Thursday, April 21, 2011

Businesses are Combating Climate Change and Turning a Profit

All around the world, there are many sustainable success stories from companies that are seeing tremendous profit from green.

At HP, carbon reductions are now 33 percent better than in 2005, fossil fuel use has been cut by 62 percent and the water savings have increased to 89 percent. Companies like the UK's British Sky Broadcasting having reduced customers' carbon emissions by around 124,000 tonnes. Some corporations, like PUMA are committed to carbon neutrality.

Du Pont has set a goal to increase annual revenue by at least $2 billion USD by 2015 from products that reduce carbon emissions, which were already generating $731 million USD as of 2009.

According to a 2010 global survey, seventy percent of firms with revenue of $1 billion or more say they plan to increase spending on climate change initiatives in the next two years.

Nearly half of the 300 corporate executives who responded to a survey conducted for the accounting and consulting giant Ernst & Young said their climate change investments will range from 0.5 percent to more than 5 percent of revenues by 2012.

Whether to enhance brand loyalty or to reduce costs, businesses are seeing the merit of going green. More than four out of five respondents, or 82 percent, said they plan to invest in energy efficiency in the next 12 months, with 92 percent saying that energy costs will be an important driver.

Despite the challenges, the Ernst & Young Survey indicates that corporate executives are increasingly committed to taking action on climate change. The fact that 70 percent of executives said they planned to spend more on climate change programs is clear evidence of this trend.

Even in the absence of government regulations on climate change, businesses see the value of investing in sustainable programs because they see the opportunities to grow through new services and products, as well as save money through enhanced efficiency and limit risk. This is more than just public relations, it is a reflection of the market driven movement.

© 2011, Richard Matthews. All rights reserved.

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