Does it pay to be green? This question has been asked many companies looking at investing in environmental responsibility to deliver a competitive advantage.
A study of SMEs and their responses to the current requirements of environmental good practice was carried out in South Yorkshire in 2004 by the Sheffield University Management School.
The study aimed to assess the ability of SMEs to create a competitive advantage by adopting environmental good practice and making environmental improvements to their business. The main findings were that most organizations surveyed believed environmental issues to be affecting their business.
However, the meeting of these requirements was seen as a cost that was not transferable to customers in terms of added benefits and few organizations could show that it led to a competitive advantage.
Ten years later the research is starting to show otherwise but not from where you would expect. The significant awareness of global warming and environmental awareness has increased to the point where consumers are now demanding that companies ‘Go Green’
A study out of the Kiel Institute for the World Economy, tracked consumers’ willingness to pay (WTP) by kilowatt with traditional coal energy compared to clean energy and the results where staggering.
Countries such as Finland, Japan and USA are willing to pay significantly more for cleaner energy.
As consumers become ever increasingly aware of their environmental footprint, offsetting their emissions and selecting alternatives to traditional energy hungry appliances, they are demanding companies to do the same.
Companies like Purus Technologies believes that investing in ‘Green Technologies’ is not only going to be a competitive advantage for companies looking to differentiate themselves but soon it will be essential for businesses wanting to attract like-minded customers.
You can contact Purus on 1300 884 070 or visit http://purustech.blogspot.com.au/