Green Business Trends and What to Expect
Consumers care more than ever before about the environmental impact of the products they buy, and companies are incorporating green business trends in order to capitalize on this growing demand. As of 2014, "55% of consumers across 60 countries [were] willing to pay higher prices for goods from environmentally conscious companies... 71% of Americans at least consider the environment as a factor when shopping," according to a green industry report.
In addition to the revenue-boosting effect from 'going green', businesses can also appreciate some significant savings from reduced energy costs by incorporating sustainability and energy efficiency into their products, practices and operations.
Innovative & Renewable Energy
Renewable sources of energy, such as wind, solar, and geothermal, have been impacting commercial industries for several years, creating more sustainable practices across the board. Renewable energy and innovative methods of sourcing energy is now more mainstream in business-to-consumer markets as well. As in residential scenarios, businesses can offset their usage and costs by implementing renewable methods like solar paneling. Businesses are also finding more unique ways to generate energy -- one company is even turning food waste and sewage into usable energy!
Waste is the antithesis to green behavior, whether it happens with energy, products and supplies, or food. Feeding America® reports an estimated 70 billion pounds of food is thrown away each year in the United States alone. This food waste generates more greenhouse gases that carry a greater global warming potential than carbon dioxide. Many urban restaurants, grocery stores, and food producers are cutting back on waste by donating their leftover food to homeless shelters and food banks. Meanwhile, grocery retailers are increasingly redesigning their business models to reduce food waste, going so far as developing zero-waste stores and recipe-based food delivery services.
Energy Efficient Housewares
Green business trends toward energy efficiency are affecting the residential marketplace, particularly with home renovations and the choices homeowners make for a home remodel. Construction companies and providers of home services are offering eco-friendly options that homeowners prefer. Common examples of these popular eco-friendly products include new appliances with high Energy Star ratings, tankless water heaters, solar paneling, and insulated windows or window film. Many construction firms are also incorporating green business trends in their building and sourcing methods, such as using reclaimed or recycled materials for a variety of home renovation applications, instead of brand-new materials and fixtures.
Tech companies and corporate businesses can do a lot to reduce their carbon footprint, beyond simply adding a recycling bin and encouraging employees and customers to go paperless. Computers and other electronic devices use up a lot of energy, especially when they are left on after-hours and when moving screen-savers are running. Office-based businesses can easily implement a 'greener' approach with a policy of turning off the default screen-saver triggers, and asking employees to turn their computers and electronics off at the end of each day. For companies with the budget to replace older machines, energy-efficient electronics with high Energy Star ratings or EPEAT marks are available. Another popular employment benefit for technology and media industries in particular, is to allow or encourage telecommuting. This is also a green business trend, since commuting carries a significant carbon footprint for the employee, and employers spend more in energy and financial costs with larger office spaces.
Marketing and advertising is a cornerstone of virtually any business. Eco-friendly advertising trends and methods are becoming more popular. For example, some companies are choosing to advertise on new billboards that showcase the business while providing an ecological benefit, such as purifying the air or hosting an urban garden. Businesses are also reducing their use of paper products, while saving lots of money in printing costs by focusing more on digital marketing and online advertising avenues.
Moving forward, green business trends are expected to continue to develop with a focus on carbon recycling, green infrastructure, microgrids, the circular economy, and the B-to-B sharing economy, according to a 2016 report from GreenBiz. Progressively, these elements of eco-friendly business practices are becoming more of an opportunity for reducing risks and increasing revenue -- opening the door for mainstream investors to finance sustainable business growth.