Green companies tend to crack efficiency first
26 januari 2011
Today’s Financial Times covers a special report ; ‘the connected business’ on supply chain management. One of the articles in this report is titled: “Green companies tend to crack efficiency first”. Several supply chain managers, and software producers state that greening is often a consequence of supply chain improvement processes. It is efficient companies that tend to be green, not green companies that tend to be efficient. In other words: an economic efficiency drive may result in greener chains.
I think that by and large this is correct. Economic thinking is dominant in businesses; therefore (supply chain) managers are used to taking economics as a starting point. Green improvement often turns out to be an unexpected surprise. A bonus. However, I believe that more and more companies are learning to include greening in the starting point business case. The rising costs of resources will hit most P&L’s: a focus on greening will help to optimize the resources intensity and mix. Thus economic and environmental performance are likely to be two objectives of supply chain improvement programs.
Moreover, it is clear that many green champions identify new business opportunities in which greening offers unique economic possibilities. Today’s Financieele Dagblad covers an article about an investment by DSM venturing in SkySails. SkySails sells huge kites to ship owners in order to reduce fuel use, thus costs. Would a less green company than DSM have identified such new business opportunities? My thesis: it is not good enough anymore to be efficient while green by coincidence. Tomorrows business arena will require companies to be both efficient and green.
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