All of this hype about “green” business can easily exhaust even the most dedicated environmentalists. “Green”, “eco-friendly”, and other environmental buzzwords were not in the lexicon of the average citizen until a couple years ago. In light of this fact, it’s no surprise that many businesses are incorporating these words and phrases into their products’ messages. “Green” has changed from an occasionally used word to a must have for many companies. Words are just the tip of the iceberg however. “Green” business practices have infiltrated all aspects of business and those truly dedicated are reaping big rewards.

A study published by Retail Systems Research (RSR), sponsored by Intel and the Retail Industry Leaders Association explains the benefits for those companies who are incorporating environmentally-friendly practices into all aspects of their business. As the report states, “green is rapidly creating a strategic advantage in ALL corners of the enterprise, and has become a major component of the planning for any new IT investment.”

According to the study, cost reduction is still the primary motivator for all of the companies surveyed, but those companies referred to as “Retail Winners” (retailers whose sales are already outperforming their competitors and grew by more than the industry-average 3 percent annually) are equally focused on the brand-building potential of eco-friendly strategies.

Retail winners are contrasted with “laggards,” companies who are generally underperforming. Retail winners:

“recognize that customers expect them to act more so than do their underperforming competitors, are more interested in lowering their carbon footprint, and are much more in tune with creating the image that they ‘care.’ They associate environmentally sound practices with their Brand image to consumers and the industry, and associate these practices with their ethical responsibility to the community in anticipation of stealing market share as the customer’s green demands grow.”

As the study makes clear, “green” can no longer be considered a fad. Let’s look at some of the statistics cited by the study:

• Last year, 53% of overall respondents identified the store energy costs as a challenge that could benefit from a green overhaul.
• This year 92% of all the electricity required to run a retail store’s POS systems, overhead lighting, backroom systems, mobile/handheld devices, signage, security systems ‐ not to mention the energy costs of heating, air conditioning, water, and refrigeration, where needed – has come into focus.
• 48% of surveyed companies consider “green initiatives” currently as strategic initiatives for their enterprise.
• Retail Winners are motivated more by ethical obligation, industry image, and brand identity than the average company surveyed.

So what does all this mean?

It seems that in just a couple of years the tide has turned in favor of “green” business practices. Although the survey was largely of North American companies, it doesn’t take a genius to realize that a new environmental consciousness has taken hold in the international business world. Question after question asked to companies in the RSR study shows that companies genuinely invested in reducing their environmental impact consistently report better earnings and performance.

At the same time Retail Winners are doing better financially by implementing green initiatives, they are also expanding the scope of their green practices in areas of business that were not previously considered for green improvements, such as IT, logistics, supply chains, and packaging.

I think it is fair to say that “green” business practices are finally winning the uphill battle against traditionally wasteful and inefficient practices.

For more information about “green” practices and their advantage for companies, go to Retailsystemsresearch.com.