Why Being a Green Laggard is Bad for Business

Published June 02, 2009

Cap-and-trade is demanding executive's attention

I work for an energy saving company called Somar International: one of our recent clients took a little over a year to commit to an installation of low-energy lighting which would have already paid for itself had they gone ahead immediately!

Although far more companies are coming around to energy efficiency, the prospect of new cap-and-trade legislation on both sides of the Atlantic now looms large over businesses, and much of the attention at the moment seems to be in getting carbon accounting procedures in place before embarking on energy efficiency projects.

There's no doubt though that those companies who install decent energy efficiency solutions are better placed to capitalise on the post-recession economy, in which energy prices are only likely to continue to rise as old cheap coal power stations make way for greener but dearer alternatives.

Great article!

I love the examples you use in this article, and your list of reasons why to go the green route should get any CEO's attention. Access to more capital - that's a powerful selling point. I also believe that companies that align themselves with a solid sustainability strategy now will emerge as the victors following the recovery of the economy.

- Anna Clark, EarthPeople

Leaders over Laggards: The Step Beyond "Green"

Sustainability is not only good for the planet, it is smart and strategic. A popular strategy that many companies seem to be taking (and that you mentioned) is to focus on carbon output and waste. These are great starts and the low-hanging fruit that any smart company, sustainable or not, would want to pursue because they are obvious cost savers. If a company has not started to pursue at least these measures it should be lagging.
The companies that are leaders, not laggards, are the ones that are taking it a step further and considering not just “green,” but sustainable. A sustainable solution is one that completely eliminates the problem, not just reduces the problem’s impact. With creativity, innovation, and motivation from management these solutions will be reached by the best companies. When a company takes that next step, sustainability becomes a dynamic strategy, not just cost saving, “green” regulations. This type of strategy takes more to implement, but its payoffs are huge.

-Stacy Holtmann

Leaders over Laggards: The critical point

I agree with Ms. Holtmann's perspective. Being less bad is not restorative. It simply continues (though to a lesser degree) to perpetuate the problem. Real sustainability recognizes that everything: people, planet and economy are connected and interdependent. Attention to any one at the expense of the others is self defeating denial.

Leaders over Laggards: Innovators Will Thrive

The winners in the long run will be the companies that are leaders in sustainability. The laggards will not survive, as many companies have no innovative side, and it reflects throughout their entire corporate structure. These are the companies that only are interested in the public relations aspect of "going green".
Instead of looking at the elimination of a problem and creating a win-win situation, the CEO is so tied up in the bottom line, that innovation is out the door. Instead, the CEO takes the quick fix and in the long run these companies will become extinct.
In a global economy we cannot rely on corporate decisions that create havoc with our environment.Not to mention the waste that is created and that cost does effect the bottom line. Companies like Nike will be new leaders. As consumers become more informed, these corporations will thrive.

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