Businesses don’t see benefits of going green

Most companies are not taking action to make their operations more sustainable, believing such ‘green’ activity to be a burden on the business, and are missing out on the benefits of sustainability in the process.

This is the message from a new report from analyst firm Ovum.

The report, titled Profiting from Sustainability, found that while some large companies have employed sustainable business practices, most consider green tactics to be a “drag” on business results, rather than a way to improve them.

“Businesses are facing pressure from a growing list of groups to manage their operations more sustainably, and this is rapidly becoming a mandatory requirement, not an option. However, most have yet to take any significant action,” said Warren Wilson, analyst at Ovum.

These organisations that have so far failed to go green are missing out on some key benefits, Wilson said.

“These include business benefits such as simplifying regulatory compliance, cost reduction, streamlined business processes and making the company more attractive to customers, investors and the public,” he said.

Wilson recommends that businesses reassess the potential impact of sustainability. They can then implement initiatives that help them meet their green obligations and also deliver financial and competitive benefits to the business.

“The business case for managing companies more sustainably is strong because it can help companies improve their results even as they ‘green’ their operations,” he said.

“Businesses that move quickly can not only reap direct benefits, but also gain advantage over competitors,” Wilson said.