Hybrid Dynamic Gold
Hybrid Dynamic Gold
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US $38.00
Views from green to gold
An Eco-Advantage mentality, with the support of the right control tools, a focus on the redesign, and a culture of environmental care, the basis for turning green to gold. But the real action lies in strategies that create value, the green to gold Views.
As any business strategy, our green to gold Views goal of reducing the disadvantages of a company faces (the cost and risk) or increase the pros (income and value intangible). Unlike many others, however, these works do not sacrifice responsibility in pursuit of profits - or earnings in the exercise of responsibility. Our WaveRider companies offer tests every day to do good and you can be symbiotic.
We have assigned the eight gold green Views from our study of surfers in the two-by-frame of the strategy of two shown above. Not surprisingly, the greenest business efforts to date have focused on the picture below left. Cost reduction is extremely low risk, easy to sell internally, and often pays back quickly. You can give a competitive advantage. But our research suggests that by focusing solely on the cost side, many companies are missing opportunities to generate wider Eco-Advantage. Most companies still do not have implemented all the works - they're leaving money on the table.
1. Eco-Efficiency
Reducing pollution and waste is good business. Even highly efficient companies are surprised to find savings that had been overlooked before. More than three decades, 3M continues to find new ways to cut costs through its program 3P Pollution Prevention. Many changes can be very simple. STMicroelectronics, for example, putting in large air conditioning ducts, allowing the air circulation fan to run more slowly. The fan energy now uses 85 percent less. In just one year, with $ 40 million invested in the changes like these, the company saved $ 173 million.
Sometimes the pursuit of eco-efficiency can skip past the elimination reduction pure and simple of a process or resource. Rohner Textil, once produced its fiber dyeing, weaving the same way as everyone else in the industry. For the fibers enough strong enough to knit, would cover the wire with chemicals, which had to be washed after creating sewage problems. While searching for a way to reduce the use of chemicals, Rohner realized that the moisture makes the fiber stronger. So the company now bypasses the chemical coating and simply not dry thread so far, leaving moisture in the fiber. Rohner cut a step, shortening the other, eliminating chemicals, reduced energy use and reduce costs. A good day at the office of the eco-efficiency.
Rohner efficiency improvements have led to worker productivity by up to 300 percent in the last 20 years. During a vicious downturn in its industry, Rohner, unlike many other companies, remained profitable.
2. Eco-Cost Reduction
Efforts to reduce the direct costs of the environment, such as discharge rates or regulatory proceedings may also return big dividends. DuPont has saved billions in pollution control, and that's just the measurable cost of waste. In one case, the court rejected from the company production line of 25 lycra volume percent to less than 10 percent. Focusing on the reduction of stored materials, reduced costs of landfills, and released $ 140 million in marketable products. It also meant the company could delay construction of another plant, the savings of many millions more in capital expenditures. Waves trimming organic waste and overflow spending can save money and in many ways.
3. Value Chain of Eco-Efficiency
Companies that are largely for environmental benefits and tools to use and the life cycle are often ways to reduce costs through their value chains. The game is to try to capture that value, which can be a difficult task. In Chapter 4, we talk about an area that companies are very effective - distribution. IKEA and other things from their trucks through Smart package and product design, and save money.
4. Eco-Risk Control
With increased transparency, the risks to a company and its marks can come from anywhere. An important part of the goodwill is linked to corporate reputation. If a supplier distant landfills or used in a river children, the main customer, with an international brand, it may be the one paying the price.
Waveriders identify potential risks and act on it soon as possible. When McDonald's pushes back on their supply chain to reduce the use of antibiotics in chickens, or request the documentation to ensure that livestock has no mad cow disease is to reduce the risk of contaminating your brand. Intel spends millions to send their hazardous waste some developing States United by what can be disposed of properly. Why? Intel does not rely on the waste management system in some countries where it operates. And company officials know they will be blamed if something goes wrong.
Waveriders get ahead of the regulations before they get stricter. BP began its Clean Cities program and sold cleaner-burning, low sulfur fuels, in part, to get ahead of stricter laws on air quality. "The driver was that regulations sulfur would come, "Chris Mottershead BP told us." Instead of keeping a regular schedule, we decided to go early and try to profit from the market. "
Anticipating the regulations can put a company in a position to qualify for a lower cost than its competitors. Some companies have even gained an advantage competitive pressure for tighter controls. Remember, it is often the regulatory burden on that matter.
5. Eco-Design
The redesign processes and products to reduce waste and pollution is a big part of Eco-Advantage. Note also that a lot of profit potential can be outside the factory gates or doors of its own facilities. Helping customers reduce their environmental problems can enhance customer loyalty and attract new sales. Reducing energy use of a product or toxicity can also add value to the customer. As Johnson Controls, which sells complete systems management energy companies to find ways to charge customers may benefit lower.
6. Eco-Sales & Marketing
Marketing of green qualities of the products can boost sales. When Wausau Paper introduced a new brand extension "out of home products - towels, paper hygienic, and the like - first line of certified products with Green Seal, an NGO specializing in environmental product labels. The company then ECOSOFT renamed the Green Seal product, putting the right certification in the name. In an industry growing only 2 to 3 percent annually, Wausau sales in this market jumped 44 percent in the first two years.
In fact, Wausau took an unusual route marketing field focusing squarely on the environmental message. The products that scream "green" to the exclusion of other qualities often die on the shelves. As Shell learned with pure gasoline, a product often must be positioned the attributes of others first before selling the story of the environment. Green, we've found, often best used as the third button. "
7. Eco-defined new market space
Environmental Vision can conquer new markets and value innovation. Toyota set out to redefine the car XXI-century and come very close. Many customers are now looking for a hybrid, not a mid-size car, and you will pay a substantial premium or wait months for a Prius in particular. For these consumers, there is no substitute.
Looking for the environment defines the space of the market may lead companies seem distant. Take John's recent incursion Deere in renewable energy. The manufacturer of tractors in motion a business unit to help farmers harvest wind energy. Deere will provide financial support and consulting. This may seem a strange way, but we see it as an interesting game. A company known for providing farmers with the tools they need is offers to help them survive and find new sources of income. That is the value of innovation!
8. Intangible Value
Most companies are more valuable than tangible assets, and in some cases much more. Brand equity - corporate reputation or, more generally - can be worth billions of dollars. Any threat that the value has to be taken seriously. GE to BP to Wal-Mart, a growing number of companies have launched campaigns to create a green element in your brand.
Copyright © 2009 Daniel C. Esty and Andrew S. Winston
Author Biography
Daniel C. Esty, co-author of Green to Gold: How companies intelligent use Environmental Strategy to innovate, create value and generate competitive advantages (Published by John Wiley & Sons, Inc., 978-0-470-39374-1) is the Hillhouse Professor Yale University and director of the Center for Business and Environment at Yale ( www.yale.edu / CBEY ). Author and editor of nine books and dozens of articles, Dan is one of the world's leading experts in environmental strategy with twenty years experience working with companies of all sizes and in many industries worldwide. He served as a senior U.S. official Environmental Protection Agency in late 1990 and currently Chairman of Esty Partners Environmental ( www.EstyEP.com ).
Andrew S. Winston, co-author of Green to Gold: How Smart Companies use environmental strategy to innovate, create value and generate competitive advantages (Published by John Wiley & Sons, Inc., 978-0-470-39374-1), reports some of the companies leaders in the world on how to take advantage of environmental thinking. It is also a highly respected and dynamic speaker, exploring the business benefits of going green audiences around the world. Andrés previous career includes corporate strategy at Boston Consulting Group and management positions in marketing and business development at Time Warner and MTV. View www.andrewwinston.com for more information.
About the Author
See www.EstyEP.com and www.andrewwinston.com for more information.