Top 3 Sustainability Trends for 2009

Unless retailers can absorb the costs will people want to pay more for sustainable goods, particularly given the current economic climate?

Take the case of P&G – undoubtedly they saved money because initially they were paying for water and paying extra for shipping, but the underlying ingredients were the same. In this case, they could pass some of those savings on to the consumer if they want to be more competitive.

Secondly, if this does add some cost then you still have to look to early adopters. Tesla is selling $100,000 dollar electric sports cars to somebody. A new Whole Foods market just opened up near us -- we're in a very mixed income neighborhood here in west LA -- and it's packed. And they are not the low-price leader.

Besides, tough economic times don't last. As the economy recovers and people make more money they're going to want to feel good again about doing the right thing, and the companies that are well positioned to do that are going to make even more money.

Won't there be a large cost associated with the initial implementation of all these measures? Realistically, are companies going to be able to handle this?

I would analogize this with what many companies do with energy efficiency. First you're going to have to do an audit so that you can figure out what your company is likely to save.

These investments may have some costs up front. What smart business people realize is you get payback. Tough economic times are all the more reason why they wouldn't want to pay for excess packaging and the cost of fuel and potentially green house gas liabilities among other things.

Wal-Mart realized how much money they were spending on unnecessary packaging and the waste it created, so they put recycling centers in the back of each store. They've pushed back on suppliers to improve and reduce that packaging. The new result: they've gone from a huge liability of paying for waste hauling to a $100 million a year in net profit from these recycling centers.

What about companies who are only now thinking about going sustainable? Will they be able to afford to make changes?

Look at the Detroit car companies that recently flew to Washington in their three separate private jets with their tin cup in hand. Some companies realize that certain expenses go on -- if they can find money for personal jets they can find money for a corporate consultant who will help them through this. I don't mean to be flippant and I recognize that some companies will stall if they don't have capital up front, but planning to make changes doesn't take that much cost.

Is there a sustainability effort that needs to gain ground next year but won't?

Possibly the biggest one is green transportation. I was just at the LA auto show with Schwarzenegger to evaluate the green vehicles there. We all agree that an electric car, a car that runs on alternative fuel, or even one that gets 100 miles a gallon would be better. But it still costs so much money. For example, the premium payment for a Prius takes about five to seven years to pay back, and of course if gasoline comes down to where it is today, even longer. Because of the costs of retooling, production, and getting these things into consumers' hands, even if consumers desperately want these cars they may not have the money to buy them.