Social Enterprise Alliance's Chicago Chapter will host a program at Donors Forum on Tues., Aug. 19 on the intersection of corporate social responsibility and social enterprise. A representative from Method Products — which has been called the "new green giant in Chicago" by forbes.com — will share how his company develops environmentally friendly home personal-care products that not only keep people clean, but keep the environment clean. Donors Forum Members get a discount. Read more about the event and register here.

Method is bringing a game-changing factory that supplies jobs and food to Chicago’s Pullman neighborhood in 2015. It underscores the serious contributions benefit corporations are making to the economy of the future.

Since its beginning in 2000, Method’s co-founders Adam Lowry and Eric Ryan have combined sustainability and design to grow their eco-friendly house and personal cleaning products business to more than $100 million annual sales. Now, their “people against dirty” strategy is building a factory for the twenty-first century with the goal of being carbon-neutral, water-neutral, land-fill free, and LEED Platinum Certified – and it will grow food in a food desert.

According to co-founder Adam Lowry, he always wanted Method’s factory to be urban. Undeterred by the challenges of cities, his take combines reality and opportunity: more than half of humanity lives in cities today, and approximately 7 billion, or about 80 percent of the global population, will live in cities by 2050.

Also, as a native son, Adam wanted a Midwestern site for the factory. There were no convertible existing buildings in Chicago so the factory is being built new. Although the factory site in the Pullman neighborhood is rich in industrial significance, it is a brown-field restored for urban development through TIF funds facilitated by the Chicago Neighborhood Initiative.

The factory will manufacture the vast majority of Method’s products, as well as some of the products of Ecover, its Belgian parent since 2012. Method’s headquarters will remain in California where Method has operated since beginning.

Lowry’s science background – he is a chemical engineer – is evident throughout the plans for the factory. The factory will have a 600 kilowatt wind turbine and 60 kilowatts of solar energy, which will provide half of the building’s annual electrical needs. This means that Method’s marginal cost of electricity will be zero. In fact, it will generate almost twice as much energy as needed. That will change as Method grows, and adaptations will be necessary. But, overall, these factors foster sustainability, energy security, and lower costs.

Transportation is a critical factor because rail is far less carbon-intensive than trucking by a degree of 10. The Pullman site has very good access to transportation, and Method is planning to construct a rail spur to connect with the area’s intermodal rail system.

Method’s factory would be remarkable if the story ended here, but it doesn’t. Method will be bringing food to the neighborhood. The 150,000 square-foot factory will have the largest hydroponic greenhouse on its roof in the United States. A hydroponic farming partner will operate the greenhouse which will produce hundreds of thousands of pounds of leafy greens every year. There will be real food growing in a food desert. And the hydroponic greenhouse provides building insulation for the plant.

Method underscores the strength of the benefit corporation movement and that it is capable of the heavy lifting needed on the other side of the financial crisis. Method’s founders recognized the failures of the traditional U.S. corporate model and were inclined toward change from the outset. Method was among the founding Certified B Corps in 2007 and the first Delaware public benefit corporations in August 2013. It has two Illinois benefit entities, one to manage the real estate and the other the manufacturing. It also participates in the effort to bring the B Corp movement to Europe.

Method’s commitment to community is remarkable in a time when urban policy is far from center stage and divisiveness tops the news. Method has a sincere desire to connect with, participate in, and add value to the community that is home to the factory. In addition to the garden, Method has a community benefit agreement with the neighborhood’s alderman to build a two-way partnership. Method plans to hire its employees from the immediate community. Approximately 100 employees will be hired in all – 65 by Method and the balance from suppliers and the greenhouse. Method and the City of Chicago, as well as some local organizations in the South side, are partnering to build a world class training and development program to ensure that every employee has the skills and capabilities to not only do their job but also be successful in their careers.

For Method, the factory will embody what manufacturing should be in the twenty-first century: the manufacturer will be fully integrated into the community, and it will make every effort to remain sustainable and involved for the long-term. Many parts of Chicago and other U.S. cities need more Methods to provide jobs and even close-in access to essentials such as food. Government agencies and financial institutions – often the conveners in such projects – would do well to foster the level of strategic and creative thinking that has resulted in Method’s Pullman factory.

— Christine Franklin

Christine Franklin is a practicing lawyer in Chicago who has represented and advised companies and individuals in litigation and business matters — often involving policy issues — before and after the financial crisis. Her professional writing and speaking about the causes of and cures for the recession has expanded to include the new economy. Christine co-chairs the Banking and Financial Services Committee of the American Bar Association’s Administrative Law and Regulatory Practice Section. She has a law degree from UCLA and a master’s degree in foreign affairs from the University of Virginia.

Rendering of the soon-to-be-built Method factory: Copyright 2014 William McDonough + Partners, Architects.