Archive for the ‘Enterprise Carbon Accounting (ECA)’ Category

“Full Cost” Sustainability Accounting – The Key to Growth for Greener Products?

Thursday, April 15th, 2010

This morning Jeffrey Hollender, the Chairman of Seventh Generation, gave the keynote for our Green Enterprise 2010 Seminar.

One powerful concept he described was “full cost” sustainability accounting whereby companies are required to include their external environmental costs (ie. things like pollution or resource consumption) into their corporate earnings.

A quick test said that if coal power producers included the full costs for their CO2 emissions it would wipe out all their earnings instantaneously.  More broadly, he cited California’s $300 million healthcare cost for non-insured Wal-Mart employees as an example of external costs not currently included in Wal-Mart’s corporate profit analysis.

While Jeffrey acknowledged the challenge with getting this accounting system implemented, his thesis remains that only full cost accounting will enable greener products to be priced at an advantage to less green products.   And this pricing advantage would spur adoption and corporate response to design more of them.

Groom Energy’s April 15th Green Enterprise 2010 seminar

Thursday, March 11th, 2010

We’ve excited to announce our next Groom Energy seminar, entitled Green Enterprise 2010, which will be held April 15th at the Embassy Suites Hotel near Boston’s Logan Airport.

As with our previous seminars our target audience remains corporate energy and sustainability managers who wish to hear and discuss best practices, case study based observations.

Last year our first two seminars had a direct focus on the emerging market for Enterprise Carbon Accounting (ECA), a market we had identified and about which we published research.  Our February 25th Boston ECA event featured Mindy Lubber from Ceres who likened climate impact to an off balance sheet risk which should be disclosed by public companies.  Our follow-on May 14th San Francisco ECA event was highlighted by a practical case study panel with presentations from Applied Materials, HP, Intuit and Sony.

Then in September 2009, we  delivered a broader sustainability oriented seminar  including a special Wal-Mart Supplier Workshop followed by our Greening The Supply Chain event the next day.  This featured a keynote speech by CE-Yo Gary Hirshberg, who described Stonyfield Farms’ long standing commitment to reducing all aspects of their climate impact, which began way before being green was cool…

Our April 15th agenda has the broadest agenda yet.  Over the last year, as we’ve dug deeper with our customers and seminar attendees, we’ve found that many  corporate sustainability managers now have cross-functional responsibilities.  These managers may move from one meeting on green product design to a review of their energy usage or to a session focused on engaging their own employees for their own green efforts.

With all this in mind we’ve designed an agenda that touches on as many of these areas as possible – all wrapped into one day.  We’re looking forward to seeing everyone there!

The ECA Market grew up quickly

Tuesday, January 19th, 2010

Today Groom Energy published our newly updated ECA research report, 2010 Enterprise Carbon Accounting, which also included our selections for the market’s 2010 ECA Emerging Leaders.

The basis for our research report started back in 2006.  At that time, as Groom Energy engineers were working with a F500 customer to build a GHG reduction budget, it occured to us that GHG tracking and reporting would eventually represent a fundamentally new process within every large company.  Even by then, staying on top of reporting for the EPA’s Climate Leaders was requiring more and more time for our customers.  It was no surprise that spreadsheet tools were not going to scale – but it was the collaboration necessary to even gather and manage the data where the gap was most obvious.

What most people don’t know is that we even made a concerted effort to start our own Groom Energy spin-out GHG software company.  We had surveyed the market through our customers, found only a few third party software packages, and thought we saw a path to a new class of enterprise software, calling it “enterprise carbon accounting” or ECA for short.    (all new markets need a name, right?)

Within a few months we had detailed the basic software functionality and even recruited a software team to start building it.  After several initial meetings with traditional software VC’s in Boston (most of whom couldn’t spell G-H-G, but all of whom understood enterprise software) we sensed it was going to be a long slog to get early stage funding based on our powerpoint-ware.  Either we had bad breath, couldn’t convey the opportunity correctly or needed to live on Sand Hill Road…

Within a few months of our effort we starting uncovering more new ECA vendors, some established EHS vendors with GHG extensions, some VC funded pure start ups, some larger software companies who added GHG modules.  It seemed each week we were adding a new entrant to our wiki list, which was more and more daunting.  At 10 known players we were concerned.  At 20, we knew were were too late and abandoned our effort.  At 30, we knew that our customers were just as overwhelmed trying to understand the offerings, all while building their own strategies internally.

And hence the idea for our ECA research report was born.  We saw that the best way to leverage our effort was to help our customers with a more concrete deliverable – customer based research which could be regularly updated as the market developed.  Not as profound as an entirely new company, but worthwhile nonetheless.  The good news is that market response has been a bit overwhelming…

Check out the latest report and, if you’re an entrepreneur considering your own ECA software start up, study the vendor list carefully – its up to 60 and still going….