‘Green’ businesses are favoured by employees and consumers
Sustainable businesses or green businesses have minimal negative impact on the global or local environment, community, society, or economy. They ensure that all processes, products, and manufacturing activities adequately address current environmental concerns while maintaining a profit.
In general a business is described as green if they:
- Incorporate principles of sustainability into each of its business decisions.
- Supply environmentally friendly products or services that replace demand for non-green products and/or services.
- Are greener than traditional competition.
- Have made an enduring commitment to environmental principles in business operations.
Businesses can implement a wide range of green initiatives including:
- ‘Going paperless’ or sending electronic correspondence.
- Refurbishing used products and recyclable packaging.
- Using renewable energy.
- Revising production processes in order to eliminate waste.
- Choosing nontoxic raw materials and processes.
Becoming a green business has an effect on profits and a firm’s financial ‘bottom line’ as the focus on green and sustainability are likely to be embraced by employees, consumers, and other stakeholders. Many studies have shown a positive correlation exists between environmental performance and economic performance.
According to the Department for Business, Innovation and Skills, the UK green economy is growing over 5% a year and the average internal rate of return on energy efficiency investments for large businesses is 48%. Demand for green products is increasing with 27% of consumers saying they are more likely to buy a sustainable product and/or service than 5 years ago.