Ways to Greenify your Business

Now that the world needs sustainable business solutions, going green isn’t just a vanity move for marketers, it’s a necessity. This feature explores how businesses can ‘greenify’ their operations to ensure the golden triumvirate of sustainable operations, conscious brand practices and economic growth. We will begin by analysing the reasons green business models have become the de facto model for a contemporary business.

THE BENEFITS OF GREEN BUSINESS: BUILDING A SUSTAINABLE FUTURE

In the past, businesses have had issues in attuning themselves to sustainable operations, often prioritising profits over green considerations. This worked for a long time, as many key players failed to realise the severity of the situation the world found itself in. It wasn’t until the late 1990’s that the governments, NGOs, investors, and corporations came together to create a more sustainable way of doing business, yet looking back now, these efforts seem minimal considering the changes that were actually required. Yet starting on the path of ‘going green’ revealed to many that businesses could secure not only ecological but also financial and managerial benefits. Some of these are listed below:

1Tax breaks and financial incentives

Governments around the globe are focused on creating a sustainable ecosystem that allows all businesses to grow without harming the environment. That is why governments incentivize green companies with tax breaks and financial benefits. For instance, in the U.S., businesses are incentivized at the state and federal levels and gain benefits such as: a. Tax deductions for installing systems that reduce power usage b. Tax credits of 10-30% for opting for alternative energy c. Tax exemptions for using electric vehicles or fuel-efficient vehicles d. Bonus deductions for recycling.

2Organic demand; organic products

As per the 2022 Forbes report, the need for green products has increased drastically in the post-millennium: 90% of the consumer population – especially those falling in Gen Z – are willing to pay more for sustainable products. The funny thing is that this demand was just 58% about two years ago. This tells us one thing: when the awareness about sustainability rises, so does the market – and so does the price.

3Better optics means better business:

Going green does wonders for brand image and reputation. It is no surprise that CSR (Corporate Social Responsibility) has become critical for any business to set itself apart from the rest, as well as more aligned with the environment. But it has reputational and trust benefits as well. Forbes found in a survey that 92% of consumers are more likely to trust a socially conscious business, with over 87% willing to buy a product with social and environmental benefits. Needless to say, if a company is going the sustainable way, the optics are improved.

4Less cost of raw materials:

The 3R initiative (Reduce, Reuse and Recycle) ensures that a business spends less on procuring raw materials. Reducing waste is forcing firms to use the materials they possess creatively. Reusing has enabled companies to make decisions regarding the maintenance of existing products instead of buying new ones. Recycling has also helped businesses to look at waste as a resource. These factors combined translate into higher ROIs for businesses.

5Cheaper energy bills when renewables are used:

Power generation using renewable resources is 100% efficient. That is, the instances of power slippages are low. On the other hand, fossil power plants can achieve only 25% to 85% energy efficiency. Saudi Arabia, a country that in the past has focused on burning oils for energy, has now moved on with plans to develop clean energy and reduce emissions. Its latest product is NEOM Smart City. The presence of renewable energy won’t only help businesses grow sustainably, but the energy bills are also reduced.

But to take advantage of these financial benefits, you need to find the best ways to greenify your business – let’s discuss those.

Ways To Greenify Your Business

To transform into a green business, one must understand the underlying processes. Being able to manage the different parts of the business while aligning them towards a common goal is how a business can become green. Thus, the green business system has four elements in place, and these are the four ways you can greenify your business.

Process Management

It all begins by managing the underlying processes of a business. Rules must be formulated, and laws must be made to create standard operating procedure focusing on environmental stability. To achieve it, companies must focus on controlling the greenhouse effect, and then, the focus should be put on the management of:

1. Water supply and wastage

2. The landscape of the building to protect the biodiversity

The idea here is to create business goals aligned with sustainability and to start aligning them from the ground up, because if the foundation is strong, the entire structure will follow suit.

Leadership

The second factor that comes into play to greenify your business is leadership. Green business leadership is not about “my way or the high way”, but rather, it is about being an observant follower. It will open leadership to receiving great input and creative thinking within the firm. When a leader accepts that idea, he can move forward and give orders in an organized manner. A critical part of that, however, is having a great communication culture. The more a leader repeats, the easier it becomes for the employees to understand a vision.

Another factor that a leader must remember is that it is not only leaders who can lead. At times, critical responsibilities regarding business decisions need to be entrusted on colleagues for better productivity. But everyone has to work in tandem, and it is up to a leader to work with these elements to adapt to the changing environment.

Strategy Management

With strategy management, rules and regulations are formulated for an organization. These rules align with the organization’s goals and must be easily understood by all the employees. However, creating this strategy for a green business should not be in the hands of a single individual. Every decision must have the say of every individual within the organization. It fine-tunes the strategy better and makes it easy to follow, making it easy for the employees to align themselves with the organization’s goals.

A green business strategy should focus on lean operations. No effort should go to waste and everything should be streamlined. The strategy should entail policies that allow the business to react quickly to market changes. And during the implementation of that strategy, the organization should focus on the community, customer health, and the environment. It must also be willing to create new careers to accelerate its green goals.

Supply Chain Collaboration

The final element to greenify a business is supply chain collaboration. It means systematically merging various resources so that each component can communicate with each other and the sum of these elements – the business organization – can manage all the available resources. At the heart of the green supply chain lies a systematic approach to managing environmental considerations that focuses completely on the ecological aspects of the supply chain. These include:

1. The supplier

2. The manufacturer

3. Product design

4. Logistics and delivery

With a green supply chain model that is rooted in collaboration, a business can plan and control the information, movements and logistics within an chain towards sustainable goals.

Conclusion

Greenifying a business is no longer just a vanity move, it is an economic, branding and green essential. As the world grows more environmentally conscious, a new breed of customers has arrived that desires green products and sustainability above all else. To cater to them, a business organization must align their beliefs with them, and thus, go green, creating a win-win situation for both themselves and the environment.