Green Economy

I attended an industrial seminar on green economy yesterday. Every speaker spoke about the importance of green and low carbon development for sustainability and to stimulate the process, providing economic incentives apart from the voluntarism and legislation requirement is crucial. While providing monetary gain is welcome, looking into the green economy as business opportunity is not entirely right approach as the solution for the environmental challenges we are facing today. For example, having more hybrid car as replacement for the fuel-driven vehicle is good for the environment, it does not necessary mean the traffic congestion will disappear as volume of cars will remain the same. Similarly, fixing the solar heater does not correlate with the reduction of energy consumption if one has installed more air-con units in the house. In other words, applying technology and system without changing the mind set and behaviour of the people will not become a final solution to the green issues.

Another speaker equated that activities good for the environment are always good for the business. This, I certainly agree if we are talking about public good and for environment in wider scope. However, the problem we are facing today is many of the businesses only concerned about their balance sheet and profit for their shareholders rather than taking into consideration the public cost as part of the production cost of their services or products. For example, consuming more water to produce paper is alright as long as the profit margin is maintained. On the other hand, some businesses are depending on solving environmental issues or daily polluted routine for survival and if no such problem exists, then that businesses will be out of business. For example, waste contractors will hope for more rubbish for collection and will be out of business if a successful 3R program was in place in a community. Similarly, it is illogical to request a beverage company to promote drinking less or ask a petrol company to promote less travelling. Having said this, although companies that have done so is not definitely a green company, but at least with green in heart. These companies should have developed and embraced green initiative in their existing business operation or have developed new green business model.

Green business means embracing green into existing business or developing new business model with green elements. For existing businesses, going for green can be cost saving and "face" saving as more stakeholders are looking for companies with green to associate with. For example, a packaging company finds ways to reduce the need for using more papers will definitely get the admiration from others. Similarly, applying ICT system effectively to cut down business transaction with physical interface and paper correspondence as well as data storage with large storeroom will be the way forward. With the changing of time and emerging of global environmental issues, new business opportunities occur. For example, turning waste into wealth, treating waste as resources, using renewable energy, reducing the use of non-renewable resources, refurbishment of old goods for new use, 3R of old goods, cost cutting and efficiency are fields that presenting new business opportunities. These have nurtured companies in making nature crafts from used paper, composting waste into fertiliser, collecting rain water for sanitary use, converting waste water into new water, manufacturing chiller for air con and hot water mushrooming in the market.

While ultimately we are looking for green solution, doing it now without talking about economic factor is unrealistic. Without the businesses involvement and monetary return for doing good deed is always the slowest option for success, unless it is life threatening, I presume.