While some may disagree, science has come to an agreement that humans are the reason for the world’s quick changes in climate. Dangerously, temperatures are reaching alarming heights due to greenhouse gas emission and the use of fossil fuels. This severe situation not only presents threats to businesses, but provides an opportunity to make best of the situation.
According to Prooper, Buzan, and Garvaglia, switching to renewable sources as an alternative means of energy, could combat the challenge of climate change in the long-term. Not convincing enough? Well, stricter fossil fuel regulations along with their dramatic price fluctuations further persuade businesses to take on green initiatives.
The article categorizes the reasons companies should commit to environmental actions with 3 specific groups: Must-have initiatives, ROI-driven initiatives, and human values-related initiatives. Beginning with the first, must-have initiatives surround the strict compliance to environmental regulations. It is believed to aid in a business’s overall aggregation process, due to the difficulty of smaller companies to overcome such tough barriers.
Secondly, return on investment initiatives tend to relate to the overall decline in energy consumption. In turn, the decrease in energy use further lessens the emission of greenhouse gases. Holcim, an international cement manufacturing company, had taken advantage of the opportunity to replace their old kilns with modern equipment, and produce electric energy through thermal power plants. From 2004-2007, the project caused total emissions to drop a whole 500,000 tons of CO2.
Another significant factor that pushes businesses toward green actions is human values. As companies have a great impact on society, the importance of incorporating social issues into strategy could have great benefits. This helps to portray a positive image of a business’s benefiting role in society.
The Huffington Post brings to light a prime example involving two top tech companies who are taking on environmental initiatives. Microsoft and IBM have engaged in working to fight China’s air pollution through the development of forecasting technology. Utilizing such systems could ultimately help residents avoid dangerous amounts of pollution exposure, as well as aid in the official decisions to temporarily close down polluting factories.
All in all, no matter the business, each will be affected by climate change in one way or another. Although it may take patience and time to see the benefits first-hand, recognizing and acting on these initiatives can contribute in the establishment of a more valued company.