Green is good for business!

Published by Karim | Filed under Uncategorized

Green is good for business

If you’ve been reading my blog then you know that I often promote a sustainable urban structure; and if you’ve been reading the news, watching TV or just breathing, in the past decade, you know that I’m not alone in doing so.

I heard a comment not too long ago that really cracked me up. It went something along the lines of “Karim Boulos is ‘too granola’ and therefore anti-business”. What?!
I guess the fact that I have an MBA and am the Executive Director of External Affairs at the John Molson School of BUSINESS isn’t enough. I guess the fact that I moved to allow terraces to remain open year round to help bars and restaurants isn’t enough. I guess the fact that I have simplified the process for street closures for public events that attract people to the City isn’t enough either…and I could go on.

To anyone who believes that thinking green or ensuring sustainability means being anti business, I say it’s time to wake up and smell the 21st century. The 3 pillars that define sustainability are social justice, respect for the environment AND economic feasibility. Major industries all over the world are realizing that embracing sustainable practices is more than just a new trendy ‘green’ marketing ploy. While there is some opportunistic greenwashing going on, I believe that the leaders of industry have discovered that ‘Green is good for business.’

Still not convinced? Let’s look at this VERY simple illustration.

Let’s say you own a retail clothing store on Ste-Catherine Street, in my district of Peter-McGill. You buy your clothes from a manufacturer or a distributor and sell it to the general public at a price adjusted to cover costs and generate a profit. But let’s say you take on some sustainable initiatives in the way you run your store.

First you switch to compact fluorescent energy saving light bulbs which use 75% less energy and last 10 times longer – lighting is a major factor in retail displays and generally is the most significant factor in energy use – by switching light bulbs you just helped reduce your energy bill by 75% on lighting, and thanks to how much longer they last, you need to buy fewer bulbs, lowering expenses yet again.

Next you reduce the packaging of your products. Packaging has a lot of hidden costs, plastic changes price based on the cost of oil, as does paper, cardboard and Styrofoam, all of which require a lot of energy to produce and transport. You’ve just saved some more money…

Then you eliminate plastic and other single use bags. Even though buying bags in bulk seems inexpensive, the cost rises with the price of oil, not to mention the delivery charges. Plus, offering a low cost reusable shopping bag can be a new revenue source for your business, and if people like your bag, they will carry a branded product of yours with them every time they go shopping. Not sure it can work? Have you been to the SAQ lately?

Next you promote public transportation, or a shuttle along Ste-Catherine that transports people to and from your store. A car can carry 5 people on average, and usually people travel with far fewer passengers. Promote a free public shopping shuttle on Ste-Catherine and that can transport 40-50 people every 5-10 minutes, all of a sudden the lack of parking isn’t such a factor for shoppers any more.

So, those simple adjustments resulted in reduced operating and product costs, allowing you to generate a greater profit. In addition, you promoted a transportation service that attracts more shoppers to the city because you relieved their anxiety about finding or paying for parking. And by implementing these painless measures you’ve made a positive social and environmental contribution to the world, which, in case you haven’t noticed, appeals to a younger and more environmentally-conscious clientele (that will shop in your store!)

For some of us, becoming more ‘green’ may mean changing old habits, but for the younger generations it will just be a way of life. We know that successful business people know how to anticipate the direction their industry is headed in - and are the first to get there.

So for anyone who still doesn’t think that green is good for business, and don’t believe in sustainability…. I hope you’ll reconsider - your clients already have!

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