Shaklee founder Dr. Forrest C. Shaklee invented “vitalized materials” in 1915.

As a leading natural nutrition company in the United States, Shaklee Corp. says it’s not just riding the green wave – it’s living it, and has been for more than 50 years. While others embraced the advent of plastic and synthetics, the  Pleasanton, Calif., company stuck to what it knew best: nature. And it never looked back.

In 1915, founder Dr. Forrest C. Shaklee invented “vitalized materials,” one of the world’s first multivitamins. When he established the corporation in 1956, Shaklee pioneered not only the nutritional supplement industry, but an unusual distribution method that swaps conventional advertising for a word-of-mouth referral/reward system it continues to use today. Four years later, it introduced the world’s first biodegradable household cleaners.

Through the decades, the company expanded into six global markets while never straying from Dr. Shaklee’s initial vision: “Follow the laws of nature and you’ll never go wrong.” With Chairman and CEO Roger Barnett at the helm, Shaklee continues to produce a slew of industry firsts. In 2000, it became the first company in the world to obtain climate neutral certification by the Environmental Protection Agency (EPA) and totally offset its C02 emissions. In 2006, it was the first consumer products company to use 100 percent green power. However, Barnett notes, those are just two examples.

In an interview with Venture, Barnett explains how the company managed to completely offset its C02 emissions in one year and how easy it was to convert to green energy. These endeavors paid off, he adds, both from a financial and brand standpoint. Also, he explains why Shaklee has had a lifelong passion for sustainability and advises how other companies can contribute to the cause. Here’s a hint, he says: It starts with the CEO.  

Venture: What are some general observations you’ve made as to the fairly recent acceleration of the green movement?

Roger Barnett: What has been so interesting about the acceleration of the green movement is that consumers – we the people – have been the catalyst for change and it has been our individual concern for a healthier planet that has pushed both business and government to respond. I believe we have reached a tipping point in the U.S. regarding environmental consciousness that has been stimulated by impactful media pieces like The Inconvenient Truth and Vanity Fair. These influential pieces have created a groundswell for change. Consumers have demanded that businesses take action, and now businesses are trying to encourage the government to take action.

Venture: Why do you think companies should take more of an interest in sustainability?

RB: There are three reasons why companies should and will take more of an interest in sustainability. First, it is simply the right thing to do. Second, consumers are demanding products and action by companies that factor in broad issues of sustainability. Today, that is still a potential source for competitive advantage. Finally, at some point in the near future, being a sustainable business will no longer be a point of difference. Instead, it will be the ante to doing business.  

Venture: In 2000, Shaklee became the first company in the world to obtain climate neutral certification and offset its C02 emissions completely. Why did you decide to do this? Was this something you felt would be important in the future or is it something the company was already inherently passionate about?

RB: “Living in harmony with nature” is a philosophy that has been ingrained into the fabric of our culture since we were founded in 1956.  We had a very simple concept that since we take from nature, we should give back in equal part. Becoming the first company in the world to obtain climate neutral certification to fully offset all of our carbon emissions seemed to be the perfect way to put our core founding values into action. Additionally, we wanted to do it first so that we could serve as an example to others.  

Venture: Was it a challenging process?

RB: Of course, defining the standard required a lot of work. Given that we have always followed sustainability principles, we did not have to change our actual business practices. However, achieving 100 percent C02 offsets required extensive validation and substantiation through third parties. Trexler and Associates Inc. prepared a 40-page application that included Shaklee’s actions on corporate responsibility and climate change mitigations, and calculated our greenhouse gas footprint. The application was then submitted and reviewed by the EPA of the Climate Neutral Network. The process took a total of 12 months and more than 1,000 hours to complete.

Venture: How did Shaklee get involved with the EPA?

RB: Shaklee has had a longstanding relationship with the EPA because we have always tried to be a pioneer in environmental stewardship. Our partnership with the EPA began almost a decade ago. This is one of the many partnerships that Shaklee has pursued to demonstrate environmental leadership within the corporate community.

As a charter partner for the EPA Climate Wise program, we ramped up our recycling initiatives, which resulted in annual declines of non-hazardous waste sent to landfills and offered incentives for employees to use mass transit. Additionally, we determined that one of our plants at the time was deemed one of the cleanest and most efficiently run manufacturing plants in the state of Oklahoma.

In 2006, we partnered with the EPA Climate Leaders program and pledged to offset 100 percent of our carbon emissions through 2009. We have fulfilled our pledge with the EPA for 2006 and have completed all documentation to offset our C02 emissions with Green-e certified renewable energy. Shaklee's purchase of 100 percent Green-e certified renewable energy certificates to offset electricity use and natural gas load prevents the emission of 2.61 million pounds (or 1,183 metric tons) of carbon dioxide – a key greenhouse gas – from entering the atmosphere.

Venture: Have these changes benefited the company financially?  

RB: We didn’t go through this process to benefit financially. Our sustainability effort over the last 50 years has been values-driven. We have, however, achieved some financial benefits from our sustainability initiatives, both in reducing our energy consumption and through increasing the retention and loyalty of our distributors who want to be associated with a values-based company. In terms of actual figures, we have reduced our natural gas consumption by 10 percent due to the design of our world-renowned headquarters.

Venture: Shaklee’s headquarters incorporates sustainable practices, as well. Can you elaborate?

RB: Its energy-efficient features include a building management system to turn on our heating and air conditioning when the building is occupied, motion sensors installed throughout the entire building that monitor our lighting, electronic shades that control light and heat, and our building is set in an east/west orientation utilizing maximum sunlight.

Other features include wood harvested from sustainable forests, carpet made from recycled milk cartons, motion sensors to turn equipment off when not in use, light reflectors specially developed for our building to reduce electric consumption, and electronic-censored shades that open and close automatically to reduce our cooling needs while maximizing natural light.

Venture: Why is it important to you to make your center of operations a physical tribute to what you believe in?

RB: Everything that we do is driven by [our founder] Dr. Shaklee’s philosophy of living in harmony with nature. Therefore, when the opportunity arose to build a new headquarters, we insisted on a building that took minimal resources from our planet. It is important for all of us at Shaklee because this building absolutely reflects our values and culture. It is an inspiration and reminder every day of who we are and what we stand for.

Venture: You once said, “We were doing it back when green was just a color and biodegradable was barely a word.” Aside from being among the first to introduce biodegradable household cleaners, what are some other early green Shaklee products?

RB: In addition to the launch of one of the first biodegradable, non-toxic household cleaners in 1960, we introduced one of the first biodegradable laundry detergents without phosphates, nitrates, or borates and the first patented phosphate-free dishwashing powder. One of the developments that we have helped pioneer is super-concentrating our cleaning products to use less packaging.

Every time someone purchases our Get Clean starter kit, they will have helped prevent 108 pounds of packaging waste from entering landfills and eliminate 248 pounds of greenhouse gas emissions. In the last eight months, thanks to all the people who purchased our Get Clean green cleaning products, we have saved enough plastic bottles to wrap around the earth more than seven times.

Venture: Aside from manufacturing environmentally friendly products and using 100 percent green power to reduce your usage of nonrenewable resources, the company also plants trees. Can you talk about this program?

RB: In 2006, Shaklee had the fortunate opportunity to partner with 2004 Nobel Peace Prize laureate Dr. Wangari Maathai, and her Green Belt Movement, on a campaign called “A Million Trees, A Million Dreams.” Inspired by her work in Africa, we began a tree-planting campaign across the United States and Canada in April 2006, encouraging Shaklee’s 750,000 ambassadors and members to organize tree-planting events at the grass roots level in their respective communities. In 18 months, we have planted more than 600,000 trees in the United States and Kenya.  

Venture: Would you say your views on sustainability have increased Shaklee’s brand value?

RB: Shaklee actually has some of the highest loyalty scores for a consumer products company. We enjoy a greater than 80 percent retention rate among our customers and Shaklee business leaders have been with us for an average of 20 years.

Now, given the world’s heightened environmental awareness, we are enjoying increased brand recognition, positive brand associations and product trial, especially with the younger generations. For example, we found that 86 percent of those aware of Shaklee in Generation Y feel that our company has a passion to make a positive difference in the world. These statistics are a direct reflection of what we stand for as a company and we are excited that new generations are drawn to our mission.

Venture: Instead of putting money into advertising, supply chains and storefronts, knowledge of Shaklee products is spread by word of mouth. Why does the company follow this model?
    
RB: We believe that our business model is the most effective way to educate millions of people and empower them to live a healthier life. It is our vast network of ambassadors that share the message of health with every life that they touch. They are the ones that inspire change one person at a time. They are the ones that keep the vision alive and moving forward. We do not believe that we can accomplish such an impact through a 30-second commercial.

Venture: How does thinking green benefit Shaklee’s employees?

RB: Thinking green is a mindset that empowers our employees to think beyond the conventional. It allows them to get creative, think innovatively and inspire change within the organization. For example, when we design products, we begin with the premise that they must be good for people and our planet. Over the decades, that has given us a large base of expertise to design products that others may think are impossible and create an opportunity for consumers to get all the performance they need while helping protect our environment.

And we are always looking to improve. We constantly ask ourselves questions like, “How can we use our offsets for something good?” or “How can we educate and empower our network of members and ambassadors to become more aware of their footprints?”

Venture: Why is it important to inspire environmental consciousness within your work force?

RB: In our case, Shaklee was started by a visionary leader more than 50 years ago when environmental stewardship was not even a concept for most companies. As a result, Shaklee has attracted employees who are passionate about what we do because it reflects who they are and what is meaningful to them. In fact, in a recent Wall Street Journal article, I was pleased to see that 92 percent of college graduates would be more inclined to work for a company that is environmentally friendly. This indicates that employees want something more than a salary out of a career; they want to feel passionate about what they are doing.

Venture: It’s been said that in order for proactive change to occur within a company, it needs to start with the CEO. Do you agree?

RB: CEOs set the tone for any company. We bear the ultimate responsibility for setting the vision, and driving the [corporate] culture. Everyone needs inspiration and everyone needs a clear path to follow.

Venture: How do you motivate your employees to think green?

RB: As the CEO of Shaklee, it is my responsibility to be a passionate spokesperson for our values and the potential difference each individual person can make in taking care of themselves, their fellow human beings and our planet. I do my best to travel across the globe to constantly share my vision with every Shaklee employee, ambassador and member so that they, too, are inspired and want to transform the world.  

In the past year, I have had the opportunity to speak in front of more than 200,000 people, and I have found that whether they are in Mexico, Japan, the United States or Malaysia, people everywhere want the same thing. They want to be able to take care of themselves and their family and, without compromise, help take care of our planet so that they can bequeath a wonderful future for their children and grandchildren.

Venture: Do you have any advice for other CEOs who want to take their companies green?

First, make a commitment to do something. It doesn’t have to be everything at once. Second, engage and empower all of your employees to create and execute that commitment. These are the fundamental principals we have tried to use:

•   Build and eco-advantage culture and fully engage all stakeholders in the process.
•   Partner with NGOs.
•   Collect data and track your performance.
•   Get independent certification.
•   Don’t make a consumer choose between their convictions and performance. Develop high-quality and high-value products and services that fulfill the consumer’s needs. Then, make sure that your products and services are green.  
•    Avoid “Greenwashing.” Make meaningful claims, consider the environmental impact of all operations and enlist the support of third parties.
•    Give stakeholders tools so that they can take action.
•    Communicate what you are doing.