Businesses Embracing Environmental Sustainability for Bottom-Line Gains

Strategic Insights -

Business leaders are recognizing the potential for environmental sustainability to positively impact their bottom line, driving innovation and growth. This is evident in companies setting and achieving greenhouse gas reduction goals, increasing the use of renewable energy sources, and improving energy efficiency. The US Environmental Protection Agency (EPA) has identified companies like Baxter International Inc., General Motors Corporation, and IBM Corporation as Climate Leaders, achieving voluntary greenhouse gas reduction goals. As EPA Administrator Stephen L. Johnson notes, "EPA is working hand-in-hand with business to voluntarily reduce their climate footprints in cost-effective ways." The EPA's Climate Leaders Program has grown to include 79 companies, with 46 setting greenhouse gas reduction goals, equivalent to reducing emissions from 5 million cars annually.

Key Takeaways:

  • The EPA's Climate Leaders Program has achieved significant success, with 79 companies participating, including Baxter International Inc., General Motors Corporation, and IBM Corporation.
  • Companies like Whole Foods Market, Johnson & Johnson, and Starbucks have become part of the EPA's Green Power partnership, which has doubled in size since 2004.
  • British Petroleum (BP) plans to invest $8 billion in alternative and renewable energy projects over the next decade, with the potential to provide both financial and environmental benefits.
  • Over 50 utilities and businesses have joined the US Department of Energy (DOE) and EPA to craft an energy efficiency program to combat rising costs.
  • This energy efficiency initiative will develop an "energy efficiency action plan" and provide programs and research through electronic bulletins from DOE's Office of Energy Efficiency and Renewable Energy.

Statistics:

  • The EPA's Climate Leaders Program has successfully reduced greenhouse gas emissions equivalent to removing the emissions of 5 million cars annually.
  • The EPA's Green Power partnership has doubled in size since 2004, with purchases equivalent to removing the emissions of nearly 400,000 cars annually from the power sector.
  • British Petroleum (BP) estimates that the global market for alternative power generation could be worth $600 billion over the next two decades.
  • BP estimates that over 40% of carbon dioxide emissions come from the power sector.

Sources:

  • Environment Reporter, 2 December 2005, Vol. 36, No. 47.
  • US Environmental Protection Agency (EPA), Climate Leaders Program (www.epa.gov/climateleaders/).
  • US Environmental Protection Agency (EPA), Green Power Top 25 List (www.epa.gov/greenpower/partners/top25.htm).
  • British Petroleum (BP), Press Release (date unknown).
  • US Department of Energy (DOE) and Environmental Protection Agency (EPA), Energy Efficiency Action Plan (www.epa.gov/cleanenergy/eeactionplan.htm).
  • US Department of Energy (DOE) Office of Energy Efficiency and Renewable Energy, News Progress Alerts (www.eere.energy.gov/news/progress_alerts/).