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THIS ISSUE'S SPONSOR
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Taking Care of Business
By Joel Makower
Wikipedia defines "logistics" as "the management of the flow of goods, information and other resources, including energy and people, between the point of origin and the point of consumption." The industry website Logistics World offers more than a dozen definitions. For us laymen, they all amount to this: how we handle and move people and stuff.
In the world of green business, logistics represents a myriad of unsexy, nitty-gritty practices, from how and where warehouses are built and operated to how goods are stored, packed, and transported throughout the sprawling global economy. Given the energy and climate impacts of transportation -- not to mention the savings to be rung out of improving inefficient warehouses, packaging, and the associated labor -- logistics is becoming of increased interest, especially during tough economic times.
This was underscored by a spate of logistics-related stories that surfaced last week. UPS released an annual report stating that the company plans to reduce the emissions of its airlines -- which represent more than half the company's overall greenhouse gas emissions -- 20% over the next 11 years, resulting in a footprint in 2020 that is 42 percent lower than 1990 levels. JohnsonDiversey, which makes cleaning and food safety products, which it sells in more than 175 countries, but has put in place a series of projects that will cut logistics-related greenhouse gas emissions by a quarter while allowing the company to trim lead times on product deliveries and boost service levels. It's not just stuff, but people, too: Alaska Airlines recently implemented technology at 23 U.S. airports that it believes will cut its fuel consumption by 2.1 million gallons per year and reduce annual greenhouse gas emissions by 22,000 tons.
It's not surprising to find that costs remain a speed bump on the road to greener fleets. A survey by fleet-management giant PHH found that a growing number of fleet managers have discovered ways to reduce their fleets' environmental impacts while keeping costs flat. Still, the survey found, cost was named as the No. 1 challenge standing in the way of fleet managers making their vehicles more environmentally friendly.
Of course, if you're the U.S. government, costs can be less of an object: The U.S. General Services Administration recently said it will help the United States Postal Service swap 6,500 old vehicles with a mix of hybrids, flex-fuel and four-cylinder replacements. Their check, presumably, is in the mail.
What Are the Odds? There's a fascinating story this week by veteran sustainability strategist Steve Voien about the greening of gambling, a stark juxtaposition of an industry seemingly at odds with the world of environmental sustainability. A quick visit to Las Vegas, for instance, yields a world of unsustainability: dramatic water fountains gushing amid the desert, glaring lights 24/7, excess in every direction. The gambling industry has pretty much been under the radar of activists (perhaps because few of these individuals ever set foot in casinos). Voien provides a snapshot of the industry's impact and ponders the potential for change. Green gambling? Don't bet on it.
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GreenBiz Radio
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Greening Your IT, for Newbies or Experts
By Matthew Wheeland
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In this excerpt from a longer interview with IBM data center architect John Lamb, the author walks through the steps companies should take when looking at energy efficiency projects, whether they're just starting out or have picked all the low-hanging fruit.... Listen
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Cement Industry Energy and CO2 Performance: Getting the Numbers Right
This report from the World Business Council for Sustainable Development's Cement Sustainability Initiative summarizes the work thus far in the nearly 3-year-old effort by the council and the industry's largest companies to make global cement production cleaner and greener.
Technology for a Low-Carbon Future
This report from the Climate Group finds that scaling up energy efficiency and renewable energy while avoiding deforestation can dramatically reduce greenhouse gas emissions in the short term, and are much-needed steps to achieve global climate goals.
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