Nerve Endings Firing Away

Earth Day passed by not too long ago and all sorts of green promises were made. However, encouragingly enough more and more private companies are beginning to see the value of going green. Not only because it makes a good public relations statement but also it affects the way they choose to do business that directly affects their bottom line. We have often lamented that companies will choose to go green only if it makes a profit and seems that we may be approaching that tipping point. The encouraging factor that makes it such an exciting prospect is that often large conglomerates or business affect not only their bottom line but also the respective properties of their suppliers, customers, and their employees. Wal-Mart recently announced an interest in becoming environment-friendly.

Scott Lee, CEO of Wal-Mart signed an agreement that will make the behemoth company spend at least $500 million toward “reducing greenhouse gas emissions, build more energy-efficient stores and reduce packaging waste.” As Amanda Grist, reporter for an online environmental magazine Grist says, Wal-Mart’s sheer size and influence that makes it a prime target for attack on everything ranging from labor law reform to wasteful consumer spending, also helps to make it a powerful force for good for the planet.” Microsoft also recently announced plans to install solar-powered energy cells that would produce enough power for 500 homes. Such green ventures by companies should not only be encouraged but also subsidized by the government. If businesses can get huge subsidies and tax waivers for bringing as little as 100 jobs to a region as a service to the citizenry then of course our planet certainly deserves as much.

Large private companies can exert tremendous influence. If you have read Thomas Friedman’s The World is Flat, then you probably are aware of the manner in which Wal-Mart revolutionized the supply chain and increased productivity manifold. By its sheer size and ability to be the topmost client to many vendors, it drastically altered the way those businesses functioned. It literally rammed efficiency down their throats. Similarly, it can choose to enforce environmentally friendly standards from their suppliers which will eventually trickle down to the consumer. Scott adds, “Wal-Mart’s size enables us to help create markets for clean technologies that exist today, but don’t yet have fully established markets.” But in the same breath he also adds, “If Wal-Mart started using or selling those items all of a sudden, there would be enough scale that those would be viable alternatives,”

For example, a Wal-Mart store somewhere in rural Texas has installed a huge windmill that provides for 5% of the energy requirements of the store. The windmill in the parking lot attracts even the curious from afar. Of course, the fact that they are driving all the way to see an energy-conserving appliance is ironical. But the fact is that people are curious. Environment-friendly appliances aren’t weird looking. The consumers are often perceived as shallow and disinterested toward the environment but honestly, they haven’t been offered the choice yet. You don’t buy the Apple iPod because it is the cheapest MP3 players around (and it is not); you buy it for the cool factor. All the conservation and green movement needs is a little cool and distancing from appearing too liberal or confrontational. And of course, help from companies like Wal-Mart and Microsoft gives it the fillip that it needs.