Last Updated 29 Jun 2021

Green business

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It is the process of assessing how to design products that will take advantage of the current environmental situation and how well a company's products perform with renewable resources. The Borderland Report emphasized that sustainability is a three-legged stool of people, planet, and profit. Sustainable businesses with the supply chain try to balance all three through the triple-bottom- line concept?using sustainable development and sustainable distribution to affect the environment, business growth, and the society. Everyone affects the sustainability of the marketplace and the planet in some way.

Sustainable development within a business can create value for customers. Investors, and the environment. A sustainable business must meet customer needs while, at the same time, treating the environment well. Environmental sphere A major initiative of sustainable businesses is to eliminate or decrease the environmental harm caused by the production and consumption of their goods. The impact of such human activities in terms of the amount of greenhouse gases produced can be measured in units of carbon dioxide and is referred toast the carbon footprint.

The carbon footprint concept Is derived from ecological footprint analysis, which examines the ecological capacity required to support the consumption of products. Businesses take a wide range of green initiatives. One of the most common examples Is the act of "going paperless" or sending electronic correspondence in lieu of paper when possible. On a higher level, examples of sustainable business practices include: refurbishing used products (e. G. , tuning up in order to eliminate waste (such as using a more accurate template to cut out designs); and choosing nontoxic raw materials and processes.

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For example, Canadian farmers have found that hemp is a sustainable alternative to rapeseed in their rotational crop rotation; hemp grown for fiber or seed requires no pesticides or herbicides. Sustainable business leaders also take into account the life cycle costs for the items they produce. Input costs must be considered in regards to regulations, energy use, storage, and disposal. Designing for the environment (DEFER) is also an element of sustainable business. This process enables users to consider the potential environmental impacts of a product and the process used to make that product.

Among large corporations, Ford Motor Company occupies an odd role in the story of sustainability. Ironically, founder Henry Ford was a pioneer in the sustainable business realm, experimenting with plant-based fuels during the days of the Model T. Ford Motor Company also shipped the Model A truck in crates that then became the vehicle floorboards at the factory destination. This was a form of bicycling, retaining high quality in a closed-loop industrial cycle. Furthermore, the original auto body was made of a stronger-than-steel hemp composite. Today, of course, Fords aren't made of hemp or running on the most sensible fuel.

Currently, Ford's claim to CEO-friendly fame is the use of seat fabric made from 100% post-industrial terrestrial and renewable soy foam seat bases. Ford executives recently appointed the company's first senior vice president of sustainability, environment, and safety engineering. This position is responsible for establishing a long-range sustainability strategy and environmental policy. The person in this position will also help develop the products and processes necessary to satisfy both customers and society as a whole while working toward energy independence.

It remains to be seen whether Ford will return to its founder's vision of a petroleum-free automobile, a vehicle powered by the remains of plant matter. Smaller companies such as Nature's Path, an organic cereal and snack making business, have also made significant sustainability gains in the 21st century. CEO Arrant Stephens and his associates have ensured that the quickly growing company's products are produced without toxic farm chemicals. Furthermore, employees are constantly encouraged to find ways to reduce consumption. Sustainability is an essential part of corporate discussions. Another example comes from Salt Spring Coffee, a company created in 1996 as a certified organic, fair trade, coffee producer. In recent years they have become arbor neutral, lowering emissions by reducing long-range trucking and using bio- diesel in delivery trucks, upgrading to energy efficient equipment and purchasing carbon offsets. The company claims to offer the first carbon neutral coffee sold in Canada. Salt Spring Coffee was recognized by the David Suzuki Foundation in the 2010 report Doing Business in a New Climate. A third example comes from Korea, where rice husks are used as a nontoxic packaging for stereo components and other electronics. The same material is later recycled to make bricks. The many capabilities for adopting green practices have led to considerable pressure being put upon companies from consumers, employees, government regulators and other stakeholders. Some companies have resorted to greenmailing instead of making meaningful changes, merely marketing their products in ways that suggest green taken to court for advertising their products as more "green" than they are.

Still, countless other companies have taken the sustainability trend seriously and are enjoying profits. The Gory Cloud written by Richard Serine, (2009), documents the experiences of sustainable businesses in America and their reliance on the vast but invisible green community, referred to as the gory cloud, for support and a market. Green investment firms are consequently attracting unprecedented interest. In the I-J, for instance, the Green Investment Bank is devoted exclusively to supporting renewable domestic energy.

However, the I-J and Europe as a whole are falling behind the impressive pace set by developing nations in terms of green development. Thus, green investment firms are creating more and more opportunities to support sustainable development practices in emerging economies. By providing micro-loans and larger investments, these firms assist small business wieners in developing nations who seek business education, affordable loans, and new distribution networks for their "green" products.

Social sphere Organizations that give back to the community, whether through employees volunteering their time or through charitable donations are often considered to be socially sustainable. Organizations also can encourage education in their communities by training their employees and offering internships to younger members of the community. Practices such as these increase the education level and quality of life in the community. In order for a business to be truly sustainable, it just sustain not only the necessary environmental resources, but also its social resources, including employees, customers (the community), and its reputation. Organizations The European community Restriction of Hazardous Substances Directive restricts the use of certain hazardous materials in the production of various electronic and electrical products. Waste Electrical and Electronic Equipment (WEE) directives provide collection, recycling, and recovery practices for electrical goods. The World Business Council for Sustainable Development and the World Resources Institute are wow organizations working together to set a standard for reporting on corporate carbon footprints. Lester Brown's Plan B 2. And Hunter Olivine's Natural Capitalism provide information on sustainability initiatives.  Corporate sustainability strategies Not all CEO-strategies can be incorporated into a company's CEO-portfolio immediately. The widely practiced strategies include:

  1. Innovation,
  2. Collaboration,
  3. Process

Improvement and Sustainability reporting.

Innovation & Technology

This introverted method of sustainable corporate practices focuses on a company's ability to change its products and services towards less waste production and sustainable best practices.


The formation of networks with similar or partner companies facilitates knowledge sharing and propels innovation.

Process Improvement

Continuous process surveying and improvement is essential to reduction in waste. Employee awareness of company-wide sustainability plan further aids the integration Periodic reporting of company performance in relation to goals. This goals is often incorporated in to the corporate mission (as in the case of Ford Motor Co. ).


Enormous economic and population growth worldwide in the second half of the twentieth century aggravated the factors that threaten health and the world ozone depletion, climate change, depletion, fouling of natural resources, and extensive loss of biodiversity and habitat. In the past, the standard approaches to environmental problems generated by business and industry have been regulatory-driven "end-of- the-pipe" remediation efforts. In the asses, efforts by governments, Nags, corporations, and investors began to grow substantially to develop awareness and plans for investment in business sustainability.

One critical milestone was the establishment of the ISO 14000 standards whose development came as a result of the ROI Summit on the Environment held in 1992. ISO 14001 is the cornerstone standard of the ISO 14000 series. It specifies a framework of control for an Environmental Management System against which an organization can be certified by a third party. Other ISO 14000 Series Standards are actually guidelines, many to help you achieve registration to ISO 14001.

They include the following:

  • ISO 14004 provides guidance on the development and implementation of environmental management systems
  • ISO 14010 provides general principles of environmental auditing (now superseded by ISO 19011) ISO 14011 provides specific guidance on audit an environmental management system (now superseded by ISO 19011)
  • ISO 14012 provides guidance on qualification criteria for environmental auditors and lead auditors (now superseded by ISO 19011)
  • ISO 14013/5 provides audit program review and assessment material.
  • ISO 14020+ labeling issues ISO 14030+ provides guidance on performance targets and monitoring within an Environmental Management System
  • ISO 14040+ covers life cycle issues LED certification

The Leadership in Energy and Environmental Design standards were developed by the US Green Building Council in an effort to propel green building design in the United States. LED certification is very prestigious title and can be attained through "compliance with all environmental laws and regulations, occupancy scenarios, building permanence and pre-rating completion, site boundaries and area-to-site ratios, and obligatory five-year sharing of whole building energy and water use data from the start of occupancy (for new construction) or date of certification (for existing buildings)" Six essential characteristics Matthew Teeth, Ph. D. Iterates the ideas put forward by authors such as Paul Hawked (The Ecology of Commerce and Natural Capitalism), Bill McCullough and Michael Braggart (Cradle to Cradle), and Jeanine Venous (Biometry) when he proposes that a mature and authentic sustainable business contains six essential characteristics.

Triple top-line value production "The TTL Establishes three simultaneous requirements of sustainable business activities - financial benefits for the company, natural world betterment, and social advantages for employees and members of the local community?with each of these here components recognized as equal in status. Whereas many businesses use the term attributable to McCullough and Braggart in their book Cradle to Cradle.

Nature-based knowledge and technology "This biometry-based principal involves the conscious emulation of natural- world genius in terms of growing our food, harnessing our energy, constructing things, conducting business healing ourselves, processing information and designing our communities" .

Products of service to products of consumption "Products of service are durable goods routinely leased by the customer that are dad of technical materials and are returned to the manufacturer and re-processed into a new generation of products when they are worn out. (These products are mostly non-toxic to human and environmental health but toxic materials that are used will be kept within a closed loop type system and not be able to escape into the environment). Products of consumption are shorter lived items made only of biodegradable materials. They are broken down by the detritus organisms after the products lose their usefulness. (These are also non-hazardous to human or environmental health).

This principal requires that we manufacture only these two hypes of products and necessitates the gradual but continual reductions of products of service and their replacement with products of consumption as technological advancements allow. " See Cradle to Cradle for other thoughts on Technical(Products of Service) and Biological(Products of consumption) nutrients.

Solar, wind, geothermal and ocean energy. This principal advocates employing only sustainable energy technology? solar,wind,ocean and geothermal?that can meet our energy needs indefinitely without negative effects for life on earth. " Other authors, such as Paul Hawked, have offered to this as utilizing current solar income.

Local-based organizations and economies "This ingredient includes durable, beautiful and healthy communities with locally owned and operated businesses and locally managed non-profit organizations, along with regional corporations and shareholders working together in a dense web of partnerships and collaborations.

Continuous improvement process "Operational processes inside successful organizations include provisions for constant advancements and upgrade as the company does its business. The continuous process of monitoring, analyzing, redesigning and implementing is used o intensify TTL value production as conditions change and new opportunities emerge. "Challenges Implementing sustainable business practices may have an effect on profits and a firm's financial 'bottom line'. This challenge might make many corporate executives cringe.

During a time where environmental awareness is popular, green strategies are likely to be embraced by employees, consumers, and other stakeholders. In fact, according to many studies, a positive correlation exists between environmental performance and economic performance. Green brands Green brands are those brands that consumers associate with environmental inspiration and sustainable business practices. Such brands appeal to consumers brand can add a unique selling point to a product and can boost corporate image.

However, if a company is found or perceived to overstate its green practices its green brand may be criticized as greengage. Increase in green brands Ethical consumerism has led to an increase in green brands. In the food and drinks industry only 5 green brand products were launched in 2002, increasing to 328 in 2007 (Minute global database). Packaging In the case of consumer brands packaging can be a key element in communicating a Rene brand.

This is because packaging communicates information to the consumer at the point-of-sale, and because of the environmental impact of the packaging itself. Companies may claim sustainable packaging, recycled and/or recyclable material, or reduce excess packaging. Packaging is of especially high brand importance when the packaging is part of the aesthetic appeal of the product and brand, as in the case of the cosmetics and toiletries sector. Packaging material may have to not only reinforce environmental credentials, but also communicate the high-quality and luxury image of the brand.

Advertisement and marketing standards concerns

In Europe concerns have been raised that consumers might be confused or mislead as a result of a recent increase in green brands. Because green brands can add a unique selling point there is little consistency from brand to brand. In the food and drinks industry it has been observed that companies are reluctant to use existing and widely recognized green logos, such as the mobiles loop, because using their own makes the brand more easily distinguishable for the consumer.

In Britain, the Advertising Standards Authority (AS) has warned consumers in mid 2007, that some green" claims might not be authentic. The AS stated that green claims have become noticeably more prevalent in advertisement, and has investigated and upheld several complaints regarding "unsubstantiated environmental claims". The AS Director General has stated that "the AS needs to see robust evidence to back up any CEO-friendly The AS in Britain has also raised concerns that as awareness about climate change increase among consumers, the cases of unsubstantiated carbon claims (e. . Carbon emissions and carbon neutral claims) rises. The AS has upheld a number of complaints against energy companies, including Scottish and Southern Energy car manufacturers, including Toyota, Lexus and And airlines, including Asset, for misleading claims regarding carbon emissions and carbon neutrality. Recent cases before the British AS involved environmental claims such as "local".

In December 2006 for example the AS upheld a complaint against Tests, where the company advertised British products as "local", which the AS ruled to be misleading because in this particular case the consumers were likely to interpret "local" as referring to their immediate surrounding region. In August 2008 the British AS ruled that Shell ad misled the public in an advertisement which claimed that a $1 Bon oil sands project in Alberta, northern Canada, was a "sustainable energy source". The AS upheld a complaint by the World Wide Fund for Nature about Shell's advert in the Financial Times.

Explaining the ruling the AS stated that "We considered that the Department for Environment, Food and Rural Affairs (Defer) best practice guidance on environmental claims stated that green claims should not 'be vague or concern for the environment. Claims should always avoid the vague use of terms such as 'sustainable', 'green', 'non-polluting' and so on. Furthermore the AS ruling stated "Defer had made that recommendation because, although 'sustainable' was a widely used term, the lack of a universally agreed definition meant that it was likely to be ambiguous and unclear to consumers.

Because we had not seen data that showed how Shell was effectively managing carbon emissions from its oil sands projects in order to limit climate change, we concluded that the ad was misleading". In the United States the Federal Trade Commission issues the "Green Guides" (last updated 2012) - environmental marketing guidelines. The guidelines give advice on the types f substantiation needed to support environmental claims, and give examples of claims that are to be avoided.

The Federal Trade Commission has recognized that these guidelines need updating, as for example they currently contain no guidance on carbon neutrality, or the terms sustainable or renewable. The Green Guides do contain guidance on the term recyclable, recycled and biodegradable. The marketing and brand building experiences of many American green brands was documented in the book The Gory Cloud by Richard Serine, 2009. The gory cloud refers to the green community that provides support and a market to green brands Sustainability and green issues are now very much mainstream, with governments, businesses and individuals all involved.

Tourism, as one of the main economic drivers in the I-J, has its part to play. That is where the Green Tourism Business Scheme (GETS) comes in. The GETS is the national sustainable tourism certification scheme for the I-J. Originally developed in partnership with Vacationland, it is now the only national scheme to be independently validated by the International Centre for Responsible Tourism (CRT) on behalf of Vacationland, Vacillates and the Northern Ireland Tourist Board and endorsed by Vacationland and Faille Ireland. GETS provides excellent value for money to a wide range of tourism firms with first class environmental advice and auditing. Satisfaction rates of certified firms are very high and drop out rates low, both for the smallest of tourism firms and increasingly at corporate level. " Xavier Font, CRT. Businesses opting to Join Green Tourism are assessed by a qualified grading advisor against a rigorous set of criteria, covering a range of areas, like energy and water efficiency, waste management, biodiversity and more. Those businesses that meet the required standard, receive a Bronze, Silver, or Gold award based on their level of achievement.

The current network of members is comprised of a wide range of business types, including accommodation providers, visitor attractions, corporate offices and others.

Green Tourism - Introduction

Green Tourism is Sustainable Tourism - tourism which takes into account the needs of the environment, local residents, businesses, and visitors; now and in the future. Focused on costumers, business tourism or any other tourism niche market. Green tourism businesses are those actively engaged in reducing the negative environmental and social impacts of their tourism operations.

How sustainable tourism works for everyone Supporting a more sustainable tourism with the help of the Green Tourism Business Scheme (GETS)- Benefits the environment by conserving resources Reduces waste Reduces costs through efficiencies and staff awareness Fulfils customers expectations of businesses to look after their environment Attracts new customers Offers business customers in particular green certified suppliers they are increasingly demanding Improves your public image Improves the customer experience Improves the quality of the service you provide

Benefits the local community

Supports the local economy

Reduces congestion and pollution

Enhances the natural environment

By choosing a Green Tourism Business Scheme business you are guaranteed

That the business:

Is committed to sustainable tourism and minimizing its damage to the environment

Is operating in accordance with the relevant environmental regulations

That the site:

  • Meets minimum standards of good practice across a range of sustainable development indicators.
  • Has been audited by a qualified professional to ensure standards are maintained.
  • Is committed to providing at least a reasonable quality of arrive between 1 and 5 stars.

That we will: Reassess the site every two to three years based upon a set of regularly updated sustainable development standards Investigate any complaints received about the environmental performance or commitment of the business.

Green Giants

These companies have gone beyond what the law requires to operate in an environmentally responsible way.

  • Honda Location: Japan
  • Year founded: 1945
  • Revenue: $84. 2 Billion
  • Employees: 145,000
  • The most fuel-efficient auto company in the U.S.

While other automakers gripe, Honda attacks the issues of fuel economy and missions with relish. Working independently, it is focusing on two alternative fuel Honda has also taken a crack at solving a problem other automakers have left to the oil companies: creating an infrastructure for hydrogen. Hand's solution is for individual refueling stations that provide heat and electricity for the home as well as hydrogen for a fuel-cell-powered car. Long term, Honda wants to be the world's cleanest, most efficient manufacturer.

It has promised to reduce CO emissions from its factories as well as its vehicles by 5 percent between 2005 and 2010 - on top of the percent it achieved between 2000 and 2005

Continental Airlines

  • Location: Houston
  • Year founded: 1934
  • Revenue: $13. 1 Billion
  • Employees: 44,000 Worked with Boeing to engineer more fuel-efficient aircraft.

AMID RISING concern about aviation pollution, British Airways introduced a "CO emission calculator" on its website, letting passengers pay to offset the carbon dioxide generated by their flights.

Lufthansa recently equipped an Airbus AWAY with a 1. 5-ton mobile laboratory to track gases and compounds. But it is American airline Continental that's gone furthest to green operations. Besides spending more than 16 billion over the past ten years to replace its fleet with more efficient aircraft, it installed fuel-saving winglets that reduce emissions by up to 5% on most of its Boeing sass and sass, and reduced the nitrogen oxide output from ground equipment at its Houston hub by over 75% since 2000.

Its 13 full-time staff environmentalists work with engine manufacturers, design green terminals, and track carbon emissions and chemical recycling daily. Even all the trash from company headquarters is later sorted for recyclables.


  • Location: Canada
  • Year founded: 1917
  • Revenue: $13. 6 Billion
  • Employees: 5,500
  • Measures the environmental impact of each project.

Finding black gold is a dirty Job - particularly when it's buried in tar sands. But Juncos still stands out for how it does the Job.

Its environmental and social efforts have earned it membership in the DOD Jones sustainability index and the British equivalent, the Footstool. In a survey of 23 global oil companies last year, Janis Research, a Canadian consultancy, named Juncos a top performer, noting its environmental and greenhouse-gas management programs. Specifically, it has improved emissions intensity (the amount of oil it extracts per ton of greenhouse oxide. Juncos is part of an initiative to develop carbon-capture techniques.

And while Juncos hopes to double its production by 2012, its water management is so advanced that it expects to draw no additional water from Albertan Databases River.


  • Location: Britain
  • Year founded: 1919
  • Revenue: $71 Billion
  • Employees: 380,000
  • Cut energy use and is trying to get customers to think green.

Wind-powered stores, high-tech recycling, bodiless delivery trucks - Tests does all that. Last year the company pledged to cut the average energy use in its British buildings in half by 2010; now it says it will get there two years early.

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