Businesses are Combating Climate Change and Turning a Profit

All around the world, there are many sustainable success stories from companies that are seeing tremendous profit from green.

At HP, carbon reductions are now 33 percent better than in 2005, fossil fuel use has been cut by 62 percent and the water savings have increased to 89 percent. Companies like the UK's British Sky Broadcasting having reduced customers' carbon emissions by around 124,000 tonnes. Some corporations, like PUMA are committed to carbon neutrality.

Du Pont has set a goal to increase annual revenue by at least $2 billion USD by 2015 from products that reduce carbon emissions, which were already generating $731 million USD as of 2009.

According to a 2010 global survey, seventy percent of firms with revenue of $1 billion or more say they plan to increase spending on climate change initiatives in the next two years.

Nearly half of the 300 corporate executives who responded to a survey conducted for the accounting and consulting giant Ernst & Young said their climate change investments will range from 0.5 percent to more than 5 percent of revenues by 2012.

Whether to enhance brand loyalty or to reduce costs, businesses are seeing the merit of going green. More than four out of five respondents, or 82 percent, said they plan to invest in energy efficiency in the next 12 months, with 92 percent saying that energy costs will be an important driver.

Despite the challenges, the Ernst & Young Survey indicates that corporate executives are increasingly committed to taking action on climate change. The fact that 70 percent of executives said they planned to spend more on climate change programs is clear evidence of this trend.

Even in the absence of government regulations on climate change, businesses see the value of investing in sustainable programs because they see the opportunities to grow through new services and products, as well as save money through enhanced efficiency and limit risk. This is more than just public relations, it is a reflection of the market driven movement.

© 2011, Richard Matthews. All rights reserved.

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Cooperation Between Environmental Organizations and Businesses

Increasingly we are seeing cooperation between environmental organizations and businesses. All around the world, grassroots environmental organizations are teaming up with corporations in the service of the environment.

Environmental organizations have commonly pressured corporations to change. Greenpeace's widely publicized campaigns against unsustainable companies are some of the best known examples.

Other environmental campaigns are less adversarial and more inclusive. There are many strong partnerships were the business community is working alongside environmmental groups. For example, Xerox has partnered with The Nature Conservancy to promote sustainable forestry, preserve biodiversity and help minimize forest loss and degradation that contributes to greenhouse gas emissions.

Strong partnerships are forming where non-profits are putting their expertise to work guiding businesses. Some of the most productive partnerships involve information sharing between environmental groups and companies. Greenpeace has partnered with companies like Cisco and Google, Carbon Trust has put out a Green Guide for SMEs and the WWF-UK has launched its Green Game-Changers initiative for Business. The WWF is involved in training business executives for sustainability through its Sustainability Training Program. The WWF has partnered with the IMD to create a Sustainable Business Program. The WWF also provides training to business leaders through its One Planet Leaders Program The Environmental Defense Fund has the comprehensive Innovation Exchange and Ceres has been integrating sustainability into capital markets for more than 20 years.

Other campaigns work with companies to foster change from within the business community. For example, 350.org's "The US Chamber of Commerce Doesn't Speak For Me," campaign.

Various professional and development organizations support sustainable businesses. The B Corporation, certifies businesses as change agents, The ISSP, International Society of Sustainability Professionals, promotes professional development, as well as providing networking and sharing of best practices.

Although the EPA is a government organization, the public - Private cooperation that fuels its Green Power Partnership program has yielded impressive results.

Cooperation between businesses and environmental organizations is helping to produce a greener world. These partnerships illustrate that capitalism and environmentalism can converge in ways that benefit the planet.

© 2011, Richard Matthews. All rights reserved.

Related Posts
WWF-UK's Green Game-Changers Initiative for Business
IMD and WWF's Sustainable Business Program
WWF's One Planet Leaders Program
Green Guide for SMEs from the Carbon Trust