Will Green Companies Survive the Economy?
Saturday, October 25, 2008 at 02:05PM By Andrew L. Shapiro and David Gottesman
If your company is responding to the financial crisis by cutting forecasts, scaling back operations, or slashing jobs, greening your business may not seem as high a priority, especially if your sustainability strategy calls for new capital investment. Yet today's economic turmoil should shine new light on what really makes a business sustainable (the nearly spontaneous combustion of huge institutions founded 100-plus years ago will do that), while differentiating true leaders from charlatans and copycats. Here are some thoughts on what will change, what won't, and how to stay the course.
How will the downturn and credit crunch affect green business?
What will change: With the current focus on bailout and recovery, the green hype of the last year is sure to wane. Many of the unsubstantiated "me too" green campaigns we've seen in recent months will go away. And the tolerance of superficial environmental activities—which has been eroding amid increasing consumer, government, and media scrutiny of corporate greenwashing—should slip even further as priorities adapt to a challenging economic reality. This is just fine; the green space has become saturated with undifferentiated initiatives and misleading messaging that can undermine the many credible, substantive efforts out there. This crisis will allow companies that are making real investments in sustainable innovation to gain competitive advantage.
What won't change: Downturn or not, the macro trends driving green aren't going away. It pays to keep them in mind whether your company is making changes, proceeding with caution, or continuing full steam ahead:
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