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Going green is already a key focus for most growth-oriented companies, especially in the industrial sector. Certain trends make it clear that to be ahead in the competition, going green needs to be given the highest possible priority now, not in the future. Why?
Going green is something that investors are increasingly concerned about
Investments in which corporate environmental performance plays a key role are rising faster than ever. For example, according to the global research platform Statista, investments in which green credentials were one of the most important criteria exceeded USD 390 billion last year, while in 2019, it was just USD 70 billion.
This makes it increasingly safe to assume that not only is more attention from investors likely in the future but that every company that is at least a little bit more environmentally friendly already draws such attention. This is a considerable advantage because a glance at the statistics shows very clearly that details such as environmental friendliness serve to increase investor attention massively.
Changing tax policy
Even earlier, there was a lot of talk about the fact that from 2022 onward, manufacturers and importers in Lithuania will have to deal with rising pollution taxes. And now that time has come knocking.
This means that those who have not yet invested their knowledge, time, and capital in greening are starting to suffer much more than those who have already invested.
We have a clear example before us. Although, as in most areas, there is a transitional period with some concessions, the taxes on manufacturers and importers in Lithuania are gradually diverging. According to the Ministry of the Environment of the Republic of Lithuania, a tonne of non-recyclable packaging is already EUR 200-300 more expensive than recyclable packaging starting this year.
So when better than now to take action and make a change, knowing that delays will only cost more in time? After all, as the saying goes, the big things are in the future, but only if we work for them now.
Increasing customer focus
Incorporating ecology into your company’s daily routine is important because it is no less relevant to the customers who buy your goods or services. And it is essential to be aware of this even if the business itself does not work directly with end-users. After all, while you may not take ecology into account yourself, your business partners, for example, might.
The extent to which the public pays attention to and cares about ecology is well demonstrated by the use of plastic and environmentally friendly bags. For example, it was only recently announced that, according to Eurostat, the average EU-wide per capita yearly consumption of 100 single-use plastic bags is 2 to 3 times lower than five years ago.
Some of the world’s strongest economies are good examples. In Germany, per capita use of plastic shopping bags fell from around 60 to 20 bags between 2015 and 2019, while in Japan, surveys show that overall only 6% of the population has never used an eco-friendly shopping bag.
And if arguments such as a different attitude among consumers and investors or tax policy still do not convince you of the rapidly growing importance of going green for businesses, then I would suggest looking at the EU’s overarching strategy.
After all, the Green Deal is now the EU’s main new growth strategy for moving the EU economy towards a sustainable economic model. The Green Deal’s main objective is er Europe to become the first climate-neutral continent by 2050, with a cleaner environment, cheaper energy, smarter transport, new jobs, and overall better quality of life.
Let’s think about it, isn’t it important for us to be part of all this? After all, as the saying goes, he who leaves everything to chance removes certainty and turns his life into nothing but a pure lottery.
Gvidas Krolis, Bagfactory CEO
