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Additional Economic Benefits of Going Green

May 31, 2010
Many companies think about going green. I have talked about this to managers at several companies. Many nod their heads that the business benefits of growing green are real and can have a positive impact on their firm. (See my blog article below of the 8 purely business reasons to have a robust Climate Change program.) But then most of those either choose not to go green or, if they do, go about it the wrong way, cutting corners – or worse. Am I a bad debater or persuader? Perhaps. But it has been written that only a small percentage of US companies today are going green despite the known advantages. Why? I believe it is mostly the comfort level. Although company leaders agree with the arguments, many really do not fully trust the concepts and worry that a green program will drain green (money) and achieve little financial benefit. What will such a program cost? When will we break even? Will there be added business risk?

Well, besides the direct economic benefits of reducing greenhouse gas (GHG) emissions that I detailed in that earlier blog article (major energy cost savings, pleasing retailers and customers, rebranding your products, revenue from carbon credits, etc.), many additional, indirect economic benefits have also been realized. Though seemingly minor, these effects can add up to significant economic benefits.

A good way to reduce GHG emissions is to study and implement process changes to increase efficiency: make the same product with less energy, water, solvent, etc. Not only are you saving growing energy costs, but water and raw materials, too. Purchasing fewer raw materials, say solvents, means lower VOC emissions from the facility, which means greater assurance of meeting air regulatory and permit limits. Perhaps a lower annual VOC emission rate can move your facility out of a major Title V Permit to a less costly minor permit. Perhaps a significant emissions reduction can enable you to opt out of expensive air pollution control equipment (check with an experienced Air Engineer to ensure this is allowed). In addition, lower raw material usage could mean less labor and equipment for storage and handling. Together, a green program that can reduce your need for raw materials can result in lower capital and regulatory costs, less red tape, better relations with stakeholders, and less labor to maintain your production system.

Here’s another example. A good lighting evaluation will not only result in more compact fluorescents and LED lights, but better positioning of fixtures, resulting in improved worker productivity, fewer accidents, less maintenance labor (these bulbs last much longer than incandescents, meaning many fewer trips up and down the ladders by maintenance crews to change bulbs), not to mention the energy cost savings.

So on top of the direct benefits discussed in the other blog article, think about the many indirect benefits mentioned above. Imagine other benefits not mentioned. The bottom line is that such a green effort will also help you improve the quality of your product and provide a more satisfied staff, both having tremendous financial value, and both giving you an edge in a highly competitive world of business. Climate Change & Environmental Services (www.CCESworld.com) can help you maximize these gains.

Comments

Comment from cna training
Time June 13, 2010 at 9:48 pm

Wow this is a great resource.. I’m enjoying it.. good article

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