Sustainable development means that the development for the present generation should be done in such way that it does not affect or compromise the ability of the future generation to meets its need and requirement, it does not mean that the present generation should compromise their quality of life but they should find better alternatives of doing things which will be beneficial for both, the present generation and the future generation. Green Business Strategy is a crucial method to achieve sustainable development.
There is a need of protection of environment for the sustainable development as the environment plays a vital role in the existence of life, the environment is degrading at a vast rate due to the increase in pollution level which due to industrial pollution, cutting of forests at a fast rate, use of the plastic which is non-biodegradable, emission of greenhouse gases which is causing global warming and the depletion of ozone layer etc. All these activities impose a great threat on the health of the human, other livings things and the environment1.
Achieving sustainable development through Green Business Strategy
During Industrial revolution, it was assumed that the environment was able to absorb all the waste of human industry i.e. that human only had a limited impact on the environment, so we could do whatever we want without needing to consider the impact, people assumed energy, water and air to be cheap, infinite and easily accessible so there was no need to conserve and the business and population could grow forever, this thinking gave rise to the environment degradation through industries which has increased at tremendous rate now and to tackle this the concept of sustainability came in.
Green Business Strategy means the manufacturing of green products by the industries with a view to have a positive impact on the environment i.e., to create product with less energy and resources, a company with green business strategy have green principles with innovation and major decision making and have sustainability in core business strategy. According to professor Renato Orsato there are four competitive environment strategies which enable a firm to be greener and gainer at the same time which are as follows2.
Types of Green Business Strategy
Eco efficiency – It is about doing more with less and with lower environmental impact i.e., to reduce the amount of resource or to trim out the waste in product, low-cost product.
Beyond Compliance leadership – In this firms go above and beyond the environmental activities of their competitors, it can reduce reputational risk which helps in reduced cost of capital or generate goodwill.
Eco-branding – In this firms sell products and services that are differentiated based on their environmental qualities. In this one can actually see a green product and customers are willing to pay for environmental features.
Environmental cost leadership – In this firms sell products and services that are both low harm and low cost.
Blue ocean strategy – In this firms create a new unexplored market space in which it is unchallenged, in this you have room to grow without competition for a while.
Examples of Green Business Strategy
IKEA
It’s the world largest furniture retailer operating over 400 stores in 49 countries. It designs home furniture at affordable price. It’s a do it yourself assembly. IKEA has replaced polystyrene in its flat packs with recyclable plant based material. The company also provides sustainability report that communicate their activities. Lastly, it satisfies expectations of consumers for low cost and expectations of reduced environmental harm and thereby uses a sustainability focus to keep its product costs low which we call an environmental cost strategy3.
Pocheco
It makes business envelopes or ecovelopes on the philosophy of “Nothing is lost and everything is transformed” I.e., it keeps its cost low through sustainable processes. They have a solar roof and rain capture system for plantation and toilet use, all this helps them to save 200,000 euro per year and they also have twelve beehives. They use renewable material to manufacture envelop which are 100 % recyclable and for each tree they plant three more trees and there are no solvent or heavy metal used in ink. They filter ink and glue residue through bamboo and a reel is used to pack envelops while transporting and even encourages the customers to do the same. Raw material reduction, energy conservation and water conservation help them to save and earn much higher than others and we know this strategy as eco-efficiency4.
Conclusion
Environment degradation which is the result of industrialization and urbanization is the most important aspect to be considered right now as when it comes to choose between planet or industry, we have to undoubtedly choose the planet as without it there will no people, no business, no poverty, no industry i.e. in short nothing at all therefore sustainable development is the need of the hour and our future depends on our decision of leading towards a sustainable life or not and for that the each and every industry should have to follow the sustainable method of production to have a positive impact on the environment and we have to prepare the present as well as future generation equipped with all such skills and tools from now onwards to prepare them to implement this forever.
Written by Adarsh Singh
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