Is it expensive for businesses to go green? Being green is no longer a cost of doing business; it is a catalyst for innovation, new market opportunity, and wealth creation. The idea that a renewed interest in environmental management will result in increased profitability for business has widespread appeal.
What is the cost of going green? The International Energy Agency today put a figure on the amount it will cost to go green, and it’s a lot: $45 trillion. Even when you spread that amount over the next 42 years, it’s still more than $1 trillion annually, or more than the GDP of many industrialized nations.
What are the disadvantages of going green for businesses?
- Takes more time. Implementing a green business model may not be a quick and smooth transition for a company and its employees.
- Substantial initial expenses.
- Data risks.
- Complex business model.
- Finding new suppliers can be hard.
- Consumer backlash.
Why is it difficult for companies to go green? Sustainability costs money. It’s cheaper to use chemicals in foodstuffs, and not bother with sustainability. That’s the challenge for green businesses; their products and services are going to be more costly, and the gains are going to be more long-term than immediate.