Sustainable Business News from
Kuhn Associates Management Advisors
Building Sustainable Businesses
 
 
Volume 2009, Number 1                                                                                                                    January 2009
In This Issue
Featured Article
Ideas You Can Use Now
Calendar of Events
More About Us
Our firn's mission is to help companies throughout the product supply chain create environmentally-sustainable businesses. Our consulting services include: creating enterprise-level environmental sustainability visions and goals; re-engineering internal processes to reflect environmentally-sustainable best practices; and  maximizing the environmental sustainability of product supply chains.
 
Whether it's an energy, water, chemicals or solid waste issue, our team of professionals is ready to help your business. Please contact us to learn how we can help you.
 
Call 212-343-1006 today.
 
Alternative Energy Source
Hydropower
Hydropower. Electricity generated from the mechanical force of water movement now represents almost 20% of worldwide electricity, yet contributes virtually zero carbon dioxide (CO2) to the earth's atmosphere. A recent U.S. Department of Energy study found that only 40% of the country's available hydropower was being tapped, so watch for innovators to bring to market new ways of harnessing this renewable resource. Methods being tested right now include turbines placed on riverbeds that harness the power of currents and tides. Soon, microturbines might generate electricity for specific commercial and industrial clients. And down the road, ocean wave movement might power your lights and machinery!
Greetings!

Welcome to 2009 ... and more information on the relationship between business and environmental sustainability, perhaps the hottest topic in business today. Each issue of our Newsletter includes a discussion of a particular environmental topic, a related "best practices" idea you can use and a calendar of select upcoming events. Happy reading!
 
And best wishes for a prosperous and sustainable 2009!
Feature Article: Chemicals Management for Sustainability
 
From a sustainability perspective, it's important to eliminate chemical toxins whenever possible because they present a serious threat to environmental health and biodiversity when improperly emitted, spilled or discharged. Whether liquid, gas or solid, toxic chemicals damage land, water and air when left unchecked and this damage threatens all living organisms. And damage is experienced from everyday mismanagement, not just large-scale incidents such as Union Carbide's disaster in Bhopal, India. So, correctly managing chemicals in the supply chain is plainly the right thing for your company to do as part of its responsibility as a good global citizen.
 
Sustainability concerns about chemicals also include economic and regulatory risks to businesses. Economic risks include environmental lawsuits, costs of reporting and compliance and other "hidden" costs associated with poor management practices. Regulatory risks abound: federal, state and local U.S. jurisdictions all have laws and regulations relating to the use, storage and transportation of chemicals; many foreign jurisdictions, particularly Europe, have enacted strict laws regarding the labeling and possible prohibition of certain chemicals. These laws are likely to become templates for federal and state legislation in the United States in the near future. (For a list of worldwide chemicals regulations, visit http://www.chemicalspolicy.org).
 
Well-run supply chain businesses are proactive about managing their own production and MRO chemicals inventories. Leading edge supply chain companies go a step further and are also vigilant about chemical toxins throughout their supply chain. In both cases, these business initiatives reflect the "Three Rs" of good chemicals management:
 
1. Regulations are the baseline standard, not the endgame, for a chemicals management program.
 
2. Risks to local and global biodiversity from chemical production, use, storage and transport should be reduced as much as possible by any good chemicals management program.
 
3. Replacement of toxins with environmentally-friendly alternatives represents supply chain best practices.
 
Use of these principles can guide development of forward-looking, scalable chemicals management programs that contribute to creating environmentally-sustainable businesses. And environmentally-sustainable businesses build strong brand reputations that pay real dollars, recruit and retain talented workforces and help protect the well-being of our global environment.
Ideas You Can Use Now!
 
In the article above, we discussed the importance of sound chemicals management programs in supply chain businesses and suggested that the "Three Rs" of chemicals management guide programs to tackle this issue. When you think about a chemicals management program in this way, you understand that there are three steps in executing a good initiative:
 
1. Get visibility into the chemicals in your company and in your supply chain. Get a team together and inventory all chemicals in all of your facilities (include both production and MRO/indirect chemicals). You're going to have to analyze that inventory for its toxicity characteristics, so it's probably best to enlist professional help at this point. And, to whatever degree is consistent with your company's policies relating to supply chain partners, you will also want to have an inventory and toxicity analysis of chemicals associated with your supply chain partners ... what toxins are present in your suppliers, distributors and 3PLs that might negatively affect your company and/or the environment?
 
2. Eliminate toxins whenever possible, including MRO chemicals. This will require usually require collaboration with engineering and other technical personnel to ensure that products and processes remain acceptable. If elimination of a particular chemical is not possible, then search out environmentally-friendly alternatives (aka "biosubstitutes"). Believe it or not, this task is actually quite possible thanks to commercially-available software that can take chemical analysis one step further and seek out biosubstitutes. The very best software even takes into account cost-per-ounce considerations!
 
3. Develop a comprehensive method to ensure regulatory compliance for any remaining toxins. Get a handle on all applicable U.S. and foreign chemicals laws and regulations. This may be the task of your company's legal department, but if it's your job then you have two choices: (a) outsource this task to an environmental regulatory professional or (b) use the internet and other resources to build your own database of applicable laws and regulations. If your company's budget allows it, option (a) is much better because this is a very complex and dynamic area. Laws and regulations are changing rapidly and you will eat up substantial internal resources trying to keep abreast.
 
Taking these three steps in order will help ensure that your chemicals management program represents today's best practices and will position you well for tomorrow's chemicals management challenges.

 
 
Calendar of Events
 
Here are some sustainability-related events for the coming months that may be of interest to you:
 
San Francisco, CA, February 2 ... GreenBiz.com releases and provides an in-depth analysis of its 2009 State of Green Business Report. Visit
http://www.greenbiz.com/stateofgreenbusinessforum to learn more and to register for the one-day event.
 
Miami, FL, February 19 - 20 ... The Ryder Center for Supply Chain Management at Florida International University presents its first Green Supply Chain Forum, with overviews of regulatory developments, an assessment of the business case for "green" and a number of presentations on implementing sustainable practices throughout the supply chain. Visit

Destin, FL, March 1 - 4, 2009 ... The Southeast Recycling Conference and Trade Show provides the premier venue for informing the public and private sectors of the economic and environmental significance of recycling and waste reduction in the Southeast. Visit www.southeastrecycling.com.
 
Newport Beach, CA, March 23 - 14 ... The 2009 Green Travel Summit convenes to explore green travel strategies and their impact on business travel and corporate meetings. Visit www.greentravelsummit.com.
 
 

 
Thanks for reading! Please contact us today to discuss anything you've read here, suggest a topic for a future edition or learn how we can help you build a sustainable business! Call 212-343-1006 or email us today at info@kuhnassociatesllc.com for more information.
 
Sincerely,
 

Robert Kuhn, President
Kuhn Associates Management Advisors LLC
Copyright 2008   Kuhn Associates Management Advisors LLC
Reproduction without prior permission prohibited.