Green business is any company or organization that focuses on generating a social impact with the least environmental negative impact. Such impact tends to be the value proposition from the organizational strategy.
This business approach derives from the global challenge headed towards the year 2030 when the planet is aimed to become de-carbonized, eliminating in this way, the carbon footprint that industries and individuals produce, implementing new and improved strategies for a cleaner mobility, introducing a better food production and developing an organizational strategy for the cities’ multiple energy sources.
Green business consists of becoming aware of the corporate behaviour, its work practices and production processes. In order to prevent severe climate change, it is crucial to promptly reduce greenhouse gases emissions. The world emits around fifty million tons of greenhouse gases yearly. In order to identify how to reduce emissions efficiently and determine which of these can be eliminated with technological assistance, it is necessary to grasp where these emissions are coming from. Around 70% of the total emissions that are harmful for the environment are caused by industrial and transportation energy sources, followed by construction practices, agriculture and the industrial sector emissions. In summary, the organizations are responsible for around ninety percent of the total emissions that affect the environment, and the Green Business approach is fundamental for the planet’s environmental recovery.
Countries like Switzerland, Australia, Singapur, Norway and Germany are already offering tributary and economical incentives for those companies that get certified with superior sustainability standards, not only to improve the global situation but also because the inadequate industrial management could trigger commercial conflicts due to the right to natural resources, however, these nations also know that the market value of sustainable organizations would increase as this is a new variable in the near future and that new generations are more aware of the importance of these activities, which will attract potential clients in the upcoming years. According to a scientific study from Frankfurt University, globally, investments in eolic and solar energy production projects exceed the hundred billion dollars in the year 2020, these investments are mostly coming from european companies that seek a return on investment in the next ten years through the energy cost reduction in the industrial and transportation sectors.
Companies that contribute to the environment being more sustainable expect a greater profitability for the business. Besides assisting companies in identifying new and existing market opportunities and developing innovative products, sustainability merges towards more inclusive business practices, increases competitiveness and boosts the corporate reputation. Organizations must start their Green Business program, principally by comprehending and determining that sustainability is an activity implemented in the company’s structural foundation, identifying the ecosystem repercussions and developing a sustainable strategy. As a strategy, it has been evidenced that, according to The Boston Globe, although new generations are more aware about sustainable and eco-friendly practices, companies do not thrive only by having ethically positive motives; from a macro economic perspective, purchase behaviours vary depending on several factors. Among the most relevant is the price, the quality, the durability and the maintenance or replacement costs, nonetheless, it is proved that in a similar context, it is more feasible that a sustainable commodity is chosen before one without similar characteristics without green certifications.