What Are the Benefits of Going Green for a Business?

Going green is the term used for the scenario where an organization or an individual starts adopting eco-friendly practices. If you’re curious about the process of creating solar panels and their environmental benefits, you can learn more about it by exploring how solar panels are made.

The problem with eco-friendliness is that it’s an umbrella term that can be interpreted in many different ways. For instance, doing business with local enterprises means going green, seeing how the carbon footprint caused by transportation is drastically reduced. Reducing the use of resources or using recyclable resources also means going green.

In most cases, going green means reducing your use of materials and consumption of energy, both of which reduce your overall costs. Still, this is not the only benefit of going green as a business. Here are some other perks that you should keep an eye out for.

Reducing Your Expenses

The roughest calculation of your profit can be made by subtracting your expenses from your income. In other words, by reducing your expenses, you’re increasing your profit. Other than this, you’re also reducing your dependence on cash and cash flow, which makes your business more resilient on its own. Being able to save more is one of the first symptoms of being more financially successful.

So, how do you reduce your expenses?

Turning your office into a more energy-efficient space is a way to reduce your power bill. Insulate the place so that you can heat it with less power. Replace all your incandescent bulbs with LED alternatives. When buying new equipment, pay attention to whether the appliances are Energy Star certified.

Reducing your dependence on electricity is not the only way for your enterprise to become more eco-friendly. Going for low-flow fixtures in your office bathroom and buying self-watering planters for the common area are additional ways to make your office space greener.

Another way to reduce your expenses is to reduce your reliance on office supplies like paper. Speaking of which…

Going Paperless

An average office worker will print about 10,000 sheets of paper every year. Now, try to imagine how many people work in offices around the globe, and you’ll start to get an idea of just how big this problem is. Using digital formats like emails and exchanging information through IM software can partially solve this problem. Aside from just being green, this method is also simpler, quicker, and easier to access.

However, offices spend tons and tons of paper on more than just memos. For instance, if your accounting is still using a paper-based model, printing and storage of invoices and receipts can be an incredibly paper-hungry process. This is an additional reason why account payable automation technology can help reduce your need for paper bills and further streamline this process. Since about 62% of all SME invoices are paper-based, this could make a world of difference.

Automating your accounting is also there to make your invoicing system more reliable and consistent. By automating, you’re minimizing the chance of missing a payment. This can help you avoid paying late fees and ruining your credibility in the eyes of your clients/partners.

Other than stopping your contribution to deforestation, other than saving money on countless sheets of paper, going paperless also solves your storage problems. Keeping all these files in one place no longer needs to take entire drawers and archives. Also, browsing through all of these archives becomes a much simpler task once you switch to a digital model.

Renewable Energy

Investing in solar energy is a great way to make a long-term plan for your enterprise. Other than just solving your power issue in a simple and green manner, you’re also making your enterprise more self-reliant. Just think about it, you no longer depend on the utility company but can, instead, produce the majority (if not all) of your power on your own. This is a huge milestone in your company’s struggle to become a serious player in the market.

The biggest problem with this perk is the fact that starting out on this path requires a massive project. Both solar panels and wind turbines can be incredibly expensive, and building them will not be easy. Nonetheless, the chances are that the government also incentivizes these efforts. While on this topic, it’s also important that we take a second to talk about…

Tax Credits and Deductions

There are so many tax credits and deductions that you could become eligible for if you decided to go green.

For instance, as an enterprise, you will need a fleet (or at least one business vehicle). If you buy an environmentally friendly vehicle, you could become eligible for a green vehicle tax credit. Some of these are:

• Alternative fuel vehicle refueling credit
• Alternate motor vehicle credit
• Biodiesel and renewable diesel fuels credit

Other than this, there are also so many green investment credits that could completely massively change your current financial state.

Even a green building (that you’ve chosen as your headquarters) can be eligible for a tax deduction. In other words, you could get a business space and turn it green. For this, you need to either own the building or be a lessee. Also, you need to get a certification that the energy saving will be greater than 50%. This last part is far from easy, but it’s definitely achievable.

Working With Local Businesses Reduces Traffic Pollution

Traffic is a huge contributor to pollution. Choosing who you’re doing business with based on their proximity is, therefore, considered an eco-friendly move.

Other than this, you can also incentivize your employees to pick alternative (greener) forms of transportation. Those who carpool should also get better parking spots. This way, you will indirectly encourage this habit in your staff. Who knows how many office friendships will start this way? Installing a bicycle rack in front of your office or offering bonuses (on top of their travel expenses) are just some of the many options that you have available.

Back to the topic of local collaborations, other than just benefiting the planet, it also strengthens the local economy. It’s quite straightforward why this is something that benefits absolutely everyone involved. Making friends in the community is great for your marketing, and local members of your potential customer pool just love to see local businesses collaborating.

In other words, portraying yourself as a local enterprise and collaborating with other local businesses is also a powerful PR move. This brings us to our next major perk…

Labeling Yourself as Green

Being a green business can also be quite effective from the standpoint of PR. Namely, as a green business, you are going to be more appealing to those parts of your audience that keep eco-friendliness in high regard. Keep in mind that this is a great thing to add to your ‘About Us’ page.

It also gives you a new, unique angle during your content marketing campaign. Coming up with relevant topics is often a challenge, especially past a certain point in your content creation. Offering new insights into eco-friendly trends within your own industry may help you to stand out. A lot of people are interested in this sort of content.

Creating a brand image that is seen green is a huge perk on its own.

In Conclusion

If there’s one thing that is clear, it’s that going green seems to be a superior way of doing business, regardless of how you look at the situation. From the above-listed, it seems that:

• Both customers and governments look more favorably on green businesses.
• Going paperless is cheaper and more convenient.
• Making your headquarters energy-efficient lowers your power bill.
• Producing your own energy makes you more self-reliant.

All of this means that, even when you decide to take the fact that going green means doing the right thing out of the equation, there are a ton of benefits remaining. In other words, you get to do the right thing and profit from it at the same time. It’s like having your cake and eating it too.