Considering the pace at which markets and governments are moving towards reducing the overall carbon footprint, an accurate enterprise account of a business’s green house gas exposure maters to stakeholders. In addition disclosure is increasingly expected, and failure to disclose can put a business at a strategic disadvantage.
Consumer Demand
- Americans’ appetite for environmentally friendly technologies and consumer products is grossly underserved, with a potential $104 billion in sales this year (2007 National Technology Readiness Survey
- Wal-mart (NYSE: WMT) announced that its customers have increased purchases of the five eco-friendly products tracked in its Live Better Index by 66% from last year. The retailer says this overall adoption rate, which measures sales compared to other products in the category, serves as a nationwide trend indicator of consumer demand for green products.
- 50% of US consumers would rather do business with a company that is working to reduce global warming than one that is not (Survey by GlobeScan 2007)
Cost savings
-
Should the company redesign lighting in a distribution center (a $50,000 investment will reduce lighting costs by 25% , and carbon footprint by 3 tons per year)
-
Should the company make a larger investment in package design to reduce distribution costs? ($100,000 design time, reduces shipment volume by 20% and saves 20 tons of carbon)
-
How do those alternatives compare to the cost of a ‘green’ re-design of a major product? ($250,000 in design time replaces a polymer with a bioplastic, enabling the announcement of a new green product and generating $1,000,000 in new annual revenue while reducing the carbon footprint by 40 tons.)
Domestic Policy
California AB 2538: Greenhouse gas emissions: consumer product labeling
Global Environment
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