6
Creating an Environmentally Sustainable Design Practice

You never learn by doing something right ‘cause you already know how to do it. You only learn from making mistakes and correcting them.

—Russell Ackoff

WHY CREATE AN ENVIRONMENTALLY SUSTAINABLE DESIGN PRACTICE?

You may have already heard the quote “If you fail to plan, you plan to fail.” Nowhere is planning more important than in running a business. Many businesses are started by creative people with no experience in successful business management practices.

This chapter outlines the opportunities available when you incorporate sustainable business practices into a successful kitchen and bath business. In the Kitchen & Bath Business and Project Management volume of the NKBA Professional Resource Library, you will learn the details of creating a business plan. The focus of this chapter is to help future kitchen and bath designers to create successful environmentally sustainable business practices.

• Learning Objective 1: Define the 4 Ps of a sustainable design business and incorporate them into your business plan
• Learning Objective 2: Apply your knowledge of the 5 marketing segments as defined by the Natural Marketing Institute to creating a marketing plan.
• Learning Objective 3: Summarize the legalities of an email conversation.

Why would kitchen and bath designers want to incorporate an environmental business practices into their businesses?

That’s where the money is. According to the U.S. Green Building Council (USGBC) Report Green Jobs Study1 the economic impact of the total green construction market through 2013 will be:

• Contribution to the U.S. gross domestic product (GDP)
  • 2000–2008: $173 billion
  • 2009–2013 forecast: $554 billion
• Jobs created or saved (includes direct, indirect, and induced jobs)
  • 2000–2008: 2.4 million
  • 2009–2013 forecast: 7.9 million
• Wages
  • 2000–2008: $123 billion
  • 2009–2013 forecast: $396 billion
• Energy savings
  • 2000–2008: $1.3 billion saved
  • 2009–2013 forecast: $6 billion saved

There has never been a better time to launch a green business. High demand is driving an expansion of the market for environmentally friendly products and services. A number of tax incentives and public policies support green businesses, and the sector is experiencing a high rate of capital investment.²

The 2009 study by Boston Consulting Group (BCG), Capturing the Green Advantage for Consumer Companies, found that consumers find value in the benefits offered by green products and services, including superior freshness and taste, health and safety benefits, and savings on energy and life cycle costs.³ The study further found that consumers surveyed were willing pay more for green products and services if they offered added value.⁴

The Four Ps for Creating a Sustainable Business

The most successful designers understand that incorporating environmentally aware practices is just good business. Many large consumer-driven companies have made major efforts to convince the buying public that they are on the environment’s side. It is important to note that companies do not simply change their business practices without a proven strategy. Like creating a set of drawings and clear set of specifications for a kitchen remodel, a business must design a step-by-step plan in order to successfully integrate new business practices.

Business owners and their employees must be at least as versed in sustainable practices as their clients are; the goal should be becoming an authority in the green arena. Just jumping into the green movement without a detailed plan is a recipe for disaster. Everyone within the company from the bottom up must fully embrace the goal for full success.

Creating a green agenda for your company gives your business “competitive advantage in product (or services) differentiation and cost savings.”5 The more detailed the agenda, the more you will separate yourself from the rest of the crowd. This includes creating a top-down vision and must include what BCG calls the “four Ps of green advantage”:⁶

1. Green planning. Incorporating green targets and resources into your corporate strategy
2. Green processes. Allows companies to practice what they preach
3. Green product. Your product and services
4. Green promotion. Marketing your message

Begin by compiling a list of ways your business currently impacts the environment and how it could lower its impact and contribute to the green economy.

Green Planning

Details on creating a business plan are covered in the NKBA’s Kitchen & Bath Business and Project Management book. In this section we will be focusing on the green planning aspect of your business.

Creating a green business agenda is no different from creating a design for your clients. It serves as a road map, keeps your business focused on your goals, and aids in the financial success of your business. The most important part of planning is to share your goals with your staff and customers. If everyone knows where your business is heading, you will be certain to have success in the implementation and process.

Successful planning includes the three steps discussed next, according to the Boston Study Group7:7

• Step 1. Factor sustainability into strategy, future resources, and budgets. Incorporating sustainability into your company’s strategy is a formula for success.
• Step 2. Make the rules, don’t just follow them. Specify materials that have been certified by third-party evaluators, such as Cradle to Cradle (C2C), Green Guard, ENERGY STAR, and Earth Advantage. Incorporate into your designs certifications such as airPlus, LEEDs for Homes, Living Building Challenge, and others. Encourage staff (including yourself if you are the owner) to obtain certifications.
• Step 3. Make a clear business case for sustainability initiatives.

The World Resource Institute’s working paper Aligning Profit and Environmental Sustainability: Stories from Industry recommends four areas that will drive a company to fulfilling its environmental goals:

1. Set goals that add environmental concerns into core business decisions.
2. Incorporate internal practices that support environmental sustainability.
3. Incorporate your sustainable goals into your yearly budget planning.
4. Be aware of risks and opportunities for your business and those of your suppliers and collaborators.⁸

Certain parts of our project are nonnegotiable items. Our clients come to us for a certain baseline of business practices, for example: We only use FSC [Forest Stewardship Council] wood on our projects—we will deviate from this only when engineered lumber is the best option. We specify locally sourced lumber, ENERGY STAR appliances and light fixtures, we incorporate water conservation plumbing techniques on all of our projects, and our insulation is set for sound and a higher R-value than code requires.⁹

—Alex Boetzel, Chief Innovation Officer
Green Hammer Design Build, Portland, OR

Take the time to list your company’s strengths, weaknesses, opportunities, and threats (SWOT) both internally (your employees, business practices, finances) and externally (your trade contractors, subcontractors, competition) in relation to how you and they work in a sustainable manner. The World Resources Institute created a new level of the SWOT—the sustainability SWOT (sSwot)—as a tool to “help drive action and collaboration on environmental challenges creating real business risks and opportunities.”¹⁰

We incorporate advanced framing on all new construction and where applicable on remodeling with the goal to save on lumber. Deconstruction is our mantra. On every project, our goal is to divert as much from the landfill as possible.¹¹

Alex Boetzel

A green business plan takes into account the environmental and social aspect of the business. It incorporates the triple-bottom-line approach to measure the success of your business in terms of its impact on people, planet, and profit.

Supporting the Triple Bottom Line

Native Trails of San Luis Obispo, California, produces high-quality, artisan-crafted kitchen and bath sinks, tubs, countertops, ventilation hoods, cabinetry from reclaimed wood, and home décor. Founder and CEO Naomi Neilson Howard started her company while traveling during a vacation break from her college studies. Her stepfather is from Mexico, and she spent a lot of time there. During her travels, she admired the work of the local artisans and founded her company with the goal of bringing their work to the global marketplace. The company offers no-interest or low-interest loans to the artisans of Central Mexico for business improvements. As Neilson Howard explains, “I founded Native Trails with a dream of bridging cultures, of combining artisan heritage with innovative design and sustainable materials. This is a passion I gratefully live out every day” (www.nativetrails.net/our-story/).

Among the company values is care of the environment: “We influence the health of our planet through our actions, words and deeds; we infuse sustainability into the products we create” (www.nativetrails.net/our-mission/).

Through Native Trails, Naomi also established Community Trails, which donates $20,000 yearly to nonprofits through a dollar-for-dollar match with their employees. Community Trails also encourages volunteerism within the company by offering employees two days per year of paid volunteer time to charities of their choice. It also organizes group volunteer days to local charities. If employees donate 30 or more volunteer hours, Native Trails will donate an additional $200 to that organization (see Figure 6.1).

Figure 6.1 Native Trails incorporates the full triple bottom line—People, Planet, and Profit—into its daily business practices as well as its business plan.

Location of Your Business

Choosing the location for your business can impact your green plan. Is your business located near mass transit, bike paths, and the services you need to run your business?

One of the authors of this book, Robin Rigby Fisher, CMKBD/CAPS, principal designer for RRF Design, an independent design firm, recently relocated her business from her home to a remodeled office building in southeast Portland, Oregon:

I chose the Ford Building specifically for its location. A new MAX transit station is nearing completion directly behind our building. It is located on one of Portland’s many bike paths. The majority of the businesses we work with are within walking or biking distance. In addition, my commute by car is only 13 minutes from my home, and my bike commute (which I try to do two to three days per week) is just under 10 miles each way. Our building has showers for our use. My favorite days are my bike commuting days—I usually come up with design or business ideas during my 35-minute commute, and I am much more relaxed at work!

Options to consider when choosing a location for your business

• Is the building certified green by a third party?
• Is the property management company knowledgeable about green practices?
  • Are nontoxic products used in cleaning?
  • Is recycling easy to access?
  • Is bike storage and/or electric car plug-ins provided?
• Are the green features of the building accessible to the tenants?
  • Are carbon dioxide (CO₂) monitors installed in offices and shared spaces?
  • Has the heating, ventilating, and air-conditioning (HVAC) been updated and are they regularly monitored?
  • Does the building get some or all of its energy from renewable resources?
  • Does the building allow for individual control of heating and cooling?
  • Is natural daylighting present in all offices?
  • Does each office have the option for fresh air and proper ventilation?

Robin says: “Our lease requires that each tenant use only zero-VOC paints in our offices.”

Green Processes

Green processes are about practicing what you preach. Creating your green processes are both internal (your office) and external (your projects). First, we explore the internal operations of your business.

• Set up a waste management system.

  We encourage office recycling by not letting people have trash cans at their desks. Make it inconvenient for them and they won’t create (as much) garbage, plus all those little garbage bags holding a couple items is a huge waste. Office waste goes into one common collection center. Recycling is provided at each station and throughout the office.

  —Richard DeWolf, owner of Arciform, a design/build firm in Portland, Oregon

• Consider your office’s energy efficiency.

  [We] switched to efficient lighting when the older, less efficient items were at the end of their life cycle. I don’t believe in removing perfectly good things for more efficient ones. This is a concept that is exploited and wastes more than it saves. Same with toilets, urinals, etc. Our monitors are turned off when not in use. Lights in our office are on sensors that shut off when the sun shines in the office. Thermostats are set appropriately, and we have operable windows that allow for fresh air. (I am amazed at how uncommon this is!) The carpeting used in our office was purchased as seconds from projects that had extra materials.

  —Richard DeWolf

• Discourage the use of plastic bottles both in the office and on the project site.

  See Chapter 5 for the environmental costs of plastic water bottles. Serve clients who visit your office water in reusable water glasses (see Figure 6.2). It may seem like a little thing, but every plastic water bottle you don’t use does impact the environment for good.

• Consider optional transportation.

  Coauthor Robin Rigby Fisher added a shared company bicycle to her company’s transportation options, explaining: “We recently purchased a commuter bike. Since we are so close to many of our suppliers and parking spots are scarce, we had our bike outfitted with baskets so that my staff and I can pick up samples without having to use our cars” (see Figure 6.3).

• Minimize your company’s reliance on paper.

Figure 6.2 Green Hammer follows through with its goal to build for the environment. It does not offer clients bottled water (those bottles have to be recycled); rather, clients are offered fresh water in glasses with the company logo.

Figure 6.3 Portland, Oregon, is an easy bike commuting city. For nearby projects or shopping for samples, it is easier for designer Robin Rigby Fisher to use the bike than trying to find a parking spot.

In the United States alone, paper accounts for more than half of all the recyclables collected. In 2011, approximately 46 million tons of paper and paperboard were recycled. The American Forest and Paper Association estimates that this amounts to 334 pounds for each person living in the United States.¹²

Going paperless (or close to it) is not just good for the environment, it makes good business sense. Consider this: How many hours have you spent looking for a specific piece of paper? Today’s technology is an opportunity to make your business run more efficiently; it can also reduce the amount of paper your company is using. Corey Klassen, CKD, CBD, owner of Corey Klassen Interior Design in Vancouver, BC, runs a nearly paperless business:

My business is mostly paperless; I still have to print final sets of specifications and drawings. During the design process, I save pdfs of my drawings to Dropbox and by using Penultimate; I am able to mark up my drawings with the client. I then make the changes when I am back in my office. We organize all notes in Evernote and Dropbox by client’s name and by using Cloud storage, my entire staff has access to changes, drawings, specifications and emails with clients and subs. The most important part of this is to be organized and establish one system so that all members of our staff can find everything!¹³

Steps toward a paperless office

• Use your printer’s scanner. Purchase orders, invoices, and drawing revisions can be saved as PDFs and filed in your client’s file.
• Utilize cloud storage. There are many options available to the business owner. The advantage is secure backup and access to all your files wherever you or your staff members are.
• The key to document retrieval in the digital age is to set up your filing system in an organized fashion. An example of a client file:
  • Client name
  • Drawings (CAD file, PDFs, sketches [if you save current versions by date, unless you are willing to delete previous renditions])

    Specifications (contract specs) (Save these as separate files so that it is easier to forward the correct specs to specific trade contractors.)

    • • Appliances
      • Plumbing
      • Lighting
      • Windows
      • Others
    • Purchase orders
    • Photos
      • Before
      • During construction
      • After
    • Contest entries (or Media Information)
      • Design statement
      • Articles/media
• Name each file consistently. This cannot be stressed enough. Consider naming a file: [client name, drawings, date]. However it is done, just be sure that your entire staff embraces this system.
• Utilize paperless statements and bill paying. There are many options available, just be aware of monthly and transaction fees. These services usually take a few days for the funds to transfer into your account.

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Legalities of an E-mail Contract

By Peter J. Lamont, Esq.

There was a time when a contract was not legally binding unless all the parties involved sat down, reviewed the agreement, then signed and dated it in front of witnesses. In today’s digital age, formal contract signings such as the one just described have become passé. Companies of all sizes, from successful Fortune 500 corporations to the kitchen and bath designer, now use e-mail as their primary means of communication. Consequently, people receive and review documents e-mailed to them on their smartphones, tablets, and other mobile devices. Some even sign documents with a digital signature. Although most businesses enjoy the ease of digital communication and negotiation, many have questions as to whether their e-mail communications or digital signatures are actually legally binding. This article explains the legal ramifications of using e-mail and digital signatures to conduct business and to negotiate and sign business documents.

There are two primary federal laws that must be discussed in order to have a full understanding of the legality of electronic communications. The first law is referred to as the Uniform Electronic Transactions Act of 1999 (UETA). This act makes it legal for contracts to be negotiated and agreed to via e-mail. UETA specifically states that e-mail and fax contracts are legally binding. This means that any agreement made through an electronic medium, such as e-mail, will, assuming all other required contractual conditions are met, hold up in court. The second law is known as the Electronic Records and Signatures in Commerce Act (also known as the Electronic Signatures in Global and National Commerce Act [ESIGN]). This law, which was signed by President Clinton in June 2000, gives electronic signatures (e-signatures) on contracts the same weight as those executed on paper. Some specific exemptions from this act, such as contracts concerning student loans, still must be signed by hand.

Enforceability of E-mail

Although the use of e-mail in business is nothing new, questions remain as to what binding effect e-mail may have. The law has developed rapidly over the past 20 years since UETA was passed. Both clarifications of the original law and developing case law have made it reasonably clear that an e-mail can be considered a legally binding contract. Therefore, it is important for designers and design firms to be mindful of what they write in e-mails in order to avoid inadvertently creating a contractual obligation.

Unlike formal negotiations and signings, e-mail communications can be very casual and often fail to reflect the level of thought or care that goes into the preparation of hard-copy contract documents.

Over the past few years, there have been a number of federal and state cases involving the creation of contractual obligations through e-mail that the writer later sought to revoke. For example, a kitchen designer had been negotiating a contract with a client that had gone back and forth via e-mail for several days. Tired with the way the process was dragging on, the designer sent back an e-mail to the client indicating that “the current terms of the contract are acceptable.” Five days after sending the e-mail, the designer reviewed the terms and realized that he had agreed to the contract out of frustration, not because the terms were favorable to him. He immediately contacted the client and sought to revoke the agreement. The client refused, arguing that they had already turned down a number of other designers and that they wanted to use him. The designer filed a lawsuit seeking the court’s permission to void the contract on the grounds that it was not formally entered into but rather informally agreed to via e-mail. The court determined that the e-mail clearly showed the designer’s intent to enter into a contract with the client and refused to let him void the agreement simply because he later determined that many of the terms were not in his favor. The court compared his request to the request of an individual who had signed a formal, hard-copy contract and then later sought to avoid his obligations simply because he had not fully read through the document.

Despite the fact that e-mail communications can create a binding contract, the courts still require that all of the elements of a contract be met. In general, a contract is an agreement with specific terms between two or more persons or entities in which there is a promise to do something in return for a valuable benefit. The courts have been applying standard contract law requirements to e-mails and other electronic communications since the late 1990s.

It is important for kitchen and bath designers to understand the potential power of an informal e-mail and to recognize the steps to take to protect themselves against unintended contractual obligations. The best way to limit the power of the electronic communication is to include a disclaimer.

For example, let’s assume that you are negotiating a contract with a client. You have sent more than ten e-mails back and forth trying to hammer out various clauses in the document. You do not want any of your negotiations to be considered acceptance of a formal agreement. For that reason, you should include a disclaimer at the bottom of your e-mail correspondence that states that e-mail does not legally bind either party and serves only for the purpose of negotiating a final agreement. You can also state that the electronic correspondence may provide the basis for the preparation of a legally enforceable agreement but that e-mail does not address all issues contemplated by the transaction, and as such will be the subject of further negotiations. You should also include a sentence that states: “In the event that the parties are unable to agree upon and execute for any reason whatsoever a mutually acceptable formal agreement, the parties understand that each party reserves the right to cancel all negotiations and consider other offers thereafter. Finally, you should include a sentence that states something to the effect of “In the event an agreement is executed and delivered by both parties, the terms of that document shall supersede all prior discussions and negotiations, and such documents such constitute the entire agreement between the parties.”

Electronic and Digital Signatures

Hundreds of Web sites offer digital and e-signature solutions. Furthermore, many sites make a distinction between electronic and digital signatures; it can be quite confusing.

Although most people use the term “digital signature” to mean either a digital or an e-signature, it is becoming standard to reserve the term “digital signature” for cryptographic signature methods. (Cryptography is the science of securing information and is generally associated with signatures on encrypted documents.) “Electronic signature” is used for other paperless signature methods (see Figure 6.4).

Figure 6.4 Mobile applications such as DocuSign help keep paper to a minimum and contracts can be filed electronically. Applications like these are invaluable to businesses that offer services to clients in distant geographic locations.

©DocuSign Inc.

A number of online and mobile applications utilize cryptography, including DocuSign (docusign.com) and SignNow (signnow.com). It is a sophisticated process; an algorithm is used to encrypt online documents (MS Word or PDF) to protect them from unauthorized signatures. With encrypted documents, a key is generated that allows only the proper parties to sign the documents.

An e-signature can be a secured digital signature, it can also be a typed name or a digitized image of a handwritten signature. These e-signatures can be problematic with regard to maintaining integrity and security, since there is nothing to prevent a person from typing someone else’s name. Although an e-signature may be legally enforceable in a number of circumstances, it is generally considered to be less secure than an encrypted digital signature.

Generally, digital signatures are fully enforceable. Both UETA and ESIGN state that electronic records and signatures carry the same weight and legal effect as traditional paper documents and handwritten signatures.

Many documents cannot be signed by a digital or electronic signature. They include wills, leases, deeds, adoption papers, divorce papers, court orders, notices of termination of leases, notice of repossessions, and notices of foreclosure.

It is important to note that when a kitchen and bath designer wants to use a digital signature on a client contract, federal law permits consumers to opt out of electronic agreements. Thus, prior to using an electronic contract and signature, the designer must provide the consumer with a notice concerning the use of electronic documents and signatures and an explanation as to the designer’s digital security. The law does not have the same requirements for business-to-business agreements.

Electronic documents and digital signatures are becoming widely accepted as a legally enforceable means of conducting business. Using digital means of conducting business can often be quicker and more cost effective than traditional methods of signing and negotiating contracts and other business arrangements; nonetheless, it is important for kitchen and bath designers to follow the developing areas of law relating to digital signatures and electronic documents so that they, and their clients, are best served when entering working agreements.

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Green Product

The construction/remodeling industry creates a large percentage of what goes into the landfill and the items we specify for the kitchen and bath are high on embodied energy once they are produced. How can your materials and fixtures choices have a lower environmental impact?

Make sure the client understands how effectively you steward environmental resources. As Richard DeWolf of Arciform says:

We have our own cabinet shop. [Our clients tour our] shop, see how each station has four waste receptacles: general recycling, wood recycling, wood that can be used in fireplaces, and general trash. They see the stacks of reclaimed wood, see the wind-fallen trees being salvaged, and they just get it. We let them know that we use formaldehyde-free plywood and products. I explain how we originally made the switch to low-VOC materials for the health and safety of our staff many years ago. Now it’s being touted as a sustainable thing for the end user.14

Get the pricing right. DeWolf explains:

Part of having a sustainable business means not wasting time, money, or energy. With that in mind, our goal is to build everything we design. We have created a process that ensures confidence and trust with our clients.

After our designers have their initial design consultation with a new client and it is determined that there will be a fair amount of construction involved, we schedule our next appointment with one of our construction team members. By having our designer work side by side with our construction staff, we create a project that fits both the client’s budget and the way they live in their home.

Talking budget with a client can be challenging because clients don’t always want to share that information. By incorporating our design and construction teams early in the design process, we gain our client’s trust. They know we have their best interest as our goal.¹⁵

Green Promotion

You can walk the walk, but if no one knows it, how is that going to help your business? You have to tell the world about your green practices. Successful businesses let clients know of their sustainability practices. Incorporate your green practices into your website and in your advertising (see Figure 6.5). Join associations where sustainability is the focus and position yourself as an expert resource. Write about what you know through a blog or other social media outlet. Showcase your projects that have sustainable features. Put together a seminar on some aspect of green design and share your lessons with others.

Figure 6.5 Interior designer Tracey Stephens has made a mark in her industry by becoming an expert in sustainable design. Being clear about her environmental standing has enhanced her business’s success.

Create Your Company’s Sustainability Mission Statement

You must remember to “be consistent in order to be credible.” Your business’s “goals, actions and messages must have a common underlying vision.”¹⁶

Tracey Stephens, CID, principal designer of Tracey Stephens Interior Design in Montclair, New Jersey, was among the first designers in the state to be certified as a ReGREEN Trained Professional through the U.S. Green Building Council and the American Society of Interior Designers¹⁷ (see traceystephens.com). She has incorporated sustainable design tenets in her practice for as long as she has been practicing design.

My sustainable mission comes from Our Responsibility to the Seventh Generation, published by the International Institute for Sustainable Development in 1992. The basic tenet is that our time on this earth is limited, but our choices today last way beyond our demise. For real sustainability to take place, we must think about how our decisions today will affect our seventh generation into the future, this is true sustainable design. This philosophy is how the indigenous people of this world have practiced.

Although I have been incorporating these concepts into my designs for years, it wasn’t until I posted my sustainable mission statement on my website that I became known for green design—it has impacted my business noticeably.

I am committed to creating comfortable, inviting spaces for my clients that are healthy, efficient, and safe for people and the environment. In all my design projects, I offer sustainable options that replace wasteful or toxic materials and practices. Reusing or repurposing my clients existing furnishings or materials is a great place to start. ¹⁸

Creating an environmental mission statement supports your business goals. It should consist of these three parts: the “why,” the goal, and a measurement of success.

1. Why is environmental sustainability important to us and our company?
2. What is our end goal?
3. How will we know if we obtained our goal?

1. The “why.” Take time to define why your business is taking this step. Create a list of action words or phrases that reflect your commitment to the triple bottom line (people, planet and profit):
   • Promote energy efficiency.
   • Improve indoor air quality.
   • Provide a better quality of life for our clients.
   • Create an environment of collaboration with our trades.
   • Reduce our company’s carbon footprint.
   • Provide products that reflect global concern.
2. The goal. Look at the “ways in which your business negatively impacts the Earth and defining all the area in which you need to change will help bring your road map into focus. Keep in mind, your environmental mission statement should evolve as your company and our world move ahead. Consider it progress when you have to edit your statement because you have accomplished your goals.”¹⁹
3. Measuring success. How do you define your environmental success? Where will your company be in one, five, or ten years? What about your relationship with your trades, employees, customers?

The purpose of a mission statement is to motivate. The clearer you are in defining your direction, goals, and measurement of success, the more likely you are to achieving your environmental objective.

TODAY’S GREEN CLIENT

In The New Rules of Green Marketing, author Jacquelyn Ottman suggests that businesses review the next checklist to more deeply understand the buying influences of today’s mainstream green consumers and how your business needs to respond:

• Be aware of your client’s environmental awareness and concern.
• What are your clients’ top environmental concerns? What about your employees? Suppliers? Retailers? Community?
• What products do you currently specify that contain high environmental risks (i.e., polyvinyl chloride, formaldehyde, and other potentially hazardous chemicals)?
• For products that you specify, what are the long-term projections for the natural resources to create those products?
• Who is your client by generation, and how do those clients express their environmental and social concerns? Political motivation? Purchasing influence?
• Who is your competition? What is their environmental statement and practices?
• How does your client get environmental information?
• Which legislators and policy makers may impact your environmental business practices?
• What are the opportunities you could gain through green marketing? 20

Understanding Your Client

Today’s client is increasingly informed about building and the environment. In many cases, you will not be selling the concept of sustainable design; rather you be educating the client on specific details of the project. According to a 2009 survey by the Natural Marketing Institute (NMI), 83 percent of the US population classify themselves as having some level of green influence in their values, activities, and consumerism. The remaining 17 percent remain unconcerned about the environment and purchase “green” only as a result of legislation.21

Who exactly are green consumers, and what are their buying habits?

According to the International Institute for Sustainable Development, green consumers are:

• Sincere in their intentions, with a growing commitment to greener lifestyles
• Likely to perceive their own current environmental practices as inadequate
• Willing to seek out companies who are taking qualitative actions toward sustainability and have made a commitment toward improvement

In addition, they:

• Tend to overstate their green behavior, including the amount of green products they consume and incorporate into their lifestyle
• Want environmental protection to be easy with little or no sacrifice on their part
• Distrust corporate environmental claims, unless they are independently verified
• Lack knowledge about environmental issues but are willing to learn²²

This means that consumer education is one of the most effective strategies that you as a designer should implement in your business practices.

In the United States, it is the children who influence the family’s buying decisions, whereas in Canada, adults, children and the more mature generations have “strong environmental concerns” and are more active green consumers.²³

A 2011 survey conducted by Insightrix Research, Inc. for IPAC-CO2 Research Inc. found that 57 percent of Canadians believe that our environment’s problem is a result of human impact and “partially due to natural climate variation” with an additional 31 percent believing that human activity is the cause of climate change.”²⁴

In Canada, we grew up watching David Suzuki.^* I watched his show, The Nature of Things, every week. His message on how we live and how we can live better has shaped my life, my designs and business practices. Canadians have been watching him weekly since the 1960s. I don’t advertise my business as environmentally sustainable; we should all be using these practices.²⁵

—Corey Klassen, CKD, CBD, Corey Klassen Interior Design, Vancouver, British Columbia

If the designer takes on the role of educator, demonstrating the environmental benefits of each product in terms of air quality, recycled content, and water or energy conservation, the project’s environmental goal will be greatly enhanced. It is important to also address with your client the “traditional values” of price, quality, convenience, and availability for each product you specify.

Companies that are interested in incorporating sustainability into their marketing plan should look at consumers not only in the traditional groups by generation (Baby Boomers, Gen X, Gen Y, etc.) but should incorporate information based on the five segments of population created by the NMI. It has been determined that these segments are found equally across the traditional generational consumer groups.

The five segments as defined by their eco-consciousness are:²⁶

• LOHAS
• Naturalites
• Drifters
• Conventionals
• Unconcerned

• LOHAS. “As their name suggests, the LOHAS (Lifestyles of Health and Sustainability) segment represents the most environmentally conscious, holistically oriented and active of all consumers.”²⁷ This group represents 19 percent of all US adults. They believe in a “connection between health and global preservation” and purchase products that maintain that connection. A LOHAS is typically a “married, educated, middle-aged” woman and has the second highest income of the five segments. Buying decisions of LOHAS are influenced by environmental issues. LOHAS consumers do their own research into businesses and are loyal to their decisions. They are very environmentally savvy, are leaders in energy and water conservation, and are politically aware.
• Naturalites. One in six US consumers is defined as a “Naturalite.” Naturalites take a personal approach to the environment, concerning themselves with the harmful effects of paint, cosmetics, and food. They look for safer alternatives and are receptive to education where there is a personal connection to health.
• Drifters. This group is driven more by trends than by beliefs. With 57 million consumers, they are the largest segment and are most attractive to marketers. Drifters want to belong; they typically choose “green” options based on how they look to others. Typical drifters are young, live in coastal states, have moderate incomes, and have larger households with children under 18. They are avid recyclers and energy conscious; however, they are less apt to engage in the more nuanced eco-conscious behaviors.
• Conventionals. This segment will more than likely lower the heat in the home and put on a sweater. With over 53 million consumers, this is the second largest segment. They are proponents of the “reduce, repurpose, reuse, recycle” attitude. They are fiscally conservative but will invest in items if they know it will reduce energy costs. They research and are open to learning. Conventionals are more than likely to be males in their mid- to late 40s with a high income. Twenty-five percent of this segment is retired, and more than 45 percent pay off their credit card balances monthly.
• Unconcerned. Over 61 percent of the unconcerneds say that they care about the environment, but only 24 percent of the total unconcerneds actually recycle.

The NMI estimates that these five segments are a $290 billion–a–year market. ²⁸

Marketing a “Life” versus a “Lifestyle”

Our way of marketing has changed. In the past, marketers sold a “lifestyle.” Green marketers sell the consumer a “life.”

To sell a lifestyle, a company is selling how the consumer chooses to be at a particular moment in time. A lifestyle is external; it can include people, material things, and how you spend your time, money, and energy. Example of lifestyle marketers are Abercrombie & Fitch, BMW, Apple, and Louis Vuitton.

“Lifestyle” is a term coined by Austrian psychologist Alfred Adler. It came into mainstream use in the 1950s and is characterized by the following:

• Lifestyle is a group phenomenon influenced by social group or relationships.
• Lifestyle permeates various aspects of life and gives marketers the ability to predict behaviors.
• Lifestyle implies a central life interest: activities, family, work, politics.
• Lifestyles vary according to social groups, such as age, sex, religion, ethnicity, and social class.

Selling or marketing to a “life” is more internal; it includes our beliefs, values, preferences, and outlooks. Selling a “life” will support your client’s lifestyle. Products are marketed as “locally sourced” and have a regional flavor. Marketing your business this way is holistic: You are your marketing beliefs, values, and community.

Companies that are successful in green marketing are proactive, interdependent, and incorporate this belief throughout their business. They are focused on the triple bottom line (people, planet, and profit).

INCORPORATING SYSTEMS THINKING IN YOUR BUSINESS

We discussed systems thinking in Chapter 1. Successful businesses recognize that the way their business is run affects the success of the client’s project. It is a holistic approach.

Let’s look at another way.

Take an iceberg, for example. The tip of the iceberg is visible to the world (consider this your clients), but the driver of the iceberg, what is affected by the ocean currents, is way below the surface (your business practices). For example, your competitors do not take away business; they take advantage of an opportunity that poses itself based in part on your business practices.29

Incorporating this type of thinking is very similar to the story of the blind men and the elephant. Each man touches one part of the elephant and draws his own conclusion:

• The man who touches the trunk believes it is a rope.
• The man who touches the ear believes it is a tent.
• The man who touches the leg believes it is a tree, and so on.

No one man sees the big picture. Taking all these parts and understanding that the elephant is made up of all these pieces is the way system thinking works. Your parts and pieces of your company, clients, employees, subs, office management, advertising, marketing, and so on are is all part of a finely tuned system where one piece affects the other.

Taking this concept one step further, your business is part of a community, which is part of the environment. This is the base of the iceberg, the driving force of all successful and sustainable businesses.

It really boils down to this: That all life is interrelated. We are all caught in an inescapable network of mutuality, tied into a single garment of destiny. Whatever affects one destiny, affects all indirectly.

—Martin Luther King Jr.

SUMMARY

Making the decision to be a steward for the environment is admirable. Any change, no matter how small, will be a positive one.

You have the opportunity to effect change in both our industry and our environment. As we have stated, as a designer, you are not only the creative entity of a successful project; you are also the educator and the driver. By effectively communicating your clients’ needs, wants, and desires, you can steer the project toward environmental stewardship and not sacrifice design.

Part of being a designer is being open to new ideas. Most successful designers are curious. Create alliances with your trades, bring them in early in the design process, and use their expertise to discover the best solution for your clients. Ask questions; do not be afraid to challenge your suppliers and trades. Remember, you are the link between clients and the success of the project.

The environment requires the same level of curiosity. Read trade publications, attend seminars, join your local NKBA chapter and attend the meetings, and get involved with the USGBC. Never stop learning.

Scientists now believe that our environment is in dire crisis. The time for contemplation is over. Now is the time to act!

Make a habit of two things: to help or at least to do no harm.

—Hippocrates

REVIEW QUESTIONS

1. Explain the value of a sustainability mission statement. How could a company use such a statement to its advantage? (See “Green Promotion” page 166)

2. Review the SWOT User Guide at: http://pdf.wri.org/sustainability_swot_user_guide.pdf. What is a SWOT? Why should a business owner create one, and what information could be gleaned from this information? (See “The Four Ps for Creating a Sustainable Business” page 156.)

3. Explain the difference between marketing to a lifestyle versus to a life. How would the difference apply to marketing your company as green? (See “Today’s Green Client” page 168.)

ENDNOTES

* David Suzuki is the cofounder of the David Suzuki Foundation. He received his doctorate in zoology from the University of Chicago in 1961. His long-running, award-winning radio and TV shows in Canada have influenced the way Canadians look at and impact the environment. For more information on his foundation and additional information on environmental news and green living tips, visit his website at www.davidsuzuki.org.

1. US Green Building Council Green Jobs Study (McLean, VA: Booz Allen Hamilton, undated), p. i; available at www.usgbc.org/Docs/Archive/General/Docs6435.pdf.

2. The Green Business Plan Guide (Oakland, CA: Green for All, n.d.), p. 3; available at http://greenforall.org/wordpress/wp-content/uploads/2012/06/Green-Business-Plan-Guide.pdf (accessed June 3, 2014), citing “Pew Finds Clean Energy Economy Generates Significant Job Growth” (Philadelphia, PA: Pew Charitable Trusts, June 10, 2009), available at www.pewtrusts.org/news_room_detail.aspx?id=53254, accessed June 3, 2014.

3. Joe Manget, Catherine Roche, and Felix Münnich, Capturing the Green Advantage for Consumer Companies (Boston: The Boston Consulting Group, 2009), p. 17 Exhibit 10 Available at www.bcg.com/documents/file15407.pdf; accessed June 3, 2014.

4. Ibid.

5. Ibid., p. 20.

6. Ibid., p. 8.

7. Ibid., p. 20.

8. Alexander Perera, Samantha Putt del Pino, Barbara Oliveira, Aligning Profit and Environmental Sustainability: Stories from Industry (Washington, DC: World Resource Institute, 2013), 20; available at www.wri.org/sites/default/files/pdf/aligning_profit_and_environmental_sustainability_stories_from_industry.pdf.

9. Personal communication with the author, August 15, 2013.

10. Eliot Metzger, Samantha Putt del Pino, Sally Prowitt, Jenna Goodward, and Alexander Perera, sSwot: A Sustainability SWOT (Washington, DC: World Resources Institute, December 2012), 1; available at http://pdf.wri.org/sustainability_swot_user_guide.pdf; accessed June 3, 2014.

11. Conversation with the author, August 15, 2013.

12. See www.epa.gov/osw/honhaz/muncipal/msw99.htm and www.paperrecycles.org.

13. Telephone conversation with the author, September 16, 2013.

14. Email interview with the author, November 2, 2013.

15. Ibid.

16. Manget, Roche, and Münnich, Capturing the Green Advantage for Consumer Companies, p. 22.

17. http://traceystephens.com/about/tracey-stephens-design-philosophy.php.

18. Telephone interview with the author, September 15, 2013.

19. Matt Courtland, “Environmental Mission Statements: How to Develop Your Own.” Environmental Leader, April 23, 2010. Available at www.environmentalleader.com/2010/04/23/environmental-mission-statements-how-to-develop-your-own (accessed June 5, 2014).

20. Jacquelyn A. Ottman, The New Rules of Green Marketing: Strategies, Tools, and Inspiration for Sustainable Branding (San Francisco: Berrett-Koehler Publishers, Inc., 2011), pp. 43-44.

21. Ibid, p. 45, citing the National Marketing Institute.

22. International Institute for Sustainable Development, www.iisd.org/business/markets/green_who.aspx (accessed June 5, 2014).

23. Ibid.

24. IPAC CO2 Research Inc., Public Awareness and Acceptance of Carbon Capture and Storate in Canada (Executive Summary) (Saskatoon, SK: Insightrix Research, Inc, November 2011); available at www.cmc-nce.ca/wp-content/uploads/2014/01/IPAC-CO2-National_Report-Executive-Sum.pdf.

25. Telephone conversation with the author, August 9, 2013.

26. Natural Marketing Institute, The LOHAS Report: Consumers and Sustainability, as quoted in Ottman, The New Rules of Green Marketing, pp. 23–28.

27. Ottman, The New Rules of Green Marketing,” p. 25.

28. See www.lohas.com/about (accessed June 11, 2014).

29. The Green Business Plan Guide (Oakland, CA: Green for All, n.d.), p. 3; available at http://greenforall.org/wordpress/wp-content/uploads/2012/06/Green-Business-Plan-Guide.pdf (accessed June 3, 2014), citing “Pew Finds Clean Energy Economy Generates Significant Job Growth” (Philadelphia, PA: Pew Charitable Trusts, June 10, 2009), available at www.pewtrusts.org/news_room_detail.aspx?id=53254, accessed June 3, 2014.