Green business benefits enterprise and helps to save environment

According to the World Wide Fund for Nature (WWF) "business is beginning to understand that environmental, ethical and social factors can and will have a significant impact on their future.

The group claims 'going green' and introducing long-term sustainability into business activities can result in several benefits, rather than an extra cost or threat to their operations.

In addition, it also notes the business world is now expected to deal with issues which were once the remit of government, with customers possibly judging them on the actions or lack there of.

Businesses and environment

Business Link states that adopting a sustainable approach involves more than ethical behaviour and can have tangible advantages. Financial reasons are the major benefits to firms singled out by the organisation.

Companies which take simple steps to reduce their carbon emissions, such as turning off computers and other electrical equipment when it is not in use, practicing efficient building management for heating and lighting and cutting back on paper and packaging, will find they save money as well as the environment, the organisation claims.

business is beginning to understand that environmental, ethical and social factors can and will have a significant impact on their future

WWF

The WWF claims further financial benefits could be found when the business is assessed by equity market managers.

To Whose Profit? study, co-produced by the environmental charity and Cable & Wireless, notes that sustainability will be just one factor analysts examine, with the main focus being on earnings or financial performance.

However, the report predicted: "As the evidence emerges of links between high standards of company performance in ethical, environmental and social dimensions and business performance, it is anticipated that equity market managers will take wider account of these issues.

Business Link

Business Link suggests that adopting green attitude offers a potential for marketing, as firms can promote their sustainable progress and improve their image.

The organisation says: "By making it known that your business considers environmental issues as important you will attract new customers with environmental concerns and impress employees and investors.

Given the many benefits of adopting a green business strategy, it seems clear why companies are keen introduce them into their operations. However, there is support available to firms to help them do this.

The Carbon Trust, an independent company established by the government in 2001 to help reduce carbon emissions, offers energy-efficiency loans to small or medium-sized enterprises.

By making it known that your business considers environmental issues as important you will attract new customers with environmental concerns and impress employees and investors

Business Link

According to the WFF, the Co-operative Bank is an example of a firm which has successfully combined these factors to make the most of its sustainability track record.

The funding, which is open to businesses that having been trading for at least 12 months, allows equipment to be replaced or upgraded to more energy-efficient versions and gives them £5,000 to £200,000 in interest-free finance over four years.

One firm which took advantage of the support is Bretby Business Park, based near Burton-on-Trent in Staffordshire. The park was spending £400,000 a year on its energy bills, which was reduced by £180,000 after it sought advice and a loan from the trust to install a new heating system.

In addition, the Carbon Trust offers similar terms for loans which allow companies to install renewable energy equipment, such as solar heating, biomass boilers or ground source heat pumps. The organisation notes these technologies help to cut costs and reduce carbon emissions, as well as improving their image.

The Government's Enhanced Capital Allowance scheme is another programme which works to encourage businesses to invest in low-carbon, energy-saving equipment. Open to any company operating in the UK, the allowance lets the full cost of an energy-saving investment be written off against the taxable profits.

According to the scheme's website "The Enhanced Capital Allowance scheme can bring significant financial savings, in the short and long term, as well as improving a company's energy efficiency and its impact on the environment.

Business Link also points out that a range of other incentives are being used to encourage companies to introduce more green issues into their business plan.

The climate change levy applies an extra charge on firms which use electricity from unsustainable sources such as petroleum and coke or gas from a utility. However, there are exceptions, including energy from renewable sources or supplies from qualifying combined heat and power schemes.

The combination of these elements - businesses' willingness to adopt green practices, benefits from doing so and government encouragement - will lead more companies taking steps to save both money and the environment.