3 Business Reasons Why Companies Are Going Green
Steve Cohen, executive director of Columbia University’s Earth Institute, explains that “one of the more persistent myths in our political dialogue is that we must tradeoff environmental sustainability and economic growth.” However the two can go hand in hand. Going green is an economically intelligent plan.
1. More Customers
The customer is always right. Consumers are increasingly concerned with whether a product is environmentally friendly. According to a report from 2013, 71% of costumers in the US consider ‘greenness’ as a factor when shopping. In 2017, many consumers simply will not buy from companies that do not prioritize staying environmentally conscious. Companies must realize that if they will not make the switch other companies will. To stay on top of the competition it is crucial that business become environmentally aware.
A survey in 2014 shows that 55% of customers are comfortable paying higher prices for more environmentally friendly products. From a strictly business perspective, companies that go green have a larger customer base. People want to feel like they are investing in the environment. In many ways going green can be a selling point.
2. More Benefits (Less Taxes)
Right now Congress is trying to incentivize business to ‘go green.’ Companies receive tax credits and tax deductions for specific actions. For example if a business makes wind, fuel cell, or solar energy investments, they can receive up to 30% in tax credit. In the past Congress has even provided tax deduction for business with a more eco friendly building. Companies will find that focusing on reducing waste can provide them with many tax benefits.
3. More Money
The market for sustainability is growing at a fast pace. In 2011 Massachusetts Institute of Technology (MIT) Sloan School of Management, conducted a study where they discovered that 68% of organizations increased their dedication to ‘going green’ in 2011. In 2009, this number was only 25%. Also German-based Roland Berger Strategy Consultants, predict that by 2020 1,233 billion will be spent on clean energy technology. Companies that recognize and partner with this economic trend will reap countless benefits.
The secret behind Apple, McDonalds, and Tesla’s decision is very simple. Going green is an economically advantageous venture.