Companies Giving Green an Office on Home Services

Dec

Companies Giving Green an Office

posted by admin in Home Depot

The corporate roster of chiefs used to be pretty short: chief executive, chief financial officer and, maybe, chief operating officer. Then came the chief marketing and technology officers.

Environmental vice presidents usually spend company money, but this new breed is helping companies make money, said Eileen Claussen, president of the Pew Center on Global Climate Change. The upshot, said Geoffrey Heal, a business professor at the Columbia Business School, is that what started out as a compliance job has evolved into one that guards the value of the brand.

The titles vary, mixing and matching chief and vice president, sustainability and environmental, making it impossible to track how many people fill the role. But whatever they are called, the new environmental chiefs many of them named in the last two years wield extraordinary power.

They are exploring partnerships with vendors and customers to create green products and they have the power to close the deal. They are also getting a vote often, the deciding vote on product research and advertising campaigns.

Since he became Dow Chemicals first chief sustainability officer in March, David E. Kepler has been talking to Dows technology, manufacturing and finance people about alternative fuels and green products. We usually agree, Mr. Kepler said. But if a critical environmental issue is in dispute, Ill prevail.

Linda J. Fisher, the chief sustainability officer at DuPont, scuttled the purchase of a company that was not in a sustainable business. Were building sustainability into the acquisition criteria,she said.

And when two business chiefs at General Electric blanched at the cost of developing green products, Jeffrey R. Immelt, G.E.s chairman, gave Lorraine Bolsinger, vice president of G.E.s Ecomagination business, the research money. I have an open door to get projects funded,she said.

The evolution was probably inevitable. Corporations are facing demands from all quarters to reduce their greenhouse gas emissions, and to buy and produce green products. So, many chief executives are urging their managers to figure out what products they should sell in a warming world,said Jonathan Lash, president of the World Resources Institute.

Still, few corporate chiefs want to micromanage the changes. That means they are appointing environmental surrogates to do it for them.

You need a lot of huskies pulling the sled, but youâ€™ve got to have a lead dog, said Andrew N. Liveris, chairman and chief executive of Dow Chemical. I cant be everywhere, so I confer my clout on Dave.

The environmental chiefs hail from widely disparate backgrounds. Owens Corning plucked its chief from research, while Home Depot dipped into its merchandising ranks. Ms. Fisher of DuPont once worked for the Environmental Protection Agency, while Francis Sullivan, deputy head of group sustainable development for the HSBC Group, came from the World Wildlife Fund.

I was already advising HSBC about the environmental impact of their activities, so now Im making sure that their brand stands for sustainability, Mr. Sullivan said. Two people share that job at G.E. Ms. Bolsinger is responsible for green products; Stephen Ramsey, the vice president for corporate environmental programs, oversees compliance and external relations. Both are corporate officers. Jeff will tell the staff to do something, Ms. Bolsinger said. We tell them how.

Other companies have rolled two jobs into one. Ernest Wooden Jr., executive vice president for brands for the Hilton Hotels Corporation, is overseeing Hiltons efforts to reduce the carbon footprint of its nearly 3,000 hotels. He already sets the standards for everything from architecture to shampoo, so purchasing agents and suppliers are accustomed to heeding his recommendations.

Our C.E.O. decided I was the most powerful hammer to get things done, Mr. Wooden said.

The powerful hammer thought certainly motivated Home Depot and Owens Corning. Since October, when he became Home Depots vice president for environmental innovation, Ron Jarvis has led efforts to sell green products, run green stores and educate customers about sustainability. He is also responsible for buying and selling lumber products.

The other merchandising people know Im from their world, and understand what will or wont work,Mr. Jarvis said.