More and more companies are taking steps to become sustainable. Some have an environmental mission or green marketing plan, but those changes are increasingly out of necessity.
A new report from the Boston Consulting Group highlights two businesses in China and India, places people don’t think of as sustainable, that are great examples of the shift.
The Broad Group in China, one of the world’s largest air conditioning manufacturers, has developed machines that run on natural gas. Not only are they twice as efficient as electric air conditioners, they significantly reduce emissions because most of China’s electricity comes from coal.
Shree Cement in India is intensely conscious of its energy use, reuses waste products, and has even developed a way to synthesize Gypsum, an essential mineral with a shrinking supply, from byproducts from a power plant. Rather than being a money sink, these investments have helped it grow rapidly.
It’s about logic, not altruism.
As population and GDP grow, we consume more finite resources. Though we’re not in immediate danger of running out of most things; they are going to be harder to get at, and growing demand will make prices jump around.
This chart of a survey by BCG and MIT’s Sloan School of executives shows that the industries that depend most on finite resources are focusing more and more on sustainability:
That’s a big deal. In the past, sustainable investment was often just an opportunity to say “look how green we are!” Now, it’s viewed as an essential part of business strategy by the companies most affected by resource scarcity.
Early adopters and investors in sustainability will have important competitive advantage. When resources are more scarce and expensive, the companies that can recycle, reuse, and find alternatives are going to win out.
Read the full report at bcg.perspectives
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