Home » Opinion » Book review
The profit motive propels businesses to go green
By Ni Tao |
January 9, 2010, Saturday
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Print Edition
Print Edition
WHEN I flipped through the January 4 edition of the Asian Wall Street Journal, a story caught my eye.
Headlined "More China Companies Turn Green," it highlights the nascent efforts of some business elites to turn their companies into poster children for carbon emissions reduction.
This development may be a genuine break with the growth-overrides-all mindset after all that is seen and heard about climate change has finally prompted some soul-searching in the business community.
Wang Shi, CEO of property developer China Vanke Co, told the Journal that he developed a visceral concern about global warming after scaling Mt Kilimanjaro in Tanzania, where he "didn't see any snow" that gives the mountain near the equator the fame it enjoys. The fabled "snows of Mt Kilimanjaro" are melting.
It seems all of a sudden everyone is jumping on the bandwagon of a "green revolution." The same businessmen who had no qualms about polluting the earth several years ago may now be championing an environmental protection campaign.
Central to their about-face is the recognition that environmental degradation and depleted natural resources will force them to adjust business models.
Andrew S. Winston's book "Green Recovery" is insightful in this regard. In response to skeptics of the compatibility of going green while cutting costs, the author states succinctly that "survival and sustainability are truly not at odds."
Businesses that strive to keep their heads above the "green wave" ought to be flexible and visionary.
If past economic ups and downs are any guide, they demonstrate that scarcity of resources works like an ever-tightening straitjacket.
For all the inevitable transitional pains, company executives have to act decisively to bring their businesses onto a different growth track.
It's understandable that many firms try to sweep under the carpet all the inconvenient truth about damages they cause to the environment.
But in an era when the Internet makes it practically impossible to escape from the scrutiny of environmental groups, a firm has more to gain from being transparent and proactive in revealing data of interest to these activists than stonewalling.
Consumers are also demanding that the companies from which they buy present them with a clean environmental report on the purchases they make.
Factors such as how much energy goes into making a certain product increasingly influence their shopping decisions. Hence, companies are under pressure to increase efficiency of energy and resource use. Otherwise, they may fall victim to a "buy green" initiative, Winston notes.
Sustainability is also key to attracting talents. Young college graduates, many of whom are eco-savvy, will feel uncomfortable working for employers who disregard their obligations to the environment. Firms that do not catch up in the race to go green will eventually find themselves facing a shrinking talent pool.
For firms to achieve sustainability, Winston lists four dimensions -- go lean, get smart, get creative and get staffers involved -- that can be improved to make business activities more environmentally friendly.
His suggestions are the outgrowth of myriad case studies on successful green-oriented business practices. DuPont grew some 40 percent since 1990 by trimming only six percent energy use; a New Orleans Holiday Inn carved out an unlikely niche by renting extra dumpster space to nearby businesses that face fines for overflowing trash.
Some persistent bad habits, like leaving lights and air-conditioners on when one leaves an office, will disappear if people are nudged into thinking hard about their impact on the environment.
Companies are likely to improve their product designs -- and reduce costs -- if they find them neither cheap nor environmentally sustainable.
People can become "smarter" if confronted with reality, the author notes.
As the global economy has hit a trough, companies that used to spend huge sums on green innovation are now languishing in limbo.
But this is not the time to cut funding, says the author. A company that aspires to emerge stronger from the downturn should formulate a green strategy and devise green products. Managers might even consider giving employees time off to experiment with innovative ideas, he says.
Winston also addresses the question of how to get staffers engaged in companies' green commitments. He offers a few options, including funding employees' pro-environment buys like hybrid cars.
I doubt this would be realistic in China. Maybe we can try something small. I once received several linen tote bags bearing the logo of our newspaper. My mother now carries one whenever she goes grocery shopping. "They are sturdy and chic," she once said. Adios plastic bags.
Headlined "More China Companies Turn Green," it highlights the nascent efforts of some business elites to turn their companies into poster children for carbon emissions reduction.
This development may be a genuine break with the growth-overrides-all mindset after all that is seen and heard about climate change has finally prompted some soul-searching in the business community.
Wang Shi, CEO of property developer China Vanke Co, told the Journal that he developed a visceral concern about global warming after scaling Mt Kilimanjaro in Tanzania, where he "didn't see any snow" that gives the mountain near the equator the fame it enjoys. The fabled "snows of Mt Kilimanjaro" are melting.
It seems all of a sudden everyone is jumping on the bandwagon of a "green revolution." The same businessmen who had no qualms about polluting the earth several years ago may now be championing an environmental protection campaign.
Central to their about-face is the recognition that environmental degradation and depleted natural resources will force them to adjust business models.
Andrew S. Winston's book "Green Recovery" is insightful in this regard. In response to skeptics of the compatibility of going green while cutting costs, the author states succinctly that "survival and sustainability are truly not at odds."
Businesses that strive to keep their heads above the "green wave" ought to be flexible and visionary.
If past economic ups and downs are any guide, they demonstrate that scarcity of resources works like an ever-tightening straitjacket.
For all the inevitable transitional pains, company executives have to act decisively to bring their businesses onto a different growth track.
It's understandable that many firms try to sweep under the carpet all the inconvenient truth about damages they cause to the environment.
But in an era when the Internet makes it practically impossible to escape from the scrutiny of environmental groups, a firm has more to gain from being transparent and proactive in revealing data of interest to these activists than stonewalling.
Consumers are also demanding that the companies from which they buy present them with a clean environmental report on the purchases they make.
Factors such as how much energy goes into making a certain product increasingly influence their shopping decisions. Hence, companies are under pressure to increase efficiency of energy and resource use. Otherwise, they may fall victim to a "buy green" initiative, Winston notes.
Sustainability is also key to attracting talents. Young college graduates, many of whom are eco-savvy, will feel uncomfortable working for employers who disregard their obligations to the environment. Firms that do not catch up in the race to go green will eventually find themselves facing a shrinking talent pool.
For firms to achieve sustainability, Winston lists four dimensions -- go lean, get smart, get creative and get staffers involved -- that can be improved to make business activities more environmentally friendly.
His suggestions are the outgrowth of myriad case studies on successful green-oriented business practices. DuPont grew some 40 percent since 1990 by trimming only six percent energy use; a New Orleans Holiday Inn carved out an unlikely niche by renting extra dumpster space to nearby businesses that face fines for overflowing trash.
Some persistent bad habits, like leaving lights and air-conditioners on when one leaves an office, will disappear if people are nudged into thinking hard about their impact on the environment.
Companies are likely to improve their product designs -- and reduce costs -- if they find them neither cheap nor environmentally sustainable.
People can become "smarter" if confronted with reality, the author notes.
As the global economy has hit a trough, companies that used to spend huge sums on green innovation are now languishing in limbo.
But this is not the time to cut funding, says the author. A company that aspires to emerge stronger from the downturn should formulate a green strategy and devise green products. Managers might even consider giving employees time off to experiment with innovative ideas, he says.
Winston also addresses the question of how to get staffers engaged in companies' green commitments. He offers a few options, including funding employees' pro-environment buys like hybrid cars.
I doubt this would be realistic in China. Maybe we can try something small. I once received several linen tote bags bearing the logo of our newspaper. My mother now carries one whenever she goes grocery shopping. "They are sturdy and chic," she once said. Adios plastic bags.
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