The Business Case for Going Green

Local companies find success, cost savings, and business growth through implementing green.

A self-described conservative, Ron Lyrek initially scoffed at the idea that implementing green techniques into Interscapes, Inc., his north Minneapolis-based architectural woodworking business would improve his bottom line. It did though, and turned out to be pretty easy.

"Going green was not that difficult," Lyrek said. "And I'm not an environmental engineer. I'm just a guy who owns a cabinet shop, trying to be a good steward."  

Lyrek expects to save more than $1 million annually from efforts to reduce waste, increase efficiency, and focus on environmentally certified projects. His $4.5 million company recently invested $40,000 in a large grinder that enables Interscapes recycle 95 percent of its waste. Wood and paper waste are turned into animal bedding and given to a local horse ranch, and metal is recycled at a nearby facility in north Minneapolis.

"I decided to take my company green because it made sense for my people, my planet, and my profit," he said.

Lyrek was one of five presenters who discussed diverse perspectives of green profitability for manufacturers at "The Business Case for Green," an event sponsored by Enterprise Minnesota Wednesday at Comcast in Minnetonka. Each described how Minnesota companies are finding innovative ways to increase energy efficiency, reduce or reuse byproducts, and work with suppliers to secure environmentally friendly products.

 "Obviously, for business, you want to see cost savings," said Tim Nolan, sustainable industrial development coordinator at the Minnesota Pollution Control Agency. "When you start adopting higher levels of green production, you're minimizing use of commodities."

Nolan praised the Cardiac Rhythm Disease Management Division at Medtronic for achieving a positive impact on the environment by making very small changes in their development methods. By streamlining its packaging, digitalizing is manuals, and promoting recycling, that division of Medtronic has saved $2.3 million over two years and reduced packaging waste and paper by 500,000 pounds.

Similarly, the St. Paul Port Authority has cosponsored the Trillion BTU Energy Efficiency Program, teaming up with Xcel Energy to provide rebates for companies to invest in energy conservation and improve profitability, often with an investment payback between one to five years, according to Louis Jambois, the port authority's president.

"When there's payback within three years on a project, companies see that as a no brainer," Jambois said.

Eric Jackson, CEO of Carbonlesspromise, helps companies identify and manage carbon risks. He said that companies are finding public sentiment is another reason for green innovation.

A 2008 survey conducted by McKinsey & Company, he said, discovered that a corporation's attitude toward the environmental impacts consumer trust and even sales.

Ecolab, a $6.1 billion company, found that by replacing 70 ready-to-use bottles of cleaning solution, with  two two-liter pouches has resulted in 99 percent waste reduction at the user-end, according to Ecolab corporate scientist Lynne Olson.

"Our approach is the triple bottom line; we believe in economic progress, environmental stewardship, and social responsibility," she said.

Presentations from the event are available online.

Look for more information on green in the upcoming March/April issue of Enterprise Minnesota magazine article "8 Ways to Green Your Profits," and you also may sign up to attend Enterprise Minnesota's upcoming event The Next Generation of Lean.