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In addition to benefiting the environment, reducing environmentally harmful activities
has clear and substantial business benefits. There is a direct monetary benefit
to reducing energy consumption. Lower electricity bills translate into greater savings,
for example. Becoming sustainable provides companies with competitive advantages,
as well. Investors, employees, and clients are beginning to hold companies
more accountable for their carbon emissions and other environmentally harmful activities.
Benefits to companies who become sustainable may include recruiting and retention
advantages, investor opportunities, and customer acquisition advantages. Recent
articles in the business press have been common, including a February 26, 2007 article
in BusinessWeek was entitled Carbon Consciousness Hits Consumers, citing
dozens of major corporations who have committed to environmental initiatives. In
research work cited on the site
http://www.global100.org, Orlitzky, Schmidt, and Rynes find that environmental
responsibility pays off financially. Guenster, Derwall, Bauer, and Koedijk conclude,
"...eco-efficiency relates to operating performance."
Please take a look at our Resources page for references
to research papers on the topic. Please let us know about others in our comments
section.
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Reason #1
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It's simple to do, and not expensive or difficult to manage - all benefits will
accrue for a small amount of time and effort and almost no management attention.
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