Defining “Green” in Business.!!!!!!!!

There is no commonly shared definition of what “green” means across industries. How are businesses defining “green”, and how do they assess and measure the sustainability of their operations?

Key Points

• The UN Brundtland Commission defines “green” as meeting the needs of the present generation without compromising the ability of future generations to meet their needs.

• Whatever the definition, governance and grassroots involvement are needed to create the fundamental shift required.

• Inspiration rather than coercion is the most sustainable way to drive green behaviour.

• Energy will be a key element, both in terms of where it comes from and how it is used.

• Hard benchmarks and standards will be needed to judge greenness.

Synopsis

Companies used to define success by their size, their sales turnover and how much value they extract from the business. These old-style big firms are disappearing as sustainability is redefined in both financial and economic terms.

There is a need for a shift of values to be reflected in the laws of countries, practices of business and behaviour of individuals. This drive should include oversight by a new governance system, one that goes beyond the boundaries of national sovereignty and is more powerful than the United Nations.

Sticks are necessary in terms of regulation, but there are limits to coercion. Incentives are also important, but there are fewer carrots to go around in a recession. Both are transaction-based, short term motivators.

The better answer is inspiring grassroots involvement, which is cheap, renewable and clean. Companies are already recognizing this in an effort to connect with consumers on human, social environmental values – on green values. For companies, out-greening the competition will be the new way to outperform.

There are three levels of challenges on energy: security, independence and climate change. Meeting the third challenge requires development of renewable technologies and a low-carbon portfolio approach. Nuclear is a proven technology that can be part of the mix. On the demand side, there is a need to manage the way energy is produced and consumed.

Judging “green” can happen on several evolutionary levels: regulatory compliance, voluntary standards (such as ISO), social responsibility as recognized by local communities, private sector engagement on benchmarking and setting “green” standards. Standards by which the greenness of companies and governments is measured should be part of defining “green”.

Other Key Takeaways

• The world needs to do more than just relaunch growth, which is the theme of this Meeting. It needs to launch better growth, and green growth is the only growth that is truly sustainable in economic or environmental terms.

• Certain new technologies will evolve, but many already exist. To get them in place, the right regulations and incentives are needed. One example is power factor correction, which is a 30-year-old technology that could be implemented in all electric and electronic devices to reduce energy consumption at no extra cost.

Happy Reading…!!!!!!!!