Episode 73 – Lindsay Riddell Discusses Current Cleantech Trends
September 7, 2012
Lindsay Riddell covers Cleantech, Sustainability, Startups and Venture Capital for the San Francisco Business Times
Biofules and Biochemicals
Investment trends
Carbon Data
Electric Vehicles
Episode 70 – Mark Dwight Discusses Manufacturing Locally
August 13, 2012
In Episode 70 of The Wendel Forum (originally aired on July 21, 2012, on 960 KNEW AM radio), show moderator Bill Acevedo, chair of Wendel Rosen’s sustainable business practice group, welcomes Mark Dwight, founder of San Francisco-based Rickshaw Bagworks.
Mark Dwight of Rickshaw Bagworks visits The Wendel Forum Studio
After leaving his Silicon Valley tech roots, Dwight joined Timbuck2, where he fell in love with the bag business. When he moved to Rickshaw, he committed to making bags in a sustainable way, including minimizing waste and overstock.
Rickshaw bags are made with polyester recycled from beverage bottles and industrial plastic, and the company avoids materials that are noxious in their manufacture, use and disposal. Every Rickshaw bag features a gem tag with the letters PCQ, which stands for “passion, craft and quality,” and a five-pointed star, which represents Rickshaw’s five constituencies: employees, customers, business partners, shareholders and the community.
Bill and Dwight discuss how no business can be 100 percent impact-free and that sustainability starts at the bottom line. That is, businesses must be sustainable financially in addition to committing to environmental and social justice goals.
Dwight is also the founder of SF Made, a nonprofit organization that promotes local manufacturing. Since its founding two years ago, 350 San Francisco manufacturers, including Anchor Brewing, have become members of SF Made. Dwight established the organization as a 501(c)(3) charitable organization (as opposed to a 501(c)(6) trade organization for for-profit companies) so it can receive tax-deductible donations. The City of San Francisco even awarded a grant to SF Made to promote local economic development. SF Made has served as a model for other communities launching similar geographic branding programs.
Does it matter to you to buy local?
Post Links:
Listen to the interview with Mark Dwight of Rickshaw Bags: Episode 70 of The Wendel Forum (27:34 mins; mp3)
Rickshaw Bags Website: http://www.rickshawbags.com/
SF Made Website: http://www.sfmade.org/
960 KNEW AM Radio Website: http://www.960KNEW.com
Bill Acevedo’s Online Profile: http://www.wendel.com/wacevedo
In Episode 69 of The Wendel Forum (originally aired on July 7, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Gary Price, a tax partner at Sensiba San Filippo, one of the Bay Area’s largest accounting firms and a green business certified under the Bay Area Green Business Program.
Gary Price
Dick and Price discuss how in the last few years, it’s become economical for businesses to use renewable energy sources, particularly solar and wind, which provide energy without using oil or gas. Because buildings and their occupants produce a significant amount of pollution, even businesses like accounting, law and other service firms can help the environment by buying clean energy from roof-mounted solar power systems that replace or supplement power from the grid. Even if those businesses occupy just one floor of a big building, they can contribute to lower energy consumption.
Renewable energy used to cost more than electricity purchased from utility companies. But the 2008 renewable energy credit program helped bring prices down. Within just four or five years, companies using renewable energy will see the payback, resulting in real cash savings. Using solar and wind energy also has related insurance and bank loan benefits.
A new clean tech trend is that larger renewable energy companies – perhaps a solar company or even a company that produces a part of a solar energy system – have accelerated the use of solar power by become financing companies. As a result, customers may not need cash at all to buy electricity from roof-mounted solar systems. Solar and wind energy options will continue to grow and experience increased demand, which will further drop the price point.
If a business is interested in switching to renewable energy, Price recommends finding an expert to “put the whole thing together.” Construction and engineering companies, for example, have savvy energy departments. Law and accounting firms also have specialists that put green projects together.
What would it take for your business to buy clean energy?
Post Links:
Listen to the interview with Gary Price: Episode 69 of The Wendel Forum(27:53 mins; mp3)
Sensiba San Filippo website: http://www.ssfllp.com/
Price’s article on Sensible Savings: http://www.ssfllp.com/sustainable-savings-how-businesses-can-profit-big-from-clean-technology/
Bay Area Green Business Program website: http://www.greenbiz.ca.gov/
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile: http://www.wendel.com/rylons
In Episode 64 of The Wendel Forum (originally aired on May 26, 2012, on 960 KNEW AM radio), show moderator Dick Lyons, co-founder of Wendel Rosen’s sustainable business practice group, welcomes Steve Roth, CEO of Roth Consulting, which helps companies devise and execute a “winning strategy,” whether related to capital, expansion, product development or management.
Steve Roth, CEO of Roth Consulting
Roth brings his experience as a senior executive and investor in companies in a wide range of industries to green businesses and double-bottom-line companies, those companies for which a social goal — like benefiting the community or the environment — co-exist alongside profit goals. For those companies, the biggest issue is balance, Roth explains. Companies can’t forget that profitability is what allows a company to be generous and, therefore, profitability must remain the core operational focus. Companies shouldn’t become so enamored with a social mission that they lose the ability to fund it.
The average double-bottom-line company devotes about 5 percent of sales to a social mission. The more profits earned, the more impact the company can have. Ben & Jerry’s was one of the first and most successful double-bottom-line companies. “On a public relations basis, charitable endeavors are a big part of their raison d’être.”
Companies can also donate employee time – within limits. In the 1970’s, Xerox was one of first companies to devote its human resources to help the community, and some employees were even promoted on that basis. But Xerox diverted too much attention from its core business and now no longer exists. “It’s an educational tale.”
Another business challenge for these companies is making the charitable work relevant to customers. Many businesses in the coffee industry, for example, donate money back to the cooperatives that grow their beans. It may be more expensive to source products from those areas. As a result, customers may need to pay higher prices or the company may have to accept lower profits. “Corporate communication is critical to justifying the premium” customers may have to pay, especially in a competitive marketplace where consumers have many choices. The customer must be educated about the social benefit of buying that product.
Roth and Dick also discuss socially responsible investing.
What social causes would inspire you to purchase products from double-bottom-line companies, even if the prices were higher?
Post Links:
Listen to the interview with Steve Roth: Episode 64 of The Wendel Forum(27:45 mins; mp3)
Roth Consulting: http://www.consultroth.com
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile: http://www.wendel.com/rlyons
In Episode 59 of The Wendel Forum (originally aired on April 14, 2012, on 960 KNEW AM radio), show host Dick Lyons welcomes Morris Shriftman, a brand strategist for natural foods and green products, and CEO of Mozart, Inc. (A classical music fan, Morris’ company name carries the name of the great composer and is a double entendre on his name: “Mo’s Art.”) He also serves on the board of the American Botanical Council, which provides consumers with credible information about plants and herbs used in natural medicine.
Morris Shriftman of Mozart Inc. visits The Wendel Forum studio
A marketing expert, Morris has been focused on the natural food and alternative medicine industry since 1970. He began as brand consultant in New York. In the 70’s, he met the founders of Tree of Life and was hired as vice president of marketing, where, he says, he gained a “360 degree perspective” on the wellness industry, handling product creation, development, manufacturing, packaging, distribution, marketing and retail partnerships.
Tree of Life became both a major national distributor of natural products and had its own line of branded natural products. Among other things, Morris designed the well-known “Tree of Life” logo. In 1985, when Tree of Life was sold, he founded Mozart, Inc., which “creates products and builds brands for companies doing the right thing, including using healthy ingredients, removing objectionable ingredients and having the courage to be transparent.”
Dick and Morris discuss how natural products companies can communicate their message to retailers and consumers, a particular challenge for smaller, undercapitalized companies that can’t afford the marketing practices of larger companies, such as product placements, public relations, trade advertising, events marketing or consumer advertising. Those companies have to be inventive, Morris says.
Fortunately, social network marketing is an inexpensive way to reach a narrow audience of people who share similar values, what Morris calls “narrowcasting” (as opposed to broadcasting). Better than a new logo or slogan, narrowcasting permits a small company to convey its mission directly to communities that will be drawn to the mission. That happened for Avalon Natural Products where Morris was brought in as senior vice president of marketing.
He led the company to eliminate allergens and artificial and petroleum-based ingredients, including parabens, a preservative implicated in breast cancer. Avalon’s “consciousness in cosmetics” mission resonated with The Breast Cancer Fund, an organization that informs women about the environmental causes of breast cancer. Collaborating with The Breast Cancer Fund and networking with other women’s health organizations and green scientists became a major driver in Avalon’s marketing. That kind of work, Morris explains, can distinguish a company and create empathy with consumers.
Post Links:
Listen to the interview with Morris Shriftman: Episode 59 of The Wendel Forum (27:31 mins; mp3)
Mozart, Inc. website: http://www.mozartinc.com/
American Botanical Council website: http://abc.herbalgram.org/site/PageServer
Tree of Life website: http://www.kehe.com/treeoflife/Home.aspx
Avalon Natural Products website: http://www.avalonorganics.com/
The Breast Cancer Fund website: http://www.breastcancerfund.org/
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’s online profile: http://www.wendel.com/rlyons
Episode 57 – Interview with Christopher Angell of Jungell
April 24, 2012
In (originally aired on April 7, 2012, on 960 KNEW AM radio) show host Bill Acevedo talks to Christopher Angell, co-founder and president of Jungell, makers of Angell organic candy bars and GlucoLift all natural glucose tablets.
Co-founded with his wife, Suzanne, Jungell Inc. makes better versions of products the couple
Christopher Angell, Founder of Jungell
feels passionate about. The two grew up loving candy bars, but realized as adults that they would have to stop eating them after reading the labels. You’ve probably seen organic or fair trade chocolate bars in your favorite health food stores, but Angell’s line of products are the first true organic and fair trade candy bars on the market. They make a point to bring their own flavors to products and not just make an organic copy of what’s already on the market.
Why make candy that’s both organic and fair trade? Christopher believes if your interest in organic goes beyond your own health benefits to include the health of the environment (for example, the overall environmental and human health impacts of pesticides in farming), you’ll realize that the two go hand in hand.
Christopher and Bill discuss the organic and fair trade certifications and what goes into receiving those designations, including buying component ingredients from certified farms, inspections from certifying agencies and restrictions on genetically modified organisms (GMO’s) in food products, as well as the fertilizers and pesticides used in many farming operations that typically supply the candy industry.
A relatively new company (launched in 2010), Angell generated significant interest in the marketplace and recently announced the sale of the candy bar operations to Betty Lou’s, another organic snack manufacturer that was a contract manufacturer of the bars.
With the transfer of the candy bar business, Jungell is now focusing on its other major product, GlucoLift, which is an all natural glucose tablet designed to help raise blood sugar in a safe and quick way. Christopher, who has diabetes, saw a need in the glucose tablet market and put his product creator hat on to come up with a better solution.
As he had discovered in the candy bar industry, most of the glucose products available to those managing diabetes and hypoglycemia were filled with additives, artificial ingredients and questionable GMO components. Christopher thought he could do better. The result of his work was GlucoLift, the first all-natural glucose tablet on the market. And while he was at it, he made them palatable, in a series of fruit flavors and in packaging that made it easy for someone experiencing the symptoms of low-blood sugar to manipulate.
What’s next for Jungell? As the company wraps up the sale and transition of Angell Bars to the new owners, Jungell will continue to focus on GlucoLift. And Christopher and Suzanne will look for the next need in the marketplace where they can make a difference.
Post Links:
Interview with Christopher Angell: Episode 57 of The Wendel Forum(27:53 mins; mp3)
Jungell website: www.jungell.com
Betty Lou’s website press release: http://bettylousinc.com/news_detail.php?id=38
960 KNEW AM radio website: www.960knew.com
Bill Acevedo’s online profile: www.wendel.com/wacevedo
In Episode 56 of The Wendel Forum (originally aired on March 31, 2012, on 960 KNEW AM radio), show host Dick Lyons speaks with Paul Baier, Vice President of Sustainability Consulting at Groom Energy. Paul assists the company’s customers with their sustainability and energy reduction strategies, carbon footprint and responses to supply chain surveys.
Paul Baier of Groom Energy
In addition, Paul authors a sustainability blog called Practical Sustainability and moderates EnterpriseSmartGrid.org. He is a senior contributor and VERGE Global Advisory Board member for Greenbiz.com and is the primary author of a report on large enterprise smart grid and energy management software called “The 2011 Enterprise Carbon Accounting (ECA) Software Market: A Buyer’s Guide.” Paul sits at the forefront of issues related to large scale energy use by major organizations.
Dick and Paul discuss how large companies grapple with energy management and reduction – not an easy task. These companies face many challenging when it comes to energy and carbon measuring, management and reporting. First, they have to figure out what to track, then how. Most are responding to regulatory demands, need for better cost savings and what Paul refers to as “consumer compliance.”
Often the first step is trying to put their arms around what energy use really means in their business. Some companies are surprised that, in addition to improving their sustainability footprint, they can save significant amounts of money by implementing energy management initiatives. Once they realize that, most are prepared to put significant resources to the task. For many manufacturers and distributors, powerful companies like Walmart put pressure on them to complete rigorous supplier surveys to explain their strategies and results.
For single-facility operations it’s hard enough, but many of these suppliers have facilities around the globe, each with different standards, measurement systems, accounting systems and processes for collecting and tracking the information ultimately needed to institute a company-wide program. Paul helps these companies manage this complex process.
Helping companies to identify direct effect, indirect effect, and the overall impact in supply chain (Scope 1, scope 2 and scope 3), Paul observes that companies are becoming more sophisticated in identifying the hidden impacts of the entire supply chain.
Management people have been trying to anticipate cap and trade, carbon tracking, and what will happen as AB32 (in California) and other legislation dictates change for their industries.
As Paul says,
“Energy management is the flip side of carbon management.”
Paul and Dick discuss the types of providers who are stepping into the marketplace and the kinds of risks that various vertical markets must address in their forecasting models. The technologies being developed today will allow greater and greater precision and flexibility in tracking both the carbon footprint and the energy management of our major industries. And with the rise of cloud computing, the storage and processing options continue to become more affordable for even smaller companies. Paul suggests that because of the software, data storage and other advancements in recent years, precision energy management is no longer a technical problem, it’s a “willingness problem.”
Certainly the regulatory environmental, as well as consumer demand will continue to influence the willingness of companies to address these issues in significant ways.
Post Links:
Listen to the interview with Paul Baier: Episode 56 of The Wendel Forum(27:44 mins; mp3)
Groom Energy website: www.groomenergy.com
Paul Baier’s blog: http://practicalsustainability.blogspot.com/
GreenBiz.com website: http://www.greenbiz.com
Report link: http://www.groomenergy.com/eca_report_summary.html
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’ online profile: http://www.wendel.com/rlyons
In Episode 55 of The Wendel Forum (originally aired on March 24, 2012, on 960 KNEW AM radio), show host Dick Lyons welcomes Gil Friend to the show. Gil is Founder, President and CEO of Natural Logic, a company that provides strategic advice to support the sustainable economy. He’s been consulting in this area for more than 40 years and has some great perspectives on the past, present and future of sustainability in business. His company serves a wide variety of organizations ranging from municipalities to some of the best known consumer brands in the world (Levi Strauss and CocaCola, to name two). He was recently inducted as a founding member of the Sustainability Hall of Fame by the International Society of Sustainability Professionals. This is a guy with, as they say, gravitas in the industry.
Gil Friend of Natural Logic visits The Wendel Forum studio
Gil points out that, classically, people have defined sustainability as development that meets the needs of present generations without compromising the ability of future generations to meet their needs – or to put it more succinctly, by doing less bad.
He prefers to take a more positive approach. In his view, a sustainable business is a business that operates in harmony with the laws of nature – a little more inspiring.
When asked what major trends he’s seen, Gil shares that he believes there has been a major sea change in the last five years, with a large number of mainstream businesses considering the environment as a part of their core business operations. Most of us are familiar with at least some of the ways in which Walmart has led the pack in this area. When they started, a few years ago, they set goals without knowing exactly what the metrics would be or how they would meet them. But they didn’t let that stop them, and as a result they have had a big impact on a large sector of the economy.
Gil believes that sustainability has moved from the periphery of business operations to become a central driver of business value for many companies. Early efforts tended to focus on energy, waste stream, water usage and similar factors. What’s the latest? Carbon emissions. Companies are developing metrics for things like carbon emissions per dollar of revenue as a way to think about investment strategies. One resource in this area is the Carbon Disclosure Project.
Common sustainable business themes include companies looking more closely at the full length of the supply chain and adding transparency. Consumers want to know the materials that make up the products they buy, as well as the labor practices employed and environmental impact of their production.
What’s in Gil’s crystal ball for green business? He sees more companies taking sustainability further and more deeply into their operations. Companies are asking more systemic questions – embedding sustainability deeper into their DNA and developing better processes along the way.
For more of Gil’s insights, you might want to check out his book, The Truth About Green Business. It gives business leaders a framework, as well as practical nuts-and-bolts ideas, in easily digestible pieces.
Post Links:
Listen to the interview with Gil Friend: Episode 55 of The Wendel Forum (27:38 mins; mp3)
Natural Logic website: www.natlogic.com
The Truth About Green Business webpage: http://www.natlogic.com/resources/publications/the-truth-about-green-business/
Carbon Disclosure Project: https://www.cdproject.net/en-US/Pages/HomePage.aspx
960 KNEW AM Radio website: http://www.960KNEW.com
Dick Lyons’ online profile: http://www.wendel.com/rlyons
Episode 52 – Crowdfunding Legislation May Change Landscape for Companies Like Indiegogo
March 23, 2012
Danae Ringelmann of Indiegogo visits The Wendel Forum to discuss crowdfunding.
JOBS Act Passes Senate Vote
On March 22, 2012, the United States Senate passed the Jumpstart Our Business Startups Act (the “JOBS Act”) by a 73-26 vote. (The House of Representatives passed a separate version of the bill on March 8, 2012.) The JOBS Act includes a number of items intended to make it easier for small businesses to gain access to capital. In passing its version of the legislation, the Senate made some amendments to the JOBS Act that the House had previously passed, so it will be going back to the House for a vote on the amended bill shortly.
Senate changes to the crowdfunding legislation include:
- Companies that use crowdfunding must provide financial statements to investors
- Companies seeing between $100,000 and $500,000 need to get independent accountants to review statements
- Companies seeking more than $500,000 in capital must have audited financial statements
- Crowdfunding campaigns will be limited to $1 million for a single company
This should be welcome news to entrepreneurs, start ups, and small businesses. The JOBS Act, while a positive step forward to create opportunities for access to capital, is not the only avenue that entrepreneurs and fledgling companies can pursue, though.
Danae Ringelmann of Crowdfunding Website Indiegogo Visits The Wendel Forum:
In Episode 52 of The Wendel Forum (originally aired on March 3, 2012, on 960 KNEW AM radio), show host Bill Acevedo chats with Danae Ringelmann, co-founder and chief operating officer of Indiegogo.
According to the company’s website:
Indiegogo is a crowdfunding platform where people who want to raise money can create fundraising campaigns to tell their story and get the word out. Indiegogo is also a place to discover what people all over the world are passionate about and how to get involved.
This fundraising platform is used by small start up businesses, artists and performers, and nonprofit causes from more than 200 countries.
With a noble goal of democratizing capital and leveling the funding playing field, the company has launched more than 70,000 campaigns since getting going in 2008. Danae explains the process of crowdfunding and some of the unique feature that Indiegogo brings to the table.
She also shares some stories around successful campaigns and several lessons the company has learned along the way, including the fact that “people fund people,” not just ideas. Since it’s so important to provide a face for your cause, they have built a number of tools to guide you into a successful campaign. Their easy online wizards help you set up your account, and they provide ideas and tools to help you promote your cause.
What would motivate people to donate to a campaign on a site like Indiegogo? Danae says there are four primary reasons – to support a specific cause, to take advantage of the perks offered related to a campaign, to participate in something larger than oneself or to gain a cash return on investment (profit participation). NOTE: Until the JOBS Act legislation is sorted out, that last one is currently illegal for these models, so Indiegogo currently does not support that motivation. They do, however, support the first three.
The appeal of Indiegogo is quite easy to understand: the beauty of the platform is that people can actively engage in something they care about without quitting their day job. Listen in – we think you’ll agree!
Post Links:
Listen to the interview with Danae Ringelmann: Episode 52 of The Wendel Forum (27:36 mins; mp3)
Indiegogo website: www.indiegogo.com
Jumpstart Our Business Startups Act (JOBS Act) Legislative Text: http://thomas.loc.gov/cgi-bin/query/D?c112:4:./temp/~c112vr3i3D::
960 KNEW AM Radio website: http://www.960KNEW.com
Bill Acevedo’s online profile: http://www.wendel.com/wacevedo
Putting the Green in Your Dollars
March 12, 2012
“Neither a borrower nor a lender be,
For loan oft loses both itself and friend,
And borrowing dulls the edge of husbandry.”
William Shakespeare, Hamlet, Act 1, scene 3, lines 75-77.
Whether the wisdom of Old Polonius’s words to his son Laertes still holds sway is subject to debate when it comes to investing in green initiatives.
A recent study by the Filene Research Institute and Hall Associates Consulting, LLC indicates that credit unions have strongly invested in those who want to make green purchases, such as fuel efficient, hybrid or electric vehicles or home efficiency upgrades. The study finds that such lending programs attract borrowers who are low credit/default risks, spur credit union membership growth in important market niches, and promote business growth.
To learn more about the study and to view a video summary go to http://filene.org/publications/detail/finding_sustainable_profits.
Dick Lyons
TheWendelForum
Bill Acevedo
