What Does A Company Seeking Eco-Advantage Look Like?

Green Environmental Business | Strategy To Use Our Mother Nature – Green Enviroment Turn To Golden Business Opportunity

We wish we could say that finding Eco-Advantage will be easy. But like excellence in any form, you have to work for it. We know this runs contrary to the message in many of the books and articles about “green business." Ever since a few leaders like 3M demonstrated the .Payoffs of eco-efficiency, going green has been portrayed as a sure thing. Unfortunately, not every environmental effort produces win-win results. Developing innovative products, bringing them to market successfully, keeping customers happy, and other elements of business success are difficult enough. Adding an environment...

Environmental Strategy, Sustainability And Corporate Social Responsibility

Companies find many ways to talk about how they handle environmental and social issues. Some focus on "triple bottom line" performance or sustainability. Others frame their work in terms of corporate social responsibility, stewardship, citizenship, or environment, health, and safety. Any of these approaches can serve to galvanize action and create Eco-Advantage. The key lies in execution—including environment and social issues in business operations. But each company needs to find the language and organizational structures that work within its own culture. At the operational level, managi...

What Does A Company Seeking Eco-Advantage Look Like?

We studies dozens of companies during our four years of research. A few have not evolved in their thinking since the 1970s. They are still grousing about legislation and complying with it grudgingly. Others have begun to see the business opportunities in going "beyond compliance." A few have embarked on bold new initiatives to provide solutions to the world's environmental ills—like GE's plan to sell renewable energy, efficient power generation, water purification, and much more. The companies who "get" the interface between environmentalism and business—the ones that are on their way...

Why Small Business Should Care??

What about small business. Can they sit this one out? In a world, no. Here are six reasons why: Laws that once applied only to big business are encroaching on smaller enterprises. Even bakeries and gas stations must now comply with clean air regulations. Small companies often have an edge in innovation. Of the more than $1, 00 billion in R&D money that each year is plowed into the i tin tech" marketplace, the bulk goes to new, smaller ventures win historically have produced more breakthrough products and services. Going after the consumption choices of individuals remains difficu...

Who Should Care Our Earth And Environmental Business??

For some enterprises, a new green perspective will be trans-formative, leading to fresh thinking, new markets, profitability gains, and increased value. For others, the environmental lens may emerge more gradually and modestly, as another critical element of corporate strategy. With time, these companies may find long-term, sustained advantage, but not dramatic immediate gains, front being green. For the big, heavy industries, the gains are closer to being assured. But smaller and "cleaner" companies will find surprising benefits as well. In today's world, no company, big or small, operatin...

What Does A Company Seeking Eco-Advantage Look Like?

We studies dozens of companies during our four years of research. A few have not evolved in their thinking since the 1970s. They are still grousing about legislation and complying with it grudgingly. Others have begun to see the business opportunities in going “beyond compliance.” A few have embarked on bold new initiatives to provide solutions to the world’s environmental ills—like GE’s plan to sell renewable energy, efficient power generation, water purification, and much more.

The companies who “get” the interface between environmentalism and business—the ones that are on their way to reducing their environmental impacts, or “footprints,” while generating significant profits and sustained Eco-Advantage—have no single profile. They range from global conglomerates to niche textile makers. However, we found certain patterns. The leading-edge companies go beyond the basics of complying with the law, cutting waste, and operating efficiently. They fold environmental considerations into all aspects of operations. Specifically, they:

Design innovative products to help customers with their design innoacation

environmental problems or even create new eco-defined market spaces.

Push their suppliers to be better environmental stewards or even select them on that basis.Collect data to track their performance and establish metrics to gauge their progress.

Partner with NGOs and other stakeholders to learn about and find innovative solutions to environmental problems.

Build an Eco-Advantage culture through ambitious goal setting, incentives, training, and tools to engage all employees in the vision.

For the top-tier companies, environmental management started out s something they had to do. But that’s no longer the case. They’ve evolved to the point where environmental management is second mature and their focus is now mining the gold in environmental strategy.

Who Should Care The Most?

Some companies need to worry about these issues more than others. And some sectors are poised for greater upside potential. We see growing risks and rewards for companies with:

High brand exposure. Companies with substantial goodwill and

intangible value (including Coca-Cola, Procter & Gamble, and McDonald’s face special challenges.

Big environmental impact. Those in extractive industries or heavy manufacturing (BP, Exxon, Alcoa, and LaFarge, for example) must expect growing scrutiny.

Natural resource dependence. Companies that sell fish, food, and forest products (such as Cargill, Nestlé, and International Paper) are likely to be on the front lines as society faces very real natural limits.

Current exposure to regulations. Environmental strategy questions play a particularly important role for those handling hazardous materials (DuPont), operating in heavily regulated industries like utilities (AEP), or in energy intensive sectors (airlines).

Increasing potential f9r regulation. Automakers and electronics producers (like Ford and Intel) are facing new challenges with European “takeback” laws that require manufacturers to handle the disposal of their products after their customers are done with them. And the logic of “extended producer responsibility” is being picked up around the world.

Carbon exposure. Companies with big fossil fuel bills face a double whammy of higher prices and greenhouse gas emission charges.

Competitive markets for talent. Companies in the service sector and the “new economy” (such as Citigroup, Intel, or Microsoft)—where primary assets can walk out the door if they are displeased with the company’s values—must stay on top of environmental issues.

Established environmental reputations. Those with problematic histories should expect extra scrutiny. Companies with good track records will get more leeway—and may benefit from goodwill in the marketplace.