Sweden has the reputation of being a leader in actively promoting corporate social responsibility (CSR), and Swedish companies such as H&M, IKEA, Ericsson, ICA, Swedbank, and Scania are known to be leaders in sustainability and corporate responsibility.

The recent KPMG International Corporate Responsibility Reporting Survey 2011 found that 95% of the 250 largest global companies has undertaken Corporate Responsibility reporting. This widespread adoption by top companies is encouraging, however, the survey also shows the difference in the level of reporting among the 3,400 companies across 34 countries.

For example, Sweden is one of the leading countries, with 72% of its top 100 companies now reporting on their corporate responsibility initiatives. On the other hand, there are countries lagging behind, such as Singapore with only 43% of its top 100 companies with corporate responsibility reporting.

Another previous Responsible Competitiveness Index ranking published in 2007 by AccountAbility ranks 108 countries on how they are performing in their efforts to promote responsible business practices. Sweden emerged as the top country while Singapore is number 15.

What can Singapore learn from Sweden’s success and experience in embracing CSR? It seems that Sweden’s success in CSR is mainly due to the government leading and coordinating, and big companies taking responsibility. The cultural context in Sweden could also helped to play a part.

Government Leading and Coordinating

One key reason for Sweden’s success in CSR is due to the government playing an active role in coordinating CSR policies and integrating them into trade and foreign policy strategies.

The CSR focus is mainly coordinated by Sweden’s CSR Ambassador, Ms Lisa Emelia Svensson, at the Swedish Partnership for Global Responsibility, part of the International Trade Policy Department in the Ministry for Foreign Affairs. The Swedish Partnership for Global Responsibility encourages Swedish companies to embrace CSR and serves as a platform for businesses, labour unions, and non-governmental organisations to work together.

Sweden looks at 4 pillars of CSR – anti-corruption, human rights, labour standards, and the environment. Lisa shares that from the Swedish perspective,  CSR is purely integrated into the business model and vision of companies and involves the top management, and she stresses that CSR is not public relations or philanthropy. With more companies operating in the global market, businesses also have an important role in the overall development of the society.

The  main CSR instrument used by Sweden is the OECD Guidelines for Multinational Enterprises, which are negotiated by the OECD member countries, and are recommendations from governments to businesses on how to integrate CSR. Sweden also supports the UN Global Compact and the ISO 26000.

The Swedish government is actively promoting CSR because it sees CSR as a tool for promoting free trade. Sweden is a free trade-friendly country, but if companies do not take responsibility for human rights, labour or environmental issues, there could be trade sanctions and the government would find it difficult to have an open free trade agenda. So CSR goes hand in hand with free trade and global development.

As the Swedish CSR Ambassador, Lisa coordinates CSR policies within the government offices and works with 7 Ministers, to integrate the policies holistically so that Sweden can have a coordinated position on CSR, especially in international meetings. “I think it’s important to keep a very overall integrated perspective, it’s one of the success factors,” says Lisa.

Another effort by the Swedish government in taking the lead is to require all state-owned enterprises to have CSR reporting, in accordance with the Global Reporting Initiative (GRI), since 2007.

The government’s lead in CSR is acknowledged by the business community. Ms Marianne Bogle, Operations Manager at CSR Sweden, the leading business network that focuses on CSR and community involvement in Sweden, agrees: “I think different to other governments is that the Swedish government takes CSR extremely seriously.”

Big Companies Taking Responsibility 

The other main reason for the success of CSR in Sweden is that big Swedish companies are taking responsibility voluntarily. In the recent Newsweek Green Rankings 2010, the top 200 greenest global companies included Swedish companies such as Ericsson, TeliaSonera, Atlas Copco, Scania, H&M, and Volvo.

Mr Göran Norén, Head of Industrial Policy and External Relations, Confederation of Swedish Enterprise, which is Sweden’s largest and most influential business federation, shares that Swedish companies are active at CSR, as they understand that if their company is to do business in the long run, they have to deal with all relations with the suppliers, customers, and the government.

There is increasing transparency in the global context, and no place to hide anymore. It makes good business sense as companies would lose money if they do not handle issues in the right way. Businesses have to be in the driving seat and take corporate responsibility, thus earning trust from the government and building partnerships.

Focusing on CSR also helps businesses to recruit the right kind of people who want to work for a good company and do good while earning money, which is becoming increasingly important.

“We see CSR as a business opportunity, if you have  strong CSR management, then you can focus on the business opportunity to find new products and services, and then you will be the future of enterprise”, says Marianne.

Lisa explains that there are challenges of integrating CSR into the business and it is a process that can be better, but Swedish companies are on average among the best in the world. She adds that companies can still make money in a reputable way, and should be proactive before problems happen. CSR is also getting higher on the political agenda, and is not something that can be ignored by businesses anymore.

Göran mentions that many Swedish companies have sustainability reports and the companies listed on the stock exchange provide sustainability reports on a voluntary basis. Lisa also adds that although the stock exchange in Sweden does not require CSR reporting, about 75% of Swedish companies do reporting as part of corporate transparency.

This is becoming important due to the trend for more comprehensive CSR reporting. The European Union (EU) is recently exploring legislation that would require big companies to have CSR reporting, which could be mandatory in the long term. Göran thinks that in 5 years time, there could be some binding regulations on CSR in Europe.

For small and medium-sized enterprises (SMEs), Göran said that more SMEs have to do something about CSR as they supply to the big companies along the supply chain in this global market, and would have to follow the CSR requirements of those big companies.

Lisa admits that there are challenges for SMEs in embracing CSR as they are too small to know what is going on along the supply chain in the global market. But she adds that no SME is too small to care, they can always start by asking questions about the hard and complex issues.

Cultural Context

The success of CSR in Sweden could also be influenced by its cultural context. Sweden, like other Nordic countries, has a strong culture of environmental protection and sustainability. The Swedish culture of consensus could be influential too. Göran shares that in Sweden, people like to involve others in making decisions and to arrive at some consensus, and are also good at listening. These are traits for good stakeholder engagement in CSR.

There are others who say that “lagom” (loosely defined as enough, sufficient, or in balance) is an uniquely Swedish term or culture, which could explain why CSR is embraced in Sweden. The balance of making money while doing good is aligned with the lagom concept.

Swedish CSR might be unique from other countries, says Niklas Egels-Zandén, Assistant Professor at the School of Business, Economics and Law, University of Gothenburg. He explains that labour unions are involved in the CSR discussions in Sweden, which is not common in other countries. The stakeholder discussions usually look at multiple issues, which are addressed on an ongoing basis. There is low visibility and regular discussions done behind closed doors. In addition, the reason for engaging stakeholders is mainly to retain the trusting relationship of stakeholders.

He adds that home markets seem to influence a company’s CSR activities, depending on factors such as the codes of conduct in the country, and the type of pressures companies face due to stakeholders having different influence in different home environments. “There is no one size fits all,” says Niklas.

Niklas also cautions Asian companies in adopting CSR tools that are often predefined from the US or European context and which may not make sense in the Asian context. He advises Asian companies that they could build their own structures and models for dealing with supply chains, and think of their own strengths and build upon them.

Lessons for Singapore

Singapore can definitely learn from Sweden’s success and experience in embracing CSR. The government can do more to drive, coordinate and integrate CSR into its various agencies and policies. Singapore could also adopt Sweden’s example of requiring all state-owned enterprises to have CSR reporting.

Big companies in Singapore can also learn from their Swedish counterparts and take up their corporate responsibility voluntarily as it makes good business sense. Businesses should treat CSR as a business opportunity and not as a cost.

There is a need for companies to integrate CSR into the business model and vision, and involving the top management. It is also important to understand that CSR is not philanthropy or charity, which many companies in Singapore or Asia like to associate with.

Initiatives on CSR have to be customised according to the local context, although it should never neglect the principles of anti-corruption, human rights, labour standards, and the environment.

There are some cultural similarities between Singapore and Sweden such as both countries being very efficient, placing emphasis on sustainability, having a desire to reach consensus, and a good working tripartite relationship among the government, businesses and trade unions.

What Singapore could further work on is to embrace the Swedish lagom way of balancing economic growth and quality of life, of working effectively and living consciously, and of making profits while doing good.

Singapore is well-known for its food and shopping experience, and this potent mix can be found at the ubiquitous shopping malls located at all major town centers in Singapore. In recent years, shopping malls are starting to look almost alike, with the major international and local brands infiltrating the malls and offering similar sales.

Are all shopping malls the same? To differentiate itself from other shopping malls, some malls are trying to target different groups of consumers, while others are starting to brand itself on a particular theme. One recent shopping mall, City Square Mall, developed and managed by City Developments Limited (CDL), decided to focus on the green theme and prides itself as the first eco-mall in Singapore. So how green is this shopping mall?

Green Business Times recently visited the mall for a site tour and to understand more about this unique shopping destination from the mall’s Environmental Officer. City Square Mall is located at the junction of Serangoon Road and Kitchener Road, and is opened since September 2009.

CDL is well-known as a green developer and sustainability leader in Singapore, having won several awards for its environmental and CSR initiatives. At CDL, its commitment to business sustainability and excellence is part of the corporate ethos.

When CDL planned the project for City Square Mall, it reviewed the relationship of the building with the people in the vicinity and the environment, and envisioned City Square Mall to be a shopping mall for families to congregate, play and shop while allowing them to enjoy an eco-friendly experience and learn more about the environment.

As Singapore’s first eco-mall, City Square Mall is designed, built and managed with environmental sustainability in mind, and was conceptualised as a prototype of an eco-friendly and community-friendly shopping mall with a comprehensive range of innovative energy and water efficient features. CDL invested approximately 5% of the total construction cost into the development of the mall’s numerous green innovations.

City Square Mall has been awarded the BCA Green Mark Platinum Award and its eco-friendly features include a 49,000 sq ft urban park, an eco-playground made of child friendly conditioned wood certified by the Forest Stewardship Council (FSC), a green roof with solar panels and water-harvesting capabilities, recycling bins as well as in-mall educational graphics and messages about the environment.

The various energy efficient features has helped the eco-mall to reduce total energy usage by approximately 39% compared to designs using standard industry codes, and to save more than 17 million kWh of electricity from October 2009 to February 2011, and to reduce more than 6,800 of carbon dioxide emissions per year. The features include:

• Sunpath analysis for effectiveness of sunshades and wall insulation
• High-performance low-emissivity double glazing to reduce heat transmission
• High-efficiency air-conditioning plant system
• Lighting zoning and alternate lighting circuits for common areas
• Motion detectors for toilets and staircases
• Motion lighting sensor for vehicles at Basement 4 carpark
• Eco green roof with solar panels and water-harvesting capabilities
• Indoor greenery and landscaping to mitigate urban heat island effects
• Lifts, escalators and travellators designed with auto-lighting and ventilation fans and slow-down features

The water efficient features at the eco-mall has helped to reduce operational costs and save about 10 Olympic-sized swimming pools of water annually. The features include:

• Rainwater harvesting for plants irrigation
• “Eco-restrooms” with waterless urinals with “very good” to “excellent” water fitting under PUB’s Water Efficiency Labelling Scheme
• Recycling of condensate water from Primary Air-handling Unit for cooling tower make up
• Water sub-meters to monitor water consumption and leak detection

Other design innovations in the eco-mall include:

• Installation of a twin-chute pneumatic refuse collection and disposal system (for separation of general and recyclable waste)
• Rain sensors for landscape irrigation
• Non-chemical water treatment for cooling tower
• Electric-car ready carpark with charging stations and dedicated lots for hybrid cars
• Environmental-themed sculpture to raise public awareness on environmental conservation
• Real-time display of indoor environmental performance for shoppers

The shopping mall with 700,000 sq ft of gross retail space has about 200 tenants. In line with CDL’s holistic life-cycle approach towards environmental sustainability, beyond green building design and sustainable mall management practices, it also promotes environmental sustainability to the various stakeholders from the outset, through engagement initiatives with tenants and providing an eco-learning experience for shoppers.

The mall hosts an extensive mix of eco-friendly tenants such as NTUC FairPrice and Kopitiam where these tenants have taken the extra effort in incorporating eco-friendly design and products in their stores, unlike their other outlets. Along with the mall’s many family-friendly tenants such as Amore Living (Fitness & Spa), MindChamps Preschool and OCBC Bank, these eco-friendly tenants reinforces the mall’s positioning as an eco-friendly and family-friendly mall.

CDL organises eco-themed activities regularly and also incorporates eco-friendly practices to educate both tenants and shoppers with a greater awareness about the environment. It also promotes green best practices like recycling, reusing and reducing where recycling bins are placed prominently throughout the mall. The mall also hosts regular eco-workshops to teach children how to enjoy various eco-learning activities such as terrarium making, festive crafts, and urban recycling.

Some people might argue that a shopping mall cannot be sustainable since it promotes consumerism as its core focus, but CDL hopes to balance excessive consumerism and sustainability in the eco-mall through a mix of “hardware” such as green design and features, and “software” such as environmental education and inculcating eco-friendly practices among tenants and shoppers. This is what other shopping malls in Singapore could emulate, and maybe eco-malls would be as ubiquitous too in the near future.

Images: City Square Mall and City Square Mall logo via CDL

Having come across many green ideas over the past few years, there is one recent idea Eugene would claim that he ‘die die must share’ – the idea of Collaborative Consumption.

Collaborative Consumption refers to the idea of sharing that is empowered by technology and social networks, and how it changes consumption and the way businesses operate.

Sharing also covers renting, swapping, lending, trading, exchanging, bartering, and gifting. The advantages of sharing are that fewer resources are used to make and ship products, and less waste are generated and disposed.

The term Collaborative Consumption was first described in 2010 in the book What’s Mine Is Yours: The Rise of Collaborative Consumption by Rachel Botsman and Roo Rogers.

Other resources with similar ideas on sharing include the book The Mesh: Why the Future of Business is Sharing by Lisa Gansky and the Shareable website.

Eugene believes that Collaborative Consumption is an important and emerging idea because consumers are starting to realize that they can share rather than buy more stuff.

This is motivated by greater environmental awareness and cost consciousness, the proliferation of mobile peer-to-peer technologies and social networks, and the need to be part of a community.

In the book What’s Mine Is Yours, the authors describe three systems of Collaborative Consumption – Product Service Systems, Redistribution Markets and Collaborative Lifestyles.

Product Service Systems

Product Service Systems is where you pay for and enjoy the benefit of using a product without having to own the product.

Local examples in Singapore include HollywoodClicks.com, which rents movie DVDs to customers who receive and return the DVDs via post; Maternity Exchange, which offers maternity and nursing wear rental for mums-to-be; and Clean Mobility Singapore, which provides electric vehicle sharing and rental scheme.

Another example of Product Service Systems is MyRideBuddy, a dynamic and real time carpooling solution in Singapore, which matches users near common start and end points so that they can share a car ride together according to their convenience and preferences.

It allows individuals to benefit from the convenience of the car without owning one, while reducing costs and the problems of congestion and air pollution.

Redistribution Markets

The second system of Collaborative Consumption is Redistribution Markets, where you transfer used or unwanted stuff to somewhere or someone where they are wanted.

Local examples include SG Freecycle, where anyone can post their unwanted items or request for stuff that they want; Offstock, where companies can buy or sell excess stocks of chemicals and raw materials; and Pass It On, which allows the public to donate used furniture and appliances, which are given to needy families and charities.

Another example of Redistribution Markets is Waste is not Waste (WINW), an online waste exchange for businesses and organisations in Singapore and Malaysia.

WINW facilitates the exchange of waste materials and unwanted items from companies and organisations that no longer need them to businesses, non-profit organisations, designers and schools that can utilise those waste.

This reduces waste and keeps valuable resources out of the incineration plants and landfills while helping companies save time, money and reduce their environmental impacts.

Collaborative Lifestyles

The third system of Collaborative Consumption is Collaborative Lifestyles, where you share and exchange less tangible assets such as time, space and money with people of similar interests.

Local examples include Hackerspace Singapore, which provides a co-working and relaxing space for techies to work and collaborate; Give.sg, which allows anyone to organize their own fundraising campaigns; and SG Cares, which matches volunteers with volunteer groups and opportunities.

Another example of Collaborative Lifestyles is Milaap, a social enterprise providing a microfinance platform that enables individuals to make microloans that help villagers in India gain access to basic services, such as education, healthcare, electricity, and clean water.

While Collaborative Consumption is still in its infancy in Singapore, Eugene believes that this idea would gain more interest in the coming years and more companies would start to explore the business opportunities of sharing.

The earlier business examples show elements of sharing, but they have not really made full use of technology and social networks to better enhance sharing.

For the companies, they would have to work with the green and tech community, and maximize the use of technology to come up with better and more sustainable ways of sharing.

For consumers, it’s time to get ready for Collaborative Consumption.

Images: Love God and your neighbor 1 by sraburton; Collaborative Consumption Graphics – The Complete Picture by Rachel Botsman under a Creative Commons Attribution-NonCommercial-NoDerivs 3.0 Unported license

We First is about corporations creating value and building a better world, and consumers accepting a higher level of responsibility for creating the world they want. The transition to We First is realistic and possible today with the rise in social media, which gives consumers more leverage to persuade businesses to accept greater social responsibility for their behaviours, and offers businesses more opportunities to have real-time dialogues with their customers.

Simon argues that while some companies are embracing elements of corporate social responsibility and triple bottom line accounting, the overall progress of integrating sustainability into the fundamental principles of free market capitalism has been irresponsibly slow and not deep enough. To put business on the We First path, he proposes seven values: Sustainability; Fairness of Reward; Fiscal Responsibility; Accountability; Purposefulness; Engagement; and Global Citizenry.

In the book, Simon outlines his vision for We First capitalism, including the responsibilities of We First companies and consumers, and the ideas of Contributory Consumption and the Global Brand Initiative.

We First Companies

We First companies must accept a higher level of responsibility and accountability, show leadership commitment and engage employees and management, focus on sustainable business practices, build prosperity and collaborate with other companies and governments.

We First companies also need to enlist consumers as their partners in change efforts by allowing consumers to co-create the brand, involving them in meaningful causes, building social capital, engaging consumers and giving them the chance to vote on the brand every day.

We First Consumers

We First consumers can use the tools of social media to shop more consciously, through researching a brand’s footprint, and recommending socially and environmentally friendly products. Consumers can also be involved in social entrepreneurship or invest in responsible companies.

We First consumers would persuade companies to be more responsible by using social media to spread ideas and issues, lobby for better models of economic progress, push businesses to implement social contracts, and engage in positive dialogues with companies.

Contributory Consumption

Simon proposes a new system of We First funding, Contributory Consumption, in which every transaction generates a charitable contribution. This can be implemented through real and virtual marketplaces, such as retail stores, online shopping, mobile devices, and virtual games. Examples are shown below:

Global Brand Initiative

Simon also proposes the Global Brand Initiative (GBI), an association of brands and their advertising partners working together to advance corporate social responsibility and charitable donations. The GBI would pool their resources, expertise, knowledge and talent into one focused initiative to change the world.

The vision of We First is about businesses leveraging on social media to build consumer goodwill, loyalty and profits, and about consumers using their social media tools  to influence and drive change in businesses. Whether the vision becomes reality would depend on our choices, as Simon rightly concludes: “We are the only ones who will build the world we want.”

Images: We First

At Green Business Times, we have always admired the vision and work of Ray Anderson, a true sustainability leader and the founder of Interface, Inc. To give our readers an overview of Ray’s vision and how Interface embraces sustainability, we recently interviewed Jim McCallum, Senior Vice President, InterfaceFLOR. His insights in response to our questions are found below.

[We are sad to hear the passing of Ray Anderson on 8 Aug 2011. A great loss for the green business community but his vision will continue to inspire many others on Mount Sustainability.]

About InterfaceFLOR

InterfaceFLOR – part of Interface Inc – is a worldwide manufacturer of environmentally-friendly modular flooring. Founded in 1973, InterfaceFLOR has manufacturing facilities across four continents and offices in more than 100 countries.

Interface companies share the commitment of founder Ray Anderson’s vision of a business that gives back to the environment what it takes out. This vision is known as ‘Mission Zero’– achieving a zero carbon footprint by 2020. Sustainability governs every creative, manufacturing and building decision made; it is at the heart of the company’s culture, with staff rewarded on their commitment to sustainability as opposed to output levels.

1. Describe your company’s green initiatives and practices.

Over the years the Interface brand has gained more and more recognition for sustainable awareness. Since the mid 1990’s we have been on a journey towards a position whereby our company will have no negative effect on the environment. This goal is what we call Mission Zero, which is our promise to eliminate any negative impact our company may have on the environment by the year 2020. There are 7 markers which we base our journey on:

• Zero waste
• Zero harmful emissions
• 100% renewable energy
• Creating closed loop systems
• Resource efficient transportation
• Integrate sustainability as part of culture
• Pioneer new business models for sustainability

Additionally, we have the following key initiatives:

ReEntry® 2.0, a process that reclaims old carpet and converts it into recycled raw materials, diverted 12,500 tonnes of carpet from landfills in 2010. Since 1995, ReEntry has diverted a cumulative total of 103,400 tonnes of carpet and carpet scraps. The company’s ReEntry 2.0 reclamation process recently expanded to the company’s European operations in the Netherlands.

Carbon offset program – “Cool Carpet”. This is the 1st “Climate Neutral” option offered in the industry. Twenty-six million square metres of the company’s climate-neutral Cool Carpet ™ were sold in 2010, with over one hundred and twenty million sold since the start of this program. Under this program, GHG emissions for the full lifecycle of Interface products are calculated. Carbon offsets are then purchase in the form of certified emission reduction credits which are independently verified, thus providing green customers an environmentally responsible product option.

2. Why did your company decide to go green?

This journey, which has now been going on for 16 years was really started through the leadership of the founder of the company and current chairman Mr. Ray Anderson, who was greatly inspired by the book “The Ecology of Commerce” by Paul Hawken. Ray observed two absolute myths that had existed since the dawn of the industrial revolution.

• The earth is so large. It is an inexhaustible source of materials and natural resources. We’ll never run out.
• The earth is so large. It is a limitless sink, able to assimilate waste, no matter how poisonous.

This is exactly how the industrial world had been viewing its approach to business. Of course the two statements are fundamental untruths. The fact of the matter is the earth and its resources are finite.

Ray felt very passionately that things had to change; that governments would not be decisive enough to bring about this change, so the change would have to be led by industry, by commerce, by business and if industry had to lead the change, who would lead?

Interface took on this challenge and very soon the entire company was motivated to try to make a difference. Try to change the way we do business, try to reduce – in every way – the effect our actions had on the environment.

3. What are the challenges faced by your company in going green?

While the challenges inherent in “going green” are not overwhelming, the challenges inherent in reaching Mission Zero; our promise to eliminate any negative impact our company may have on the environment are immense.

We are however, over 60% along our journey and the greatest challenge is to maintain and heighten the motivation of all our employees to innovate further, in order to reach the summit of our Mount Sustainability. This culture of integrating sustainable business practices into the everyday lives of our associates is the most important factor in the quest to reach our primary goal. This culture must be continuously nurtured and our employees must be empowered to think creatively and be connected towards a higher purpose.

4. How has going green helped your company?

• We have reduced the amount of waste sent to landfill per unit of production by over 80%.
• Our water usage is also down 80% per unit of production
• Our net absolute greenhouse gas emissions are down 35%
• However, with verified offsets, our net absolute greenhouse gas emissions are down 90%
• Total energy usage is down 43% per unit of production
• But fossil fuel derived energy is down 60% per unit of production
• And 30% of our global energy requirement comes from renewable sources.
• Our use of recycled materials as a percentage of total materials used now stands at 36% as opposed to one half of one percent in 1996.

The list goes on and on, but the key thing we should all understand here is that this is a good business plan. You do not have to sacrifice profitability to be sustainable.

The waste saving efficiencies alone (in excess of US$430 million) have financially justified our endeavours, but this approach also differentiates us and creates a compelling reason why our customers want to continue doing business with us.

5. Does your company have other green plans over the next few years?

We are constantly evolving and innovating in the arena of sustainability; our journey so far has lasted 16 years, so this business model is not merely a fad to us. We take it one step at a time, making many small improvements as opposed to occasional giant leaps. A motto we have adopted is that the compass is more important than the speedometer; the importance lies within maintaining progress in the right direction.

A major target we have set ourselves however, is to establish a ReEntry system right here in Asia, whereby we can reclaim and reprocess old carpet tiles totally within the confines of this continent instead of utilising the facilities we have in the US and Europe.

6. What advice would you give to companies who are interested to go green?

It is the right thing to do. When we first embarked on this business model it was almost an altruistic development on our behalf. However, we soon discovered incredible economies through our diligent approach to waste reduction and energy reduction. Processes and systems needed to be overhauled, we needed to pay attention to the tiniest of details, but this tenacious and focused approach brought about great savings. These savings (in excess of US$430 million) has more than paid for the investment necessary to further our goals and the savings go on and on.

As well as efficiencies, our approach brings about differentiation. Our endeavours are not lost on our customers and prospective customers. The achievements we have already made, and further intend to make, in reducing our environmental footprint help drive what has become a greatly admired Interface brand.

Please do not make the mistake in thinking profitability and sustainability are mutually exclusive. This is a sound business model; it is economically viable and is ultimately necessary if we are to think of the welfare of our children and their grandchildren after them.

About Jim McCallum, Senior Vice President, InterfaceFLOR

Born 1955 in Newcastle Upon Tyne in the North East of England, Jim McCallum takes on the leadership role in InterfaceFLOR Asia as Senior Vice President. Upon his graduation from Leeds Metropolitan University with BA (Hons) Business degree, Jim moved to London and started his career with American textile giant Burlington Industries (Fabrics Division) in 1979.

He was transferred to Burlington Corporate Head Office in Greensboro, North Carolina (USA) in 1982 as Planning Manager for its Denim Division. Three years later, Jim headed Burlington Industries’ European Denim Division. In 1990, Jim moved back to North Carolina and took on the role of Vice President (Operations) for Burlington Industries Carpet Division, Lees and served on the Burlington Industries Management Committee.

In 2003, Lees was acquired from Burlington and became part of the Mohawk Group -a $7 billion floor covering empire. Upon this acquisition, Mohawk appointed Jim as President of the Mohawk Commercial Group that is a $800 million commercial carpet division. This acquisition also resulted in his relocation to Atlanta, Georgia. In 2008, Jim accepted the challenge to head up the Interface Asia business.

Images: InterfaceFLOR

To accelerate the growth of the environmental industry and to maintain Singapore’s image as a clean and green city, the government has initiated several funding and incentive schemes related to energy efficiency, clean energy, green buildings, water and environmental technologies, green transport, waste minimisation, environmental management system, environmental initiatives, clean development mechanism, and green IT.

The funding and incentive schemes are provided by government agencies such as:

• Building and Construction Authority (BCA)
• Economic Development Board (EDB)
• Infocomm Development Authority of Singapore (IDA)
• Land Transport Authority (LTA)
• Energy Market Authority (EMA)
• National Environment Agency (NEA)
• National Parks Board (NParks)
• PUB, the national water agency (PUB)
• SPRING Singapore (SPRING)
• Urban Redevelopment Authority (URA)

To help businesses understand what’s available, we have compiled a list of 33 government funding and incentives for the environment:

1. Energy Efficiency Improvement Assistance Scheme (EASe)
2. Grant for Energy Efficient Technologies (GREET)
3. One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (One-Year ADAS)
4. Design for Efficiency Scheme (DfE)
5. SCEM Training Grant
6. Clean Energy Research and Testbedding Programme (CERT)
7. Energy Research Development Fund (ERDF)
8. Solar Capability Scheme (SCS)
9. Market Development Fund
10. Green Mark Incentive Scheme for Existing Buildings (GMIS-EB)
11. Green Mark Incentive Scheme for New Buildings (GMIS-NB)
12. Green Mark Incentive Scheme – Design Prototype (GMIS-DP)
13. Green Mark Gross Floor Area Incentive Scheme (GM-GFA)
14. MND Research Fund for the Built Environment
15. A*STAR-MND Joint Grant Call
16. Pilot Incentive Scheme for Green Roofs
17. Gross Floor Area Incentives for Outdoor Refreshment Area on Rooftops
18. Water Efficiency Fund (WEF)
19. Fast-Track Environmental and Water Technologies Incubator Scheme (Fast-Tech)
20. Technology Pioneer (TechPioneer) Scheme
21. Incentive for Research and Innovation Scheme (IRIS)
22. Environmental Technology Capability Development Programme (EnviroTech CDP)
23. Innovation Voucher Scheme
24. Innovation for Environmental Sustainability (IES) Fund
25. Land Transport Innovation Fund (LTIF)
26. Green Vehicle Rebate (GVR)
27. Transport Technology Innovation and Development Scheme (TIDES+)
28. 3R (Reduce, Reuse, Recycle) Fund
29. Environment Technology Research Programme (ETRP)
30. Local Enterprise Technical Assistance Scheme (LETAS)
31. 3P Partnership Fund
32. Clean Development Mechanism Documentation Grant
33. Infocomm Leadership and Development Programme (iLEAD)

If we missed out any funding or incentive scheme, do let us know. Thanks!

Energy Efficiency

1. Energy Efficiency Improvement Assistance Scheme (EASe)

NEA provides a co-funding scheme called the Energy Efficiency Improvement Assistance Scheme (EASe), to help companies in the manufacturing and building sectors engage accredited Energy Services Companies (ESCOs) to conduct energy audits and recommend energy saving measures. Funding is provided up to 50% of the qualifying costs of engaging an ESCO and capped at $200,000 for a single facility or building over a five-year period.

2. Grant for Energy Efficient Technologies (GREET)

The Grant for Energy Efficient Technologies (GREET) by NEA provides funding for the Singapore-registered owner or operator of existing or proposed industrial facilities to invest in energy efficient equipment or technologies. Funding is provided up to 50% of the qualifying costs and capped at $2 million per project. Only projects with a payback of more than 3 years and up to 7 years are eligible for funding.

3. One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (One-Year ADAS)

The One-Year Accelerated Depreciation Allowance for Energy Efficient Equipment and Technology (One-Year ADAS) tax incentive scheme by NEA encourages companies to replace old inefficient equipment and invest in energy saving equipment. The capital expenditure on the qualifying energy efficient equipment can be written off in one year instead of three.

4. Design for Efficiency Scheme (DfE)

The Design for Efficiency Scheme (DfE) by NEA aims to encourage new facilities that are large consumers of energy to integrate energy and resource efficiency improvements into their development plans early in the design stage. Funding is provided up to 80% of the qualifying costs or $600,000, whichever is lower.

5. SCEM Training Grant

The Singapore Certified Energy Manager (SCEM) Programme offers training and certification in energy management, and is for engineering professionals to develop the technical skills and competence to become the Energy Managers of their organisations. The SCEM Training Grant is a co-funding scheme by NEA to fund the training cost at the Professional Level SCEM Programme. Successful grant applicants only pay a subsidised course fee of S$963 instead of the full course fee of S$5,885.

Clean Energy

6. Clean Energy Research and Testbedding Programme (CERT)

The Clean Energy Research and Testbedding Programme (CERT) by the Clean Energy Programme Office (CEPO) and managed by EDB, is a $17 million funding initiative for local and foreign companies and organisations to test and implement clean energy technologies at suitable sites. CERT involves three key partners: the R&D organisations, the technology providers, and the implementers. These three partners are involve in the following areas (obtained from the CERT press release):

The R&D organisations will lead and conduct testbedding activities, while the technology providers will be private sector companies providing the Clean Energy equipment and technologies to participate in the testbedding. Government agencies which are providing the testbedding location and facilitating the project are the implementers.

7. Energy Research Development Fund (ERDF)

The Energy Research Development Fund (ERDF) by the Energy Market Authority (EMA) is a $25 million fund to support the implementation of new and innovative energy solutions that diversify our energy sources, improve our energy security, help achieve our energy intensity reduction targets, and develop our energy industry. The funds from the ERDF was used to support projects submitted through the Smart Energy Challenge (SEC) launched in Nov 2009. The SEC currently provides funding of up to $5 million per project.

8. Solar Capability Scheme (SCS)

Under the Solar Capability Scheme (SCS), EDB provides funding for new private buildings to install solar technologies. The building must be certified with minimum Green Mark Gold rating by BCA, and the minimum solar system installed should be 10 kWp. The funding provided is between 30% to 40% of the total capital cost and capped at $1 million.

9. Market Development Fund

The Market Development Fund is a $5 million funding initiative by the Energy Market Authority to help in the test-bedding of new electricity generation technologies such as solar, wind, hydrogen and fuel cell, which has significant potential and value in the electricity market.

Green Buildings

10. Green Mark Incentive Scheme for Existing Buildings (GMIS-EB)

The government recently announced in the Sustainable Singapore blueprint that it has set a target for 80% of the existing building stock to achieve at least Green Mark Certified rating by 2030. A $100 million Green Mark Incentive Scheme for Existing Buildings (GMIS-EB) was set up by BCA to encourage private building owners of existing buildings to undertake improvements in energy efficiency. The scheme provides a cash incentive that co-funds up to 35% of the costs for energy efficiency improvements and capped at $1.5 million. The GMIS-EB also includes a Health Check scheme, which is an energy audit to determine the efficiency of the air-conditioning plants. BCA will co-fund 50% of the cost and the remaining 50% is borne by the building owner.

11. Green Mark Incentive Scheme for New Buildings (GMIS-NB)

The enhanced $20 million Green Mark Incentive Scheme for New Buildings (GMIS-NB) by BCA is to accelerate the adoption of green building technologies and design practices. The enhanced scheme provides cash incentives to developers, building owners, project architects and M&E engineers, who achieve at least a BCA Green Mark Gold rating in the design and construction of new buildings.

12. Green Mark Incentive Scheme – Design Prototype (GMIS-DP)

The Green Mark Incentive Scheme – Design Prototype (GMIS – DP) by BCA is to encourage developers and building owners to focus on energy efficiency in buildings right at the design stage. The scheme provides funding for the engagement of Environmentally Sustainable Design (ESD) consultants to conduct collaborative design workshops and assist in simulation studies early in the project.

13. Green Mark Gross Floor Area Incentive Scheme (GM-GFA)

The Green Mark Gross Floor Area Incentive Scheme (GM-GFA) by BCA and URA is to encourage the private sector to develop buildings that attain the higher Green Mark ratings. URA will grant additional floor area over and above the Master Plan Gross Plot Ratio (GPR) control, up to 1% for Green Mark Gold Plus developments and up to 2% for Green Mark Platinum developments, and subject to a cap of 2,500 sqm for Gold Plus and 5,000 sqm for Platinum.

14. MND Research Fund for the Built Environment

The MND Research Fund for the Built Environment is a $50 million funding initiative by the Ministry of National Development (MND) and managed by BCA. The objective of the fund is:

To encourage and support applied R&D that will raise the quality of life and make Singapore a distinctive global city

Under the MND Research Fund, some key focus areas include sustainable development projects such as integrating solar technologies into building facades. The fund covers 30% to 75% of the qualifying cost of the project, subject to a cap of $2 million.

15. A*STAR-MND Joint Grant Call

The A*STAR-MND Joint Grant Call launched by BCA, A*STAR and MND is a call for proposals in green building technologies. This is open to researchers in all local public sector research organisations, universities, polytechnics, A*STAR-funded research institutes and centres, and Singapore-based companies. Each project should have at least one industry partner as its co-investigator to encourage R&D collaboration between research organisations and private companies.

16. Pilot Incentive Scheme for Green Roofs

The Pilot Incentive Scheme for Green Roofs by NParks will start in September 2009 to encourage existing building owners to green their rooftops. The scheme will pilot in the Downtown and Orchard Planning areas, and target low to mid-rise buildings that are highly visible and buildings with low level of street-level greenery. Funding is provided up to 50% of the cost of installation of the green roofs.

17. Gross Floor Area Incentives for Outdoor Refreshment Area on Rooftops

The Gross Floor Area Incentives for Outdoor Refreshment Area on Rooftops by URA complements NParks’ Pilot Incentive Scheme for Green Roofs. URA will grant existing buildings within the Orchard and Downtown Core planning areas additional gross floor area (GFA), beyond the Master Plan permissible Gross Plot Ratio (GPR), to be used for an outdoor refreshment area (ORA) on the rooftop if development owners introduce rooftop landscaping. The incentive scheme provides bonus GFA of up to 200 sqm or 50% of the roof space for ORA use.

Water and Environmental Technologies

18. Water Efficiency Fund (WEF)

The Water Efficiency Fund (WEF) by PUB encourages companies to be more efficient in managing their water demand or promote water conservation in the community. For feasibility studies, PUB will co-fund 50% of the study cost, subject to a cap of $50,000. For water audits, PUB will co-fund 50% of the water audit cost, subject to a cap of $5,000. For community campaigns and programmes, PUB will co-fund 50% of organising the programme, subject to a cap of $5000. Funding is also available for water recycling efforts and use of alternative source of water.

19. Fast-Track Environmental and Water Technologies Incubator Scheme (Fast-Tech)

The Fast-Track Environmental and Water Technologies Incubator Scheme (Fast-Tech) is an initiative by the Environmental and Water Industry Development Council (EWI) and managed by EDB. The Fast-Tech scheme aims to grow environmental and water start-ups by providing financial incentives and mentoring by specialized incubators. Funding is provided up to $500,000 per company or up to 85% of qualifying costs, over two years.

20. Technology Pioneer (TechPioneer) Scheme

The Technology Pioneer (TechPioneer) Scheme by the Environmental and Water Industry Development Council (EWI) aims to accelerate the commercialization of new environment and water technologies by bringing together both technology vendors and users to apply jointly under this scheme. Funding is provided up to $2 million or 30% of total qualifying costs for a technology user.

21. Incentive for Research and Innovation Scheme (IRIS)

The Incentive for Research and Innovation Scheme (IRIS) by the Environmental and Water Industry Development Council (EWI) funds Institutes of Higher Learning (IHLs), Research Institutes and Singapore companies to research and develop new environmental and water technologies (EWT) that lead to significant and sustainable growth opportunities in the EWT industry. Funding is provided up to 100% for IHLs, public sector agencies and non-profit research entities, and up to 70% for companies and for-profit research entities.

22. Environmental Technology Capability Development Programme (EnviroTech CDP)

The Environmental Technology Capability Development Programme (EnviroTech CDP) by SPRING helps local environmental small and medium enterprises (SMEs) to enhance their enterprise competitiveness and industry innovation. The EnviroTech CDP covers applied research, product development and commercialisation. Funding is provided for a portion of the project qualifying costs, which include manpower, equipment, materials, and professional services.

23. Innovation Voucher Scheme

The Innovation Voucher Scheme (IVS) by SPRING aims to encourage local SMEs to work with public Knowledge Institutions (KI) like the Centres of Innovation (COIs) to test new technology and innovative ideas. All SMEs can apply for an innovation voucher worth S$5,000 from SPRING, which can be redeemed at participating KIs such as the Centre of Innovation in Environmental and Water Technology (EWT COI) in Ngee Ann Polytechnic, for advice and to develop new products and processes.

24. Innovation for Environmental Sustainability (IES) Fund

The Innovation for Environmental Sustainability (IES) Fund is managed by NEA and helps companies to implement innovative environmental projects. The proposed project must have strong innovation and early adoption elements, and help Singapore meet its goal of environmental sustainability. The IES Fund provides funding to cover some of the qualifying cost of the project, up to a maximum of $2 million.

Green Transport

25. Land Transport Innovation Fund (LTIF)

The $50 million Land Transport Innovation Fund (LTIF) by LTA encourages research initiatives in land transport conceptual stage research and pilot trial, for a more viable and sustainable land transport system. Funding is provided up to 90% of the total project cost and the length of the trial period of the proposed project is capped at a maximum of 1 year.

26. Green Vehicle Rebate (GVR)

Owners of new hybrid and electric vehicles will enjoy the Green Vehicle Rebate (GVR) till 31 Dec 2012, while owners of new CNG and bi-fuel vehicles will enjoy the GVR till 31 Dec 2011. The rebate is equivalent to 40% (for passenger vehicles) or 5% (for buses and commercial vehicles) of the vehicle’s Open Market Value (OMV) that can be used to offset the Additional Registration Fee (ARF) payable at registration.

27. Transport Technology Innovation and Development Scheme (TIDES+)

The Transport Technology Innovation and Development Scheme (TIDES+) by EDB and LTA is for companies and organisations taking part in the electric vehicle test-bed programme. The enhanced TIDES+ scheme waives all vehicular taxes such as Additional Registration Fees, Certificate of Entitlement, road tax and excise duty for the purpose of R&D and test-bedding of transport technologies. Vehicles approved under TIDES+ can enjoy the tax waiver for an initial period of six years.

Waste Minimisation

28. 3R (Reduce, Reuse, Recycle) Fund

The 3R Fund by NEA is a $8 million co-funding scheme to encourage organisations to implement waste minimisation and recycling projects. Funding is provided up to 80% of the qualifying costs and subject to a cap of $1 million per project, and depends on the quantity and type of waste reduced or recycled.

29. Environment Technology Research Programme (ETRP)

The Environment Technology Research Programme (ETRP) is a new $15 million seed funding programme by the Environmental and Water Industry Development Council (EWI) and NEA to build up technological competencies and support companies and researchers in waste management.

The ETRP awards grants to R&D projects on waste management such as energy recovery, materials recovery and special waste treatment, and is open to researchers from Institutes of Higher Learning (IHLs), public sector agencies, not-for-profit research organizations and Singapore-registered companies. The maximum funding for each project is up to $2 million and for a maximum of 3 years.

Environmental Management System

30. Local Enterprise Technical Assistance Scheme (LETAS)

The Local Enterprise Technical Assistance Scheme (LETAS) by SPRING helps SMEs to engage an external consultant to implement quality management and IT systems, including the ISO 14001 Environmental Management System standard. Funding is provided up to 50% of consultancy cost, subject to a maximum grant cap of $5,000.

Environmental Initiatives

31. 3P Partnership Fund

The 3P Partnership Fund by NEA aims to encourage organisations, companies and individuals from the People, Private and Public (3P) sectors to work together to develop environmental initiatives and promote environmental ownership. First-time applicants would receive no more than 50% of the eligible costs, while for other applicants, the Evaluation Panel will determine the grant to be offered based on the merits of the submission.

Clean Development Mechanism

32. Clean Development Mechanism Documentation Grant

The Clean Development Mechanism (CDM) Documentation Grant by NEA encourages companies to develop CDM projects in Singapore. Funding is provided up to 50% of the qualifying cost of engaging a carbon consultant to develop a new methodology and Project Design Document (PDD), or only up to 30% if the carbon consultant develops a PDD using an existing approved methodology. The maximum amount of funding for a CDM project is capped at $100,000.

Green IT

33. Infocomm Leadership and Development Programme (iLEAD)

The Infocomm Leadership and Development Programme (iLEAD) is a new manpower development initiative by IDA to develop the knowledge and capabilities of infocomm professionals in niche technology areas, including Green IT (Virtualisation, Data Centre Architecture).

Companies can tap on iLEAD to build up the capabilities of their employees and new trainees in niche technology areas such as Green IT via local and overseas work attachments and specialised professional courses. IDA will provide training grants and co-fund airfare and living allowances for overseas attachments.

Image credit: TALUDA; Energy Label via E2 Singapore; Wordle image via http://www.wordle.net/.

Over 7 million people visited the two IKEA stores in Singapore last year. Singaporeans love IKEA for its affordable and well-designed home furnishing products, but not many realise that IKEA is also committed to sustainability.

At Green Business Times, we have always admired how IKEA conduct business while keeping in mind their environmental and social responsibilities. To give you an overview of how IKEA embraces sustainability, we will share with you the efforts of the IKEA Group and IKEA Singapore.

1. IKEA Group

In 2010, the IKEA Group has a total of 316 stores in 38 countries, and employs 127,000 co-workers. As a large organisation, IKEA has bigger responsibilities and impacts. IKEA’s commitment to people and planet is evident in their recently published IKEA Sustainability Report 2010. In the words of Mikael Ohlsson, President and CEO, IKEA Group:

The IKEA vision is to create a better everyday life for the many people, and we believe that home is the most important place in the world. We offer affordable home furnishing products and solutions, while also taking responsibility for people and the environment. We want our customers to be able to freely choose from our range, knowing that they do not have to choose between sustainability, style, function or price.

Here are some highlights from the IKEA Sustainability Report 2010:

IKEA Sustainability Direction 2015

The IKEA Sustainability Direction 2015 outlines IKEA’s priorities and goals for 2015:

1. Offering a range of products that are more sustainable

• 90 percent of our sales value shall come from home furnishing products classified as “more sustainable” in the IKEA Sustainability Product Score Card.
• All materials for home furnishing products shall be renewable, recyclable or recycled.
• Our energy-consuming products shall on average be 50 percent more efficient than what was installed on the market in 2008.

2. Taking a leading role towards a low carbon society

• By being innovative, energy efficient and using more renewable energy, we shall significantly reduce CO2 emissions from our own operations, the supply chain and customers travelling to IKEA stores.
• We shall help reduce CO2 emissions in society by offering products, solutions and know-how that enable our customers to reduce their carbon footprint and live a more sustainable life at home.
• We shall actively participate in developing tools to measure a company’s positive impact on the climate.

3. Turning waste into resources

• We shall have zero waste to landfill from our own operations.
• We shall enable and encourage customers in all markets to reuse or recycle all IKEA products at end-of-life.

4. Reducing our water footprint

• We shall significantly reduce our water footprint in our own operations as well as throughout our supply chain.

5. Taking social responsibility

• All our home furnishing suppliers and transport service providers shall comply with all requirements in our code of conduct, IWAY. (FY2012)
• The global index average in the annual co-worker survey VOICE shall reach 700 or above out of a maximum of 1,000.
• The IKEA Foundation funded projects shall reach more than 100 million children.
• All IKEA units shall have a clearly defined plan for community involvement based on our Charity Policy.

IKEA Sustainability Product Score Card

The IKEA Sustainability Product Score Card is a new internal tool introduced to help IKEA classify and offer more sustainable products. The Score Card includes 11 criteria that have an impact on a product’s sustainability throughout its life cycle, including:

• More from less (using less material in the product)
• Renewable material
• Recycled material
• Environmentally better material
• Separable and recyclable material
• Product quality
• Transport efficiency (number of products per container)
• Energy efficient production
• Renewable energy in production
• Raw material utilization at suppliers
• Product use (less use of energy and water, and less waste in customers’ homes)

The IKEA Sustainability Product Score Card is an internal tool that will help IKEA measure their progress and improve the sustainability of their products. There will not be product labels for customers to read the scores. IKEA does not display eco-labels (internal or external) on their products and only display the IKEA logo, as they want their customers to know that the IKEA logo already stands for safe and sustainable products.

The IKEA Way on Purchasing Products, Materials and Services (IWAY)

IKEA requires their suppliers of products and services to follow the IKEA code of conduct, called The IKEA Way on Purchasing Products, Materials and Services (IWAY), which was first introduced in 2000. The IWAY states the supplier requirements relating to the environment, child labour, social and working conditions.

Suppliers are responsible for communicating the content of the IWAY to their employees and sub-suppliers. Suppliers must also comply with a list of IWAY start-up requirements before being allowed to work with IKEA, and are given one year to implement the other IWAY requirements.

Read the IWAY standard.

Forestry

Wood is an important raw material for IKEA, so all IKEA solid wood and board product suppliers must follow the IKEA code of conduct IWAY and the IKEA Forestry Standard. The minimum criteria for wood products include:

• Not from forests that have been illegally harvested
• Not from forestry operations engaged in forest related social conflicts
• Not harvested in uncertified Intact Natural Forests or other geographically identified High Conservation Value Forests
• Not harvested from natural forests in the tropical and sub-tropical regions being converted to plantations or nonforest use
• Not from officially recognised and geographically identified commercial Genetically Modified tree plantations

In addition, IKEA’s long-term goal is to source all wood from forests verified as responsibly managed (or known as preferred sources). IKEA currently only recognises the Forest Stewardship Council (FSC) certification scheme. The goal is to have 35% of IKEA’s solid wood volumes from preferred sources by the end of FY2012 (up from 24% for FY2010).

Cotton

Cotton is another important raw material for IKEA, so IKEA is increasing the availability of sustainable cotton by encouraging cotton farmers to introduce more sustainable farming practices.

IKEA is one of the founding members of the global Better Cotton Initiative (BCI), and has set the goal for all cotton used for IKEA products to be produced according to the social and environmental criteria developed by BCI by FY2015.

Water

IKEA wants to minimise the water footprint (see figure below) throughout its value chain, and is helping cotton farmers in India and Pakistan to reduce their water consumption significantly through the introduction of better management practices.

The IKEA code of conduct, IWAY, includes requirements on water discharges and treatment, and also requires suppliers to reduce their environmental impact such as water usage.

In addition, IKEA stores and distribution centres measure their water use and have implemented various measures to reduce water consumption.

Waste

IKEA wants to minimise waste throughout its value chain and have set goals to have zero waste to landfill from their own operations, and to enable and encourage customers to reuse or recycle all IKEA products at end-of-life, by FY2015.

All IKEA stores and distribution centres recycle waste material, including cardboard, paper, plastic, wood, metal and glass. IKEA also minimises the amount of waste generated in the manufacturing process or uses it in the production of other products if possible. In addition, IKEA started a project called “Closing the loops” to investigate the opportunities for full recyclability of different materials used in IKEA products.

Climate

IKEA wants to reduce its carbon footprint (see figure below) from all aspects of its value chain. All IKEA countries have to develop reduction goals for energy consumption and carbon emissions for their stores, distribution centres and factories, based on the long term direction that all IKEA buildings should run on 100% renewable energy and that energy efficiency should improve by 25% compared to 2005.

IKEA is working with suppliers in energy projects to help them reduce energy consumption and carbon dioxide emissions, while saving costs. IKEA is also helping customers and co-workers use more sustainable modes of transport to travel to and from IKEA stores.

2. IKEA Singapore

To understand more about how IKEA Singapore embraces sustainability, we visited the IKEA store at Tampines recently and met up with Ms Joycelyn Teo-Moser, Sustainability Manager, Ikano Retail Asia, and Ms Sandra Keasberry, Assistant Manager, Marcom, Ikano Retail Asia.

In Singapore, the two IKEA stores at Alexandra and Tampines are owned and managed by Ikano Pte Ltd (Ikano), a franchisee of Inter IKEA Systems B.V. located in the Netherlands (the owner and franchisor of the IKEA Concept). Ikano also owns the IKEA stores in Malaysia and Thailand.

Although Ikano is not required to adhere to the IKEA Sustainability Direction 2015 set by the IKEA Group, Ikano is still committed to align and integrate its own practices and operations towards sustainability and IKEA’s direction. The IKEA home furnishing products provided by Ikano would also meet the IWAY code of conduct and go through the IKEA Sustainability Product Score Card.

Here are some green and social initiatives found in the offices and stores at IKEA Singapore:

Office and Co-Workers

There is an emphasis on sustainability education and awareness for co-workers, and they go through a sustainability e-learning programme. There is a handbook on sustainability and waste sorting processes in place for the co-workers to ensure that their backend practices are sustainable and all waste are discarded responsibly. The notice boards in the office also constantly update the co-workers on environmental and sustainability programs, news and generate awareness.

In the office, there are recycling bins for easy sorting of materials, and reminders on switching off lights after use. Co-workers are encouraged to print less and use email instead. FSC-certified paper is used for printing and namecards. There are also bicycle lots for co-workers.

Material Reduction and Recycling

• Waste packaging material such as wood, carton boxes, plastics, and metal are sorted for recycling.
• Recycling bins are placed throughout the store.
• Some carton boxes are given to schools for art projects.
• Waste fabrics are given to the organisations and nearby schools for charitable causes. These organisations use these waste materials and convert them into useful products, which they could in turn sell to gather funds to support their causes.
• Ikano is a signatory to the Singapore Packaging Agreement and was a Distinction Award Winner at the 3R Packaging Awards 2010 for their efforts in reducing packaging waste.
• All the waste oil, about 3,000 kg per month, from both restaurants are sent to Alpha Biofuels to be recycled into biodiesel.
• Food waste used to be sent to IUT Global for recycling to produce biogas, but recently the recycling programme has stopped due to the closure of the company.
• The IKEA restaurants have also stopped providing takeaway boxes to minimize the usage of disposal packaging. Currently, only IKEA Alexandra sells the take-away boxes, when requested by customers. The proceeds from the sales of the takeaway boxes from IKEA Alexandra is donated to WWF Singapore to support local conservation efforts. Biodegradable cornware containers and utensils are also used.

Say “NO” to Plastic Bags

Since April 2007, IKEA Singapore has stopped giving out free plastic bags. It was the first retailer in Singapore to do so. About 45.5 tonnes of biodegradable plastic bags were saved between July 2009 to June 2010, and this translates to about 2,148,000 plastic bags saved per year.

The proceeds collected from the sale of the plastic bags from April 2007 – May 2010 go to WWF Singapore to help fight the haze in Sumatra, by promoting sustainable forest management and developing alternative sustainable livelihood for the villagers.

From May 2010, the proceeds go to the Little Green Dot student research grant, jointly organised with Nature Society (Singapore). The grant allows students to conduct research on methods of conserving marine and freshwater life.

As-Is

Furniture that are returned, damaged or ex-display are given a new lease of life and sold at the As-Is corner at reduced prices, to maximise reuse.

småles

The småles programme is for IKEA Singapore to engage kids through fun activities, news and games. The young children also get to know more about green issues, and can also receive points for bringing used newspapers to the stores. The newspapers are reused for customers to wrap their products.

IKEA Catalogue

Local printers are selected by Inter-IKEA Systems using the IKEA Catalogue Sustainability Requirements, and all catalogue suppliers are required to document data on fibre sourcing and use, water and energy consumption, and emissions to water and air.

Customers can also view the catalogue online and opt-out from receiving the mailed copies by contacting Ikano.

Saving Energy and Water

• The air-conditioning temperature in the store is kept at 24.5°C
• On weekdays, the lighting for one level of the carpark at IKEA Tampines is switched off
• Using daylighting for the warehouse
• Taps are fitted with water saving aerators

Incandescent Light Bulbs

IKEA Singapore will begin to phase out all incandescent light bulbs and targets to completely eliminate them by 2012. It is also providing a range of energy-saving CFL, halogen and LED light bulbs for customers.

Parking Lots for Bicycles and Electric Motorcycles

To encourage emission-free transportation to IKEA, bicycles lots are available in IKEA Tampines. There is also a parking lot for charging electric motorcycles.

SUNNAN Lamp Campaign

For every SUNNAN solar powered lamp sold in IKEA, one lamp will be given to UNICEF to distribute to children living in the areas without access to electricity. The SUNNAN lamp is designed to resist the wear and tear of difficult living situations, and combines low-energy LED technology with solar panels.

Soft Toy Campaign

IKEA Singapore also participates in the annual soft toy campaign “One Euro is a Fortune”, which run each year in November and December in both Alexandra and Tampines stores. For every soft toy sold, the IKEA Foundation, the charitable function of IKEA, donates 1 euro to UNICEF and Save the Children projects to extend and start new children educational programs in developing countries.

The Never Ending List

The Never Ending List consists of a list of all the improvements IKEA has made to benefit people and the environment.

At IKEA, globally or in Singapore, there is a commitment to continuously making environmental and social improvements at every stage of its value chain. At Green Business Times, we like this attitude towards sustainability and would encourage more companies to follow this more enlightened way of doing business. Just like The Never Ending List, the sustainability story for IKEA or any company should be a never-ending one.

Source: IKEA Sustainability Report 2010; IKEA Singapore.

Images: IKEA Group (IKEA Sustainability Report 2010 image; IKEA water footprint image; IKEA carbon footprint image); Ikano Pte Ltd (The Never Ending List images)

What is ISO 26000

ISO 26000 provides social responsibility guidance for all types of organisations, such as MNCs and big corporations, SMEs, non-governmental organisations and government agencies.

As the world moves towards an age of radical transparency, organisations and stakeholders become increasingly aware of the need for socially and environmentally responsible behaviour. ISO 26000 is thus a timely and relevant guide to help organisations understand what social responsibility is and what they need to do to operate in a socially responsible way.

ISO 26000 is not for certification

It is important to note that ISO 26000 contains voluntary guidance and is not for use as a certification standard like ISO 9001 or ISO 14001. It is stressed in the guidance that:

ISO 26000 is not a management system standard. It is not intended or appropriate for certification purposes or regulatory or contractual use. Any offer to certify, or claims to be certified, to ISO 26000 would be a misrepresentation of the intent and purpose and a misuse of this International Standard. As ISO 26000 does not contain requirements, any such certification would not be a demonstration of conformity with this International Standard.

However, one of the speakers at the seminar, Assistant Professor Eugene Tan, Member of the National Working Group on Social Responsibility and Lecturer in SMU’s School of Law, said that ISO 26000 could evolve into a de facto technical standard and organisations may be required by business partners to demonstrate that they “endorse” or “support” ISO 26000. He pointed out that Denmark has introduced its own national standard – DS 26001 that is based on ISO 26000 and is certifiable.

Outline of ISO 26000

The outline of ISO 26000 is shown in the table below:

Principles of social responsibility

ISO 26000 highlights the 7 principles of social responsibility:

1. Accountability
2. Transparency
3. Ethical behaviour
4. Respect for stakeholder interests
5. Respect for the rule of law
6. Respect for international norms of behaviour
7. Respect for human rights

Core subjects of social responsibility

ISO 26000 addresses 7 core subjects of social responsibility as shown in the graphic below:

How to use ISO 26000

An overview of ISO 26000 and the relations between the various clauses are shown in the following graphic (click on image to enlarge):

One of the speakers at the seminar, Ms Esther An, Head (Corporate Social Responsibility) and Deputy General Manager, Corporate Affairs, City Developments Limited (CDL), shared with the audience on how CDL aligned their CSR practices with ISO 26000. The CDL management and CSR committee went through the following process:

1. Understand more about ISO 26000 – its history, requirements and implications. Conduct internal training for staff.

2. Conduct a self-assessment of current compliance with ISO 26000 principles and core subjects.

3. Identify areas of strengths and weaknesses, and gaps which are relevant to the organisation.

4. Develop action plans to align practices with ISO 26000 and close the gaps.

Ms An shared that CDL’s CSR efforts has helped to enhance branding and create goodwill, and allow the company to be well-positioned for changes.

Other speakers at the seminar encourage the audience to use ISO 26000 for integrating social responsibility into their organisations. Assistant Professor Tan believes that ISO 26000 can be a valuable differentiator and organisations can gain first-mover advantage by being ISO 26000-ready.

If your organisation is interested in ISO 26000, you can find out more information at the ISO website, buy the standard at the Singapore Standards eShop, or join Singapore Compact as a member to access CSR resources and events.

Images credit: ISO

What lies ahead for businesses is perhaps summed up best by Daniel Esty and David Lubin in their May 2010 Harvard Business Review article, The Sustainability Imperative, where they declared sustainability as an emerging megatrend similar to previous megatrends like quality, IT and globalisation.

Companies need to manage sustainability as a business megatrend and those with the right vision and execution to navigate the megatrend will come out ahead, while those that don’t will be swept aside.

Their thoughts on why sustainability is becoming a megatrend:

Why do we think sustainability qualifies as an emerging megatrend? Over the past 10 years, environmental issues have steadily encroached on businesses’ capacity to create value for customers, shareholders, and other stakeholders. Globalized workforces and supply chains have created environmental pressures and attendant business liabilities. The rise of new world powers, notably China and India, has intensified competition for natural resources (especially oil) and added a geopolitical dimension to sustainability. “Externalities” such as carbon dioxide emissions and water use are fast becoming material – meaning that investors consider them central to a firm’s performance and stakeholders expect companies to share information about them.

These forces are magnified by escalating public and governmental concern about climate change, industrial pollution, food safety, and natural resource depletion, among other issues. Consumers in many countries are seeking out sustainable products and services or leaning on companies to improve the sustainability of traditional ones. Governments are interceding with unprecedented levels of new regulation…

Further fueling this megatrend, thousands of companies are placing strategic bets on innovation in energy efficiency, renewable power, resource productivity, and pollution control. What this all adds up to is that managers can no longer afford to ignore sustainability as a central factor in their companies’ long-term competitiveness.

We prefer to call this sustainability megatrend as the green business revolution because fundamental shifts in mindsets and ways of doing business are required. These are uncertain times with many challenges but there will also be opportunities and winners. Business-as-usual will be overthrown by innovative and responsible business thinking.

Being a globalised and forward-looking city with connections between East and West, developed and developing, Singapore is in an excellent position to lead the green business revolution. But are businesses in Singapore ready?

To help the business community in Singapore, Green Business Times has recently revamped our website and aligned our editorial content to better face this green business revolution, with a focus on Strategy and Leaders, Operations and Culture, Design and Tech, and Marketing and CSR.

Green Business Times aims to be the leading online sustainability toolkit for businesses in Singapore, and shape the green business revolution in Singapore by inspiring businesses and providing them with the knowledge and tools.

We will chronicle environmental news in Singapore, highlight new sustainable business practices and case studies, showcase innovative companies and business leaders, and explore the tools and strategies for navigating the green business revolution.

Green Business Times is getting ready for the green business revolution in Singapore. Are you ready?

Image credit: lusi via stock.xchng

The Singapore Green Landscape 2010 published last year by Green Future Solutions was well-received and was downloaded 970 times over the past year.

This year, the Singapore Green Landscape 2011 provides a review of 80 key environmental news in Singapore last year, and gives an overview of 160 non-governmental organisations (NGOs), green groups, business associations and groups, green websites, government agencies, and institutes and centres in Singapore, which are related to the environment (50 more than last year).

Green Future Solutions hopes that this publication is useful for everyone who wishes to know more about the state of the environment in Singapore, find and connect with the environmental organisations in Singapore, or explore personal and business opportunities.

This publication is free for download. Feel free to share this. To download the publication, just fill in your contacts in this link.