Is it possible?
“Of course,” says Raychelle Injete CEO of Kisere Eco Safaris. She should know for she is on the green path, a revolutionary way of doing business not only based on profits because that is how businesses survive but also on doing business the ‘green’ way which means going the extra mile to source businesses and projects to partner with and who are on the same wavelength – that is green business for sustainable development.
“There is a ‘green community’ out there that supports aspiring green businesses” says Richard Seireeni, president of The Brand Architect from Los Angeles, USA, a life long environmentalist with 40 years experience in marketing and now the author of the book ‘Gort Cloud’ (Published by Chelsea Green Publishing) that describes the invisible network that is powering today's most successful green brands.
Richard was in Nairobi early last year and conducted a public seminar on the business of going green. His book ‘Gort Cloud’ gives examples of businesses that have gone green and how they made it, giving examples such as Nike the sports wear, Tesla Motors creators of the electric vehicle; Ben and Jerry ice cream and lesser known ones like a paint company started by two women artists. The underlying mission for these companies has been to ‘do well’ for both the environment and the economy – which includes having real, workable business plans. In the case of Nike, it was getting away from cheap child labour in the sweat shops of China; for Tesla it was looking for an alternative to fossil fuels because of its greenhouse warming gases especially carbon dioxide; for Ben and Jerry it was sourcing for healthier organic food ingredients working down the supply chain to reach the small hold farmers. In the case of the paint company started by the two women it was creating less noxious paints.
Breaking away from the traditional mould of the previous century where businesses had the right to exploit the environment because it was in the name of ‘development’ and ‘necessity’, the new paradigm is on doing green business for sustainable development where the globe’s natural resources are not exploited unsustainably. It is no use going geothermal if the underground water table will be depleted thus unable to replenish the lakes that depend on it or setting up a factory which will pollute the water, air and ground. If all the variables are factored in such as ill health, diseases outbreaks, loss of livelihoods from activities such as fishing and others, it will cost the earth to put things right, if they can be put right.
The surest way, according to Richard, to move our society towards a sustainable future instead of talking about climate change, environmentalism or being socially responsible is to talk about efficiency and reflecting the true cost of our lifestyle choices in our product prices. This is in reflection of the fact that the world is running out of cheap resources and the cost of raw materials will only go higher, considering the increased population and its demand for resource in a finite planet.
Governments – whether from the developing or developed countries, must stop subsidizing the inefficiencies, waste and toxic byproducts of business, like carbon, that will inevitably become a cost of production and will ultimately be reflected in higher consumer prices. Taxpayers should not support dinosaur industries when those subsidies could be used to seed new, more efficient and healthier ones such as a kilowatt-hour of clean wind energy which may cost more than one that comes from dirty coal – but the difference is that the energy from the coal is hidden in deferred cost and subsidies.
“In this environment, companies that rapidly move towards more efficient models (call it greening if you like) will survive. Those that won't, on the other hand, will find their long term strategy un-sustainable,” comments Richard.
Going Green
“It was not easy going green,” says Raychelle. She started her touring company five years ago in an industry, which is saturated with safari companies. It didn’t take long for her to realize that she was going down under despite all the advertising and special rates offered. “I had to rethink my strategy,” Raychelle narrates her experience to the delegates at the inaugural Green Business Summit held in Nairobi in April last year.
With a background in environmental sciences and development work and some research, she realized that there was a market out there that was ‘green’. “So I did the next best thing; I had to re-brand the company,” she continues.
It was not as easy as adding ‘eco’ as the entrepreneur found out. Despite the sudden influx of hits on the company’s website with her new branding, clients wanted to know exactly what was ‘eco’ about the company.
“You cannot ‘greenwash’ (that’s lie in the green parlance) because there are ‘eyeballs’ watching out there,” says Richard. “You can claim anything but cannot get away with it because consumers check. The internet is powerful and there are certified writers out there such as GreenBiz.com.”
Going back to the drawing board, meant that Raychelle had to network and look for partners to work with. “Today we are working with groups in Mount Kenya region in reforestation projects; sourcing items that are made from 100 percent recycled materials and fashion labels like One Way which uses sustainable raw materials like 100% organic cotton, eco friendly inks and threads to make their T-shirts, safari wear and other clothings. Many people think of cotton as an organic cloth but growing it on large scale has traditionally meant using chemical fertilizers and pesticides in the process polluting the soils and water.
“People do not care anymore how old your company is. They want to know how you operate your business, or what you are doing for the environment. People are concerned about the planet,” says Raychelle.
“Sustainability is not a goal,” states Richard. “It is a process.” He illustrates this point with the case of one of America’s top supermarket chains, Wal-Mart. “It is not perfect but it started making small changes like sourcing for organic cotton. It gave the business a chance to refresh its brand with ‘save money-live better’.”
In a recent survey carried out in the US of companies in 18 business sectors, sustainable
Businesses outperformed the non-sustainable ones. Companies like General Motors and Chrysler, once ranked the most profitable companies, did not change their mode of operations when they had the opportunity to. Today, these two, once iconic motor companies are sinking because they started too late to get on the sustainability paradigm. Interestingly, many green companies have launched themselves with limited funds and almost zero budget for advertising instead relying on direct outreach.
Ironically, the summit aimed at the business community had only representation from fewer than ten companies including two from the tourism sector and none from the government. If green is the new emerging global economy, it is important that there is more participation from the public/private sector in order to compete on the international market. Or we may just flounder like Chrysler or General Motors.
How Can Africa Rebrand Itself?
“Africa is a dichotomy of two impressions in the West,” states Richard. “One is that it is basket case and needs charities to live on. The other is that it is a Garden of Eden full of wildlife. It is misbranded. Africa can move from a ‘charity’ brand to a ‘growth’ brand by striking a balance between the two impressions and coming up with a positive image.
Sustainability is one of the ways to change perceptions about Africa and Africans then have to value their resources because if we do not do that, then why should others do it for us? Richard continued his spiel with the example of New Zealand, which has made it a priority to brand itself as a nation which is identified with quality and sustainability. It is working towards making all its food produce natural and organic, free of chemicals or pesticides.
Another example he gave is of Curitiba, the capital city of the Brazilian state of Parana which is the most sustainable city in the world and hence attracting investments in businesses. The city, previously little known until 15 years ago had a face-lift when a young mayor with a far-sighted vision was elected. An architect by profession, he set about designing the city such that it worked – and things like traffic jams were taken care of with designing an infrastructure that flowed with ease.
“Africa,” concludes Richard, “could improve its image and enhance its value by embracing a continent-wide commitment to sustainability.”
Africa on the Carbon Market
It is no secret that Africa contributes the least to the global greenhouse gases pool yet the havoc brought by the ill gases has the biggest impact on the continent. Carbon credits are meant to incentivize companies or countries that emit less carbon. The total annual emissions are capped and the market allocates a monetary value to any shortfall through trading. Businesses can exchange, buy or sell carbon credits in international markets at the prevailing market price.
India and China are likely to emerge as the biggest sellers and Europe the biggest buyers of carbon credits. In 2007, the global carbon credit trading was estimated at $5 billion, with India's contribution at around $1 billion. Kenya and other African countries have the opportunity to climb on board the many emerging carbon markets by investing in green businesses. Afforestation and agriculture are two areas that most African countries can have projects to earn the carbon credit.
However, there is need for more awareness amongst the general public to invest in the carbon market. Adrianne Tas of Carbon Africa gives pointers on how to begin, “One has to understand the existing carbon market opportunities and capture them,” says the carbon market consultant. “By doing that, it is possible to earn financial rewards through mitigating factors.”
Companies like Mumias Sugar factory is one of the best cited in this area for using its waste sugar produce to generate power and selling the extra into the national grid thus, earning carbon credits and at the same time reducing its green house gases emissions.
“The carbon market is like any other market and Kenya needs to be out there to negotiate better deals for it,” continues the consultant. “This is a crucial time for many African countries to be able to negotiate a bigger slice of the carbon,” she concludes.
Lessons for Green Enterprises
1. Do good but also make money
2. Must compete like all other businesses which means that the price has to be right; the product has to be available all the time; it has to have performance. The ‘green’ is an extra plus.
3. Make truthful claims
4. Have transparent business practices
Ends.
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