Tag Archives: consumer products

How Best Buy makes money recycling America’s electronics | GreenBiz

Retailing giant Best Buy (NYSE: BBY) has seen its recycling take-back program grow from a costly gamble into a fast-growing business that’s making a little bit of money. “It’s profitable. But just barely,” said Leo Raudys, senior director of environmental sustainability at Best Buy. “People still don’t believe it.”

The skepticism comes from the fact that the program is not only free to consumers, but they can also drop off just about any kind of junk that runs or ran on electricity. A dead tube TV? Check. The cell phone you dunked? Of course. That leaky washing machine? Yep. Best Buy takes appliances, too.

So how does the company cover its costs and a bit more? I had the chance to catch up with Raudys last week during the Sustainability Operations Summit in New York City, where he spoke on a panel titled “Successfully Tackling Waste.” Afterward, Raudys talked about how Best Buy turned the potentially thorny problem of collecting recycling into a self-subsidizing operation.

At its launch in 2009, the chain required consumers to buy a $10 store card to drop off recycling. But last November, Best Buy dropped that fee.

Today, the program generates two streams of revenue. First, Best Buy takes a cut from its recycling partners. When truckloads of old TVs, PCs and dryers go to its processing partners, the plastic, gold, lead, nickel and other materials recovered from the dismantled waste is sold to be remade into new materials. And while volatile, the prices for all of these commodities have generally been heading up over the past few years, raising the share that comes back to Best Buy. A very small percentage of the waste, Raudys estimates, ends up recovered and refurbished.

Secondly, Best Buy collects revenues from its partners: big, well-known electronics brands. “25 states have rules requiring that manufacturers recycle some share of what they sell every year,” Raudys said. “Our network can deliver efficiencies that [the electronics makers] can’t match, so they buy access to it.”

Best Buy has also been able improve its margins by steadily lowering the costs of collecting and transporting the consumer waste by improving workflows and boosting volumes, he said. Higher volumes of waste let Best Buy win more competitive rates from its recycling partners as well.

But does Best Buy see any extra sales from customers lured in by the recycling service? After all, when faced with roughly similar prices for a flat panel TV from a number of retailers, many customers would opt for the vendor who can take away the old set. The benefit of the program remains unclear, however. Raudys explained it’s difficult to identify sales that happened because of the recycling policy. “We see this as a service to our customers,” he said.

It could have been a costly, unsustainable service, though. “The program was projected to cost $5 million to $10 million in the first year,” Raudys said. “We didn’t know what we were getting into.” If costs stayed that high, he said, the program might’ve been scrapped.

The program’s most tangible overhead costs are labor and storage space, to process the waste at its stores. There’s also the cost to truck pallets to recycling sites. Less visible costs for Best Buy include auditing the processes of its recycling partners. Raudys said the company hires third-party inspectors to enforce a corporate recycling policy that aims to match or exceed state and federal guidelines. To avoid the export of hazardous materials to low-income countries, Best Buy’s program includes physical inspection of shipping containers and paper auditing.

E-waste handling practices remain a controversial challenge. Scrutiny of e-waste practices increased in the wake of embarrassing revelations — most famously a 2008 investigation by CBS’ 60 Minutes program — that exposed recyclers who were sending e-waste to be dumped or processed in primitive, dangerous methods.

Experts say the problem has improved but still persists. “At least half of the e-waste collected in the U.S. for so-called recycling is exported to Asia and Africa where it is often smashed, burned, dumped or processed in conditions that endanger the health of workers,” said Jim Puckett, executive director of Basel Action Network, an e-waste watchdog group.

Three partners handle Best Buy’s e-waste. In the western U.S. materials go to Electronic Recyclers International (ERI) in Fresno, California. In the Midwest, old gear flows to Regency Technologiesin Cleveland, Ohio — and in the East, E Structors in Baltimore, Maryland handles the e-waste. Appliance recycling is done by Regency and Jaco Environmental in Snohomish, Washington.

Puckett would like to see all of Best Buy’s e-waste handlers meet the e-Stewards certification, a program co-developed by BAN and other environmental groups. “Only e-Stewards is consistent with international agreements barring export of hazardous e-waste to developing countries and forbids using municipal landfills or incineration for hazardous e-waste,” he said.

Of Best Buy’s three e-waste handlers, only ERI is currently e-Steward certified. But all three meet the R2 code, an industry-backed standard.

In the absence of federal or state regulations for e-waste, Best Buy’s take-back program is one of only a small number of options available. Just 25 states have e-waste rules, although Best Buy accepts recycling nationwide. “There are many places in the country where there are no alternatives,” according to Puckett.

The program’s growth, meanwhile, suggests there’s a big need. Since the program began, Raudys said, Best Buy has collected half-a-billion pounds of recycling, including both appliances and e-waste. And given that the volume of recycling is growing by 10-15 percent per year, Best Buy is likely to hit its goal of 1 billion pounds of consumer goods soon. Last year, some four million customers dropped off nearly 86-million pounds of electronics and 73-million pounds of appliances for recycling (see table, below).

Best Buy’s global recycling operations

Best Buy’s efforts come against a backdrop of intensifying efforts to improve e-waste recycling nationwide. Last week,Staples announced a deal with HP to take back all sizes of computers, monitors, desktop printer/scanner/copier devices, handheld electronics and various other retired gizmos.

The number of recycling drop-off locations for consumers nationwide grew to nearly 7,500 from just over 5,000 in 2011, according to the First Annual Report  of the eCycling Leadership Initiative (ELI), a program created by theConsumer Electronics Association, a consortium of major electronics manufacturers and retailers.

ELI participants arranged for the recycling of 460 million pounds of consumer electronics last year, a 53 percent increase over the 300 million pounds recycled in 2010. And the group is aiming to drive that figure to annual rate of 1 billion pounds by 2016.

Photo of Best Buy store sign by Lynn Watson via Shutterstock.


Will Greener Shoes and Uniforms Bring Nike More Olympics Gold? | GreenBiz

Will Greener Shoes and Uniforms Bring Nike More Olympics Gold?Nike hopes to win both green and gold at this summer’s Olympics in London.

On Tuesday in New York City, the sporting-goods giant unveiled a new line of sportswear designed to help Olympians go faster, farther and longer. Nike is manufacturing its 2012 Olympic kits using less material — and more recycled plastics — than in the past.

The announcement came as part of a series of “cutting-edge, lightweight performance innovations designed for the track, the basketball court and beyond for this summer,” CEO Mark Parker said.

To me, the most visibly different ecoinnovation is Nike’s Flyknit shoe design.

Instead of the conventional assembly of fabrics, rubber, leather and other materials, the Flyknit comprises a single piece of a flexible mesh knit, a strong yet pliant fabric that fits like a sock over a wearer’s foot.

Eliminating so much material cuts each shoe’s weight by approximately 20 percent to about 160 grams. That may not sound like much, but multiplied by the 40,000 steps it takes to run a marathon, that totals about the weight of a car — a ton or so — that elite marathoners will no longer need to lift, said Martin Lotti, Nike’s global creative director for the Olympics.

U.S. Olympic team members Carl Lewis and Abdi Abdirahman discuss Nike's Flyknit shoe.Less material also means lower environmental impact. It’s an example “that sustainability can improve performance,” Hannah Jones, Nike’s vice president of sustainable innovation, told me.

Nike is rolling out two versions of the Flyknit: a racing flat and a training shoe. Athletes from Great Britain, Kenya, Russia and the U.S. plan to wear the Flyknit at the games. At the event this week, 10-time gold-medal winner Carl Lewis spoke with 2012 Olympic team member Abdi Abdirahman (both pictured at right) about the Flyknit shoes.

A similar idea helped shape the company’s new line of Olympic uniforms. Here, Nike has boosted its use of recycled polyester to produce lighter fabrics for a variety of shorts and tops – and even a wearable racing skin called Nike Pro TurboSpeed. It’s basically a speed suit that’s covered in dimples, which act like the surface of a golf ball, reducing drag by creating a thin layer of turbulence as an athlete cuts through the air.

By making the fabrics from discarded plastic bottles, the recycled polyester fabrics cut energy consumption by roughly a third compared with virgin materials.

Next page: How recycled plastic helps athletes as much as the environment

The national basketball teams from Brazil, China and the U.S. will wear Nike Hyper Elite uniforms made from plastic reclaimed from 22 recycled bottles (pictured below). The shorts are ethereally light, weighing just about 5 ounces, a quarter of the weight of uniforms worn by today’s NBA pros.

Lighter uniforms translate into less fatigue, more comfort and better performance, said Deron Williams of the New Jersey Nets, who endorses Nike and is expected to play for Team USA in the 2012 games.

These products, the USA Basketball tank top and Nike Pro TurboSpeed track suit, are made from recycled plastic bottles.Soccer players tend to be a bit smaller than basketball players, so just 13 bottles are necessary to make each of their kits. Still, it adds up: Nike’s reuse of plastic bottles has diverted more than 82 million of the containers from landfills.

Speaking with me after the announcement, Lorrie Vogel, Nike’s general manager of Considered Design, told me how competitive Nike’s designers are.

“It’s a company full of ex-athletes, where we’re constantly scored on our performance, and green-design benchmarking is no exception,” she said.

I wondered if that competition makes Nike protective of its proprietary-materials innovations. The recipe for an ultra-lightweight shoe that may be worn on the Olympic podium this summer is worth protecting.

The company shares sustainability know-how strategically, Jones told me. New product or new material design recipes are typically strictly confidential, but design tools and shared materials knowledge is just the opposite, she said.

Jones, pictured at right, believes that among the many industries pushing the sustainability frontier, sports gear makers are among the most collaborative. For example, Nike and its competitors, Adidas and Puma, “recognize the benefit of sharing the recipe for green rubber with our suppliers,” she explained. “We know that if our competitors start ordering it too, the price will fall, supplies will improve, and that will lead to the faster change on a larger scale.”

Hannah Jones, vice president of sustainable innovation at Nike, discusses the company's Olympic innovations.Consistent with that collaborative approach to competition, Jones reminded me that today’s announcement follows a burst of intraindustry green-design initiatives that Nike has announced in the past 18 months. These include:

  • Waterless dyeing. Earlier this month, Nike announced it was rolling out a water-free dyeing method. Though limited in application for now, the approach has the potential to radically reduce the enormous volumes of water the industry consume using conventional methods to color textiles.
  • Zero toxins. The waterless dyeing fits into a broader push to cut toxic emissions to nil. Last fall, as part of a coalition that also includes Adidas, C&A, H&M, Li Ning, and Puma, Nike released a roadmap toward a goal of achieving “zero discharge of hazardous chemicals for all products, across all pathways in our supply chain, by 2020.” The initiative ties together separate efforts in water reduction, organic cotton, green chemistry and materials traceability and sustainability.
  • Design tool sharing. Throughout 2011, Nike launched a series of proprietary tools to help designers speed up their selection of sustainable materials. Nike released its Environmental Apparel Design Tool, a data set and calculator incorporating more than a decade’s worth of knowledge about material attributes. The company uses a similar tool for its Considered Design methodology to assess the impact of its products.

As part of her ongoing “How She Leads” series on women in sustainable businesses, Maya Albanese interviewed Hannah Jones for GreenBiz.com earlier this month. Check out their conversation here.

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View the full article here: http://www.greenbiz.com/blog/2012/02/23/will-greener-shoes-uniforms-bring-nike-more-olympics-gold

Green Gamification Takes Root in the Big Apple | GreenBiz

Green Gamification Takes Root in the Big Apple

In my green lexicon, “gamification” gets a special prize: it’s among the clunkiest words to enter the sustainability conversation, yet may just have some of the greatest potential to alter the behavior of consumers, employees and households.

Businesses are fast picking up on the promise. Gamification has unique synergy with green behaviors, with a knack for turning virtuous green actions — such as carpooling or switching to CFLs — from worthy but kinda joyless chores into tasks that earn rewards, gain recognition, and can turn ambivalent consumers into eager eco evangelists.

As part of Social Media Week‘s sprawling, 12-city lollapalooza of digital media events, the New York series included a panel entitled “Gamification: Combining Social Media & Game Mechanics to Promote Sustainability” that I caught late last week.

The panel brought together two recently sprouted startups with two established green brands.

Practically Green and The Mutual are both building businesses predicated on the power of gamification to alter green behavior, attract advertisers, and help organizations spur change.

Joining them were two groundbreaking companies, each born from innovative new approaches to recycling,Recyclebank and TerraCycle, each of which is increasingly using gamification to extend its reach.

Here’s a quick run down of how these companies talked about how gamification is changing their businesses.

A Social Media Approach to Greener Behaviors

Practically Green helps organizations become greener by using technology and social networking to educate, motivate and reward people for making green changes to their work and home life.

Conceived in 2009, founder Susan Hunt Stevens took her inspiration for the Boston-based company from LEED, the exhaustive guide to designing and building greener buildings.

But instead of LEED’s focus on building insulation or low-flow faucets, Stevens’ approach tallies up over 400 green behaviors, from commuting by bike to buying local produce.

Speaking on the panel, Stevens described the program as “LEED meets Weight Watchers,” for its blend of points and behavioral reinforcement through peer groups.

One of the challenges with sustainability, Stevens said, is that communicating how and why to do it is tricky. “The content can be technically complex. Some of it is political for some folks. And much of it is preachy.” Gamification breaks down the complexity into small, learnable steps, and depoliticizes the issue, she added.

Working with large organizations including NBC Universal, Eileen Fisher and the Seattle Mariners, Practically Green customizes workplace programs where staff sign in, and register their green behaviors, earning points and badges along the way.

For companies looking at ambitious sustainability programs, Stevens said, the program offers a easy-to-deploy, web-based solution that can quickly speed up employee involvement with green programs. This, by the way, is one way Practically Green earns revenue: charging a dollar or so per month per employee to companies it engages with.

(For more, Practically Green’s Stevens spoke with Chrissy Coughlin for Nature of Business Radio here at GreenBiz last September.)

‘Groupon for Good’

Not yet a year old, The Mutual is a Brooklyn-based startup that has been called “The Groupon for good.”

To join, a member picks a pledge level — say $10 per month — and a charity to steer the donations towards: options include think tanks such as World Resources Institute, conservationists such as Oceana, and climate groups like Carbonfun.org.

The Mutual, in turn, relays four-fifths of the donation to your charity, and uses the remainder — a share that’s on par, or less, than the take of a typical charity fundraiser for overhead — to grow its network of members and business partners.

Members, in turn, are rewarded with perks from business members looking to connect with a big pool of green-minded consumers.

For example, using FourSquare, I checked into a recent Mutual event at Brooklyn Brewery, and thereby qualified for a contest, discounts at the brewery, and earned points online at themutual.com.

“I describe us as a social enterprise that rewards people for donating to charity with Perks from great brands,” said founder and CEO Dan Vallejo.

The startup is scaling fast, with the bulk of early participants from the Bay Area, New York and Boston.

Green Gamification’s Greatest Success Story

Now eight years old, Recyclebank offers one of the best known success stories in the power of green gamification.

Recyclebank’s original business — and still its core offering — is an ingenious system that rewards household recycling. It does so by tracking and identifying how much recycling a given household is putting out on the curb.

In around 300 cities in the U.S. and U.K., public garbage trucks automatically weigh recycling bins, use radio tags to identify which home the material came from, and records the transaction to a web site. Consumers can then track the volume of their recycling online.

That’s all well and good, but the real carrot is the points that the recycling earns for the household. The more a home recycles, the more points they earn.

Consumers can convert those points with a network of scores of well known brands that participate in the tracking program, offering perks that can be redeemed for products and services from the likes of WalMart, Coca Cola to Procter & Gamble, to Bed Bath & Beyond.

The model has proved scalable and increasingly adaptable. Cities like it because it boosts recycling rates, which lowers their landfill costs since more trash is diverted to reuse. Consumers, and especially households where kids get highly involved, like the rewards scheme. And the marketing partners are on board for access to consumers who have proven be top quality prospects, with a high likelihood of redeeming the perks, using the products, and spending more.

That was just the beginning though. In recent years, as Samantha Skey, Recyclebank’s chief revenue officer, told attendees, Recyclebank is proving its business model works for more than just recycling.

The company is expanding its business model, marketing partnerships, and web technology to extend to many other frontiers of green behavior, such as e-waste recycling, responsible junk disposal, and energy reduction.

Growing from Worm Poop to Packaging Reuse

TerraCycle, the Newark, N.J. based brand has evolved into a $20 million-a-year operation, since it was founded in 2001 by Princeton University dropout Tom Szasky.

In a few short years, the company has pivoted but not abandoned its original focus on “worm poop” fertilizer — the innovative organic plant food, packed in recycled bottle, that was brewed from worm-rich compost piles — towards a broader focus on packaging reduction and reuse.

Partnering with schools and numerous major consumer packaged good companies, TerraCycle is capturing both pre- and post-consumer packaging waste to upcycle it: such as converting Capri sun bags into satchels, pencil cases, and other merchandise.

What’s the gamification angle here? Albe Zakes, TerraCycle’s global vice president, media relations, explained: Since TerraCycle’s community skews heavily towards kids and moms, a teachable-game fit the bill.

Partnering with Manhattan-based Guerillapps, TerraCycle developed Trash Tycoon. Played in Facebook, players earn points, and privileges by cleaning up a small town, and building sustainable businesses from the trash. It works like a mash-up between SimCity and Farmville, but with a decidedly green wrinkles. Treehugger.com, for instance, provides real-time news feeds of eco-current events that appear in the game.

Customized to help kids learn about waste and recycling, Zakes explained the game is being customized so that virtual activity mirrors and reinforces the real-world efforts of its classroom brigades, the groups of school kids who raise funds — and compete with other class groups — by recycling packaging materials.

Balancing Real and Virtual to Boost Sustainability

Threading through the discussion was a concern that converting virtual do-gooderism into real world action is a challenge. The panelists acknowledged that there’s a risk that they may be able to induce a player to click a mouse — say, to “like” a green action, or to win a badge — but may not be able to actually spur that person to do the deed.

In Practically Green, Stevens explained, finding the mix of virtual incentives and balancing them against real world programs in the workplace is as much art than science. What’s more, she said, the workplace is a powerful arena in which to educate and stimulate such behaviors, because many people are driven more by peer perception in work environments than they are in their private lives.

This spurs competitive behaviors and, interestingly, lowers the risk of false claims where folks claim to have completed a green task, such as recycling their office paper: “Their friends and colleagues know, and they notice, and will call out their friends if they’re cheating,” explained Stevens.

For TerraCycle, which built its business in part from the fabric of social dynamics at schools, Zakes explained its game actually complements and extends an existing foundation of existing actions.

Still, at the splash screen of the game, there’s this encouragement: “Trash Tycoon is great, but make sure to get outside and collect some actual recycleables once in a while.”

Held in collaboration with Baruch College’s Robert Zicklin Center for Corporate Integrity at the City University of New York (CUNY), the panel was curated by Ashok Kamal (a graduate of Ziklin’s MBA program) who co-founded Bennu, which provides social media marketing for green businesses.

For a broader look at the origins and breadth of gamification, check out Kamal’s overview of the gamification phenomenon here in GreenBiz.

Last but not least, you can watch a video of the full panel presentation from Social Media Week through the group’s website. Scroll to the very bottom of the page, where you’ll find two video links. The lower of the two is the first 90 minutes, including the four company presentations. The video above that is the final half hour, comprised mostly of Q&A.

Joystick photo via Shutterstock.

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Read the original story here: http://www.greenbiz.com/blog/2012/02/22/green-gamification-takes-root-big-apple

Dan Hendrix: The Future of Interface is Bright & Greener than Ever | GreenBiz

Dan Hendrix: The Future of Interface is Bright & Greener than Ever

Because of the enduring green epiphany of its charismatic founder, Ray Anderson, the influence of Interface has always been outsized in the world of sustainability.

In the wake of Anderson’s death last autumn at age 77, following a nearly two-year battle with cancer, the focus has shifted to Daniel Hendrix, Interface’s CEO and president. Yesterday, at theGreenBiz Forum 12 in New York City, senior writerMarc Gunther caught up with Hendrix to see how the billion-dollar carpet maker is moving ahead with its founder’s eco-vision.

At Interface, sustainability continues to evolve from an operations focus into tool for innovation and market development, Hendrix reported. One example of this shift will soon be found up in the air.

After a four-year development process, the company’s carpet tiles were okayed for use on commercial jets. Developing the product required reducing the weight of the tiles by nearly half, while meeting stringent fire and toxicity standards as well as passing Boeing’s grueling performance tests.

Southwest Airlines will be among the first to start using the tiles as part of its Green Plane initiative, a project to outfit a Boeing 737 cabin with green products. “It’s a big win for us, and for the airline industry,” said Hendrix.

Promoted to his post in 2001, Hendrix has been running Interface’s day-to-day business for over a decade. Hendrix, who will celebrate his 30th anniversary with the company next year, worked closely with Anderson through an acquisitive period in the 1980s to scale-up the business. A decade later, when Anderson had his green epiphany and declared this intention to transform how the company would make tiles, Hendrix recounted that he was a disbeliever: “I thought Ray had lost his mind.”

It didn’t take long for Anderson to convert Hendrix, or the rest of the company. To aid his effort, Anderson turned to a green “dream team” to make the case to his colleagues. A veritable who’s-who of sustainable manufacturing, the team included Paul HawkenBill McDonough, and Amory Lovins, among others. The case altered the thinking of Interface’s leadership, and re-set the company’s course towards a goal of making carpets using less oil, water, and other inputs, with less waste overall.

The company has tracked these metrics steadily since 1996. Since then, the company has lowered the oil intensity of its products to 60 percent from 90 percent, Hendrix reported. Roughly 40 percent of its carpet are produced from post-consumer recycled materials, remade from used carpet tiles where fiber is shaved off for reuse, and the heavy backing is re-melted to recapture its embodied energy. “We’ve seen an 82 percent reduction in water use, and a similar improvement in waste sent to landfill,” Hendrix said.

One of the latest efforts to deepen Interface’s green practices is a program to develop environmental product declarations, or EPDs, a sort of successor to a life cycle assessment (LCA). “It creates transparency,” said Hendrix, as a kind of environmental nutritional label for each product, showing key content such as carbon footprint, toxicity data, and water usage.

“It’s like an LCA but with more detail. It takes a lot of the mystery out of what impact this product has on the environment,” said Hendrix. “It’s far from being standardized. And we’re one of the first to pursue it in the U.S.”

After nearly 20 years of sustainability efforts, the process of extending green practices within the organization, born with Anderson, continues today. “Ray gave Interface a wonderful gift: There’s a tremendous emotional capital that continues to motivate our people to get up everyday and think there’s a higher purpose than just a paycheck,” Hendrix said.

Interface is looking to its employees for guidance on how and where to innovate. “We call the exercise ‘appreciative inquiry,'” said Hendrix. “We interviewed employees and a few customers, to help push towards a goal of zero emissions.” A lesson that emerged from this exercise was to cross-pollinate staff between offices, sending high performers from Bangkok to Europe, or from the U.S. to Australia, to learn and to exchange innovative ideas.

For more on Anderson’s legacy, check out Joel Makower’s memorial to the ” iconic and iconoclastic industrialist“. And in the first of an ongoing series called “Radical Industrialists” here at GreenBiz.com, read an essay contributed by Interface’s Lindsay James and Mikhail Davis, “Mind the Void: Interface after Ray.”

Photo by Sophia Wallace.


Check out the original story here: http://www.greenbiz.com/blog/2012/01/25/dan-hendrix-future-interface-bright-greener-ever