Last week, on the second anniversary of the launch of GE’s ecomagination initiative, the company held a massive press conference in Los Angeles to announce its many new partnerships. Since this was a press conference, I was skeptical of the information to be provided…was this just going to be one big GE commercial love fest? And perhaps more importantly, would I drink the Kool-Aid?
The answer on both questions? Yes and no. My skepticism of the motives of corporations aside, I must admit a bias in favor of the impact that businesses (especially businesses the size of GE) can have on the climate crisis we currently face. However, companies must be able to make a “business case” for green initiatives. In other words, going green has to be profitable for the company. Remember, the three elements of the triple bottom line include profit. Yes, it would be nice if companies made changes to improve their footprint out of a concern for people and the environment, and a few companies do just that, but the business world is not designed to reward such behavior. To get a critical mass of companies on board, profit must be achievable.
Apparently, GE Chairman and CEO Jeff Immelt feels the same way. His new mantra is “green is green,” meaning that green business equals green money. This could not be more true for GE. According to their May 24th press release, “Revenues from its (ecomagination) portfolio of energy efficient and environmentally advantageous products and services surged past $12 billion in 2006, up 20% from 2005, while the order backlog rose to $50 billion.”
Wow.
Immelt goes on to say, “These extraordinary revenues and orders are the initial payoff from directly aligning our product portfolio with our customers’ needs and evolving trends, while ‘doubling-down’ on investments in leading edge technology and innovation. Ecomagination is growing beyond our expectations, evolving into a sales initiative unlike any other I’ve seen in 25 years at GE.”
Though skeptics will point to the fact that ecomagination represents a small piece of GE’s business, this growth can only be good news. A company the size of GE can have a huge impact with their investment in new technologies, as well as in spreading the word through their visibility.
Immelt announced at the press conference a series of new partnerships and investment in many divergent industries, including:
- Water desalination: slated to open in 2010, the Carlsbad Seawater Desalination Plant will draw water from the Pacific Ocean for use in San Diego County. The facility will use GE’s ZeeWeed® ultra filtration technology.
- Hydrogen energy: GE, along with BP, is forming a global alliance to develop and deploy 10 to 15 hydrogen power projects.
- Wind energy: GE Energy Financial Services will invest in its biggest wind farm to date, the 241-megawatt Sweetwater 4 facility and a sister project, both in Texas.
- Transportation: efforts here include the first hybrid locomotive with Union Pacific, and investment in A123’s work toward the next-generation battery technology for hybrid electric and plug-in hybrid electric vehicles.
- Lighting: Wal-Mart, the largest individual electricity user in the country, will be installing motion-activated LED lighting in its refrigerated cases. In addition to using less energy for lighting, less heat will be generated reducing the amount of energy used for refrigeration.
- Housing: RWO Acquisitions is retrofitting an old Air Force base in coastal South Carolina into a green community, featuring energy efficient homes and GE’s first energy-efficient mortgage. Homes will offer the GE SmartCommand™ Dashboard, which provides current and historical data on water and electricity usage.
- Carbon emissions offsetting: with AES Corp., GE will invest in projects to capture and destroy GHG emissions from agricultural waste, landfills, coalmines and the like. The partnership will then sell the resulting offsets.
- Entertainment: NBC Universal has launched “Get On Board,” a program to improve the environmental impact of its operations by reducing greenhouse gases, raising awareness about green issues, and stimulating change in the media and entertainment industry.
After the press conference, we had time to view examples of some of the new technologies in the exhibit hall, before returning for a discussion on sustainability with Immelt and California Governor Arnold Schwarzenegger. Though the questions posed by NBC’s Lester Holt were pretty much softballs, it was an interesting discussion. The gist? From the Governor’s point of view, in finding ways to balance environmental initiatives with economic concerns California can lead the way for the rest of the nation, including the federal government. Keys to success include giving industry enough time to meet new standards, and the realization that new technology brings new jobs.
Immelt’s answers did not waiver from his earlier message: GE is into green as a business initiative. When asked about GE’s biggest areas for growth, Immelt responded that taking these new technologies to India and China, where they are needed most, would be a coup for whoever delivers them affordably.
Both agreed that the US must provide leadership for the rest of the world by first cleaning up its own act. The US remains the world’s biggest polluter, representing just 5% of the population while being responsible for 25% of greenhouse gas emissions. The US must remedy this situation to have credibility when offering help to developing nations.
After a long day, I left the event with the sense that we’ve turned a corner. If companies like GE and Wal-Mart can make tons of money with green initiatives, while communicating the message that greening doesn’t cost money but makes money, other companies will follow their lead. This offers real hope, without the Kool-Aid.