Green Business

A “green” business strives to have a positive impact on the environment and community. It develops and practices business strategies that go beyond regulation and demonstrate commitment to a healthy and sustainable future. A green business adopts principles, policies, and practices that improve the quality of life for its customers and employees. Going green makes business sense. Natural resources are becoming more scarce and costly, while customers, employees and investors are increasingly environmentally-conscious. 

Customers admire green business practices and the demand for environmentally-friendly products is high and rising. According to a survey conducted by the Boston Consulting Group (BCG) in January 2009, the trend toward buying green continues. More consumers purchased green products in 2008 than in 2007, and more consumers were willing to pay a higher price for green products if they were considered to be of higher quality [1].

Companies are today taking steps to become environment-friendly and are hiring green professionals, who can help them reduce energy consumption. The demand for environmental professionals is expected to go up by 55-60 per cent in 2012, as firms are raising their spending on creating clean technology, reducing emissions and wastage and regulating use of natural resources. Green jobs can either be white or blue-collar in sectors like agriculture, manufacturing, R&D, administration and service activities like IT and finance. With growing demand for green buildings, the real estate sector is likely to emerge as one of the biggest recruiters of green professionals. In 2012, hiring is likely to increase by 30-40 percent for green professionals and this growth is likely to remain consistent for next five years. The power, oil and gas, chemical sectors are the traditional employers for the environmental professionals, however, with the growing concern towards the ecology, the trend is also visible in FMCG and IT [2]. A "green shift" could save mankind up to $2 trillion (Dh7.3 trillion) by 2030 through resource-efficient measures across just three sectors — carbon, steel and iron — in the major economies alone, according to a new World Economic Forum report[3].

Ruling JD(U) in Bihar has a green idea – plant trees to enter the party fold. Any person wanting to join the party needs to plant a sapling and furnish photographic evidence of it. It is a noble idea to ensure that Bihar’s green cover increases. A country's sustainability also increases its competitive advantage. India, the US and China fell more than 10 places last year, while Brazil, Kenya and the Philippines rose over 10 places on the World Economic Forum's Sustainable Competitiveness Index, which ranks the impact of natural and social wealth on a country's competitiveness. [4]

2011 has been a rocky year for Japan and its auto sector. But the Tokyo Motor Show didn't disappoint. There were 176 exhibitors from 12 countries. That's more than last year. And the theme of the show was green technology. Japan's auto industry has taken a triple hit from the global downturn, strong yen and a catastrophic quake, but it's all about the green tech at the 42nd Tokyo Motor Show in Japan where all Japanese car makers are showcasing green technology.

Global leading electric vehicle (EV) maker Nissan unveiled its PIVO-3 EV commuter vehicle at the show. It's a three-seater compact. Toyota Motor Corporation exhibited five cars. Most of them are based on alternative fuel technology [5].

Can companies afford to Go Green in present day context when everyone want to reap heavy profits. Most companies know sustainability is important for future success, but few manage to make it an integral part of their business. To do so, it has to be worth it. For many small businesses, turning customers into participants may be as simple as asking them for reusable shopping bags to the store or to sign up for electronic delivery of newsletters or billing statements. But the most effective campaigns often take it a step further and get a little more creative: They come up with a unique initiative that inspires customers to want to do more to help the planet and feel really good about it.

Green initiatives have to take their place under a kind of Maslow’s Hierarchy of Needs for businesses. Maslow’s theory says that the most basic needs have to be met first, before higher needs can be considered:

At the lowest level of the pyramid are survival needs. In business terms, that is price. A small business needs an affordable price from a vendor. Cash flow is usually at a premium and small businesses operate on narrow expense budgets.

A second survival need is service: The difference between good service and poor service can prevent a small business from in turn properly serving its own customers. In extreme cases, disruptions in service from a vendor can put the small business out of business.

Only when those two needs are satisfied and survival ensured, is it rational to turn attention to whether a vendor is socially responsible. Idealists and environmentalists may wish this were not true. But for most small businesses it’s just a practical matter of meeting one’s survival needs.

Just like Maslow’s hierarchy, once the survival needs are met, then the business can start to realize the higher level needs that are based on emotion and esteem (i.e., being held in high regard by society). That includes acting on values that are socially desirable, such as green principles. That’s why adopting green values and principles in your business matters to customers — but only after the customer’s basic needs are met [6].

Customers are no longer just passive witnesses to businesses’ green efforts – They’re joining in.  Many companies are moving away from conventional cause marketing – just donating dollars to charity — and creating their own environmentally focused campaigns that encourage customers to be part of the solution. Retailer Old Navy, for instance, collected used flip-flops this past spring in a partnership with Terracycle so they could be recycled into playground equipment donated to schools and community groups. Best Buy recently dropped its $10 electronics recycling fee, Reuters reports, to encourage customers to recycle more old computers and monitors through its stores [7].

The green building concept is swiftly catching up in the country partly because of government sops and partly because of the marketing strategy of real estate developers to get customers -- and everyone is now busy linking it to climate change. According to figures available with the Indian Green Building Council (IGBC), part of the Confederation of Indian Industry (CII)-Godrej Green Building Council, in 2008 India had only 18 certified green buildings and 328 projects in the pipeline.In 2009, the figure of certified green buildings rose to 52. The number of future projects also went up to 436. IGBC has representation from corporate, government, architects, product manufacturers and other institutions. A green building is one which uses less water, optimises energy use, conserves natural resources, generates less waste and provides healthier spaces for occupants [8].

Husk, an Oscar, but for developing sustainable source of energy. Honored for contributing clean methods for producing new avenues of energy, two Indian firms were being awarded with 'Green Oscar', for generating biomass pellets from crop waste to provide energy to Gujarat's industries and subsequently, offering farmers a fruitful opportunity by exploiting waste farm products [9].

Amul has been rated as the Top Indian Green Brand by the Global Green Brands Study which reveals current consumers’ attitudes and perceptions towards green issues. The team behind the public opinion research Cohn and Wolfe, Esty Environmental Partners and Penn Schoen Berland polled over 9,000 people in eight countries from April 2–May 3, 2011 ranking more than 370 brands and determined which companies have the greenest reputation across the world. 1101 respondents from top metros of India were surveyed. As per the research, India is the only country to chose deforestation and air pollution as the most important green issue. India is also the only country in which more consumers say it should be developing countries that should focus on green innovation versus developed countries. Amul’s initiative of planting 8-9 million saplings by its 3 million members on a single day (15th August) in 15000 villages since last 4 years has been recognized by the consumers. The milk producers plant saplings on their own at pre-identified locations like their farm, near their homes, on farm bunds etc. to help improve the forest cover. A total of 24 million saplings have been planted so far and another 10 million will be planted on 15th August 2011. The International Dairy Federation has also awarded Amul Green movement as the Best Environment Initiative in the “Sustainability category” in 2010. It has also been awarded Srishti’s Good Green Governance Award for four consecutive years since 2007.
The 2011 findings emphasize that brands must not only develop environmental strategies to address their environmental impact, but they must also connect with consumers in a compelling and relevant way on a market-by-market basis. Today, being only eco-friendly is not enough—brands should be both green and consumer-friendly, and only this can help them win big. The Amul model has demonstrated that it cares for the consumers, producers and also the environment on a sustainable basis [10].

Indian Companies are feeling the pressure to go green, as many of their Western counterparts are building environmental sustainability into their business practices. For example, Wal-Mart, which annually imports over $3 billion in goods from Indian suppliers, recently asked them to adopt green practices or risk losing the retail giant as a customer. For Indian companies, there are other compelling reasons to develop environmentally conscious practices. As leading companies know, going green, if done right, helps companies bolster their fortunes. Here are a few instances:

• When mounting electricity costs were eating into the profits of Tulsi Tanti’s textile business, he developed a wind energy system. Today, his company, Suzlon Energy, is one of the largest wind-turbine makers in the world.
• Sensing a need in the market, the Maini Group launched Reva, an electric car that has an increasing customer adoption in India today. Reva has had a good response in Europe too.
• Rahul Bajaj set up a wind-power generation system that today provides 90% of his plants’ energy needs, while realising savings of $5 million annually [11].

India’s Green Industry is still in a nascent state compared to the massive solar and wind industries in countries like China and Germany. However attracted by the massive potential a number of companies small and large have entered the fray. Most of India’s large energy groups, utilities have already established a small presence or are in process of doing so. While Wind Energy is the largest Renewable Energy Industry in India after Hydro Electricity, Geothermal Energy is non-existent without a single large commercial plant. Biomass Energy is quite well developed and Solar Energy is the fastest growing Green Industry [12].

Dell has introduced two new initiatives designed to promote a green approach towards technology adoption for consumers in India – discount coupons and the Dell Go Green Challenge. These initiatives are the latest in Dell’s mission to make “being green” easy and cost-effective for customers. Recycling Discount Coupon - To encourage PC recycling among its consumers, consumers in India who send their old systems to Dell for free recycling will be eligible for special discount coupons toward the purchase of their next Dell system. This coupon, offering a discount of Rs. 1000, may be used toward the purchase of any Dell system purchased directly from Dell for any of its product lines. Available globally, Dell has now extended its free recycling program for consumers in India to accept computers from any vendor.
Dell Go Green Challenge – Dell has launched the ‘Dell Go Green Challenge’ in an effort to raise awareness and community involvement in green initiatives in India [13].

India : Top 10 Green brands 1. Amul 2. Dabur 3. Infosys 4. Taj hotels 5. Britannia 6. Suzlon 7. Hindustan Unilever 8. Wipro 9. Maruti 10. Godrej Consumer Products

Source: Amul rated Top Indian Green brand in the 2011 Green Brands Global Survey, http://www.businesswireindia.com, June 25, 2011