TRANSFORMING THE

ECONOMY: WHY
COMPANIES GO GREEN?
Camila Grandas Tavera (3643926)
July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 1
 Table of content
1. Introduction
2. Effects of environmental crisis in global economy
3. Green Business
4. Why companies Go Green?
5. Study Case
6. Conclusion
7. References

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 2
1. Introduction
- Companies are being pressured to become more sustainable, consumers are
asking for greener products, corporate costumers are requiring suppliers to
adhere to green criteria.

Todays Sustainable
business Sustainable
pathway business
practices practices

Focused on a quick -Quick wins A bigger win for

wins for business - Innovation projects business and a win for
-Systems change society
Adapted from: Business Going Green

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 3
 2. Effects of environmental crisis in global economy
Environmental Issues Business Consequences

Climate Temperature rising, sea level rises, Bring down the current emissions
change changes in ecosystems. levels in 80 % .

Demand for energy:

Emissions of carbon dioxides due to the
Energy - Competitive on energy use
dependency of fossil fuels
- Increments in energy prices

Contamination from the materials The cost of producing waste is likely

Waste
extraction to make goods. to increase exponentially.

Water usage will be thoroughly

Water Demand for clean water
examined.

Land use and Control in land use, and activities

Deforestation, agriculture
Biodiversity impacts in local biodiversity.

Pollution Air, chemicals Control over air emissions

Adapted from: Business Going Green
July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 4
 3. Green Business

Figure 1: Green measures in business life cycle Figure 2: Green business classification
Source: Kabiraj et al., 2010
July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 5
 - Global environment pressures and public
awareness
- Capital markets acceptance
Drivers of
Green
- Ensuring market demand for clean tech
business products or services
- Creating environmentally- friendly market

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 6
 4. Why companies Go Green?

Risk minimization, revenue, and image

Compliance
protection.
with
Government, local Community.
regulations
Cost and Risk

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 7
 4. Why companies Go Green?

Profitability
Improve Competitive advantage
competitiveness
Costumers, Investors
Innovative

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 8
 4. Why companies Go Green?

Social obligations and values

Social Social good
responsability
Society
Independent

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 9
 5. Study Case
- Acciona successfully led a strategic shift towards
sustainability.

- Focus: Renewable energy, water and infrastructures.

- Pioneer in the construction of eco- efficiency

buildings.

- It reduces the energy needs to 44% of those of a

standard buildings, the rest being covered by
renewable energies and thus saving 129 tones of CO2
emissions per year.
July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 10
 6. Conclusion

- Environmental friendly businesses provide a

competitive position in the industry. As business
continues to do more with less, they will have a
long lasting growth. There is necessary a
transformation towards sustainable practice,
renovating economic structures, technologies and
institutions.
July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 11
 7. References

Arenas, D., Fosse, J., Huc, E., Business Going Green. Institute for Social Innovation, 1-
97.
Bansal, P. and Roth K.: 2000, Why Companies Go Green: A Model of Ecological
Responsiveness. Academic of Management Journal 43 (4), 717-748.
Kabiraj S., Topkar V. and Walke R., 2010, Gong Green: A Holistic Approach to
Transform Business. International Journal of Managing Information Technology (2) 3, 22-
31.
OECD/Europian Commission/ Nordic Innovation Joint Workshop, 2012, The
Future of Eco-Innovation: The Role of Business Models in Green Transformation.
Langelinie All 17, Copenhagen, Denmark.

July 4th, 2017 Lecturers: Dr. Lutz Laschewski, Dr. J. Becker Environmental Sociology 12
Thanks!