Green
business
At the time of writing this article, the international conference
on global warming and climate change is being held in Bali, Indonesia.
Governments, civil society and lobby organizations are discussing
measures to be taken to adapt the world economies to reduce emissions
of greenhouse gases, believed to be the major factor causing the
global climate changes that we are witnessing all around us. Also
in Ethiopia we experience the consequences of the global changes
that are taking place as we witness changing patterns of rainfall,
more severe and frequent periods of drought as well as flooding.
While factors influencing the weather are mainly of a global nature,
local dynamics play an important role as well, more especially in
the form of deforestation. As a result of natural resource degradation
and erosion, the highlands are no longer able to hold back the rainwater
as they used to, resulting in flooding in the lower parts of the
country.
As we celebrated the beginning of the new millennium just a few
months ago, Ethiopia has taken the initiative to plant trees, millions
of trees. This initiative is to be applauded and measures need to
be taken to make sure that this will not be a stand alone project
but that it will become a sustained effort to regenerate some of
the forests, which covered this land in the not too recent history
and help remove carbon dioxide from the atmosphere.
Reducing greenhouse gases by planting trees will not only be beneficial
for Ethiopia but will have its effects beyond its borders and is
indeed an initiative, supportive to global interests. But more needs
and can be done. Even though we are not a major industrial nation
in comparison to the world’s giants, like the USA, Europe
and China, that doesn’t mean we don’t have to pull our
weight in adapting our industrial practices in the direction of
reduced carbon emission, environmental friendly practice, clean
production and effective waste management. There is in fact no time
to waste to pull up our socks and become serious about the relations
between production, waste and pollution, affecting not only our
land but the global atmosphere, which we are using as a natural
resource. Failing to do this will not only leave us with a polluted
environment but will also negatively affect export, which we want
to see grow instead. Just like it is no longer possible to export
products which have been manufactured using child labour, it will
become increasingly difficult to export products that have been
produced using environmentally unfriendly technology. Global environmental
policies will transform the way economic activities impinge on the
natural world and no business will be untouched. Thinking about
environmental impacts of business and the effect of environmental
policies will become integral to business strategy. Ignoring these
dynamics will result loosing markets and thus loosing economic growth
opportunities. It is as simple as that. We need thus realize that
the natural environment is part of the commercial environment and
businesses will do themselves little good by disputing the need
for action on environmental issues, while informed consumers will
have no problem switching to another brand in response to environmental
unfriendly production processes. Brand image and status can be greatly
affected by environmental practice and policies.
Businesses can respond to the focus on environmental issues in several
ways. At a minimum, managers should conduct an “environmental
audit” of the ways in which the company interacts with its
environment. This begins with a review of all the company’s
solid wastes, liquid wastes and gaseous emissions. Managers should
then examine the lifecycle of their products, researching where
the components of the product end their lives and how the uses of
the product affect the environment. Do they lead to wastes or emissions
that could be reduced by different designs? Could transportation
or packaging be reduced? Does the disposal of the product damage
the environment? Companies should also review the environmental
history of their raw materials. For example, are wood products obtained
by logging tropical forests? Are minerals extracted in a harmful
way?
Carrying out an environmental audit does not force a company to
take immediate action but the company is now aware and can begin
planning to adjust its production processes. The sooner an audit
is done, the more time there is to respond. Many of the issues raised
are unlikely to be anticipated, so time to think strategically and
respond carefully can make a great difference to the eventual costs.
In fact, it can allow the company to see ways of turning possible
problems into profit opportunities. For example, waste products
are often inputs for which a company has paid and is not using.
Reducing them can save costs, at least partially offsetting the
costs of waste management. If waste products cannot be reduced,
they can be sold and used as input for other products. Recycling
components also has profit potential. If components are designed
to be recycled and reused, materials costs will fall while the environmental
image of the company is raised. The reuse of toner cartridges for
printers is a good example. The costs of reducing environmental
effects may be much less than they first appear and there are sometimes
profitable opportunities associated with waste management. Many
governments now also give financial incentives for environmentally
friendly innovations, opening up opportunities that can help both
companies and the environment. The time is now for Ethiopian industries
and companies to strategically think in this direction and search
for these opportunities. Failing to do so will in the longer term
result in isolation and losing the markets we are trying to connect
to.
Reference: Geoffrey Heal – Environmental disaster:
not all bad news. Financial Times, 2001
ton.haverkort@gmail.com
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