Localization of Green

This time of year my wife, Ann, our 3 daughters and I enjoy the short walk from our house to the Farmers Market on Main Street. The market is sponsored by an economic development board on which Ann sits. It draws farmers and shoppers from 3 neighboring counties; traffic that benefits the local Main Street merchants. Of course the other benefit is we have access to organic fruits, vegetables and meats which are locally grown and raised.

My wife, somewhat unknowingly, is capitalizing on the recent trend of viewing business development through a green lens. Two clients I have the pleasure of working with, FedEx and GE, are in the headlines recently for embracing environmental imperatives to drive economic outcomes.

FedEx founder Fred Smith should be applauded for putting his company out front. In 2004 FedEx teamed up with the Environmental Defense fund to launch a hybrid delivery vehicle which is 42% more efficient and produces 90% less emissions than conventional diesel-powered trucks. Today FedEx uses 300 of these trucks even though each costs about $30,000 more than their diesel counterparts and the business case is difficult to make unless fuel prices are in the $4-$5 range.

In a similar way GE will extend their decade-long effort into high-tech batteries. This time though, Jeffrey Immelt, Chairman and CEO of GE, is interested in benefitting from New York state grants and federal stimulus package dollars totaling $55 million to help offset the $100 million price tag of their proposed battery plant. These batteries will power hybrid locomotives but hopes are they will find other uses such as boats, cars and trucks. Perhaps this will lead to improved hybrid vehicles for FedEx that deliver environmental and economical returns.

I think Smith and Immelt would be proud of their companies’ efforts to make their global communications green too. Each is harnessing print-on-demand technology which provides significant reductions in paper, transportation, emissions and power usage. True, a successful global print-on-demand program requires the right blend of technology, processes and expertise; a balance that can be difficult to create. The good news is that the business case on-demand printing makes is too compelling for business leaders to ignore.

This convergence of environmental and economic concerns seems to be leading to financial support of the important green movement people like my wife are so passionate about. To my family, we enjoy the walk on a Saturday morning and even more, we enjoy the terrific locally grown fruits and vegetables.