Is the Age of Green Economy Finally Here?

By Hunter Jackson, WireTap. Posted November 3, 2005.

Spiraling oil prices, bottomless trade deficits, irreversible global warming, widespread poverty -- even a glance through the newspaper provides abundant evidence of consumerism's cost to the planet and its people. To some it might seem that this decade will be remembered as the years our mistakes finally started to catch up with us.

But rising awareness of the downsides of our ultra-consumptive culture has prompted the beginnings of a shift toward a more sustainable economy. From clean energy to Fair Trade to farmers' markets, socially and ecologically responsible alternatives are increasingly becoming the norm in the United States. In the end, these years may also be seen as the time when we began to come to our senses.

"If we don't change our behavior we're not going to have a planet," says Denise Hamler, director of Co-op America's Business Network, which promotes sustainable business practices. "People are understanding there's a connection between what they eat, what they wear, and the health of the planet."

After years of thankless work and piecemeal gains, the struggles of organizations like Hamler's are finally moving from the periphery and into the mainstream where they are being taken up by Americans of all stripes.

Collectively referred to as the "Green Economy," an alternative model of economic activity that incorporates these social and environmental concerns, is growing. "Many of these industries are at the tipping point. Everywhere you look you see the Green Economy taking root. Once you give people easy access to the right choices, they make them, over and over again," continues Hamler, who has worked in the field since the '70s.

Some of us may love to admit it and others cringe at the suggestion, but Americans and their money have a lot of power. According to the Bureau of Economic Analysis, American consumers spent more than $2 trillion in 2004 on "nondurable goods" such as food, clothing, and fuel -- that's more than the individual economies of all but five countries in the world.

Fair Trade is an obvious example of a way to harness this economic power. In contrast to conventional "free" trade that is driven solely by profit, Fair Trade focuses on establishing a sustainable, balanced relationship between buyers and sellers and guarantees a living wage to participating producers.

For example, coffee is the most popular Fair Trade good. Participating farmers are guaranteed a floor price for their crops as long as they meet certain production standards. As a result, these growers can receive three- to five-times as much for their coffee as other farmers selling in conventional markets. Furthermore, by compensating producers for operating responsibly, Fair Trade helps preserve small-scale, sustainable farming methods.

Fair Trade Sales on the Rise

The good news is that the number of people turning to Fair Trade is definitely on the rise. The Fair Trade Federation's "2005 Report: Fair Trade Trends in North America and the Pacific Rim," due to be released later this year, shows that total sales increased by 52 percent from 2002 to 2003. This comes on the heels of a 44 percent increase the year before, and estimates for 2004 show even further growth.

In addition to gross sales, the number of companies selling Fair Trade goods is increasing as well. "More and more companies are trying to be socially and environmentally conscious," claims Pauline Tiffen, executive director of the Fair Trade Federation. Proctor & Gamble, the largest coffee seller in the country, now sells Fair Trade coffee through its specialty brand Millstone. Starbucks has a Fair Trade blend on the menu, and Dunkin' Donuts uses Fair Trade beans for all its espresso drinks.

Tiffen attribute these victories to a combination of consumer demand and pressure from groups such as Global Exchange and Co-op America for more accountability. "Most companies that have a brand name have to have more of an idea of their social and environmental performance than ever before," says Tiffen.

In fact, a 2002 joint report by the United Nations Environment Programme, the World Business Council for Sustainable Development and the World Resources Institute asserts that continued success in the global market will require that businesses give attention to social and environmental factors in addition to the conventional economic ones.

A positive public image is only one of the benefits of participating in the Green Economy. According to Marjorie Kelly's article "Business Ethics," corporate responsibility is an indicator of overall financial performance. Kelly cites two comprehensive meta-studies, or studies of studies, to show that statistically "social and environmental responsibility does go hand-in-hand with superior financial performance."

Moreover, a report by the nonprofit Social Investment Forum found that socially responsible investments -- that is, those based on personal values and societal concerns -- have on the whole performed 40 percent better than all other investments from 1998-2003, the last time they compiled data.

Hunter Jackson is a writer living in San Francisco.

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