Finding The Gold In Green
Sustainability initiatives in the food industry's warehousing and transportation operations equate to bottom-line performance.
Another area gaining interest is tracking and tracing as it relates to global sustainability, adds Frank. For instance, visibility throughout a company's global supply chain can inform stockholders, retail customers and consumers who are the countries of origin supplying raw materials.
"Companies can then advise if those countries are impacting their environments in a responsible manner as they produce food. We think this will become a powerful marketing tool so retailers can provide this kind of information to their consumers, thereby building buyer confidence," says Frank.
Beyond the economic benefits derived from sustainable business practices, companies can achieve a positive public relations image. But the most successful sustainability initiatives need support from the top down, says Frank. "The best practices we see implemented are predominately in companies with executive buy-in. If you don't have support from senior executives, the chances are not great that these types of sustainability initiatives will proceed over the long-term."
In the broader view, it will cost companies not to be green. Not only will they be at a competitive disadvantage in the marketplace, says Ellsworth, but it will cost companies not to be energy efficient. "Legislation is considering a plan that could have companies paying a tax or buying carbon credits if they are over certain emissions thresholds."
A pending greenhouse emissions bill could require a 65 percent reduction of carbon emissions by 2050.
Kraft, ProLogis 'LEED' The Way
An 800,000-square-foot building near Chicago developed by ProLogis, Denver, has been recognized for advanced environmental design by the U.S. Green Building Council (USGBC), a Washington-based building industry nonprofit group that promotes sustainable development.
The distribution center, located in Morris, IL, was completed in the first half of 2007 and is currently leased to Kraft Foods, Northfield, IL.
Together, the companies recently completed building improvements under the USGBC's "Leadership in Energy and Environmental Design" (LEED) for Commercial Interiors (CI) certification program. The building is now LEED-CI Gold certified and is the largest facility of its kind in the world to achieve this certification.
Elements of environmental design employed in the Kraft building include:
• Energy-efficient fluorescent lighting with multi-level lighting controls, resulting in a 60 percent reduction in lighting energy usage;
• HVAC ventilation system that improves air quality and reduces power consumption by 40 percent;
• Extensive use of recycled and locally sourced materials during construction, with nearly 100 percent of construction debris diverted to recycling centers rather than landfills;
• Use of wood-based construction materials harvested from Forest Stewardship Council (FSC) certified forests totaling nearly 80 percent; and,
• Interior paints, coatings, adhesives and sealants with low volatile organic compounds (VOC) emission levels.
