Excerpt
Table of Contents
Introduction
Why Are Businesses Going Green?
Marketing Opportunities
Financial Benefits
Becoming a Good Global Citizen
Consumer’s Choice
Legal
How are Businesses Going Green?
Top Six Green Initiatives Used by Businesses
Energy Saving Training Programs
Reducing Amount of Light Used
Constructing Environmentally Friendly Buildings
Selecting Locations for Sustainable Buildings
Reducing Water Consumption
Promotion of Earth Day
Leading by Example – Canada’s Largest Companies’ Green Initiatives
Telus
Walmart Canada
Bombardier
What Benefits or Rewards are received for Going Green?
Green Effort’s Impact on the Environment
Background information about the environmental issues
Strategies to Reach the Environmental Goals
Emissions Trading
Conclusion
Recommendations Environmental Problems
References
Introduction
The condition of the world’s environment and atmosphere are in fragile states because of human industrialization. For years, people remained oblivious and ignorant of this fact but now it is a topic known around the world. People alone have been making small efforts to help, such as recycling, driving a hybrid car or saving energy, but that alone cannot fix the damage done. Businesses have a much larger impact on the environment. Their initiatives can make a big difference when it comes to saving the environment and creating a sustainable future. This report is going to discuss businesses’ initiatives for going green.
Air Pollution is one of largest environmental issues being fought today (Environment Canada. 2010.). Air pollution is caused mainly from emissions from automobiles and burning coal for electricity (Environment Canada. 2010.). The earth’s atmosphere is in a horrible condition because of human neglect and greed. Scientists confirm that global climates have undergone significant changes in the past few years due to the condition of the atmosphere. Environment Canada states this change has been brought on by the release of greenhouse gasses that are released into the atmosphere from burning fossil fuels. These greenhouse gasses trap heat from the sun in the earth’s atmosphere and are causing it heat up dramatically.
Another cause of environmental destruction comes from waste. The earth is becoming overcrowded and polluted with landfills (Environment Canada. 2010.). The earth’s surface is rapidly becoming covered in garbage. These landfills are cutting into and polluting natural habitats, reducing the area for wildlife to live.
The planets fresh water supply is becoming scarce. This problem is going to become very serious and dangerous if nothing is done about it soon. Fresh water is important to the survival of both humans and animals. Polluted fresh water can cause serious harm to fish and other wildlife as water is home and a vital factor of life to most animals (Environment Canada. 2010.). Pollution and overconsumption both contribute to the earth’s dwindling supply of fresh water.
We believe that the condition of our earth is important and must be saved. Businesses have the largest impact on the environment and we believe that their contribution to saving the environment will make a lot of progress towards that goal. We recommend that businesses go green not only because it will help the environment, but we think that it will improve their business and help to create a sustainable future for everyone. This report is going to examine and answer the following questions about businesses going green:
- Why are businesses going green?
- How are businesses going green?
- What benefits or rewards are companies receiving for going green?
- How big of an impact are these companies green efforts on the environment?
The report will investigate the reasons why being a green company has become so popular. With the world’s environment being in the fragile state that it’s in, a lot of people are concerned for our future. Customers that feel this way are more likely to shop or deal with places that are taking interest in their concerns and making an effort to help fix the world. Laws and regulations about waste and business practises are also being put into place that is forcing some organizations to be more environmentally conscious. This report will examine and interpret these laws and regulations.
The paper will look at what businesses are actually doing to become environmentally friendly. A lot of organizations are implementing programs to minimize waste, minimize energy consumption and limit consumption of natural resources. A lot of companies are developing buildings that are eco-friendly. We will go into detail about which programs and initiatives are the most popular and how these businesses are using them.
One of the big benefits of businesses going green at this point of time is customer preference. By competing with other businesses to be greener, many organizations are finding that the greener they go, the more customers they get. This is one of the rewards this report will go into detail about along with tax breaks companies receive for being green and rewards they can win for their rewards.
The final section of the paper is going to outline how much these businesses are actually contributing to saving the environment. This section will include graphs showing the differences in environmental destruction as it was in the past, before going green was popular amongst businesses, and now that businesses are trying to be more conscious of the state of our environment. This will help conclude if going green is really helping to save our world.
Why Are Businesses Going Green?
With all the discussions and studies going on about saving the earth, many people have been inspired to make a change. It was rarely heard that businesses were adapting a more environmentally friendly approach to business, however that had changed drastically. Companies are now adapting to greener ways more than ever, because an environmentally friendly approach to business offers more than just doing the “right” thing. There are many different incentives that prompt companies to think about their carbon footprints on the earth. So the answer behind why companies are going green is simply because there receiving many different incentives than just saving the environment.
Marketing Opportunities
A business that adapts a green strategy can also use its environmentally friendly approach as a marketing tool. This reason is a huge drive to prompt businesses to become greener. Companies can market using the green market, which is growing more than ever. Consumers are willing to pay more for products that are fulfilling their needs and saving the environment. A company that in the green markets earn a lot of respect from is consumers. The consumers understand how hard it is for a company to become greener and they will also pay that extra bit to support this movement. Also, a company can use this as an advantage because they can now display that on their packaging (Merilainen, Moisander & Personen.2000.).This catches the attention of consumers and makes both the product and company look superior to other leading products and competitors. Marketing green is a huge advantage that companies receive if they decide to adapt to a more environmentally friendly approach to their business.
Public relations is one of the many reasons that businesses are adapting this way, it plays a huge part behind companies choosing to adapt to a greener business strategy. Becoming green allows the company to be different from its leading competitors and allows a good relationship to form with the consumer. Now a day there is a lot of discussions about saving the earth, through media and everyday interaction with people. Consumers are very interested in this concept and really want to support this green movement. A company that chooses to become more environmentally friendly gains consumer respect and gain more consumers that are willing to pay that extra bit to support greener businesses. Consumers will associate a company that is green to a very highly respected and praised business. Businesses are choosing to go green because they want to improve their public relations and want to be seen as something different than their leading competitors.
Competition is another reason companies to adapting green ways. Becoming green allows them to appeal into another target market, allows them to be different from its leading competitor and it allows them to enter into a different market ( Dangelico & Pujari. 2010.). Businesses are becoming more environmentally aware because it allows many different incentives. Going green it allows businesses to enter into a different consumer market and even the little bit of difference the company is trying to make sets them apart from other companies. Businesses usually face a lot of competition in their markets, becoming green allows businesses to use that to their advantage against competitors.
Financial Benefits
Tax advantages are another incentive that drives businesses to adapt a green ways. There are many different federal tax breaks and grants that are available for businesses that are adapting some green into their businesses. This drives many companies because it allows them to save some money from taxes and spend that back into their business that will help the company.
Many businesses and people believe that becoming more eco-friendly, is hard for businesses because they have to pay a huge cost to implement changes in their business. However, there are costs that companies pay but there are many incentives and reward that they receive in return that prompt them to adapt this strategy. There are tax breaks and many different grants that businesses can receive. Companies are researching and finding out that becoming green could actually help the environment and their business in return.
Becoming a Good Global Citizen
Reducing wastes and packaging costs is a huge driver that helps the company decide to become more environmentally friendly. Companies spend a lot of time and money dealing with wastes created during the manufacturer process and buying packaging. Going green can eliminate waste and cut back paperwork. Minimal packaging cuts huge costs that are associated packaging and attracts environmentally aware consumers while reducing the burden on landfills. Reducing wastes and packaging costs can also reduce their costs and allows their profits to increase and reduce their government claims (Lyon & Maxwell. 1999.).
Consumer’s Choice
Green businesses always receive some sort of media attention, there used to be more media attention around environment related issues but that had decreased. With that said there is still media attention that the environment receives. Media attention may not be the biggest reason as to why companies are going green, but it is an incentive for some companies (John. 2006.).The media attention that a company may receive helps it get known and the media attention allows the consumers to know which company is entering the green market.
Customer needs plays a huge part in companies becoming greener, with the media always spreading how we need to save the environment, consumers want to see the change. Businesses produce what consumers demand, so with consumers demanding something more environmentally friendly businesses must produce that for their customers. Businesses benefit from entering the green market because consumers are willing to pay that extra bit for a product that fulfills their needs and still is eco-friendly (Gerhard. 1993.). This is a huge push that consumers give to businesses to become more green.
As there is more media attention about saving our environment, people are really starting to understand what they need to do. Morals play a huge hand as to why businesses are choosing go green. We all need to pitch in so we can help save the environment. Many businesses are adapting this green strategy because it’s the “right thing” to do and they believe they have social obligations that convince them that they need to help save the environment (Nadia, Davis, Paul.2004.).
Legal
Legally businesses that are hurting the environment face many different hurdles. Businesses pay huge dollars for lawyers and court cases. The research paper organizational motivations for going green, states that managers are motivated to make their companies greener because it cuts down their cost for lawsuits and cuts down legal expenses (Johnson.2009.).
There are many reasons as to why a business would like to become more eco-friendly. Consumers are demanding more environmentally friendly products and are willing to pay that extra bit to protect the environment. Public relations and marketing play a huge part because it allows businesses to market their businesses as a green business and enter a whole different market. Other reasons such as, financial, legal, social obligations and customer needs help the business while they go green. If done right going green can become a great opportunity for a business to change and make profit. Many businesses are scared to become more environmentally friendly because they feel that they will be putting a lot of dollars in the process and it won`t benefit them. However, now there are many incentives for businesses to go green and there is different ways they can actually get profit out of becoming more sustainable.
How are Businesses Going Green?
There are a lot of popular initiatives that businesses are using to become green. Some businesses are doing it because they feel pressure from advocacy groups, some are doing it because they have found ways that it can actually save their business money, and others are doing it because they just want to do their part in saving our environment. There are many ways in which companies can do this, some are cheap, and some are very costly and intensive.
This section of the report is going to discuss some of the more popular ways that businesses can go green and it is also going to focus on a couple of Canada’s larger companies to see what they are doing to help our environment. One company from each business type have been selected serve as an example, including:
- Telus Service Business
- Walmart Canada Merchandising Business
- Bombardier Manufacturing Business
Top Six Green Initiatives Used by Businesses
Energy Saving Training Programs
One of the most popular things that companies are doing to become eco-friendly is starting up training programs to inform and educate their employees about energy saving basics (Hampshire. 2010.). These programs are very simple but can end up saving the businesses that use them a lot of money in the long run. These programs usually consist of tips like, turning off the lights when a room is not in use, becoming more efficient when using machinery and shutting down computers at the end of the day (Hampshire. 2010.). Most businesses have also been providing information about how much money their employees can save the company by using these simple tips in their day to day routines.
Reducing Amount of Light Used
Many companies have found it popular to install natural light harvesting systems to bring more sunlight into their buildings so that the use of electrical lighting is not needed during the day (Hampshire. 2010.). The use of large windows is also helping companies cut down on the amount of lighting needed to operate their business (Bilbow. 2009.). Businesses doing this have also started to install automatic sunlight detection systems that dim the lights when there is enough natural light in a room (Hampshire. 2010.). The use of LED lights is becoming popular as well because they cost so little to run (Bilbow. 2009.). This would help to take the energy saving initiative off of the employees to help maximize energy savings. Hampshire reports in the Article called “Going Green” that these types of systems are become more popular and easier for companies to obtain and install.
Constructing Environmentally Friendly Buildings
It is easier to construct a building with green systems than it is to add these systems afterwards. Almost every new building being constructed today has an environmental focus. New buildings are now being sealed and insulated better to retain or shield heat (Bilbow. 2009.). This, along with an efficient air conditioning and furnace system can save a lot of energy and reduce the price of a climate control bill. Bilbow states in a 2009 article that many businesses in larger cities are using solar panels and windmills to help power their buildings. The buildings that use these systems are also being built from recycled and environmentally friendly materials so that when these buildings are repaired or demolished in the future their components will not be harmful to our surroundings (Bilbow. 2009.).
Selecting Locations for Sustainable Buildings
Making a building sustainable doesn’t just have to do with what green systems the building encompasses but also the location and its operations. Bilbow talks about how companies are putting up new buildings on what they refer to as “brownfields”. Brownfields are lots that have already had buildings on them or do not support vegetation for some reason or another. By choosing to build on brownfields, businesses are reducing their environmental impact because they are not destroying a natural habitat. Another thing that companies have been doing is infilling in the downtown cores of larger cities (Bilbow. 2009.). Infilling is building cities up rather than out which also helps reduce the destruction of natural habitats and leave more room for them to grow free. A lot of companies are choosing to place their plantations and towers near convenient transit stations to help encourage both employees and customers to use the transit rather than drive (Bilbow. 2009.). The locations of new buildings are carefully thought out to reduce the negative environmental impact of their business buildings.
Reducing Water Consumption
The earth’s fresh water is in short supply. This poses a dangerous risk for the environment. A lot of businesses today are making the effort to conserve their supply of fresh water. Bilbow reports that many new business buildings are being constructed with low-flow toilets and waterless urinals to minimize water wasted. These toilets use up to 80% less water than standard toilets made in the late 90’s. The author also states that many companies are eliminating water fountains since they are another source of wasted water. Landscaping is also being designed to reduce or eliminate the need for irrigation. Companies that try to make the their buildings look better are using rock gardens rather than planted gardens so that they do not need to water plants. The plants that they do use require little water which usually comes from the rain (Bilbow. 2009.). Some businesses are even taking the step of installing rain collector on the tops of their buildings with water filtration systems so that they can use it (Bilbow. 2009.).
Promotion of Earth Day
One big thing that companies are doing to market their green initiatives is promoting Earth Day (Miller. 2010.). Earth Day has become a very popular advertising scheme for businesses. In a 2010 report on green marketing, Miller stated that in 2009, many companies gave away free reusable canvas shopping bags to their customers promoting Earth Day. Most of these companies also took this opportunity to advertise their business on these bags, helping the customers to make the link between their business and being green. Also in 2009, Starbucks gave away free coffee on Earth Day to customers who brought their own cup. Home Depot gave away 1 million compact fluorescent bulbs, Disney gave away reusable water bottles, Amazon.com gave discounts to customers who order green merchandise and all of the big retailers took the chance to promote their green products to customers (Miller. 2010.). Earth Day is a great way for businesses to push environmentally friendly items into customer’s hands to try to make them buy these items on a regular basis.
Leading by Example – Canada’s Largest Companies’ Green Initiatives
Telus
Telus is cellular telecommunications retailer and service provider. In 2009, Telus focused a lot of effort on two goals pertaining to environmental stability. One of these goals was to enhance their environmental management system, or as they refer to it, EMS. This system was developed to observe and manage operations between Telus and the environment, hopefully ensuring that they can benefit for one another. To improve this Telus expanded their network of green teams throughout the nation. These teams were composed of environmental professionals who receive constant environmental training to ensure their knowledge of green technology and initiatives are up to date. Telus also participated in many green events that educated them on green practices and introduced an executive team responsible strictly for guiding sustainability practices throughout Telus.
For the past few years leading up to 2009, Telus’s carbon emissions have been increasing. Their other goal for environmental sustainability is to build and follow a plan to reduce carbon emissions. They have categorized their different energy types into three groups that they call:
- Scope 1 Direct Energy Sources (fuel)
- Scope 2 Indirect Energy Sources (electricity)
- Scope 3 Other Energy Sources (such as air travel)
A team was assembled to assess the company’s complete carbon footprint. They also educated themselves on the risks associated with climate change and consulted external professionals in the field to help them develop an action plan that would work. After assessing the company as a whole and determining the current energy consumption of the company, they calculated the minimal level of energy the company needed to operate. They then started to cut energy consumption wherever possible. Telus has cut down air travel, by using teleconferencing with both clients and employees. They have reduced paper consumption with both clients and employees by 24%. They started a recycling program externally by refurbishing handsets and internally limiting waste and they gave their products an extended life to avoid frequent disposal of handsets.
Telus is continuing to reduce their carbon footprint in the environment and continuing to develop new plans to become more eco-friendly. Being a service company, most of their harm to the environment is through energy consumption from their network and their service vehicles. In 2009 they were already talking about a plan to develop a more thorough “Climate Change Strategy Plan” to implement in 2010. Telus is constantly upgrading their equipment and network with more efficient hardware to help reduce their consumption of electricity.
Walmart Canada
Walmart has done a lot to reduce their harm to environment over the past few year and planning to continue with their environmental initiatives. Walmart’s goals for 2010 and beyond are:
- To create zero waste
- To be 100% supplied by renewable energy
- To sell products that sustain people and the environment
Walmart’s plan to create zero waste is powered by trying to make everything they use electronic, reusable or recyclable. By 2015 they think they can divert 90% of their waste from landfills. They will do this by reducing their packaging and making it all recyclable. In their corporate building they are trying to go paperless with all of their communications. I doubt that a company this large will be able to go completely waste-less but if they can get even close to achieving that goal it will be quite the accomplishment.
On the road to sustainability, Walmart has created a distribution hub for their perishable food items in Balzac, Alberta. The purpose of this hub is to make the distribution of all of these items to their stores more efficient throughout the country. This efficiency itself is a step in becoming greener, but the way in which this warehouse was built is the focus of this section. This warehouse is “designed to house a complex assembly of sustainable technologies and systems built right into its infrastructure.” When the warehouse was being built, sustainability was constantly being monitored and new ideas for improving the buildings environmentally friendliness were always being brought to the table. Everyone on the site had sustainability training and the construction of the building resulted in very little waste. The Balzac location uses LED lights instead of traditional light bulbs. A lot of the technology used there is run by hydroelectric power with no emissions and it uses solar power to heat the offices of the building. Walmart also has plans to install windmills at the location to generate electricity for it. This project one of Walmart’s proudest accomplishments in 2010 and it is a great example of sustainability in progress.
A lot of Walmart’s new stores that are being built are following the same example as Balzac. These stores are using technology to cut down there energy consumption and help create zero waste. Geothermal heating and cooling systems are put in place so that the natural heat from the earth warms the stores in the winter and cools them in the summer. Waste heat from refrigerators is harnessed and used to heat the stores in the winter as well. They are using CO2 refrigeration technology to replace refrigerants that are harmful for the environment and skylights have been installed so that lights are not needed in the daytime. These new stores use up to 60% less energy than a normal Walmart store. Previously built Walmarts are also upgrading to these technologies.
Bombardier
Bombardier is a manufacturer of airplanes and trains. Bombardier is a strong supporter of sustainable modes of transport. In 2010, Bombardier focused their efforts on designing fuel efficient airplanes. A good benchmark for Bombardier’s goals is how a smart car’s fuel consumption is 3.4 litres per 100 kilometres while Bombardier’s new airplanes use 2.3 litres of fuel per 100 kilometres per passenger. Bombardier’s attempt to make a more environmentally friendly mode of transportation compared to a personal vehicle succeeded.
Bombardier’s new train product line uses a new propulsion technology that can reduce emissions of up to 80%. They are committed to developing products that are going to help improve our environment rather than destroy it. All of their products that they plan to come out with in 2011 are focussed on improving the earth’s sustainability.
The actual operations of the company are becoming green as well. Bombardier has evaluated all of their energy uses and in all of their manufacturing plants and have cut down where possible, adding up to 6.7% in 2010 alone. They have also reduced their CO2 emissions by 12.3% and the company is currently evaluating the possibility of switching to renewable energy source where possible. In 2011 they plan to launch a “Green Fund” which will be a part of their annual budget specifically for funding green initiatives. They will be implementing a strategy to make the company go completely carbon neutral and are starting a green business car program for their employees.
Bombardier is big manufacturer in Canada that has dedicated a lot of it resources to creating products that will improve the quality of the atmosphere. These initiatives seem to be appealing to customers as the company is becoming more and more popular in designing transportation throughout Canada. This company is another good example of a company that is going green.
What Benefits or Rewards are received for Going Green?
Today businesses are putting a lot of effort into becoming green organizations. The challenge of a sustainable society is to achieve a competitive and eco-efficient economy. This report that focuses on businesses that are becoming greener, thus meaning that the question: “What benefits, rewards or incentives are environmentally friendly businesses receiving?” can be answered.
According to the rewards of green businesses, one can find from African rewards until American awards. In the report Green Oscar for Eritrea1 (2003), Stephen Williams reports on the prominent Ashden Award for Sustainable Energy, which is an Eritrean designed stove, that is both environmentally-friendly and effective and it is prized at nearly $50000. It led sustainable energy projects provide social and economic benefits for their local communities and protect the environment. These Oscar are made in three international categories focusing on food security, enterprise and society well-being.
Moreover, the article Kent2 Green Business (2009) states that 124 Kent businesses attended Summer’s recycling event and helped keep 39,679 pounds of material from going to the landfill. The Kent Business of the year was the Boeing Company, which hat set an example of environmental management system as well as prevent pollution by conserving energy and resources, recycling, reducing waste and pursuing other source-reduction strategies. It also worked together with stakeholders on activities that support environmental protection. Much credit is also given to Boeing employees for their dedication to environmentally responsible practices. It includes programs for alternative energy sources, water conservation, ISO 14001, Third Party Certified Environmental Management System, etc.
Furthermore, SIFE Okanagan Green Business Awards which is a global non-profit student run organization that actually operates at the Okanagan College, is taking part of the green business awards criteria by cheering students to address relevant economic, social and environmental issues that happen in the Okanagan region. It also offers an overview of recognizing businesses that have been practicing green activities as well as businesses that have a long-term commitment to sustainability. The SIFE organization states that applicants do not nominate themselves into either sustainability leader or green innovator; rather they are selected by their judging committee.
The SIFE Okanagan article further explains the sustainability leader of the year award criteria and the green innovator award. The sustainability leader of the year award criteria has been made to highlight the efforts of an individual. It has implemented original practices to cut negative environmental impacts in their organization, it has also reached important results in environmental stewardship. The Green Innovator award, which is new, is targeted to businesses that have recently focused on greening their practices. A winner of this award is a business that has implemented effective sustainable practices within the last 12 months, among others.
Green Business awards is going through the world, it is not only concentrated in developed countries but also in developing countries like Kent and Eritrea, respectively. There are not just green business activities for multimillion dollars programs but also for rural communities like the Ashden Award aforementioned. However, it is difficult to decided which company to name as the Business of the year. Not only “one” company deserves an award; other green businesses deserve recognition for their admirable effort. Companies can work together to promote environmental protection. In a community-based organization, community leader or activist, people are in a unique position to take the lead in raising awareness about resource conservation, good solid waste management, safeguarding the environment for future generations.
Concerning to the benefits that environmentally friendly businesses are receiving, there are many benefits that green business are receiving. Across the world, many individuals, communities, and businesses have found creative ways to reduce and better manage their trash through a coordinated mix of practices that includes the 3Rs of solid waste management: reduce, reuse and recycle.
One form of recycling is composting. Composting is the controlled biological decomposition of organic matter, such as food and yard wastes, into humus, a soil-like material. Composting is nature's way of recycling organic waste into new soil for vegetable and flower gardens, landscaping, and many other applications. Some benefits of composting include:
Provides nutrients to the soil
Increases beneficial soil organisms (e.g., worms and centipedes)
Suppresses certain plant diseases
Reduces the need for fertilizers and pesticides
Protects soils from erosion
Assists pollution remediation
Keeps organic wastes out of landfills
Furthermore, Lyn Johannson3 discusses in the article of Profits from Green Ventures (1994) that more enterprises are recognizing that a healthy environment and economy are mutually dependent. “Greening” is businesses’ modern reply to the governance idea of sustainable development, which can be described as development that meets the needs of the present without compromising the ability of upcoming generations to meet their own needs.
It also states that sustainable development means in practical terms, accepting the concept of sustainable development as a global business plan. Sustainable development is a vision, a target to aim for. Lyn Johannson opines that no organization, large or small, can yet claim to be sustainable, although a few firms have made some serious first steps.
Besides, the article Tax Incentives of Going Green explains how government policies changed in the last few years subsidizing now green businesses with taxes incentives. Even if the “green” investment or renewable energy systems are not new concepts, the governments understood that this economic trend can produce a lot of potential jobs and spur economic growth. While the incentives to pursue renewable energy projects and green businesses have never been greater, recent changes in legislation have modified existing incentives as well as created new ones. The incentives come in a variety of forms, such as tax deductions, tax credits, tax exemptions, loans, and grants. As legislation continues to expand tax incentives and regulations become more stringent with regard to energy policy, the future availability of tax credits and deductions for green technologies looks bright. This tax incentives are fundamental for the company because changing their production to an environmental friendly production is very cost expensive.
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1 State of Eritrea, is a country in the Horn of Africa.
2 Kent is a city located in King County, Washington, United States.
3 She is an illustrator and was the creator of the comic strip For Better or For Worse.