So What's The Progress On Global Companies' Adoption Of Environmental Strategies?
A new report by the international consultancy McKinsey reveals ecological strategies from companies around the globe are beginning to be integrated with prioritized strategies.
The study, published in the McKinsey Quarterly, points out that the majority of businesses around the globe included in the review are making the environment part of their risk strategies. The change is also reflective of business executives’ association of the climate with business opportunities.
Some 40 percent of the companies McKinsey surveyed consisted of finance and manufacturing companies. And some eight percent of the companies are in energy, transport and mining. Of all the surveyed companies, 50 percent are in the process of incorporating climate change into their company's overall strategy.
The ‘greening’ activities range from product development, investment planning to purchasing and supply management. A total of 70% of the interviewed company officials cited brand protection and building as their reasons for 'going green'.
The most interesting point by far is no doubt is that there were no notable differences between Third and First World companies’ strategies. This might be because the companies included are the top ranking, blue chip companies only, but nevertheless that's significant. It underscores that changes are taking place. A good example is the Kenyan airliner Kenya Airways and Kenya Airports Authority, which both have started tree planting projects in an effort to offset harmful emissions from their aircraft.
Those companies that are revealed as trying to find opportunities in environmental activities are mostly involved in adopting technology that enables them to produce in a more eco-friendly way. Take the Kenyan sugar miller Mumias Company for instance; it is adopting Japanese technology to use bagasse (the sugarcane waste) for creating energy.
This way the sugar miller is able to shut down diesel powered energy systems. The company has turned the costly investment into a business opportunity by selling energy to electricity distributor Kenya Power and Lighting company. That's a great initiative and Africa is high on the list of continents that is overturning seizable portions of its energy systems due to big schale projects of a similar nature.
Bio: The author of this report, Angelique van Engelen, is a freelance writer who runs Amplified Green, a blog about micro green issues and macro perspectives.