There was a time when a green discussion meant deciding its relevance as a highlight in the seasonal colour palette. Today the word green is more often associated with the conservation of planet Earth's natural resources than just another colour trend, writes Amanda Young.
Environmental sustainability or going green has been around for a while now but instead of fading out like last year's fashion, this trend is gathering momentum.
The arguments for embracing more environmentally sustainable practices are becoming hard to ignore. Not convinced? Then try using the ecological footprint calculator on the EPA Victoria website. I know little about the science behind this simple questionnaire, but it seems to demonstrate what the World Wildlife Fund claim in its Living Planet Report - that if we continue to consume energy at our current rate, within 15 years we'll need two planets worth of resources to survive. For those who think it's the next generation's problem, think again.
For retailers today, the barrage of challenges brought on by the current economic climate is likely to be distracting attention from longer term imperatives. It follows that any initiatives outside the core business come under intense scrutiny in terms of the value that they add to today's balance sheet. In many executives' minds, going green is perceived not only as an expensive pursuit but a luxury in tough economic times.
However, as they say, a crisis is a terrible opportunity to waste. On the positive side, this economic slowdown brings with it a window of opportunity to reassess the way we do things, allowing us time to develop strategies to reduce our environmental impact and resource consumption. This can be an opportune time to lay the groundwork for tomorrow.
Retailing is seen to have the ability to influence behaviour and consumption patterns in its role as a gatekeeper for goods and services. But the notion of green retailing, or "Greentailing" as it's been called, extends well beyond the provision of products and services. It challenges all of us connected with the industry to examine every practice in an effort to reduce our carbon footprint and invest in future sustainability.
For those of us who design and build retail environments, the challenge is to develop knowledge that can assist the retailer to make informed decisions.
In our business as store development specialists, we are beginning to explore ways in which to support environmentally sustainable practises. We are also learning more about the impact of materials and manufacturing processes on the environment. Our manufacturing arm in China presents its own unique set of challenges as one of our regional neighbours and a critical trading partner for Australia grapples with its own environmental dilemmas.
The extent to which retailers move towards a 'greener' mode of operation really depends upon the priority "greenness" is given within the organisation, and the extent to which outside forces are driving change. Although the economy may have slowed down activity, there are some innovators leading the way despite the tough trading conditions.
Many brands continue to promote their green credentials but specialty retailer General Pants doesn't have 'green' woven into its brand image. However, its commitment to creating an eco-friendly environment in its Melbourne Bourke Street store was one of the most stimulating projects I have witnessed. From the original conception, to hunting down old furniture, using recycled timbers for fixtures and creating an amazing "living wall", the GP team's clear vision never faulted and the end result is stunning.
Our experience working with General Pants inspired us to take a closer look at sustainable practises and to become more informed. Overseas websites tend to provide most of the latest information. Some examples are: promoting the use of rapidly renewable materials such as bamboo, rattan, cork and linoleum for store fixtures and surfacing; choosing natural fibre for carpeting and upholstery; using wood harvested in a sustainable and socially conscionable manner; and eliminating damaging toxic chemicals in the manufacturing process.
We knew that these alternatives were not readily accessible in Australia, but it came as a surprise how scarce they really are. Unfortunately, it tends to add weight to the belief that going green is likely to translate to higher fit-out costs. Even recycled products are often imported which negates the effect of reducing the carbon footprint.
In the US, consumer awareness of environmental issues is moving into mainstream. High profile companies are actively marketing their green commitment. While some initiatives are market driven, many others are the result of tough new regulatory standards particularly in the manufacturing, building and construction industries.
Notably, the US Green Building Council has established the "Leadership in Energy and Environmental Design" (LEED) rating system. LEED for Retail standards are designed to meet the specific needs of retail projects from lighting and energy use to materials selection.
Retailers are awarded certification levels; Silver, Gold or Platinum for the level to which they achieve:
* Sustainable sites
* Water efficiency
* Energy and atmosphere
* Materials and resources
* Indoor environmental quality, and
* Innovation and design
From all reports this has created a sound platform for retailers to begin building environmental sustainability into the physical assets of their businesses.
This contrasts with our Australian experience (not that we are advocating regulation as a change driver). There are few standards appropriate for Australian conditions, nor are there guidelines specifically designed to inform Australian retailers yet, although the Green Build Council of Australia has developed a rating tool for shopping centre design.
But can sustainability actually be financially beneficial? Mega-retailers such as WalMart certainly think so. Sustainability measures, from using LED lighting, through to ensuring that the rooves of their warehouses and Supercentres are painted white (to assist with temperature control inside) contribute huge savings to the bottom line. But what if you are not quite WalMart?
A coordinated Federal agenda would be helpful in assisting businesses, particularly retailers, to embrace sustainability initiatives. Also, consideration should be given to providing further incentives, especially for SMEs and medium sized businesses to create greener environments.