Increasing world population and continuous changes in the climate are resulting in tremendous pressure on natural resources and overall environment. Companies operating across the world are emphasizing on making their operations more sustainable in order to minimize their environmental impact while achieving business growth. Companies are adopting advance technologies, developing new processes and introducing new services or products to fight with environmental challenges and make business greener. Eco driven innovation also reduced the operational cost of the companies and help them in strengthening their brand image. This paper discusses innovative ways adopted by the companies are helping environment.
Chiou, Chan, Lettice and Chung (2011) in their article describe green innovation, greening suppliers and environmental performance of the companies. The authors mentioned that Companies can minimize their carbon foot prints and help environment by making their supply chain green and adopting green innovation. The authors analyzed 124 companies operating in eight different industries to access the efforts made by companies in order to protect the environment. Companies are developing green products and implementing environment friendly programs to inform customers that their products do not carry any toxic material that may cause harm to the environment (Chiou et al., 2011).
Consumers across the globe are now much aware about the environmental issues and adverse impacts of changing environment. Therefore, they demand for the products that are safe for the environment and produced by considering minimum use of natural resources, and minimum greenhouse emission. According to a report published by Department of Environment, U.K., Effective use of natural resources alone is saving around £23 billion every year to the companies and minimizing their carbon foot print significantly. This making companies more capable to deal with rising cost of commodities and gain competitive advantage (Department of Environment: U.K., 2014).
Google is best example of how companies are reducing their carbon foot prints and minimizing use of natural resources. Google installed solar system & wind panels at its information centers. This step reduced consumption of electricity significantly and emission of greenhouse gasses. Information centers of Google consumed less than 50 percent of energy as compare to its rivals. The company took several steps to inform its employees about benefits of using shuttle buses, bicycles and carpool for transportation. Company also facilitate its employees in reducing their consumption of natural resources (Google Green , 2014).
Various large companies such as Home Depot, Wal-Mart and FedEx realized that their negative impact on environment not comes from their operations. However, it comes from production, packaging, logistic management and use of the products these companies offers or sale to their consumers. These companies realized the importance of making their suppliers or manufacturers aware about negative impact of their operations on the environment, and how this impact can be minimized. These companies educating and motivating millions of stakeholders every year on green products, green environment and technologies that can help them in reducing consumptions of natural resources (Ruta, 2013).
Companies are informing their suppliers and manufacturers on how they can minimize the use of natural resources during production process and also green-house impact. Compliance with environmental standards, rules and regulations help in reducing the carbon foot print. Green supply chain management processes also adopted by the companies are helping them in protecting environment and saving operational cost.
Green supply chain management can be achieved by internal and external environmental management. Internal management refers to certificate compliance, development of green product, implementation of green processes, and overall reducing carbon foot print. External management refers to integrating external stakeholders and suppliers into green drive of the organization and encouraging them to adopt processes and practices that can help environment. Companies are innovating green products and involving suppliers in the process to improve their environmental performance. For example, Wal-Mart in join efforts with its manufacturers launched a drive to sell compact fluorescent light bulbs (CFLs) that contain 1/3 less mercury and consume less electricity. FedEx also encouraged use of hybrid-electric delivery trucks in order to reduce consumption of fuel (Ruta, 2013).
Chou et al. (2011) mentioned that there are various factors which compelled companies to develop green products and adopt green processes. Companies are receiving continuous pressure from the consumers, media and government authorities to reduce their carbon footprint, and use of natural resources. Strict regulations and standards formed by the authorities are also compelling companies to go green. Going green also provide companies a competitive advantage over its competitors and encourage consumers buy green products. Therefore, all companies are adopting green processes and developing green products not only to protect environment, but to enhance their brand image (Chiou et al., 2011).
Different methods or ways adopted by the companies are innovative because they were principally designed to help the environment and cater to the different environmental needs of the society. Commitment of the companies towards environment can be measured by analyzing level of their efforts made in order to protect environment without considering financial or any other benefits.
References
Chiou, TY, Chan, H.K., Lettice, F., and Chung, S.H. (2011). The influence of greening the suppliers and green innovation on environmental performance and competitive advantage in Taiwan. Transportation Research Part E: Logistics and Transportation Review, 47(6), 822-36.
Encouraging businesses to manage their impact on the environment. (2014, March 25). Retrieved from gov.uk: https://www.gov.uk/government/policies/encouraging-businesses-to-manage-their-impact-on-the-environment
Google Green . (2014). Retrieved from Google: http://www.google.com/green/bigpicture/
Ruta, G. (2013). Companies Have “Unique Leverage” to Help Environment. Retrieved from worldwatch: http://www.worldwatch.org/node/5129
