Green business (sustainable business)
Green business, often referred to as sustainable business, focuses on incorporating environmentally friendly practices into operations to minimize ecological impact while also enhancing financial performance. Emerging in response to growing concerns about climate change in the early twenty-first century, many businesses adopted "green" strategies not only for ethical reasons but also to achieve cost savings. Initial steps included simple actions like recycling, energy conservation, and improving efficiency in resource use. As awareness grew, larger corporations began to invest in sustainable practices, with notable examples including Walmart's energy reduction initiatives and the introduction of hybrid vehicles by major automotive companies.
The movement has led to the development of an array of eco-friendly products and practices, such as biodegradable packaging and sustainable sourcing policies. However, the rise of green businesses has also brought attention to the issue of greenwashing—where companies exaggerate or misrepresent their environmental efforts for marketing purposes. This duality underscores the importance of transparency and consumer awareness in the sustainable business landscape. As businesses continue to evolve, the integration of sustainable practices not only benefits the environment but also aligns with a growing consumer demand for responsible corporate behavior.
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Green business (sustainable business)
In the early twenty-first century, as more people realized the dangers of global climate change and the necessity of taking steps to protect the environment, the number of businesses that strove to become “green,” or sustainable, greatly increased. While many of these businesses focused on green issues for environmental reasons, many also did so to make money. Because of this, the green movement saw a huge increase of businesses promoting environmental awareness, products, and practices during this time.
As the green movement took off, many businesses took action to protect the environment. They started small, taking such steps as printing on both sides of paper, turning off computers and lights, and recycling products ranging from electronics to ink cartridges. Once businesses realized the savings, they were often motivated to take more steps to reduce waste and save energy. Many installed solar panels and energy-efficient lighting, traded old electronics, and upgraded heating systems. Businesses not only saw the green movement as a way to protect the environment, but also as a way to improve their bottom line through thrift.
When large corporations saw how much money they could save through green practices, many joined the movement. In 2005, Walmart announced a plan to reduce energy use at its stores. The chain, long criticized for poor labor practices, was praised for its efforts to save energy. Numerous other corporations followed suit, improving their images and incomes as well.
Although green companies such as Tom’s of Maine and Burt’s Bees had been around for decades, new companies such as Method cleaning products were developed to meet new demand for green products in the 2000s. Existing companies also began rolling out an abundance of green products. Japanese car companies such as Toyota and Honda introduced hybrid vehicles early in the decade, and American manufacturers Ford, Chrysler, and General Motors began following suit around the mid-2000s. In 2008, Clorox introduced Green Works, its line of naturally derived cleaning products. Businesses also changed the way they made their products in the name of saving the environment, focusing on such efforts as improving products’ energy efficiency. Products such as Frito-Lays’ SunChips began to be packaged in biodegradable and recyclable materials. In 2014, a number of major corporations specializing in food products, including Kellogg, ConAgra, Smucker's, Mondelez, Panera, and Safeway, developed new policies stating that they would use only deforestation-free palm oil. Sections of rainforest have frequently been levelled to make way for plantations producing the oil, which is the most commonly used vegetable oil worldwide. Major mainstream manufacturers also acquired green companies and marketed them more widely, as with Colgate-Palmolive’s 2006 acquisition of Tom’s of Maine and Clorox’s 2007 acquisition of Burt’s Bees. According to a 2014 report from the Carbon Disclosure Project, 4 percent of the annual capital expenditure of S&P 500 companies has gone to lowering carbon emissions, with the figure as high as 23 percent for some individual companies.
Between 2014 and 2015, the worldwide cost of corporate impact on natural capital declined for the first time in five years, although the cost remained high—almost US$3 trillion worldwide and $1 trillion in the United States alone, according to a 2016 report by GreenBiz. 51 percent of US companies had disclosed greenhouse gas reduction targets. A growing focus in the world of sustainable business that year was the "blue economy," or the impact of corporate activity on the oceans, leading to initiatives such as "smart sailing" in the shipping industry and increased discussion of sustainable fishing.
Impact
The boom in new green businesses and existing companies adopting green practices demonstrates that going green can be as good for business as it is for the planet. Not only are the green business practices affecting the environment by reducing energy consumption and cutting down on the amount of chemicals released, they also make and save businesses money. For instance, while recycling cuts down on waste, which saves money and reduces the amount of material sent to landfills, it also appeals to a market that is growing ever more conscious of environmental issues.
With the focus on sustainable practices, some environmental groups began to raise awareness of greenwashing. This practice of touting green products and practices became widely known in the early 2010s, when the US Environmental Protection Agency (EPA) found that Volkswagen's claims that some of its diesel vehicles emitted much less pollution were false. According to the EPA's investigation, the car company had used software to trick emissions testing. Rather than being cleaner, eleven million of its vehicles produced nitrogen oxide emissions up to 40 times the legal limit. The scandal came to be known as Dieselgate. Many companies use claims about sustainability or green practices as marketing tools; some of these claims have been found to be misleading. Environmental groups urge consumers to be aware of such practices.
Bibliography
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