by Rebecca Walker — December 21, 2009—Whether or not climate change is a problem, there are plenty of non-global-warming reasons why companies are turning green anyway.
It’s all about money saved and liability risks avoided, not protecting the planet, according to an article just posted online by Harvar d Business Publishing.
Andrew Winston, co-author of Green to Gold and author of Green Recovery, , says the blunt economic reality is that by reducing greenhouse gas (GHG) emissions, whether you like the idea or not, you’ll:
- save money now because any company that cuts its GHG emissions has to increase its energy efficiency, and that makes companies more profitable;
- save money later because, by adopting a renewable energy model, a company can count on zero variable costs for wind and sunshine;
- reduce risk by avoiding all the liabilities associated with competing for commodities in short supply, such as water and oil;
- answer pressing customer demands for a green supply chain, as exemplified by Wal-Mart’s demand that its suppliers answer questions about their sustainability;
- attract and retain the best people, especially the next generation that assumes financial success and corporate social responsibility go hand-in-hand;
- drive innovation;
- keep the U.S. safer from global conflicts, and
- make the U.S. more competitive in a world that demands clean energy.
None of these benefits listed has much to do with the hot debates about whether or how climate change occurs. Winston suggests that global warming alarmists and skeptics alike overlook the practical reasons for taking action.
