The topic of green economy has been a popular one over the recent years. One of the reasons for its popularity is that the resources of the planet are diminishing rapidly, and the way people use them contributes significantly to the climate change.
As the number of problems increases, governments, regulators, consumers, and environmentalists are becoming more and more active and demanding.
If you’ve been in business for a while, you are well aware of how government can have an influence on the way you do business. The good news is that today, governments in most western countries are promoting a green economy, and are offering tax incentives to encourage development and use of alternative energy, eco-friendly transportation, waste-reduction technologies, green buildings, water, and energy conservation initiatives. Many local governments are also working on creating trade policies that encourage local development and other sustainable projects.
This happens in part because many of the companies are becoming activists. They are no longer simply following what the governments demand from them, but also participate in policy development and offer leadership when it comes to green initiatives.
Many of the people, who are passionate about the planet, are very successful and educated. Most of these people own shares in a number of companies. Because of this, in recent years, activist shareholders have been able to influence many of the businesses in steering towards becoming greener and stopping unsustainable activities.
The institutional activism of shareholders is also on the rise. Many of the influential activists are demanding that businesses disclose their environmental records, let auditors inspect their energy use and labour practices.
Finally, many of the consumers are changing too. For example, many consumers now understand the importance of decreasing their thermostat temperature, turning off devices at home while not using them and turning off the lights. People today are looking for ways to save and be friendlier to the planet at the same time, which is a very positive change.