The Opportunity of Holistic Greening

A letter to global thought leaders from Fisk Johnson, SC Johnson Chairman and CEO.

Dear Friend:

Over the past few years, the media have exploded with environmental coverage and the “greening” of everything from advertising, to products, to communities. Here at SC Johnson, we applaud this progress. Increasing demand for responsible products could drive advances in many industries. Also, companies working to be “green” may improve how they operate and reduce their impact on the planet.

This evolution must be about more than chasing today’s trend, however. It’s got to be focused on tomorrow and to go beyond the simpler solutions such as green marketing or carbon offsets. True environmental advances come when companies take a holistic approach to responsibility and commit to progress in the long term – when they consider opportunities from products to processes to power sources, and then establish stretch targets for not just one, but five and 10 years into the future.

Now, these efforts do require investment. And companies adopting the green mantle simply for marketing purposes might hesitate to invest, believing there must be a tradeoff between profitable growth and sustainable progress. But that’s simply not true. In fact, at SC Johnson we have found that by working simultaneously and systematically on increasing performance, cutting costs and driving environmental benefits, over time a great team can achieve progress across multiple objectives.

For example, our eco-efficiency efforts in the 1990s not only drove environmental progress but also saved SC Johnson $125 million. Our Greenlist™ process has improved the environmental footprint of our products since 2001 while at the same time enhancing the performance of numerous products such as Pledge® Multi Surface cleaner and Windex® glass cleaner. Cogeneration has reduced our greenhouse gas emissions and our dependence on coal in the United States, while burning waste palm shells for fuel in Indonesia has cut greenhouse gas emissions and simultaneously cut costs.

That’s what this Dialogue on Sustainability aims to highlight: the range of opportunities and solutions that combine to create holistic, long-term environmental progress that is good for business, too. Because we, as leaders, have an important opportunity to shape the “greening” taking place.

Like you, I want to make sure that enough is being done for the future, and that it is happening fast enough. I see an opportunity for solutions that are simple, transparent and founded in good science. I worry that politics or greenwashing could overshadow the fundamental need to do what is right.

But I also have great hope. I believe strongly – and I have seen it at SC Johnson – that if you lay out a vision, if you have good people, and if you empower them to do good work, you really can help change the world. And that’s what the progress is all about – making a positive difference, one company at a time. 

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The Opportunity of Holistic Greening
At SC Johnson, we believe environmental leadership goes beyond simply launching a green product or offsetting resource use in one area of the business. Doing what’s right is most effective when done holistically.

That’s why over the years, SC Johnson has targeted improvements across many aspects of our business, from product formulas, to packaging, to sourcing, to manufacturing processes, to shipping, to how we power our operations.

Our history is rich with examples, from removing chlorofluorocarbons from all our aerosols in 1975; to consulting in 1995 with Dr. Theo Colborn, one of the first experts on endocrine disruptors; to working with Environmental Defense Fund to eliminate chlorine bleached paperboard and PVC from our packaging in 2002 because they had been linked to health problems.

Similarly, we began targeting greenhouse gas and emission reductions almost a decade ago, and have since launched cogeneration to power our largest manufacturing plant, begun wind power initiatives at two others, invested in a system to use waste palm shells for fuel in Indonesia, and started exploring the potential for solar energy use.

The Whole Picture
Examined through a holistic lens, most businesses have opportunities for improvements large and small.

On the larger scale, there are efforts like SC Johnson’s Greenlist™ process, which we developed in 2001 to classify raw materials according to their impact on the environment and human health. The Greenlist™ process enables our scientists to make the best choices for our products, and SC Johnson has committed to license the process royalty-free to other companies that are working to improve the environmental profile of their products.

But smaller scale improvements have an impact, too. For example, our recent truckload utilization project helped us better fill trucks to reduce the greenhouse gas emissions associated with shipping, and also reduced SC Johnson’s diesel fuel use by 168,000 gallons per year. On an even smaller scale, shutting down a decorative fountain at one of our European operations during nights and weekends saves 34,000 kw/h of energy per year. It’s a small step, but small steps add up.

Importantly, there are opportunities for improvement all over the world. While SC Johnson has many efforts underway in North America and Europe, we had had notable successes in the developing world as well. In Indonesia, we’ve cut our greenhouse gas emissions 50% at a factory in Medan by using a former waste product – palm shells – as a fuel source, replacing diesel oil. Our factory in China is state-of-the-art and constantly improving: We cut fossil fuel use there by 11% as a ratio to production from 2000 to 2005, and have another five-year plan in progress now.

What to Consider
Here are a few areas organizations can consider as they look at their business holistically and seek environmental improvements:

Products:

• Are you making the best material choices that you can?
• Do you evaluate the raw materials used in your products to understand their impact on people and the planet?
• How are you helping to drive improvements in your industry?
• What about the companies that you source from?
• How can you use an environmental improvement as a competitive advantage?

Packaging:

• Have you eliminated materials such as PVC and chlorine-based paperboard?
• How can you minimize the packaging used on your products?
• Can you use recycled materials in your packaging?
• Is your packaging recyclable?
• Does your labeling encourage consumers to recycle?

Operational:

• Have you reached out to your local energy provider to explore renewable energy options?
• Do you have targets for waste reduction?
• Do you have targets for greenhouse gas emission reduction?
• Are you minimizing water use?
• Can you install automatic shut-off systems on lights and other equipment, to ensure they're used only when needed?
• Have you instituted recycling in all areas of your company, from offices to production facilities?
• What policies or guidelines do you have in place to educate employees about safety/health/environment topics?
• Are you looking at all your opportunities – at all locations and facilities?

Programs:
Have you considered taking part in efforts designed to support environmental improvements? These are some of the programs on which SC Johnson is working to progress:

• Design for the Environment Program – an EPA partnership effort that uses chemical assessment tools and expertise to inform the substitution of safer chemicals.
• Charter for Sustainable Cleaning in Europe – a voluntary movement of the European trade association A.I.S.E. designed to promote a common industry approach to sustainability practices and reporting.
• Climate Leaders Program – a partnership between EPA and industry that works with companies to develop comprehensive climate change strategies.
• SmartWay Program – an EPA program in which freight carriers and shippers commit to improving the environmental performance of their freight delivery operations, and get access to tools and support to help drive improvements.
• LEED Green Building Rating System™ – the U.S. Green Building Council’s benchmark for design, construction and operation of high-performance buildings.
• SC Johnson’s Greenlist™ Process – Contact Five Winds International, our third-party administrator, for information about licensing the Greenlist™ process royalty-free.

We All Have Opportunities
At SC Johnson, we understand that a holistic approach to responsibility is an ongoing process, not a one-time solution. We are proud to have made progress in many areas; but we also see many more opportunities in our future.

Most important, we intend to keep looking for opportunities across all aspects of our business, and we hope other companies will too. It is when we look at the whole picture that we can truly make an impact. And that’s something we can all feel good about.