenhouse gas emissions for the remainder of 2011; even though its business forecast predicts continued growth, the goal will be for gas emissions to remain constant.
As a green-conscious company, Timberland will aggressively monitor greenhouse gas emissions for the remainder of 2011; even though its business forecast predicts continued growth, the goal will be for gas emissions to remain constant.
Additionally, Timberland has renewed its previous goal to reduce emissions by 50% (this goal identified 2006 emissions as a baseline and was to be attained by 2010; Timberland fell short but had an admirable 38 percent decline). Taking into account business expansion plans, Timberland extended its 50% reduction goal to the year 2015.
It is noteworthy that although Timberland’s Q2 results feel short of expectations, the company’s overall trends over the past few years showed a steady decline of both emissions and electricity demands. In fact, in 2010 revenue increased while emissions and electricity demand showed little, if any, change.
According to Timberland’s Beth Holzman, Manager of Corporate Social Responsibility and Reporting, Timberland is focusing on four main strategies to reduce their carbon footprint while continuing to enjoy corporate financial growth. They are as follows (as first reported by GreenBiz.com)
1) Targeting the Big Wins: Timberland will target its biggest, most energy-intensive facilities for renewable energy exploration. For example, Holzman pointed out that some of Timberland’s larger European offices can utilize clean energy options from utilities that have the infrastructure to offer it at a reasonable rate. By targeting the biggest companies, emissions would be significantly reduced.
2) Buying Energy in Bulk: If Timberland can purchase bulk energy in the US and Europe, it can then use the cost-saving to purchase clean energy later. Holzman notes that if the company can come up with creative ways to not increase total cost, but reinvent the way it is allocated then the overall footprint can be reduced.
3) Incentives for Less Travel: When business and revenue rises, often so does corporate travel. Timberland must ensure that its worldwide production is meeting company standards, but incentives can be developed to encourage individual business units to prioritize and compartmentalize air travel.
4) Quarterly Reporting: Timberland firmly believes that social and environmental data should be reported on a quarterly basis in order to provide the most up-to-date decision-making tools; this data has been reported quarterly since 2008.
Holzman points out that Timberland treats social and environmental decisions with the same weight as every other aspect of the business. Quarterly reporting lends itself to making necessary mid-course corrections or shifts in priorities on a timelier basis.
In addition, Holzman cited that since 2006, annual savings as a result of Timberland’s environmental program have exceeded $1 million. There is little doubt that being environmentally conscious is an all-around win for Timberland, its consumers, and the environment.
I'm seeing a lot of companies that are taking up environmental awareness training for their employees in an effort to go green and I think that other companies, as big as timberland or as small as start up businesses should all consider to go green and help out with the environment.
ReplyDelete