The issue includes “10 Trends You Have to Watch” and “Managing in the New World.” These articles highlight the new importance of “sustainability business drivers” and how there is a new business paradigm.

The old business paradigm relied on abundant resources and few stakeholders, and companies were not very transparent. In the new paradigm, resource efficiency is essential, “everyone” is a stakeholder and companies are increasingly transparent.

Even in the midst of the recession, the business drivers for sustainability are ever-present.

A few quotes from selected articles:

• “Resources feeling the strain” (page 56):
o “We believe that, in the years to come, ‘resource productivity’ (the output achieved from every unit of oil, power, water, or other resource input) will become central to company competitiveness.”

• “Trust in business is running out” (page 57):
o “Regaining trust also means dispensing with the view that the only objective of management is to increase shareholder value. Broadening the list of key stakeholders to include employees, customers, suppliers, communities, the press, unions, government, and civil society will help companies rebuild credibility.”

• “Innovation marching on” (page 60):
o “Research shows that companies investing countercyclically in R&D during downturns tend to outpace their competitors on the upswing.”

• “How Gen Y & Boomers Will Reshape Your Agenda” (page 71) and in particular “Portrait of Gen Y” (page 74):
o “Portrait of Gen Y, 86 percent say it’s important that their work make a positive impact on the world.”
o “Gen Y workers want an employer who shares their eco-awareness and social consciousness, even down to the details of office energy use. Nearly one quarter say it’s very important to work in a green, environmentally conscious workplace.”

• “Understanding the Post Recession Consumer” (page 106):
o “Slowed Trends, Green Consumerism. Environmentalism is by now deeply rooted in the consumer mind-set and public policy arena, although consumers and politicians express widely varying degrees of engagement. Consumers are forgoing pricey green products and instead are cheaply and discreetly reducing waste.”
o “Dominant Trends, A Focus on the Boardroom. Outraged by corporate malfeasance, people are punishing companies for unethical governance.”

• Emerging Strategies to Beat the Slowdown (page 134) and in particular Shift 4 (page 136), the “Higher Stakes in Sustainability”:
o C.K. Prahalad (University of Michigan): “Companies that understand the opportunities engendered by sustainability will come out of this recession ready to capitalize on the low-carbon and clean-energy economy of the future.”

What does all of this mean?

In my mind, it answers the question posed by clients and peers late last year: “Will companies abandon sustainability because of the poor economy?”

The answer is no because the business drivers for sustainability have not disappeared into the background of business priorities. Instead, sustainability represents opportunities to reduce operating costs (reduced energy, water and material use) and to innovate. The successful companies in 2009 are reducing their environmental footprint and investing in innovating new products and services to thrive in a global economy where resources are constrained, the climate is changing, companies are transparent and everyone is a stakeholder.

The study is not only an excellent illustration of the tangible benefits of promoting telecommuting, but also how IT can promote productivity and collaboration.

The results of the study make a compelling case for deploying “collaboration technology” and promoting telecommuting. The bottom line is that telecommuting creates value through benefits such as increased productivity, employee satisfaction and reduced carbon emissions.

A quick overview of the study:

• The objective of the study was to “evaluate the social, economic and environmental impacts associated with telecommuting at Cisco.”
• The study was global and consisted of surveying Cisco employees
• Key measurements of the study included:
– Weekly commuting patterns
– Round-trip commuting patterns
– Weekly telecommuting patterns
– Collective impacts of telecommuting such as greenhouse gas emissions and distance traveled
– Importance of telecommuting to Cisco “telecommuters”
– Comparison of work patterns (home vs. office)

A summary of the results:

• The positive aspects cited by the survey respondents (in priority order):
– More flexible work schedule
– Reduced commuting time
– Better quality of life
– Saving money
– Higher productivity
– More control over life
– Reduced stress
– More time to spend with family

• The overall benefits expressed by the telecommuters:
– Equal or improved ability to communicate and collaborate with coworkers when working from home (over 82 percent)
– The timeliness of their work output improves when working at home (over 74 percent)
– The quality of work improves when working at home (over 67 percent)
– Survey respondents do not experience broadband connection issues/limitations (over 83 percent)

The bottom line is that telecommuting benefits Cisco and its employees with a tangible savings of more than $10 million in fuel costs and more than 47,000 metric tonnes of CO2e per year.

Promoting telecommuting results in improved productivity and quality of life along with tangible benefits such as reduced fuel use, reduced need for office space and reduced carbon emissions.

The impact that increased telecommuting and the use of collaboration tools (such as Cisco TelePresence) will have on work patterns and urban/suburban life is just beginning to be understood.

On a personal note, DOMANI promotes telecommuting and I expect that after this blog is released, there will be a renewed discussion to further promote our internal program.

Gone are the days when everyone had to be in the office to be considered “productive” and working.

A question for everyone, does your company promote telecommuting? If so, how does it work for you?

It is worth noting that amid the gloom from Detroit, there is real innovation in the auto sector coming from places like Silicon Valley, and yes, even Ford.

So, while for the most part Detroit struggles and we focus on what went wrong, let’s look at how sustainability is “driving” innovation in the auto industry.

Project Better Place – this is one of the most exciting VC funded businesses in the auto industry right now (www.betterplace.com). Shai Agassi, CEO of Better Place, is well on his way to reinventing the entire transportation model with electric vehicles and supporting infrastructure. The model is simple (although challenging to execute):

• “Drivers pay to access a network of charging spots and conveniently located battery exchange stations powered by renewable energy;
• Drivers pay for the miles they drive;
• Cars are made much more affordable – even free in some markets – by the business model’s financial and environmental incentives to add drivers into the network; and
• Better Place operates the electric recharge grid that brings it all together.”

Better Place operates the electric recharge grid that brings it all together.”

Better Place has recently signed on (December 18, 2008) Oakland, San Jose and San Francisco to collectively create a network of electric vehicle charging stations and supporting regulations by 2012. This follows commitments and interest in building the electric vehicle infrastructure in Denmark, Israel, Australia and Hawaii.

Tesla – One of the hottest electric cars on the road (yes, it is in production) is the Tesla Roadster (www.teslamotors.com). The 2009 Roadster was reviewed by Road and Track and highlighted by the Wall Street Journal Magazine (November 28, 2008). The all electric roadster accelerates to 60 in around four seconds with a range of more than 200 miles.

Honda – Although a hydrogen infrastructure for autos is years away, Honda is leasing a hydrogen fuel cell vehicle (the FCX Clarity) with an approximately 280 mile range. The vehicle is available for lease on a small scale for a bit less than $600 per month. Honda is betting that if you build the vehicle, the infrastructure will follow (the Model T preceded gas station infrastructure in the U.S.).

Toyota – In January, Toyota will unveil their third generation Prius Hybrid with more interior room and increased gas mileage. Toyota is committed to building upon the success of their best selling hybrid. Speculation is that the 2010 model will likely have a 1.8 litre engine with about 100 horse power and may have solar panels on roof to charge accessories!

BMW – Yes, the very popular Mini Cooper will be available as an electric vehicle. As BMW puts it, “hug trees as you hug corners.” BMW plans to lease 500 cars to drivers in Los Angeles and New York City for about $850 per month. BMW is relatively new to the electric vehicle market. However, they plan on rolling out a mass produced electric vehicle by 2010.

Ford – It is easy for Ford to get lumped in with GM and Chrysler these days. However, I believe there is a fundamental difference between Ford and the rest of the pack. Ford understands the current shift towards a “green economy” and the business opportunities this presents (GE ecomagination?). They are also keenly aware of the legacy of the Ford name. According to the New York Times (November 24, 2008), Ford has a “green agenda” and is focused on electric vehicles and fuel economy in general. This is a refreshing long term view beyond the current cheap oil and low gas pump prices. Ford could likely be the real innovator in Detroit.

X Prize – Prize money to spur innovation? Why not? The goal of the Progressive insurance X-Prize (www.xprize.org) is to “inspire a new generation of viable, safe and super fuel-efficient vehicles.” The $10 million prize will be awarded to the teams that win a cross-country stage race with “clean, production-capable vehicles that exceed 100 miles per gallon or energy equivalent fuel economy (MPGe).”

So, despite the trauma in Detroit and Washington, DC, innovation in the automotive sector is alive and well and coming from likely places (Ford) and unlikely places (Silicon Valley).

This is encouraging!