Making Sense of Green
Business
By
Carol McClelland, Founder of
Green Career Central
Although there is no generally accepted definition of “green business,”
green businesses have the following characteristics.
-
The company minimizes its carbon footprint by restructuring its
operations, including updating computer/IT systems, reducing and recycling
waste, greening distribution channels, increasing energy efficiency,
finding renewable power sources and sourcing green supplies.
-
The company has a triple bottom line with an equal focus on people
(customers, employees and neighbors), the planet and profits.
-
The company offers products/services that have a positive impact on the
planet.
What are the benefits of
becoming a green business?
In addition to minimizing global warming emissions, efforts to reduce the
environmental footprint of your company will lead to:
Cost savings
-
Implementing energy efficiency measures, finding renewable energy sources
and recycling waste will lead to considerable financial savings after an
initial investment.
-
Although it’s not yet clear how, carbon emissions will be regulated in the
future. By taking a proactive role in reducing your company’s carbon
emissions, you’ll save untold expense. Power plants, factories and even
small businesses in the San Francisco Bay Area are currently facing the
possibility of this very situation. The
Bay Area Quality Air Management District has proposed a fine of 4.3
cents per metric ton of carbon dioxide to be used to fund
emission-reduction programs throughout the area.
Attracting and
retaining employees
- An
increasing number of people want to work for green companies. To retain
green employees, companies must communicate their environmental policies
and create a culture that is environmentally conscious. In a 2007
Harris interactive poll 33 percent of employees said they want to work
for a green employer and 52 percent of employees want their companies to
be more environmentally friendly.
- In
a recent survey by employment site MonsterTrak, 80 percent of younger
employees surveyed said they want to have a job that has a positive impact
on the environment and 92 percent want to work for an environmentally
friendly company.
-
Another study by Kenexa Research Institute indicates that employees are
likely to stay at jobs longer and are generally more content in companies
with a strong corporate responsibility program.
Attracting and
retaining customers
-
Your customers are becoming more environmentally savvy. Whether they are
ready to pay more for green products depends in part on the industry you
are in and the mindset they have. A recent survey of 5,000 Americans by
Forrester Research found:
Forty-one percent of
Americans are concerned with the state of the environment, but aren’t
willing to spend more on green products.
Twelve percent of Americans are ready to spend more for green products that
they perceive have a positive impact on the environment.
-
The Hartman Group
recently released a report on sustainability entitled “Understanding the
Consumer Perspective.” The report found that a growing number of consumers
are changing
their personal habits by purchasing green products (personal care,
cleaning products and appliances), changing transportation behaviors and
recycling in a committed way. As awareness of global warming grows, these
purchasing patterns are likely to gain traction with more consumers.
Top practices
of green businesses
“Green business has shifted from a movement to a market.” That was the
conclusion of the first annual
State of Green Business 2008. The report issued by Greener World Media
examined the most common green practices among U.S. companies. The study
assesses these practices to measure the state of green business as a whole.
The report highlights the top practices that small and mid-size green
businesses implement. Here’s a description of those practices with the
report’s advice:
Energy efficiency
– Search for ways to make your products and processes more energy efficient.
Depending on your industry, you may see great opportunities here. Check with
your local utility company to see if it has audit programs to help you
assess your business’s energy usage.
Green office space
– Buildings are responsible for 40 percent of greenhouse gas emissions
worldwide. Leadership in Energy and Environmental Design (LEED) certified
engineers can assess the energy efficiency of an existing building and
determine which retrofitting projects would lead to substantial cost
savings. Rebates and tax incentives may be available to make the initial
investment more reasonable.
Paper use and recycling
– Train your employees to pay attention to the amount of paper they use and
how they dispose of paper. Implementing standards for purchasing recycled
paper, using paper and recycling will have a positive impact on your bottom
line.
Toxic emissions
–If your company’s facility emits toxins into the air, water or land, you
are most likely familiar with federal and state
Toxics Release Inventory (TRI) mandates. Consider evaluating your TRI to
set specific goals for improvement in this area.
Quality of management
– How well does your management take the environment into account as they
lead your company? Are your company’s environmental policies published? Does
you company have a senior environmental officer or environmental staff
members? Have you conducted lifecycle analyses of your products and
materials to understand their full impact on the environment?
Alternative fuel vehicles
– If you have fleet vehicles, consider transitioning to alternative-fuel or
hybrid vehicles.
Employee commuting
– Examine your employees’ commute habits to determine whether the company
can provide benefits to encourage employees to carpool or take alternative
transportation to work. Some cities have established programs that companies
can offer their employees.
Employee telecommuting
– Allowing employees to telecommute can reduce a company’s environmental
footprint, greenhouse gas emissions and travel-related emissions. Studies
show teleworkers tend to be more productive and have less absenteeism and
turnover than those required to work from an office.
Green power use
–Many local utility companies have renewable energy options that companies
can request.
Packaging intensity
– Excessive product packaging has a detrimental impact on the planet. Can
your business change how it makes and packages products to help decrease the
amount of waste that is produced?
Corporate reporting
– Customers, investors and stakeholders are becoming more interested in
understanding what companies are doing and not doing for the environment.
Companies that use a lot of fossil fuel may soon see pressure to report on
their carbon emissions.
Environmental management systems
– What systems can you put in place to reduce waste, energy consumption and
raw materials? ISO 14001 certification is available to companies that
identify and control the
environmental impact of their activities. The certification
program establishes methods to measure and improve a company’s environmental
performance.
Pesticide use –
Landscape and agricultural businesses can phase out pesticide use to
decrease ecosystem impact. Organic produce, plants, flowers and landscape
services reduce impact and tend to fetch higher prices than conventional
options.
E-waste – Any
discarded device with an electric cord is termed “e-waste.” These devices
can be recycled. Although most federal and state laws do not yet enforce
such recycling, some large electronic companies have instituted take-back
programs. To ensure your equipment waste does not end up in a landfill, look
into take-back programs.
Carbon neutrality
– Companies that measure their carbon output and then purchase carbon
offsets are considered “carbon neutral.” In the future, the U.S. may
establish a cap or tax on carbon emissions that compels companies to buy and
sell emission rights. If these policies take effect, carbon-neutral
companies will be positioned to take advantage of unaware competitors.
Carbon transparency
– Large companies can publicly disclose their greenhouse gas emissions to
investors and other interested parties. This information can lead to a
continuous improvement process to reduce company inefficiencies.
Going green is an ongoing process of improvement that takes time to
implement. Start with the “low-hanging fruit,” and then advance to the
long-term challenges.
Carol McClelland,
PhD, author of Your Dream Career for Dummies,
is the founder and managing editor of Green Career Central, a membership
site to help people transform their passion for the environment into a
prosperous career.
Copyright 2008 Vistage
International Inc. All rights reserved. |
