by Kim Allen, PhD, TFI Environment Senior Consultant

Will the current financial challenges mean that “green” goes out the window? There are several reasons for companies to answer with a firm “no.”

First, actions that benefit the environment often overlap with cost savings. Besides the usual examples of saving electricity, water, and materials, companies now can include reducing business travel. The high price of oil encourages companies to take fewer airplane and car trips, to the benefit of the atmosphere and the bottom line.

Also, designing products that save consumers money will be highly appealing in tight financial times. This suggests creating more energy-efficient and less-materials-intensive products, which are hallmark design-for-environment practices. Many examples and practical guidelines for lean-and-green initiatives can be found in Pamela Gordon’s book Lean and Green (now categorized as a “Recession Reader — titles offering fresh economic and financial perspectives for our troubled times”).

And because climate-change and environmental protection are of great interest at this time, companies have many other reasons to remain “green.” This article from the Financial Times - Staying on Course in a Tougher Climate – points out some alternative motivations for companies not to abandon their previous interest in becoming more sustainable:

• ”Our goal is still to be one of the world’s leading brands in corporate sustainability and we regard it as central to business strategy,” says a deputy head of corporate sustainability.

• “Sustainability will remain critical to our business, even during an economic downturn,” says a group chief executive. “… [W]e have a responsibility to tackle issues such as climate change and work towards a more sustainable future.”

• An advisor on green strategies points out: “If companies drop [their interest in green issues], everyone will understand that they didn’t mean it after all. What will that do to their relationship with their customers – or with their staff?”

• According to a polling company, “Seven out of 10 people think that in tough economic times it is more important for a company to behave responsibly. The onus is very much on companies to continue to behave responsibly in line with consumer expectations. That pressure is not going away.”

These sentiments are borne out by the continued interest TFI is receiving from clients for environmental projects. Despite the financial situation, we are receiving more calls requesting sustainability training, advice on implementing green initiatives, and help in understanding the changing landscape of environmental policies and actions.

I also think the current situation represents a terrific opportunity for technology businesses – which often enjoy access to significant capital and to dynamic global markets – to be a model for the rest of the world. If we abandon sustainability during a time of economic distress, we communicate that it’s OK for other businesses to do so, and perhaps by extension for developing countries to postpone their green behavior until they are “caught up” to the developed world economically. But if we stay the course, we communicate that we really do operate from deeper values than pure single-bottom-line capitalism. Which do we want?

How about for your company? Are you still committed (or even especially committed) to your green practices in the current economic situation?

Posted by Pamela Gordon, October 23rd, 2008

Filed to Environment, Lean Practices

|

digg this

Bookmark on del.icio.us

 Email This Post