Our last blog looked at the pro’s of adopting an environmentally sensitive approach – this week, we look at why business should not go green.
It can be expensive to switch your source of energy – for example, the initial capital costs of installing solar panels or a wind turbine can be high and it may takes years to achieve overall cost savings.
Increased procurement costs
Sustainable raw materials are likely to be more expensive. These costs will be passed onto your customers resulting in an increased price for your products, which may make them less competitive and thereby damage your profitability and sales.
Paperless Data Risks
We often discuss the risks associated with digital data. By going completely paperless and 100% reliant on digital documents, there is an increased risk of damage to your information, either by fraud or error – back-ups become business critical.
It’s all very well claiming to be environmentally friendly – but what happens to your reputation if something comes to light which directly impacts on your environmental credentials? Would discovering your t-shirts are made in a sweatshop where workers are paid tiny amounts per hour damage your green claims?
The Triple Bottom Line
The arguments on why business should not go green, or should, boil down to what is essentially the corporate social responsibility question, that business is not just about profit, but people and the planet too – the triple bottom line. Often, the interests of profit conflict with those of people and planet.
Inevitably, there is a balance to be struck between ensuring your business is financially sustainable, and that you are doing what you can to protect the environment. Any social responsibility comes at a cost, and only you can decide what an environmentally sensitive position is worth. At the end of the day, it’s possibly just a question of wanting to go green – which means it’s all about leadership…