Green Economy and Corporate Strategy

Green Economy and corporate strategy

There are several business benefits to the companies that adopt “Green Economy” as the key theme of the business strategy. They not only become resource efficient but also gain financially. We will try to outline some of the business cases where companies have successfully tested the concept and its impact on the overall finances of the company.

Aviva and its “Green” agenda:

Aviva has started reporting the environmental performance similar to its financial performance. The fruits of this effort are being recognized globally. Aviva figures in the top 10% of socially responsible companies globally in Dow Jones Sustainability World Index and has been recognized by FTSE4 Good Index and has also been conferred the Carbon Trust Standard. Aviva recorded 5% reduction in their carbon footprint and on the financial front, the company recorded significant increase in its profits.

The initiative of reporting the environmental performance with a target to reduce emission has set a direction for other corporates to think and follow as to how win-win propositions can be created by decoupling environmental changes from the financial performance. Aviva also happens to be the member of the United Nations Global Compact, the United Nations Environment Programme.

In the words of the top leader of the organization Mr Lord Sharman, Chairman, Aviva:

"We feel that sustainability is sufficiently material to company performance to warrant disclosure, which is why Aviva attributes the same seriousness to reporting sustainability results as it does its financials"

JCB - the Corporate Strategy and Energy Management:

JCB is a reputed construction and agricultural equipment manufacturer producing more than 300 different vehicle types from dump trucks to tractors, employing about 7000 employees worldwide. All its UK facilities are ISO 14001 accredited and it has ingrained “Green” in its corporate strategy.

For the Cheadle site, company has taken an...