What exactly is a green business?
Green businesses seek a balance between profit and the health of the planet - placing an emphasis on sustainable production and consumption. The criteria includes production life cycles, sustainable trade and labelling, resource efficency and management. As the U.S. Environmental Protection Agency dictates on the principle that "everything that we need for our survival and well-being depends, either directly or indirectly, on our natural environment".
Thus, green businesses heavily rely on transparency in relation to their social and environmental impact, and how the initiatives carried out align with the values publicly displayed. These might include carbon emissions, waste management levels and viable community-based efforts to tackle these prevalent issues.
Companies are undertaking the challenge to achieve 'net zero', especially with the implementation of renewable technologies that drastically accelerate their decarbonization efforts. This is further combined by circular-economy models are becoming prevalent among the production of sustainable products. An analysis made by McKinsey & Company argues that the adoption of this new innovative design, the number of annual sales could generate between $9 to $12 trillion by 2030. However, the profit created is simply a by-product of the intended purpose - meeting the needs of not only its people but the environment.
Being "Green" entails several characteristics:
- Reduced potential liability, as toxic emissions are almost entirely removed and the depletion of non-renewable resources are no longer utilized for energy production
- The engagement in new markets of sustainable policies
- The promotion of innovation and a new competitive edge
- Promote the pillars of corporate sustainability: the environment, social responsability, and the economic
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