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The business and environmental cases for going ‘green’
ENORMOUS ‘LOHAS’ MARKET DEVELOPING FOR GREEN BUSINESSES
Monday, September 3, 2007
For two years, our columns have focused on your business. Beginning with
this column, we look at a bigger picture. It’s about one aspect on
being a good corporate citizen, about having a more environmentally friendly
business. Let’s look from two perspectives, the business case to go green and the environmental case. We’ll cite a few examples in each area.
The business case for going green
Capturing a market. A new, rapidly growing market is having an impact on businesses. The LOHAS market is composed of people who practice Lifestyles of Health and Sustainability. This $81 billion market, which includes yours truly, wants to patronize green businesses. The sooner you go green, the more likely you’ll capture market share.Saving money. Artificial light accounts for up to 44 percent of the energy bill in office buildings. Research shows that children’s test scores are higher when they are tested in sunlit classrooms. Shoppers spend more time in stores lit by sunlight, which may result in happier customers that spend more. Using natural light wherever possible saves money and may increase productivity and sales.
Reduce, reuse and recycle is a big part of going green. It involves everything from turning off the lights and the computer when you leave your office to using double-sided printing. These things save money.
Having a better-run company. Going green results in a more effectively run company for the simple reason that your "green coordinator" or "green team" is taking a systematic look at existing business processes. The goal of that disciplined review is to look for ways to increase efficiency. In addition, keeping your status as a green business means you’ll continue to monitor processes and keep them on track.
Health for you and your employees. Vibrant, alive and healthy people are more productive. The statistics on business losses due to employee illness are staggering. Dianne’s company has an entire division dedicated to work with companies on the health and well-being of staff. A green environment will advance the health of everyone in your business.
The case of the plastic water bottle, part 1. Many employers provide bottled water. What would happen if you provided filtered water instead? Filtering tap water costs between 10 and 25 cents a gallon, while bottled water ranges from $1.57 to $8.26 a gallon. You can estimate the money you will save when you offer reusable glasses and a filter. It costs between six and 82 times as much – less the cost of glasses, filters and water for washing them – to provide bottled water.
The environmental case
Our federal government has lagged in environmental policy. Business and local governments have spearheaded going green.It’s no longer just an issue of what kind of planet our children and grandchildren inherit. If the degradation of the environment continues at its current pace, we will feel it in our lifetimes. The people in New Orleans have already felt it.
• No one has to point out the intensity of our climate catastrophes worldwide in the past few years.
• At the current rates of global warming, the Arctic ice is expected to completely melt by 2070, leading to a 20-foot rise in sea levels. Just a three-foot rise in sea levels will be catastrophic given the people and industry along or near coastlines.
• Green environments are healthier. There are many documented cases of people becoming ill from toxic environments, while going green means controlling waste and toxins.
The case of the plastic water bottle, part 2. Where do all those plastic water bottles go? About one in six single-serving plastic water bottles was recycled in 2004. That means 84 percent of 26 billion liters of plastic water bottles are littering your environment annually. They don’t biodegrade, they just break into small particles that foul our landfills and water systems. Plastic bottles use petroleum to manufacture, to ship and to recycle or destroy. This is a totally unnecessary drain on our resources.
If you switch from bottles, the impact on the environment is enormous. It extends beyond what will happen in your business alone because you will have educated your employees, and that can create a ripple effect that goes way beyond your company.
In our next column we will outline five steps to take your company green. It could be simpler than you think and have greater benefits than you know.
•••
Anne Lieberman is a volunteer small-business coach and retired financial adviser in San Rafael. Diane Morrison is a principal in business consulting firm MorrisonMcNabb, www.morrisonmcnabb.com in San Rafael. Questions can be sent to dmorrison@morrisonmcnabb.com.
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