Green Giants: How Smart Companies Turn Sustainability into Billion-Dollar Businesses

Green Giants: How Smart Companies Turn Sustainability into Billion-Dollar Businesses

Green Giants: How Smart Companies Turn Sustainability into Billion-Dollar Businesses

Green Giants: How Smart Companies Turn Sustainability into Billion-Dollar Businesses

Synopsis

What do Brazil's top beauty brand, America's second-fastest-growing restaurant chain, and the world's third bestselling car have in common? They are shattering the myth that acting sustainably and building a billion-dollar business are mutually exclusive. Green Giants examines nine companies that are merging social responsibility with wild profitability-and reveals the six factors responsible for their success, including: Iconoclastic Leadership fueled by deep conviction and a rebellious streak - Disruptive Innovation that uses sustainability to spur the development of radically better products and services - A Higher Purpose that ignites the company-when the mission leads, profits follow - Mainstream Appeal with positioning and packaging stripped of the crunchy cliches that alienate the average customer. This new breed of billion-dollar businesses proves it's possible to achieve enormous success while implementing sustainable principles that help consumers live better lives. Ranging from start-ups to business lines incubated within major multinationals, these companies collectively represent over $60 billion in revenue. What's more-many command wider profit margins and are growing faster than their conventional counterparts. Packed with eye-opening research, exclusive interviews, and enlightening examples from Chipotle, Toyota, Unilever, Tesla, General Electric, and more, Green Giants serves as a blueprint for sustainable success that anyone can follow. "

Excerpt

Over the eight years I’ve spent compiling evidence that brands can both maximize profit and be a force for social good, the question I’ve been asked most often is: “What’s the business case for sustainability?”

The answer is: a $9 burrito.

From 2006 to 2011, revenues tripled at Chipotle, a U.S. food chain selling responsibly sourced burritos. That last year, total annual revenue reached $2.2 billion, same-store sales increased 11.2 percent, and restaurant operating margins hit 25.9 percent. In just the second quarter of 2014, revenue rose 29 percent to $1.05 billion, same-store sales rose 17.3 percent, and restaurant operating margins hit 27.3 percent, counting .03 percent losses resulting from higher food and marketing costs. As of December 2014, the company had a market value of $21.03 billion.1 Revenues for 2014 were $3.038 billion. For reference, that’s almost three times those of Burger King.2

In the world of business, “billion” is a magic number. Only a relative handful of brands break the billion-dollar revenue ceiling. The chances of building a company that will grow to be worth more than $1 billion is 0.00006%. The constellation is mostly studded with global super brands like Coca-Cola, McDonald’s, Marlboro, and Pampers.

And now, Chipotle—doing $1 billion in revenue each quarter. Chipotle—which sources its meat from farmers who commit to . . .

Search by... Author
Show... All Results Primary Sources Peer-reviewed

Oops!

An unknown error has occurred. Please click the button below to reload the page. If the problem persists, please try again in a little while.