Friday, September 24, 2010

GREENING THE BUSINESS : THE ROLE OF RISK

Environmental causes are climbing quickly up the corporate priority list, driven by pressures from regulators, investors, competitors, aggressive non-government organisations, and even (in rare cases) the enlightened altruism of boards and executives.


Green business strives to:


Reduce energy consumption
. Energy efficiency is often closely associated with green IT – especially with electricity requirements of server farms and other large IT centres. However, energy efficiency has long been a target for companies in their eternal struggle to cut shipping, manufacturing, and other operational costs. This makes it a frequent starting point when companies begin promoting green business initiatives.

Manage hazardous materials. A multitude of government regulations restrict the distribution and use of hazardous substances, primarily concerned with their release – including emissions, run-off, and disposal. Manufacturing and utility firms may seem like the most probable targets, though companies across industries need to tightly monitor disposal of equipment, transportation-related emissions, and other operations that might release environmentally damaging materials.

Establish a safe and healthy work environment. Environmental factors constitute an important element of a corporation’s social responsibility to its labour force. For example, the US Department of Labor Occupational Safety & Health Administration (OSHA) requires that work environments be clear of hazardous materials. Such controls often have a direct and measurable benefit to the health and productivity of the workforce, so internal support should be reliable.

Minimise the use of resources. In many cases, this comes down to simple efficiency, but when dwindling supplies, waste disposal, and transportation impact are considered, it becomes an important conservational concern.

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