This is not the time to be green
Booms permit excesses and one of the luxuries we adopted when the economy was growing rapidly was to adopt a social agenda that ranged from corporate responsibility to green projects. It may have been fun while it lasted but now that belts are being tightened, these should be the first luxuries to go.
Even if these were genuine good causes, they rely on a sound economic base to pay for them. And if we do not shore up the financial foundations – corporate and national – now, there will nothing on which to resume building these projects in future.
But including the green agenda on the schedule of potential cuts allows a chance to review the efficiency and cost-benefit of schemes that have been born more out of pressure to adopt fashion than sound investment criteria. Annual reports are littered with pretty pictures of projects aimed at ticking the CSR boxes rather than paying their way. From recycling to alternative energy sources, projects have been undertaken that are more expensive than traditional methods or not even necessary.
There is already evidence that green was yesterday’s fashion, not least because the initial brownie-points gain from adopting the agenda has diminished now that it is so common – and since the value of projects has become so questionable. Yet firms that complain so readily about red-tape and bureaucracy have readily chosen to join this bandwagon with all the costs involved. Most green and social awareness spending should have been set against the publicity budget rather than other cost-centres.
The threat of recession ought to bring a resumption of reality. That is true at both boardroom level and in government departments. When cuts are being made they should start with the excesses. And when budgets can be eased again, only those green projects that meet conversional investment criteria should be restarted. This is not the time to be green.
June 24th, 2008 at 3:40 pm
At the risk of not having this response published, may I just say “what a load of ill-considered and hastily thought-out twaddle!”. I though I had encountered all the dinosaurs, but this rant is evidence that level-headed, 21st Century Man still has a few old beasts to despatch! … and I’m not even a Finance Director
Let me try to explain as clearly and (unlike the original post) calmly as possible… Greening your business makes commercial sense; a couple of case studies to illustrate.
1. We have recently signed up a client who has placed all their stationery business with us. We have switched all products that have a climate-friendly alternative to green (WITHOUT charging a premium since we guarantee to switch without increasing your costs) and by utilising the cost controls in the e-procurement hub we supply (for free also), we have reduced their annual spend from +/- £120,000 down to +/- £40,000.
2. We work with a global printer supply company with whom 2 years ago we switched a major plc in the UK to climate-friendly printers utilising ‘green’ technology and, without compromising print quality, have saved them over £7 Million per annum in their printing costs
3. The news channels today announced that all National Trust properties have switched to low energy lightbulbs (another one of those ‘faddie’ green actions!) and have calculated that they will save £500,000 per annum in their power bills.
I could go on as we have numerous corporate clients who are making QUANTIFIABLE savings by switching to green stationery, furniture, building cooling/heating systems, printers & print solutions, PC power control software, office water supply, etc., etc.
It’s about time these ‘financial experts’ woke up and looked beyond their prejudices; if they do, they will discover what many businesses, small and large, have already discovered - being climate-friendly is business-friendly.
And, by the way, what does Mr. Northedge have to say about the implications of the Companies Act 2006, Ss. 172 and 417 ss(5)? When implemented (which appears still to be Oct 2008) a lack of any CSR/Enviro policy will surely become a Gordon Brown fine/tax wheezes so not going climate-friendly will actually cost more!
I look forward to reading other responses to this thread… this is not a discussion that should be allowed to fade away quietly.