That’s the question that UCLA Extension looked to answer for about 150 attendees at their “The Business of Green: What’s the Payoff?” conference in Long Beach last week. And, after a rousing opening speech from actor and activist Ed Begley, Jr., we got down to business.

The first session, led by Burt Hamner, owner of Cleaner Production International, was an eye-opening foray into the ways that sustainability can be incorporated into financial statements. This may sound boring to some, but to paraphrase Hamner’s take on an old maxim, the things that get measured and reported in a company are the things that get managed.

For example, if no one knows what percentage of “waste” materials are recycled, it’s difficult to improve that figure. This points to an easy place to start in greening your company: the garbage. Compare your waste bills to what is actually being picked up to look for inefficiency. Check the contents for recyclable or reuseable materials, which may be turned into a new revenue stream. Determine the costs to dispose of hazardous waste, and add that to the up-front cost of the product - it may cost less to buy a less hazardous alternative, even if it has a higher up-front cost. Keep in mind that saving money may not be as sexy as sales, but it has the same effect on the bottom line.

Other panelists and speakers focused on how their companies approach going green. A few key ideas:

• Consider the entire life cycle of your products and those you buy, including distribution and end of life (from Honda)
• Engage your business partners, like your utility company, to find new ways to conserve, and thus, save money (from Xerox)
• Realize that it’s often less expensive to recycle materials from your own worn out products than to manufacture new ones from scratch (from Xerox, who recycles 98% of their equipment)
• Try simple interventions to change behavior, like letting people know the impact of their actions. Think Prius: does the unique dashboard change your driving behavior? (from Gil Friend, Natural Logic)

For companies that decide to go green there is certainly a payoff, both in the traditional sense, like improved financial performance and employee retention, as well as in the broader sense that affects us all.

Image credit: UCLA Extension