Pure Growth!

World leaders at the G-8 Summit announced today that they will work together to halve world greenhouses gas emissions by 2050. The eight leading industrial nations represented at the summit - the U.S., Russia, Germany, Japan, France, Britain, Canada, and Italy - made it clear they are committed to a joint battle against global warming, and urged other major economies to contribute to the fight.

What does this announcement mean for green business?

It means that not only are you in high demand, but you are essential to the continued progress and sustainable development of the world from this point forward. In order to achieve the reduction goal, the G-8 understands that contributions must be made by every country and every economy. The time to act is now.

By setting goals for your own business, you can contribute to the global fight while also taking advantage of an opportunity for unprecidented business growth. Aligning the development of your company with sustainable practices has proven profitable for many of the world’s most successful companies (HP, Heinz, and British Telecom to name a few), and that means it can work for you as well — no matter how big or small your business may be.

No matter how you decide to green your business, always keep two goals in mind: 1) to do business in a manner that reduces environmental impact as much as humanly possible, and 2) to sell products and improve your bottom line.

While this may seem obvious to some, many businesses have an imbalanced approach to going green. They might concentrate on reducing their environmental impact while neglecting their desire for business growth, or they might concentrate on profits without paying enough attention to socially-responsible practices.

Finding a balance when going green is key. You may start out with an improved product and market it as green, or you can change the way you do business by focusing on sustainable operations without necessarily needing to market the end-product as “green.”

No matter which method you choose, successfully greening your business will always benefit both your bottom line and the environment.

You’ll find that these three benefits most commonly improve your profitability:

1. Increased market share. There is a rapidly growing demand for green products, as well as a demand for environmentally-conscious companies, even if their products aren’t marketed as green. An authentic green business will attract eco-conscious consumers to your brand and give you a better percentage of this expansive market.

2. Reduced operating costs. By examining your manufacturing process, supply chains, or even daily office routines, you will find ways to cut unnecessary waste to make your business more efficient. Trimming this unnecessary excess is like removing money-sucking leeches that you never even realized were affecting your profit margins! Find ways to eliminate waste, and watch small amounts of saved cash accumulate into big savings.

3. Intangible benefits. Increased market share and extended profit margins are easy to see, but greening your business can also provide less tangible benefits that are equally important for a healthy and profitable company. Increased employee participation, improved morale, and a strong company image within the community are some examples of less obvious benefits.

Greening your business should always come from a place of authenticity. Saving and making more money is a great reason to institute eco-friendly practices, but marketing your business as green without making any genuine back-end changes is a recipe for failure. Not only is this extremely unethical, but it will have disastrous effects for your company image (read: profits), when consumers discover you’ve been duping them (and they will).