Environmental awareness and action are becoming increasingly important to Americans. This includes raised expectations for organizations to be stewards. This macro perspective will analyze the impact of the environmental movement on American businesses and ways various organizations implement sustainable practices.
Boomers, Wealthy, Walking the Walk
Seventy-nine percent of Americans say they are environmentally conscious, reports a Trulia-sponsored poll conducted in March 2016 by Harris Poll. However, they don’t all practice what they preach—just more than a quarter (26%) considers the environment during their daily activities outside of recycling and turning off lights. Perhaps surprisingly, it is Baby Boomers, not Millennials, who take the most environmentally conscious actions beyond the basics (44%) compared to Millennials and the rest of the population (both at 34%). And according to data from Blueshift Research’s and Survey Monkey’s 2015 “Trends Tracker,” 42.4 percent of people making $150,000 or more annually are “very” or “extremely” likely to pay more for a product that is eco-friendly, the highest rate among any income bracket. Still, in total, 34.6 percent of respondents said they were “very” or “extremely” likely to pay more for eco-friendly goods. Only 8.7 percent were “not at all likely” to pay more for such goods.
People are also willing to pay more for products from businesses that are perceived as environmentally friendly. According to Nielsen’s 2015 Global Corporate Sustainability Report, 66 percent of respondents say they are more likely to pay more for a product from an eco-friendly organization—up from 55 percent in 2014 and 50 percent in 2013. This places a strong emphasis on businesses to consider taking environmentally friendly actions to improve their market position.
| Living Green: Young Vs. Old | |||
| Millennials (18-34 years old) | |||
| Are you an environmentally conscious person? | When do you take action other than recycling, etc.? | ||
| Strongly Agree |
24% |
Daily |
34% |
| Somewhat Agree |
52% |
Weekly |
26% |
| Somewhat Disagree |
16% |
Monthly |
31% |
| Strongly Disagree |
8% |
Never |
9% |
| Boomers (55+ years old) | |||
| Are you an environmentally conscious person? |
|
When do you take action other than recycling, etc.? | |
| Strongly Agree |
19% |
Daily |
44% |
| Somewhat Agree |
64% |
Weekly |
20% |
| Somewhat Disagree |
13% |
Monthly |
25% |
| Strongly Disagree |
4% |
Never |
11% |
Source: Trulia and Harris Poll
Green Energy and Corporate Responsibility
According to the U.S. Energy Information Administration (EIA), renewable energy makes up roughly 13 percent of the country’s energy consumption—a 5 percent increase from 2010. To compare, coal usage declined from 21 percent to 16 percent during the same time.
The United States has been the world leader in wind power since 2008. In 2015, wind provided nearly five percent of all U.S. electricity generation. EIA predicts that wind power generation will increase by an average of 2.4 percent annually through 2040. Last year the U.S. generated 1 percent of its electrical generation from solar. Hydropower generated roughly 6 percent in 2015.
Businesses across the country and around the globe have also made commitments to going green. Sixty-eight companies have joined RE100, a pact among some of the world’s largest companies to go 100 percent green—matching 100 percent of their energy consumption with green energy. Among them are IKEA, Bloomberg, BMW, Coca-Cola, Google, Microsoft, Walmart, Goldman Sachs and Nike. For example, Goldman Sachs has a target date of 2020 to become 100 percent green. Since 2012, the firm has committed $33 billion to solar, wind, smart grid and other renewable technologies. IKEA owns and operates 327 wind turbines and uses nearly 700,000 solar panels.
Amazon, Apple and Kaiser Permanente have signed similar agreements, committing to generate massive levels of green energy to use at their companies. Last year, Amazon entered a 13-year power purchase agreement to buy 150 megawatts (MWh) of wind energy, which equates to roughly 500,000 MWh annually—enough to power 46,000 homes.
Practical Applications
Not all companies have the resources to make large “green” purchases. However, organizations are finding creative—and many times simple—ways to reduce their carbon footprint. According to the Environmental Protection Agency (EPA), the hotel industry can save $745 million annually by cutting energy use 10 percent. Clubs can be comparable to hotels as some have lodging, but also have various rooms and facilities that host similar functions as hotels. Here are several initiatives hotels are taking to become more environmentally friendly.
Heating and Air Conditioning
Heating and air conditioning are major sources of energy consumption, accounting for roughly half of the energy use in U.S. homes, reports the U.S. Department of Energy. For some hotels, one method to reducing energy expenditures is to use an energy management system. This technology helps monitor the energy consumption through various parts of the premises. The system helps gather critical information such as occupancy, humidity, temperature and whether doors are open or closed, allowing for rooms to be set to optimal temperatures. The savings can be significant. According to Shipley Energy, an energy solutions provider, energy efficient heating and air conditioning systems typically generate 20 percent in savings.
A step down from this comprehensive system, according to The New York Times, is the “intelligent” thermostats that many hotels are installing, which can identify when the room is occupied or vacant. When the room is occupied, guests can select a temperature from a preset range. Once the room is empty, the thermostat switches to an energy-saving setting. This alone can save hotels 20 percent in energy costs.
In homes, similar technology is becoming mainstream. Smart thermostat unit sales increased by 123 percent globally from 2014 to 2015 with 4.9 million units sold, reports IOT Analytics, a market research firm, and Priori Data, an app store intelligence company.
Laundry
Laundry is one key area for improvement. Some hotels have begun to use bead cleaning technology, which helps reduce energy and water consumption, and also helps reduce the need to replace linens, reports Green Hotelier. The polymer beads replace water as the primary cleaning agent. One manufacturer, Xeros, offers a product that uses eco-friendly polymer laundry beads to reduce water consumption by 80 percent compared to traditional laundry methods. The technology also prolongs the life of linens by using less chemicals and more gentle wash cycle.
Lighting
Installing energy efficient lighting can reduce carbon footprints and energy bills. According to the American Hotel & Lodging Association, interior lighting makes up one-third of electricity consumption in hotels. As with heating and air conditioning, many buildings are using occupancy sensors to eliminate excess energy consumption. CFL, LED and T8 fluorescent bulbs are all effective alternatives to traditional light bulbs. For instance LED lights use at least 75 percent less energy and last 25 times longer than incandescent bulbs, reports Energy.gov. ShipleyEnergy reports 30 percent savings for hotels that use energy efficient lighting.
POS Systems
New point of sales systems are joining the cloud and operate through iPad technology. Some of these systems report up to a 97 percent saving from traditional POS systems, according to Green Hotelier. Other environmental benefits from these systems include.
· Paperless: Paper usage may be reduced by using such tools as emailing receipts to customers as well as an online audit trail.
· Fewer on-site visits: With new technology, POS systems can be serviced remotely, reducing visits from engineers.
· Track waste: Hi-tech POS systems can help increase efficiency by tracking things such as cooking, pouring drinks and other areas of waste.
Water
Water is an increasingly important resource, impacting both coasts. In California, extreme drought has plagued the state, accelerating the need for water conservation. In other parts of the country, even including the east coast, there are at least 16 short- and long-term droughts taking place right now.
According to the EPA, the U.S. population has doubled during the last 50 years but water consumption has tripled. The average family of four uses roughly 100 gallons of water a day, and at least 40 states are anticipating water shortages by 2024. The EPA recommends these steps for businesses take to save water:
· Maximizing natural vegetation
· Setting mower blades to two to three inches high to shade the soil and help it retain moisture
· Watering lawns when necessary
· Using mulch to reduce evaporation
· Collecting rainfall when possible
· Using a broom instead of a hose to clean walkways
Equipment like water-efficient toilets, faucets and showers help reduce waste. Well-functioning equipment can also reduce excess waste. According to the EPA, 1 trillion gallons of water are wasted each year through leaky faucets.
Technology is being developed to combat water waste. The EPA places a “WaterSense” label on products that have been certified to use 20 percent less water without sacrificing performance. Some WaterSense products include:
· Weather-based irrigation controllers that use local weather data to determine when and how much to water
· Rainfall shutoff devices/rain sensors
· Micro-irrigation/drip systems that send water directly to plants’ roots
In homes, Ark Labs, a Florida-based water solutions firm, has created a smart device that can detect excess water usage, water consumption patterns and leaks. It also allows users to turn off a home’s water through its app.
Food & Beverage
Restaurants are one of the leaders of the environmental movement. According to the National Restaurant Association’s (NRA’s) “What’s Hot in 2016” list, six of the top 10 food and beverage trends have environmental benefits. These include locally sourced menu items, sustainable foods and natural/minimally processed foods, which all help reduce the energy required to bring food to people’s plates.
As you will read in “The Green Kitchen” on page XXX, local and hyperlocal (rooftop gardens) food sources are growing in number, size and variety. In Philadelphia, there are already more than 40 community gardens and orchards. At the city’s Metropolis Farms, 13 acres worth of food can be grown on just 1,600-square-feet. Restaurants are also forming partnerships with nearby farms and gardens to have access to fresh, local produce. Castle Rock Adventist Hospital in Castle Rock, Colo., teamed up with one garden to help patients eat healthy during their hospital stays. The hospital’s restaurant, Manna, has access to 20 varieties of tomatoes, 10 varieties of radishes, six of carrots and other types of healthful produce—all sustainably farmed.
Shifts in consumer demand are driving the change. Americans are seeking healthier lifestyles. Bottled water is now more heavily consumed than soda, reports the market research firm Euromonitor. Also, many diners and restaurants have emphasized vegetables over meat, reports National Public Radio (NPR). Roughly half of Americans are eating more veggies, reports a poll conducted by NPR in conjunction with Truven Health Analytics. AL’s Place, a San Francisco restaurant, flips the menu and uses meat as a side to compliment veggie entrees.
There are possible positive environmental side effects from eating less meat. According to a study at the Oxford Martin School in the United Kingdom, reducing meat consumption to healthier guidelines would cut food-related emissions by one-third by 2050. The U.S. Department of Agriculture reports that U.S. meat and seafood consumption per capita has gradually decreased since 2004 with a moderate uptick last year. Poultry consumption is at an all-time high.
NRA data shows that 60 percent of consumers are likely to eat at a restaurant that uses environmentally friendly ingredients, and 69 percent says they are more likely to visit a restaurant that has a locally sourced menu. Locally sourced,“-free” (antibiotic-, hormone-, etc.), and other natural ingredients help reduce restaurants’ carbon footprints, have many perceived health benefits and are becoming increasingly popular.
Eco-Friendly Equipment
Many kitchen equipment developers, too, have joined the eco-friendly movement. NRA’s 2016 Kitchen Innovations Awards showcased numerous, new kitchen technologies, many of which place an emphasis on energy consumption. Of the 25 winners, 12 noted low energy or environmentally friendly uses. For instance, Mikeo’s GreenEye warewasher uses sensors to locate where dishes, glassware and utensils are on its conveyor belt for targeted cleaning to reduce excess water use. Champion Industries Ventless Conveyor Warewasher uses heat recovery to repurpose energy. Other technologies like Kitchen Brains SCK Food Safety Manager store essential kitchen data in the cloud, reducing paper usage.
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6 Ways to Save Energy and Money in Your Kitchen
1. Fix leaky sinks – One restaurant reportedly saved 53 gallons a day on wasted water, which adds up to $415 per year.
2. Replace old/inefficient pre-rinse spray valves – Switching from an old, 2-gallon-per-minute valve to a high-efficiency unit can save $860 annually.
3. Replace old light bulbs with energy efficient bulbs – Replacing 12 75-watt incandescent bulbs to 15-watt LEDs can save roughly $400 a year.
4. Clean refrigerator coils – Cleaning dirty coils can reduce energy consumption by one-half.
5. Insulate hot-water pipes – Insulating these pipes can raise water temperature by two to four degrees Fahrenheit.
6. Turn off equipment after use – Turning off one high-energy appliance for 30 minutes a day can save up to $400 annually. One restaurant saves more than $4,000 a year by doing this.
Source: National Restaurant Association
Laws & Regulations
It’s not just private organizations that are increasing efforts to protect the environment. On the federal, state and local levels, government bodies have taken measures to promote sustainability.
The EPA’s Waters of the U.S. (WOTUS) Rule will cause private clubs’ ponds, creeks and streams to be subject to the EPA requirements that will regulate the use of certain chemicals and fertilizers on their golf courses. As of this publication, the rule is currently suspended until the Sixth Circuit of the U.S. Court of Appeals makes a final decision. For country clubs in particular, the Federal Insecticide, Fungicide and Rodenticide Act regularly adjusts its list of regulated chemicals to protect humans and the environment.
In drought-stricken areas like California, rules have been put in place encouraging residents and businesses to reduce their water consumption, including limits on washing driveways and sidewalks, watering lawns and encouraging the use of recycled watered. In certain cases, failing to abide by these stipulations can garner a significant fine.
The federal government has created an initiative to cut food waste by 50 percent by 2030. More locally, jurisdictions like Austin, Texas, Connecticut, Massachusetts, Portland, Ore., Rhode Island, San Francisco, Seattle and others have established rules or goals to reduce food waste. Others such as Arizona, California, Hawaii, Washington, D.C., and more have implemented non-biodegradable plastic bag bans and/or taxes. When it comes to water, many local governments have implemented laws that restrict the amount of water used by faucets, toilets and showers.
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Top 10 Eco-Friendly Cities
1. New York
2. Portland, Ore.
3. San Francisco
4. Washington, D.C.
5. Honolulu
6. Seattle
7. Minneapolis
8. Boston
9. Oakland, Calif.
10. Fremont, Calif.
Source: WalletHub
Top 10 Eco-friendly States
1. Vermont
2. Washington
3. Massachusetts
4. Oregon
5. Minnesota
6. Maine
7. Connecticut
8. New York
9. New Hampshire
10. New Jersey
Source: WalletHub
Green Possibilities
Businesses and clubs have plenty of options for being environmental stewards, with many possible benefits, including improved relations with members and the community, increased savings, and helping protect the environment. Although it may require a large initial investment, it is worth considering if taking green measures is right for your club.
Club Trends Summer 2016