The time for pondering the effects of global warming is over — it’s time now for implementing change throughout the retail landscape.

By now, you would have to live in a cave not to know that there’s a crucial campaign to educate and change social policy surrounding the global climate change. Between former Vice President Al Gore winning the Nobel Peace Prize (not to mention an Oscar and a Grammy), the nightly news reel of drowning polar bears in the Arctic and peak oil leading to the ever-growing costs at the pump, citizens around the world understand the necessity of changing the way we live. And retailers are no different. Conscious of the shift in both the science of global climate change and the attitudes of consumers, retailers are taking the plunge into the green — changing the way they do business in order to change the world.

The Problem

The science of global change is, at this point, irrefutable. As we continue to burn fossil fuel in the form of oil, coal and gasoline, while also cutting down our forests in order to produce more goods, the amount of carbon dioxide released into the atmosphere continues to increase dramatically. This, in turn, leads to temperatures rising, causing all those terrifying environmental crises we see on the nightly news — natural disasters such as hurricanes and typhoons strengthening in force and frequency, the extinction of wildlife and the spread of new diseases across the world.

But more than simply a global crisis, which can seem almost too daunting to be able to tackle, retailers can see this environmental emergency in their own backyards, and on their own bottom lines. Every year retailers spend an estimated $20 billion on energy, due in part to the widespread — and to a certain extent, necessary — use of HVAC and lighting. In fact, the Food Marketing Institute’s 2005-2006 Annual Financial Review reported that 87.5 percent of all American retailers confirmed an increase in energy costs from the year before.

Those costs, while substantial, merely measure the energy problem in terms of dollars and cents. Without a doubt these financial concerns are crucial; but they aren’t comprehensive. Such cost estimations don’t take into account the immeasurable costs to the environment or the damage to the reputation of the retailer to the green-savvy consumer.

These environmental costs are not inconsequential. According to the U.S. Green Building Council, Washington, D.C., “In the United States, buildings use one-third of our total energy, two-thirds of our electricity, one-eighth of our water, and transform land that provides valuable ecological resources.”

And while the ecological problems may be more publicized, retailers also should be concerned with how consumers perceive their stores. According to Lifestyles of Health and Sustainability — a Broomfield, Colo.-based market segment focused on health and fitness, the environment, personal development, sustainable living and social justice — the United States ’ green consumer market is estimated at 35 million consumers, pouring in $228 billion into the green industry. More than simply a numbers game, retailers are seeing an evolution of an attitude — consumers are demanding to know the amount of energy used during production and distribution of products, how and where these products come from, and the ways in which the retailer’s stores are becoming more energy efficient.

According to a poll from Maritz Research, Fenton, Mo., environmental messaging has a substantial influence, with “47 percent of respondents saying they’d shop at a retailer if it were more environmentally friendly and 47 percent saying they’re willing to pay more for environmentally friendly services, products or brands.”

John Z. Blazevich, president and chief executive officer of Contessa, San Pedro, Calif., agrees: “Consumers are increasingly seeking out products and services from green-minded companies. Retailers need to pay attention to that.”

Some Soultions

The largest leaps in energy efficiency in the retail world seem to be within the realm of renewable energy — that is, utilizing replenishable natural resources to produce energy.

Solar power is one such solution. Converting the sun’s power into electricity using a process called photovoltaics, can, hypothetically, supply all of a retailer’s energy needs.

Pleasanton, Calif.-based Safeway Inc. has been an industry leader in solar power, installing more than 1,000 solar panels on the roof of its store in Dublin, Calif., and promising to do the same with 23 other California stores. Combined, these solar panel projects will produce about 7,500 megawatt hours of electricity per year, which is 20 percent of the store’s average power usage. What’s more, the program will remove 10.4 million pounds of carbon dioxide from the air.

Wind energy also is a favorite of the green retailer. Currently, a mere 1 percent of our energy comes from wind, yet it produces clean and cheap power, making it ideal for small and large retailers alike. Whole Foods Market, Austin, Texas, has led the way, purchasing enough wind power credits to offset 100 percent of all of the company’s needs (more than the Environmental Protection Agency itself). Safeway also has made inroads in wind power, purchasing enough wind credits to power its two corporate campuses, 15 of its grocery stores and all 270 of the company’s gas stations.

Also a constant in the renewable energy category is biofuel — a gas or liquid derived from biomass, or, more simply, alternative fuels made from plants or any other carbon source. Biofuel is most frequently used in automotive transport, allowing retailers to save money (and reduce carbon emissions and diminish our dependence on foreign oil) in the transportation of products both to stores and costumers.

Ethanol, a corn-based biofuel, has received much attention from the media, but it is in no way the only solution — soy, wheat and sugarcane are also abundant sources.

Hannaford Supermarkets, based in Scarborough, Maine, recently switched to biofuel as a way to heat its Camden store during the winter season. Robert Josselyn, the store manager at this store says, “We really like that bioheat is a cleaner-burning, locally produced heating fuel.” Even more convenient, the store did not have to alter its heating system in any way.

But it’s not just renewable energy that has retailers seeing green. Sustainable agriculture, particularly in the grocery industry, has become a central component of retailers’ environmentally friendly faces. Such sustainability relies on the protection of natural resources, and ranges from providing and producing organic and natural food to the humane treatment of animals.

While there are many certified organizations in the United States that inspect a company’s handling of animal care, some retailers, such as Whole Foods, have employed their own animal welfare programs, ensuring that all of their products meet their standards.

Simple ways of going green also have made their way into retail practices nationwide. In Puget Sound, Wash., Thriftway stores are attempting to reduce the company’s carbon footprint to zero simply by reducing waste — composting food scraps and flower trimmings — and selling specialty greeting cards whose profits will go to offset the amount of carbon emitted.

Wal-Mart Stores Inc., Bentonville, Ark., a somewhat surprising force within the changing environmental landscape, is installing shelves and counters made of recycled glass, adding skylights to its stores’ roofs to lessen the need for artificial lighting and adding eco-friendly bamboo flooring and desks of cork tack board.

Saving energy can even be a matter of common sense. Just like your mom used to tell you — turn off the lights when you’re not in the room, make sure the freezer door is closed. To reduce the store’s ozone depleting substances, the Publix GreenWise Market, Lakeland, Fla., uses environmentally friendly secondary coolant systems and refrigerants throughout the store. Exhaust hoods, fans and outside air intakes operate only when cooking is active, and the company owns a fleet of hybrid vehicles.

Maria Brous, director of media and community relations for Publix Super Markets Inc., Lakeland, Fla., says, “For Publix, going green is our commitment to being responsible citizens within the communities we work and live.”

If these solutions are not implemented by retailers themselves, there is some evidence that the government will step in to ensure such change occurs. Philadelphia Councilman Frank DiCicco introduced legislation that would ban the use of plastic bags in grocery stores and drugstores, unless those bags were biodegradable. In San Francisco, such a ban already exists, and though its constitutionality is being challenged, similar proposed legislation is popping up nationwide. However, many retailers already have taken up the cause, giving their customers rebates if they bring their own bags or charging customers for the plastic bags they use.

How To Change

If many of these solutions seem out of reach, never fear. There are a plethora of organizations and tools designed specifically to help retailers turn a deeper shade of green. The Food Marketing Institute (FMI) has introduced a vast array of resources to ease retailers into a sustainability program. With a Sustainability Task Force whose mission is “to help companies chart a course to help preserve the planet through initiatives that make sense economically,” FMI offers the Sustainability Starter Kit, with consumer research and industry education, all aimed toward realistic greening of businesses.

But before you take the plunge into the world of renewable energies and green practices, you should follow a few basic steps. First, be sure to collect in-depth and reliable data — there are businesses that specialize in assessing retailers’ carbon footprints. Next, do your research as to who the players are in the green market — finding the best product is just as important as finding the best rate. Then, look at greening as an investment — that means long-term assessment rather than short-sighted vision. Also, hiring an expert in the field can be extremely useful. In fact, maintaining a staff whose sole responsibility is the maintenance and success of an energy-management enterprise will ensure the continued profitability and feasibility of the project.

As Brous comments, “Our effective energy management program is successful because we are dedicated to continuous improvement; a top-down commitment to energy management through support from the CEO and leadership; and established processes such as an ongoing maintenance program that helps us to regularly assess and track performance.”

Another small step toward greenkind can be a LEEDs certification. The Leadership in Energy and Environmental Design (LEED) program, an offshoot of the U.S. Green Buildings Council, is the “nationally accepted benchmark for the design, construction and operation of high-performance green buildings in the U.S.”

According to the organization, in order to obtain this certification, retailers must meet the criteria of preventing construction pollution and controlling erosion, as well as selecting from a list of LEED “credits” in such areas as energy and atmosphere; indoor environmental quality; innovation and design process; sustainable sites; and water efficiency. LEED prides itself on the merging of established practices and emerging concepts, allowing the old to be compatible with the new.

In fact, Contessa is one of the first companies to gain such accreditation. Blazevich explains: “Our newest green initiative is our new Green Cuisine plant — the first environmentally responsible, LEED-certified frozen-food manufacturing plant in the world.”

Around the World

It’s no secret that the United States is a world leader in many areas of the business market. But in the green niche of environmentally friendly industry, the rest of the world could teach us a thing or two.

In the United Kingdom, grocery giant Tesco has implemented a wide range of green policies — labeling all of the goods on its shelves with carbon labels; producing the first fleet of battery-run, zero-emission home delivery vans; featuring wind turbines and solar panels in stores; using energy-efficient heating, cooling and refrigeration systems; and giving customers the option of bagless deliveries. Such efforts aim to both help heal the environment, appeal to their customers’ value system and earn a competitive profit margin.

Also in England, eight leading British retailers banned together under the “We’re in this Together” campaign, with each company offering specifically green products and services. Rather than simply focusing on the business end of the green spectrum, this campaign tries to “provide people with practical solutions that will help cut their household emissions.”

Our friends up north also have jumped onto the green bandwagon. Ontario declared it will reduce its plastic bag consumption by 50 percent by 2012, and cities in Nova Scotia also are considering plastic bag bans. Roots, a leading lifestyle brand of clothing and accessories in Canada, uses organic materials such as hemp, cotton and vegetable-tanned leathers in developing the company’s merchandise, while simultaneously expanding the company’s sustainable store-building with low-wattage lighting, bamboo flooring and cabinets, as well as salvaged building materials.

The Bottom Line

Despite the generally accepted principle, being environmentally friendly and being financially profitable are not mutually exclusive. The cost of going green is decreasing every day. As the market responds to the demand for green, the rules of supply and demand prevail, lowering the price of a retailers’ shift to green.

What’s more, there’s a financial boon to be had with such a change: the potential for saving money by saving the earth. With lower energy bills, fewer waste products and less packaging, retailers save on all ends of the production spectrum.

As Contessa’s Blazevich says, “When it comes to green business practices, our corporate philosophy, integrity and direction is more concerned about the cost of our actions on the environment than about our bottom line.”