Chemical Technology June 2015

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Chemical Technology • June 2015
According to Edward O Wilson: “The great
challenge of the twenty-first century is to
raise people everywhere to a decent stan-
dard of living while preserving as much of
the rest of life as possible.” With unemploy-
ment at a record high of 26,4 percent, and
with constant price hikes and electricity
shortages stifling the South African econo-
my, how can going green benefit business,
decrease costs and, coincidentally, save
the planet?
While big business might not be overly
concerned about the effect that its actions
has on the environment, it does care about
its bottom line – so why not implement
eco-friendly practices that will protect the
environment and enhance profits? Many
green practices save businesses money by
reducing overall operational costs, such as
the decreased use of water and electricity
or the use of green cleaning products, which
are highly concentrated and more effective
than traditional products.
In an ongoing effort to thwart climate
change, the South African legislature has
passed carbon emissions tax legislation.
As was confirmed in the National Budget
speech delivered earlier this year, this
legislation will require that all corporate
businesses pay carbon tax as from January
2016. Businesses that do not prepare for
this reality will face severe taxation, nega-
tively impacting on the profitability of the
business. Formulating sustainability plans,
and implementing sustainable practices
now will ensure that the level of taxation is
minimised in the future.
Going green in the office also has the
added benefit of creating a healthier work
environment for staff. This encourages a
healthier workforce, meaning less absen-
teeism and increased productivity. In turn,
again, this positively affects the business’
financial performance.
While decreasing operational expenses
alleviates some pressure, increasing
income would facilitate greater business
success. By repositioning a company as a
sustainable organisation, greater market
share can be achieved. It must, however,
be ensured that the organisation does not
sell itself as green, while it is really only
‘green-washing’. Should the company’s
non-effective ‘green’ practices be exposed,
the negative effect on the reputation of the
business will be devastating.
How can businesses go green? Purchase
from green suppliers, instil an organisation-
wide energy and water saving culture, re-
cycle, use environmentally friendly cleaning
products, decrease paper usage, update
office equipment with greener options and
consider alternative energy options, to
name but a few green avenues. A great way
to determine the best approach is to hire
the expertise of a consultant to conduct an
energy audit. Although the business may not
be able to implement all of the suggested
aspects immediately, the data could assist
in formulating a plan of action.
It is possible to improve an organisation’s
green scorecard, without compromising on
profitability. In fact, in practice, using the
balanced scorecard to ensure sustainabil-
ity shows great benefits, after all: “Every
profession bears the responsibility to un-
derstand the circumstances that enable its
existence.” -
For more information please contact
Green Worx on +27 11 708 6626, at
or visit
.
The financial benefits of green business: improving an organisation’s green scorecard
FOCUS ON SUPPLY CHAINMANAGEMENT