There is little room for contention that making our industries green is good for the environment and pretty much our only hope for ensuring sustainability.
In the business circles, there has been a general assumption that environment-friendly initiatives are not good for the balance sheet and switching to sustainable business practices and embracing green industry innovations involves a considerable financial investment that does not come with a corresponding increase in profits. However, green initiatives embraced by companies around the world tell a different story that ecology and economy aren’t essentially mutually exclusive.
When done right, going green can help both the planet and your business. Here are some business-friendly reasons to embrace green industry innovation:
Eco-innovation drives growth
Eco-innovation, which means embracing environment-friendly business practices, has emerged as one of the major factors driving business growth. Statistics from around the world reflect that businesses that embrace eco-innovation register a 15% higher growth rate even when the growth charts of their competitors in the industry remain flat. What makes this growth even more interesting is the fact that a majority of these ‘green’ enterprises are small and medium-sized businesses.
New emerging opportunities
The revolutionizing of the business sector with green innovations has been a slow process but it is finally making its presence felt across business verticals. This has led to an overhaul of existing markets and the creation of new ones, opening up a goldmine of opportunities for green businesses.
Attract the interest of investors
Everyone with deep pockets today, be it banks, private investors or crowdfunding avenues, are inclined toward businesses with a sustainable roadmap. Putting your business on such a map is a surefire way of attracting the interest of such investors.
Stay ahead of regulations
Be it the National Green Tribunal or the State Pollution Control Boards, environmental watchdogs in India are relentlessly looking for solutions to curb the carbon footprint. With a business setup designed to embrace green practices, you can additionally avoid costs incurred in reactive efforts to implement such regulations.
Increase profit margins
While making the shift to green industry innovation may dent your capital in the beginning, a methodical and committed shift leads to greater profitability in the long run. Green practices lead to an elimination of waste to a great extent, bringing down operational costs and increasing profit margins.
Scope for innovation
Creating and sustaining a green business requires regular in-house auditing and careful scrutiny of current practices. This throws up opportunities to improve processes through the innovation of new products and practices.
Green industry innovation in India
As an active partner in the Paris Agreement, India has approached the topics of environment preservation, sustainable development, and green industry with a renewed focus. The circular style of the economy is gaining pace in the country leading to a significant scope for growth in the green sector.