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Reports suggest that from 2007 to 2009, eco-friendly product launches increased by more than 500 percent. More recent surveys have found that two-thirds of senior management see sustainability as a revenue driver, and half anticipate that green initiatives will present a competitive advantage. This striking change in the corporate mindset over the last ten years reflects a developing consciousness that environmental responsibility can contribute to growth and differentiation.

Supporters of green companies argue that it’s more efficient to go green than to continue adding toxic chemicals to the atmosphere and the environment overall. However, challengers dispute the environmental claims of some “green companies” as exaggerations and have raised allegations of greenwashing (see Chapter 6 for further information), where a company is claiming to be green when its practice suggests it is not.

To appreciate the advantages of a green business, you need to understand what the term means. If a company makes a determined attempt to decrease its negative environmental impact, it can rightly claim to be “going green.” Typical measures include starting recycling and reusing procedural programs, as well as buying green products and services. Most countries have laws that order environmental compliance to varying degrees. For some companies, going green can indicate anticipating future regulation and getting ahead of the curve. The EPA launched an Action Agenda in 2020 with wide-ranging plans to decrease carbon emissions, promote sustainability, and provide enticements for being ahead of the “green curve.” (Go to www.epa.gov/sites/production/files/2016-07/documents/ej_2020_factsheet_6-22-16.pdf for details.)

In the following sections, I define what the term “green” means for a company: managing externalities and following the 3Rs (reduce, reuse, and recycle).