That's the view of the authors of a new business report that shows positive environmental policy, as well as helping supporting a sustainable planet, increases share prices.
Charities such as Greenpeace and others have been campaigning for decades for companies to take on greater responsibility, or Corporate Social Responsibility, as it has become known, when it comes to environmental action.
Many observers have long thought this pressure from activist non-profits along with the popular consumer support that is often generated is the only way that profound and lasting positive environmental change will occur throughout the world.
That change needs to occur amidst the business sector that has so much responsibility to reduce greenhouse gas emissions that have been shown to impact on climate change, as well as limit other negative environmental action that causes intense damage to the planet.
Ways that companies can show a commitment to the environment include limiting the damage they do to our oceans and natural landscapes, preventing deforestation and conserving water, foodstuffs and other natural resources especially natural energy resources…
They can achieve this by reviewing their supply chains and their energy policies. These environmental priorities include the need to invest in environmentally friendly energy solutions, particularly wave, wind and solar power.
Now a new report confirms that such moves are not just good for ethical, moral reasons and environmental ones but also good for business. Stock values rise when companies disclose green information, a UC Davis Graduate School of Management survey has revealed.
The study finds that it pays to be green, as companies open about their carbon reduction strategies quickly see their share prices soar. Authors concluded that investors prefer to invest in environmentally friendly businesses…
If company bosses cannot be motivated by the thought of saving the planet then the report shows carbon reduction strategies, across a wide range of industries can increase the value of a company - especially for smaller firms that experienced the biggest share price increases in the report, averaging 2.32 per cent increases in the short term.
The report shows that the fears of those business leaders who feel that environmental policy is bad for business are just hogwash and according to this report have no basis in reality.
In contrast, the view that businesses have nothing to fear from making progress in environmental terms, again has been expounded by environmentalists for many years. In fact, the report suggests that those companies who invest in the environment are likely to garner major financial dividends for their commitments…not just in terms of branding and general consumer support but company share value.
And that's great news for everyone because successful businesses support jobs and provide all kinds of valuable investments in communities.
In environmental terms the reminder that progress is being made with regards to the business outlook on the environment was confirmed by Greenpeace and Facebook’s announcement before Christmas that they will collaborate on the promotion of renewable energy, including encouraging major utilities to develop renewable energy generation.Other features of this historic agreement are a commitment to develop programmes that will enable Facebook users to save energy and engage their communities in green energy decisions.
It's a fantastic move bearing in mind the communications and networking powerhouse that Facebook represents…and it's worth noting that this came about only after a two year sustained campaign by Greenpeace as part of its global Unfriend Coal Campaign that enlisted online activists to persuade Facebook to power its data-centres with clean energy instead of coal... Another victory for the never to be underestimated Greenpeace.
More firms need to take up the challenge along with Facebook and examine their environmental policies as well as start actively prompting environmental friendly policies amongst their business associates.
From supply chains to energy commitments the message is clear from this latest business management study: going green will help your business not hinder it…