Environmental Management Business Guide: How your Business is Impacting the Environment

Environmental management is an important part of managing a business enterprise with social responsibility. The environmental challenges posed by global warming and climate change have compelled business organizations to rethink their approach towards the environment and reduce their carbon footprint. The average consumers are increasingly conscious about the environmental impact of the products and services they consume. A business may stand to lose its market share if its manufacturing approach or its end products and services are detrimental to the environment.

Many business organizations are viewing the increased environmental consciousness as an opportunity to create a strong green appeal to the consumers. Businesses that follow good environmental practices and take specific steps to make a positive contribution to a sustainable planet are preferred by the consumers. However, challenges remain for a large number of businesses to reduce their environmental impact without compromising their business sustenance and profitability. Adoption of innovative green technologies can help to reconcile the conflict between business profitability and environmental preservation.

Benefits

Conserving Precious Natural Resources

One of the key goals of environmental management for a business organization is to identify areas where renewable or green substitutes can be found to replace non-renewable natural resources. Businesses that restrict the use of wood, paper, plastic, leather and other such materials that may have an adverse environmental impact can improve their reputation as a socially responsible business organization.

Efficient Waste Management

Businesses that find innovative ways to recycle waste products and minimizing non-recyclable waste can make a significant contribution to the environment. Using recycled paper, packaging and other materials can help to reduce the costs of business, while making a positive environmental impact at the same time. Efficient waste management systems are an important part of overall environmental management in a business organization.

Energy Conservation

Business organizations can opt for green building technologies for any new construction of a corporate building, store, warehouse or workshop. Even the existing building infrastructure can be modified to include efficient energy systems. Adoption of green energy sources such as solar panels can help to reduce the total energy costs of the organization substantially, while enhancing the image of the company as a green business.

Entering into Green Businesses

A report released by the U.S. Council of Economic Advisors states that the American economy will be driven in the next five to ten years by emerging businesses, including green businesses. Green businesses may be the next major business opportunity all over the world. A number of large and medium business corporations are already seizing the initiative and developing innovative green technologies and products.

Pitfalls

Lack of Expertise

Environmental management is still an emerging field, and many business organizations lack in knowledge and understanding about how they can reduce their environmental impact. Expertise in environmental technologies is limited, and it is not feasible for most companies to hire experienced environmental professionals to help improve the business systems and methods with respect to the environment.

Prohibitive Investments

Many large companies are deterred by the high costs of installing environmental management systems in their organization. For instance, the installation of solar panels to power a building can cost very high, while the energy savings will come in a trickle over a number of years. A majority of businesses are still unprepared to accept the environmental economics and its long-term benefits.

Competitive Compulsions

In highly competitive industries, a business organization cannot afford to opt for effective environmental management at the cost of increasing the prices of its end-products. It will be compelled to follow the behavior of the competitors and maintain price competencies in order to survive in the market. Many customers may be reluctant to pay extra for an environmentally beneficial product when they are operating on a tight household budget.

Lack of Institutional Support

The tax incentives, awards and recognitions for environmentally conscious business organizations are not able to cover the costs of green business adequately. Governments that are battling their own debt crises may not be in a position to incentivize green businesses to the desired level. This reduces the motivation of a business organization to consider green business alternatives.

Pricing

The cost of environmental management systems continues to be quite high because there is still not a widespread demand for such costly systems among business organizations. However, innovative waste and pollution management, energy conservation, water harvesting and recycling methods can be implemented on a smaller scale at an affordable cost. This can also help the organization to project itself as a socially responsible enterprise and win the trust of the consumers.

Environmental management continues to evolve rapidly with the introduction of new technologies and systems that are eventually going to be affordable for most businesses. Early adopters of smart green technologies can enjoy a distinct competitive advantage in a crowded marketplace. Consumers are increasingly supportive of businesses that are willing to reduce their environmental impact with innovative measures. Socially and environmentally responsible organizations are bound to achieve an edge in global business leadership in the times to come.