To coincide with green day, a major survey was undertaken by 48 of Ernst and Young’s entrepreneur of the year candidates asking them specific questions on their business approach to environmental issues.

More than 60% of those surveyed saw climate change as a vital strategic concern. Nearly half of them had budgeted at least US$1 million for investments to the company’s green activities and climate change investments over the next five years, with 6% of those surveyed expecting to spend close to $20 million during the same five year period.

So what are the reasons for companies taking such a stronger stance towards climate change and green business activities? Not all of this is down to a moral conscience with 67% seeing ‘green’ as an opportunity to enhance their company’s competitive position. Other reasons included brand enhancement, gaining new customers and enhancing efficiency.

For businesses that don’t see this as a priority, Lord Chris Smith, chairman on the UK’s environmental watchdog has some green advice. Last year the Environmental Agency fined 284 companies for not complying with government regulations and this year they are on the lookout for more rule-breakers.

Keen to promote positive reasons for greener business, Smith showed that shares of the top environmental performers in the oil and gas industry beat less environmentally conscience competitors by 12%.

It seems there is no choice for businesses now other than to go green. In order to meet government regulations and avoid hefty fines as well as compete with their eco-conscience competitors, companies must brand themselves as green making changes to their technology and daily business activities.

Picture from HubPages

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