What Impact Can Green Businesses Have Environmentally?

Day-to-day business activities can affect the environment positively or negatively to a considerable extent. We do not realise this consciously and are not aware of how it works and impacts our daily lives. The local environmental and social impacts are significantly high. The world is slowly moving towards adopting more eco-friendly and sustainable practices. Businesses, too, are starting to realise the importance of sustainable business models and are incorporating that into their business strategies. Many ethical and green businesses strive to keep their impact on the local environment to a minimum level.

Many government laws are emerging to protect natural resources and preserve the environment. For example, businesses must obtain permission from the planning department before constructing manufacturing plants or factories or offices on the greenfield sites. In the same way, grants are provided to the businesses who want to move ethnically and locate brownfield sites and help preserve the natural resources.

Do not confuse sustainable or green businesses with CSR activities a company does. These two are not the same. Going green is basically reducing the environmental impact of the business and conserving natural resources, while CSR is social activities and might not necessarily cover the environmental aspect.

Impact of Business Activities on Environment

While there are some positive effects of business on the environment, there are many negative impacts. Different industries, sectors, and businesses have different levels of impact on the natural environment. Here are some:

Negative Effects of Business on the Environment

Some negative effects are not intended on the surrounding people and localities but are the byproducts of the business’s operations. Effects like noise, pollution, and congestion are the spillover impacts of operation heavy businesses. Others like loss of land when new constructions happen on greenfield sites, loss of natural resources like timber and oil to manufacture products, etc., are the direct impacts of business activities.

Many constructions use non-renewable sources. The huge demand for electricity, heating and air conditioning emit greenhouse gases into the atmosphere. Very few businesses are aware of this impact and adopt energy-efficient technologies to reduce it. The huge amount of paper consumption is a significant minus with the waste going into landfill sites and not to the recycling plants.

Importance of Green Business and its Benefits

1. Enhance your brand image and competitive advantage

By being an ethical and green business, you slowly start to attract customers. This augments your brand value and business reputation among your peers, customers, clients, and other stakeholders. Many customers now prefer businesses that have a green approach and are ecologically conscious. There is a whole new economy of green customers who look out for authentic and innovative products from eco-friendly businesses. Going green will enhance your business image and attract loyal customers.

2. Increase productivity and reduce costs

By reducing waste and usage of electricity, you can improve your bottom line and the overall performance of your business. The government started to recognise the efforts of businesses that adopt sustainable strategies and promote energy-efficient initiatives.

Many new emerging technologies and tools can help reduce energy usage and its respective costs. Every effort in improving efficiency augments productivity along with huge savings. Adopt new-age products and tools and save on paper. With this pandemic, many businesses offered remote work options. In 2020, studies state that working remotely helped save billions of tonnes of greenhouse gas emissions into the atmosphere.

3. Increase profitability

When your brand value and reputation start growing, your sales automatically increase. This will impact your top line significantly. Because green businesses are cost-effective, the overall profitability of the business increases with time.

4. Provide a healthier environment for employees and society

Moving towards green or sustainable business models and having it as a core principle that drives the entire organisation helps establish strong relationships between stakeholders inside the company and with society. It promotes a safe and healthy workspace and enriches the lives of the employees. To promote healthy and eco-friendly initiatives in the organisation, rewards can help motivate employees to make this shift. Set up a sustainable committee that encourages the green culture and keeps the organisation motivated.

Green Business Examples

Today, many businesses are focusing on sustainable practices and finding innovative ways to grow and protect the environment at the same time. They are acknowledging the importance of the business environment and its impact on the atmosphere, natural resources, and society as a whole.  Some businesses which follow sustainable practices and promote ethics are listed below:

1. Nike

It is one of the most sustainable apparels and footwear brands in the market. They have an application where the designers can make sustainable choices (with respect to resources) by comparing the carbon footprint of fabrics. Redesigning packages, promoting the use of recycled materials, and investing in energy-efficient technologies are some initiatives by the company.

2. IKEA

IKEA was recently introduced in India. This Swedish company is known for its cost-effective products but what is amazing is that the entire business operations follow a sustainable approach. Their raw materials (wood, cotton, and others) are sourced directly from the producers, and it uses solar energy to power its stores and plans to promote them.

3. Unilever

Being green and sustainable is the brand identity of Unilever. The company has a sustainable living plan that targets the entire supply chain. It was first adopted in 2010 and has made amazing progress since then in contributing to the atmosphere and society.

4. IBM

They are one of the earliest adopters of sustainable business models. Since 1960, CSR has been a significant focus for the company. It aims to construct smart buildings, use energy-efficient technologies, water and waste resource management, and follows a holistic approach to becoming a truly eco-friendly business.

5. Adobe

Adobe is incredible in its sustainable practices and made some amazing achievements. Almost 70% of its buildings are LEED certified. It aims to become a net-zero energy-consuming business. It adopts new-age tools like water fixtures, using native plants for landscaping, recyclable materials for packaging, etc., to reduce pollution and preserve natural resources.

6. Panasonic

This company has ambitious goals and makes environmentally viable products. Sustainability is their core principle and their way of life in business. They have incorporated green goals into their core business strategy and plan to demonstrate a “sustainable smart town” in Japan, partnering with many companies.

Wrapping Up

As the world started acknowledging the importance of green businesses, many businesses are constantly analysing the impact of business activities on the environment and adopting sustainable practices. Going green should be the next big thing on the business strategy of all big business houses.

Also read:

1) How to Make Online Business More Eco-Friendly?
2) Do You Consider Yourself to be Eco-Friendly? Let’s Check!
3) How to Build an Eco-Friendly House?
4) How Would You Set Up An Eco-Friendly Home Office?
5) OkCredit: Simple, Paperless & Secure solution for businesses

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FAQs

Q. Why are businesses resistant to going green?

Ans. Though there is an increase in awareness and many initiatives which constantly push businesses to go green, a significant barrier is the lack of clarity on what green businesses mean and how they impact the environment and natural resources. Businesses must do diligent research and understand the horrible side effects of heavy operations and manufacturing processes on natural resources and adopt green business models and strategies.

Q. What are the major motivations for businesses to go green?

Ans. Many businesses go green or adopt sustainable business models to augment their brand image value, reputation among peers, customers, clients, investors, and other industry stakeholders, reduce costs, legal and regulatory advantages, competitive advantage etc. But most importantly, they go green to preserve natural resources and help create a healthier and safer environment.

Q. What is the most important focus area for businesses planning to turn green?

Ans. When businesses plan to transform and adopt a sustainable business model, all the stakeholders need to be on the same page to achieve it. When all the business stakeholders feel connected to the purpose, it becomes more effective. A few small initiatives collectively can create a significant impact on the environmental footprint of the business.