Understanding What Is Green in Business

Green has a positive connotation in many cultures, representing fertility, health, wealth, spring and hope. It is also the color of nature, and of political groups that advocate environmental protection. Many of these groups identify themselves as green, with some even naming their parties the Green Party. In business, green describes products and practices that are environmentally friendly. However, understanding what is green is not simple. Many products claim to be green, but the true environmental impact of these products can be difficult to determine. One major problem stems from the idea that greenness can be determined by comparing a product to an appropriate benchmark. In fact, this idea is flawed, and a much more sophisticated approach is required.

One such approach is to use life-cycle assessment (LCA), which uses a holistic perspective to evaluate the environmental impacts of a product. This is an improvement over the more common approach, which only evaluates a single attribute of a product. For example, greenness is often claimed by products that are made with bio-based materials or are powered by hybrid technology. However, a closer look at LCA shows that these products are not as green as they seem.

Another way to make a product green is to have it generate its own energy. This is sometimes called green electricity or renewable energy. Unfortunately, this type of energy has significant environmental costs. For example, to produce a kilowatt-hour of green electricity, the equivalent of a car driving for an hour emits greenhouse gases and air pollution. In addition, the mining and extraction of natural resources can have environmental costs.

Fortunately, the development of new technologies to make renewable energy more affordable and efficient can reduce these environmental impacts. These technologies include wind turbines, solar panels and hydroelectric power. In addition, companies can reduce their environmental footprint by limiting landfill space, increasing manufacturing process efficiencies and making byproducts available for host communities to utilize locally.

In general, it is important for companies to be able to identify their environmental impact and to communicate this information to stakeholders. This will enable them to respond to social and environmental demands in an ethical and responsible manner, avert risk and increase their profitability.

Determining what is truly green can be difficult, and it is important to understand the dynamics involved. This will require a broad range of knowledge and ongoing multi-stakeholder dialogue. This dialogue can be beneficial in the long run, as it will allow companies to become more sustainable; develop and deploy new technologies to reduce their environmental impacts; improve efficiency; and become more customer-focused. In the long-term, it may even lead to the creation of new, greener business models. In the meantime, consumers can support green businesses by purchasing their products and services. They can also help by establishing green living habits and supporting their own green initiatives with friends. These actions will not only contribute to the health of the environment, but can also strengthen relationships with fellow green consumers and business partners.