Mixed Signals Mark the Health of the Green Economy, According to GreenBiz State of Green Business Report

OAKLAND, Calif., Jan. 18, 2012 /PRNewswire/ -- If the green economy were a glass of water, it would be either half empty or half full, according to the 5th annual GreenBiz State of Green Business Report, released today. Stiff economic headwinds, cleantech controversy and a toothless regulatory environment gave sustainable business a sinking feeling during 2011. Yet advances in areas such as clean-energy patents, sustainable mobility and even green gamification are signs that innovation will lead the industry forward. The free downloadable report measures the progress of U.S. business and the economy from an environmental perspective.

"People expected cleantech and corporate sustainability efforts to grind to a halt with the global recession in 2011. While some key indicators such as toxic emissions and energy efficiency are flattening or declining, we're seeing that companies are more committed than ever to making sustainability a part of their core business strategy," commented GreenBiz.com Executive Editor Joel Makower, a principal author of the report. "They're integrating green practices into all levels of their company, and looking to sustainability to drive innovation, reduce operating costs and in many instances unlock new revenue opportunities."

What's driving the trend? Check the nearest C-suite: CFOs are rolling up their sleeves and getting more involved in corporate sustainability issues. According to a 2011 survey by Ernst & Young and GreenBiz, 65 percent of CFOs are now engaged in sustainability. This shows that companies recognize the material risk related to such issues as energy supplies, greenhouse gas emissions, toxic ingredients in products and water management. This trend also reflects growing pressure from shareholders to mitigate environmental risks and provide increased disclosure about environmental impacts.

Another eye-opening development lies in the apparel industry, where sustainable consumption is rippling throughout showrooms. Patagonia and eBay made a big splash last year when they teamed up to release ads encouraging clothing shoppers to "Buy less, buy used"; meanwhile, a Nike initiative to design apparel with the fewest possible materials continues to win over observers and could point to a more sustainable approach to apparel production. Additionally, entirely new industries are emerging to help consumers do everything from reuse unwanted shipping boxes to source locally grown food, thus reducing the massive environmental impact associated with food miles while supporting local economies.

This year's report also highlights companies that are using innovative new ways to engage customers and employees in sustainability initiatives. Known as "gamification," businesses use the idea of points, badges and other "game mechanics" to incentivize and reward good green practices. Companies like Sunpower and SAP have used gamification to reward such activities as learning about solar energy and employee carpooling. Additionally, the all-electric Nissan Leaf has social networking built into its dashboard. Drivers collect on-screen trees based on their speed and power usage, and can compete for virtual medals by sharing this information through an online portal.

Makower identifies other examples of continued innovation in sustainability in the 2012 State of Green Business Report, which include:

1. Sustainability Counts for CFOs – more CFOs are involved in sustainability.
2. Sustainable Consumption Gets Buy-in – mainstream companies are promoting smarter consumption, while mesh companies offer services instead of products.
3. Green Gamification Scores Points – the use of badges, awards, and other things to incent employees and customers to make good, green choices.
4. Sustainable Mobility Hits the Road –smart transportation systems and vehicle-sharing services are expanding.
5. Cleantech Survives a Crisis of Confidence – cleantech investments are predicted to increase despite some big name failures in 2011.
6. Energy Efficiency Gains Star Power – high-profile energy efficiency projects demonstrate potentially huge savings.
7. "Big Data" Creates Big Opportunities – a wealth of information associated with the "Internet of things" can yield insights and improve technology efficiency.
8. Footprinting Walks a Fine Line – more companies are taking stock of their negative impact on a host of environmental factors.
9. Sustainable Cities Take Center Stage – cities are setting sustainability goals and investing in green infrastructure and technology.
10. Non-News is Good News – sustainability has become less newsworthy as it is integrated into "business as usual."

Click on the links below to view multimedia video content of Joel Makower discussing the 2012 State of Green Business report, including:

• Green Business - Good News and Bad
• Why CFOs Count on Sustainability
• The Rise of "Games for Good"

The 2012 report will be the centerpiece at GreenBiz's upcoming GreenBiz Forums. These one-day events will take place in Minneapolis on Jan. 19, New York on Jan. 24, and San Francisco on Jan. 30. For more information on these forums, or to download a free copy of the 2012 State of Green Business Report, visit www.greenbiz.com.

About GreenBiz Group

GreenBiz Group defines and accelerates the business of sustainability. GreenBiz Group is an integrated media company focused on supporting professionals who view sustainable practices as a core part of their businesses. GreenBiz is focused on telling the stories, providing the insights and advancing the sustainability profession through GreenBiz.com, GreenBiz Events, GreenBiz Intelligence, and GreenBiz Networks. For additional information, visit www.greenbiz.com.

SOURCE GreenBiz Group