We all love Mother Earth. If the devil is in the details, he applies here as he does in most areas of life and business, how do we move to the next step of a greener world? What does it really mean for your business to operate in a greener world and how soon will it happen? Logically, most companies will see some benefits (good), some drawbacks (bad), and some will face major problems (ugly).
Consider how the following seven strategic “green energy” trends will affect your industry and your business in particular.
- In the Wall Street Journal, other major trade publications, and possibly your local newspaper, case studies of bottom-line benefits of sustainable pioneers going green are beginning to appear.
- Technology can help. The website and software tools are available to calculate the carbon footprint of your company, as one of the first steps to understand the various aspects of the green institution for your company. That ability can help a business research, define, and then estimate its carbon footprint. The ability to include your entire global supply chain helps you better plan for the transition to a greener carbon footprint. Basically, this quantifies specific emissions for reduction to some level required by the government for your industry or country.
- After estimating the carbon footprint of your carbon footprint against the required amount, the carbon tax can be estimated at a given rate of carbon tax per ton. The footnote will be published soon and then the carbon footprint responsibility will be recorded. This will be huge for some companies. The higher the amount of carbon footprint and the tax rate, the higher the tax liability for the target industries.
- Think of older generations who protested the Vietnam War or chained themselves to trees to prevent logging operations. Businesses need to better understand the passion, even fervor, of green energy advocates who demand that businesses formulate and implement green initiatives.
- A “greenwashing” backlash is developing when clean energy advocates think corporate green claims are overstated. Remember, they define how green your activities should be, not your executives.
- You will soon see pressure from your most important customers to meet the greener mandates they have set. If you want to continue doing business with multiple blue-chip companies, you’ll be meeting your greener operations goals as part of your strategic planning. Since it’s easier for corporate-level executives and strategists to make a decision than it is for your vendors to make those strategies work, be prepared.
- Many advocates of clean energy are concerned about the backlash that is already building against the environment. As more details become apparent of the magnitude and cost of the proposed carbon tax legislation and the extent of its use of revenue for job creation purposes or not approved by Congress, a backlash is building. against that congressional leadership plan. To the extent that the justification for job creation is actually used to finance a tax on the welfare system, the reaction will accelerate.
Advocates see a long overdue environmental transition. Other experts worry that the carbon tax under discussion will destroy more jobs than are created in the green sector. Whatever tax is enacted and undoubtedly revised, companies must plan and prepare for a variety of conditions, from great benefits and opportunities to the substantial, even massive associated rising costs, that such a tax will produce. All industries and most companies will see good, bad or ugly aspects of the greener world. How prepared are you?