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Discussion on the economic value of implementing sustainable business practices in small and mid-sized companies. Includes three case studies and resource links.
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Webinar October 21, 2014, Noon Mountain TimeU.S. Small Business Administration
presentersMatt Varilek, SBA Region VIII Administrator
Martha Young and Graham Russell, Sustainability4SMEsLaury Hammel, Longfellows Clubs
Michael Green, Climate Action Liaison Coalition
Objectives of this Conversation: Demonstrate the economic value of implementing
sustainable business practices;
Demonstrate how social responsibility leads to stronger businesses and communities;
Provide concrete examples of no cost/low cost opportunities for small and medium sized businesses;
Provide links to resources available specifically for small and mid-sized companies
PresentersMatt Varilek serves as the SBA’s Region VIII Administrator and is based in Denver. He oversees the agency’s
capital, counseling, and contracting services in Colorado, Montana, Utah, North Dakota, South Dakota, and Wyoming.
Martha Young is an analyst and writer with over 20 years of experience in information technology, small to mid-sized enterprises management and the full spectrum of energy technology.As an analyst, her current project is co-producing pioneering research into the economic value of implementing sustainable business practices within small and mid-sized enterprises (SMEs).
Graham Russell is a sustainable business professional and educator. He brings 25 years of CEO experience in small to mid-sized companies in the environmental services and transportation industries. Russell teaches sustainability at the University of Colorado Denver. He also manages the outreach and development efforts for the Managing for Sustainability program at the university.
Michael Green specializes in strengthening small and mid-sized businesses with the intent to build stronger, vibrant communities. As an advocate, Green has played strategic roles in several of the largest national, as well as international campaigns dedicated to fighting climate change. Since 2012, he has served as a representative to the United Nations focusing on international climate science and policy.
Laury Hammel is the President and CEO of The Longfellow Clubs in Wayland, Sudbury, Natick, and Franklin, Massachusetts, and Salt Lake City, Utah. Longfellow has been a leader in the sustainable business movement for several decades. 1988, Hammel founded the Sustainable Business Network of Massachusetts-Boston (SBN). In 1991 he co-founded the national business group, Business for Social Responsibility (BSR). In 2001, he co-founded the national organization The Business Alliance for Local Living Economies (BALLE).
SBA and How it Supports Small Business
Matt VarilekSBA Region VIII Administrator
The 3 Cs Capital
Counseling
Contracts
SBA as a Capital and Counseling Source for Energy Efficiency Solutions
How to access Capital and Counseling:
-Certified Development Company ‘green’ 504 loans and other SBA finance options
-SBDC and SCORE counseling
Bottom line: SBA is able to assist businesses at every stage of development and growth with information, resources, expertise and funding opportunities
Benefits of Sustainability Initiatives Recognized by Large Enterprises
Social
Community acceptance of the business/License to operate
More business traffic through name recognition
Employee Wellness
Savings through investing in employee wellness
The high cost of employee turnover
Happy employees stay
Large Enterprises Also Recognize: Economic Benefits
Risk mitigation/license to operate
Free money through efficiencies
By not spending, money stays in the business
Infrastructure: Upgrades reduce energy demand (building, lighting, equipment, etc)
New Market Opportunities Innovative products and services
Large Enterprises + Sustainability = an Environmental Impact Less water used
= lower costs
= Reduced waste water management
Recycling
= reduced dumpster loads
Less energy consumed
= lower energy costs
= reduced emissions
Case Study: High Tech Pro Services
Sustainability begins at the Core of the Business B-Corp
Location
E-vehicle
Employee Wellness Supported employees have spawned other businesses
Employee retention
Impact on clientele
Case Study: High Tech Pro Services New Revenue Opportunities
Evolution of the business: hardware to professional services
Hardware and software support and management
Leveraging technology to enhance SME clients’ businesses
Bottom Line: Sustainability, integrated into the overall business strategy, is best implemented in strategically focused, manageable steps.
Case Study: Manufacturing Started with Emphasis on Utilities
Lighting
Air Conditioning
Equipment ramp up speeds
Added water reduction and reuse
Then added waste management
Collectively the various Utility-centric initiatives: lighting, evaporative cooling, and vacuum furnace ramp-up timing are saving the company $25K-$30K a year, or 12.5-percent of its overall electricity costs.
The Longfellow Clubs
A case story about the impacts of Lighting upgrades directly from the company’s CEO, Laury Hammel
Change started with exploring options in the marketplace
Worked with engineers to develop an effective solution
The Longfellow Clubs Lighting upgrades: Impacts and Hurdles Typical hurdles and impacts of lighting upgrades
Infrastructure upgrades disrupt the business
Still functional equipment goes to the landfill
The Longfellow Clubs The solution and its economic and environmental impacts
Longfellow Clubs Total Resource Percentages Saved
Facility Location Years Measured % Decrease from the 1st Year
Wayland: Water 2006-2013 37.29%
Wayland: Electric FY10 to FY13 12.12%
Wayland: Gas FY09 to FY13 26.51%
Natick LSC: Water 2008 to 2013 0.96%
Natick LSC: Electric FY11 to FY13 7.74%
Natick LSC: Gas 7.41%
Natick NRC: Water 2008 to 2013 64.51%
Natick NRC: Electric FY07 to FY13 26.65%
Natick NRC: Gas FY08 to FY13 32.39%
Internally Driven Action
Internal Sustainability Messaging
Behavioral Change The importance of having a ripple effect on your staff and
customers
Smart consumer decisions start with mission driven businesses Businesses need to look at their full supply chain, production
models to make sure that we are making the smartest product to offer the customer
Community Driven Action Businesses need to connect their internal goals with
external goals
Sustainability can’t end once we get to Main Street. Businesses need to act as community leaders and push for the new economy which they envision Carbon tax
Investment priorities
Getting Started: Resources for Small Businesses
CALC Sustainable Performance and Reporting Kit (SPaRK)
Join strategic policy groups for a collective voice (ASBC)
Next Steps: Information & Resources www.SBA.gov
www.Sustainability4SMEs.com Includes links to other case studies by vertical industry
Link to national survey on SME adoption (or not) of sustainable business practices
www.LongfellowClubs.com
www.ClimateActionCoalition.org
www.GreenImpactCampaign.org Provides a central clearinghouse, by vertical industry, for
SMEs to share ideas on sustainable business initiatives
USSBA Does Not Endorse the Products or Services of the listed resources.
Wrap Up