Companies tapping new markets by becoming more environmentally conscious

Simplers Botanical Co. is both financially viable and environmentally conscious.

It sources organic oils and herbs, and ships its natural products in recycled cardboard using biodegradable packing material.

The small Sebastopol company shares more in common with Sonoma County's largest high-tech company than you might think.

Like Simplers, Agilent Technologies Inc. is finding it pays be environmentally friendly. Agilent recycles 80 percent of its waste and reuses 60 percent of wastewater generated in its manufacturing processes. To reduce electricity demand, Agilent runs energy-efficient chillers that cool rooms and water at its Santa Rosa facility.

Despite their contrasts, both businesses are making strides toward sustainability by limiting demand on natural resources and reducing waste. And they are profitable.

"The difference between sustainability and environmentalism is in environmentalism we're concerned about the planet. To be effective, especially in business, you also have to be concerned about your employees, your customers, your suppliers, your neighbors and your stockholders," said Jerrell Richer, a Sonoma State University assistant professor specializing in environmental and natural resource economics.

Business owners, nonprofit groups and others hoping to tap a burgeoning marketplace for environmentally sustainable goods will gather in Rohnert Park on Friday for Northern California's first Sustainable Enterprise Conference.

Sonoma State University and New College of California have joined to lead the conference featuring educators, business owners and environmental consultants. They will discuss strategies and explain tools.

"When you're reducing waste, you're often reducing costs. You're actually becoming more profitable. And there's all sorts of sales drivers because there's a market for environmentally responsible products," said John Stayton, director of the Green MBA Program at New College of California's campus in Santa Rosa.

This approach to capitalism is emerging as more businesses recognize both the opportunities and challenges to manage resources without sacrificing the bottom line.

"There's a lot of evidence that not only is there a better way, but industries that are sustainable are some of the fastest-growing industries in the world," Stayton said.

Organic foods have led the way, but other industries are breaking out with sustainable businesses including consumer goods such as clothing and paper products, and construction.

"It's a fast-growing business model," said Jim Williams, managing partner for Simplers Botanical.

The company sells essential oils and liquid herbal extracts through merchants in more than 20 states. Established in 1981 by James and Mindy Green, business began to take off several years ago.

Today, revenues are growing about 25 percent annually. Simplers just moved into a larger building and could triple production, Williams said.

Improved sales are partly a result of greater consumer interest in the use of oils and herbs in therapeutic treatments for dozens of common ailments.

Simplers also has established a reputation for its sustainable practices and raises awareness about conservation in its marketing.

All Simplers products are plant-based and some 90 percent are organic.

Oils come from independent distilleries and farmers primarily in France, Madagascar and Morocco, though Simplers has a few U.S. suppliers.

Simplers buys raw herbs mostly from an Oregon farm. Herb growers in the Sonoma County Herb Exchange are another source.

By purchasing Simplers products, consumers are helping support organic farmers around the world.

"Initially we promote it because it's a really good thing to do," Williams said. "Our main focus has always been about educating people about herbs. We try not to use hyperbole in our marketing and say 'this is going to cure that.'"

Consumers looking over Simplers product displays also might notice brochures for United Plant Savers. The nonprofit organization raises awareness of endangered plant species with a goal of ensuring a renewable supply.

Conserving water and reducing waste in its manufacturing processes doesn't help sell products, but it's the right thing to do and saves money, Williams said.

Several years ago, Simplers converted from plastic to cardboard in its shipping packages because plastics are made with petroleum, a non-renewable resource, and cardboard includes recycled material. And the company uses corn starch-based packing material because it is biodegradable and doesn't fill up landfills.

Treating natural resources as scarce and valuable commodities is a core approach to making businesses more sustainable.

Businesses increasingly are attempting to conserve energy, driven by rising costs for electricity and natural gas.

Agilent, the county's largest technology company, invests in conservation programs that have a financial payback.

"Being environmentally sound in your business practices is good for the bottom line," said Jeff Weber, a company spokesman.

Agilent has replaced eight massive chillers used for specialized air conditioning for clean rooms and to cool water for machines. Each cost $50,000 to $400,000, depending on a unit's energy efficiency rating. The energy savings will allow the company to recoup its investment within an average of three years.

The new chillers also don't contain ozone-depleting chemicals.

About 60 percent of water used in processing is reused for landscape irrigation and in cooling towers. As a result, Agilent saves about $200,000 in annual water purchases.

Agilent has improved its local waste diversion from 62 percent to 80 percent over four years. Those efforts earned Agilent an award last year from the California Integrated Waste Management Board, one of five businesses statewide to be recognized.

"We're always pushing to do more," said Mike Dittmore, who oversees recycling for Agilent. "The challenge we're always facing is the education. And at the same time you have to make it simple. It has to be convenient."

Education is the goal of this week's conference.

"We're going to be teaching about tools that people can use," Richer said.

Workshops will cover areas including sustainable concepts, supply chains, alternative energy, reducing greenhouse gases, and reaching consumers.

One session features Paul Dolan making the business case for sustainability. Dolan, a partner in Mendocino Wine Co. in Ukiah, was a pioneer in sustainable grape growing and winemaking and helped create the industry's best practices code.

The conference concludes with a panel discussion with business owners and representatives discussing ways to use fewer resources and generate less waste, as well as the startup of successful companies.

For more information on the conference, call 829-8454.