The document discusses whether going green means companies have to be less competitive. It presents opposing views that green measures increase costs but also responsibilities to society. A survey found that most companies now see green issues as important and that employees prefer green employers. The document outlines strategies like eco-efficiency and eco-branding for companies to gain competitive advantages from environmental practices. Going green is becoming less of a trade-off and more of a new opportunity for companies.

1. Green and Competitive
Ending the stalemate

2. The Dilemma
Does going green mean companies have
to be less competitive?

3. Opposing Views
Costly Responsibility
• Preventive measures • Social benefits
• Implementation cost • Social responsibility
• Non compliance cost • Sustainable growth

4. Traditional Views On Going Green
Stricter regulations mean higher cost
required to achieve compliance.
Environment concerns limit firm’s freedom
when coming up with innovations.
It raises production cost and generate no
profit to the business.

5. The Current Situation
Are there any changes from the
traditional view?

6. Survey Results
Say green issues have
58% become more important
to their organization
strategy.
*Source: KPMG Labour Market Outlook summer 2007 survey conducted on 1,000 HR professionals

7. Survey Results
Believe that employees
47% prefer to work for firms with
a strong green stance.
*Source: KPMG Labour Market Outlook summer 2007 survey conducted on 1,000 HR professionals

8. Survey Results
Of the companies have an
44% environmental policy in
place.
*Source: KPMG Labour Market Outlook summer 2007 survey conducted on 1,000 HR professionals

9. Green Energy Projected Growth
Market growth from 2006 to 2016
Biofuels 20.5 80.9
(In $US Billions)
Fuel Cells 1.4 15.6
Solar Power 15.6 69.3
2006
Wind Power 17.9 60.8 2016
Total 55.4 226.5
0 50 100 150 200 250 300
Source: Clean Edge, 2007

10. Change Factors: The 6 C’s
Costs
Capital
Competition
China
Consumers
Climate

11. The Green Advantage
Generate cost savings.
Promote innovation.
Command premium pricing.
Enhance the brand image.
Differentiate from competitors.

12. Putting It Into Action
What strategies can firms employ to
gain the green advantage?

13. Competitive Environmental Strategies
Lower Costs
Competitive Advantage
Environmental Cost
Eco-Efficiency
Leadership
Differentiation
Beyond Compliance
Eco-Branding
Leadership
Organizational Process Products and Services
Competitive Focus

14. Strategy 1: Eco-Efficiency
Savings through eco-efficiency practices.
This strategy generates savings in virtually
every firm.
It is an internal initiative as consumers will
not pay for environmental protection.

15. Strategy 1: An Example
Over 50% in savings by changing from
incandescent light bulbs to energy saving light bulbs

16. Strategy 2: Beyond Compliance Leadership
Acknowledgement from public and
customers for their efforts.
Substantial investment required for
certification and publicity efforts.
Beyond compliance practices can
give suppliers an edge over others.

17. Strategy 3: Eco Branding
Consumers must be willing to pay for
the ecological differentiation.
Reliable information about product
environmental performance must be
available to consumers.
Differentiation should be difficult to be
imitated.

18. Strategy 3: An Example
Switzerland hailed Toyota Prius as the world’s greenest
car. The Prius has sold over 1 million units worldwide

19. Strategy 4: Environmental Cost Leadership
Production of cost competitive
products with environmental
attributes built-in.
Radical product innovation such as
material substitution, packaging, etc.
Better product design results in more
efficient use of resources which
translates to lower price.

20. Strategy 4: An Example
Cost savings and waste reduction through packaging design

21. Strategy Framework Review
Boundaries between the strategies
are hypothetical.
Distinction however allows better
analysis and helps in finding
opportunities beyond the “low lying
fruits”.

22. Conclusion
Change factors have increased attention
on environmental practices
Being green can be a new competitive
advantage.
Firms can adopt different strategies to gain
the green advantage.

23. Questions
“We do not inherit the earth from
our ancestors, we borrow it from
our children.”
Unknown

24. References
Ron Pernick, Clint Wilder. (2007). The clean tech revolution. New York (NY)
Lucy Phillips. (2007). Go green to gain the edge over rivals. People
Management, 9.
Michael E.Porter, Class van der Linde. (1995). Green and competitive.
Ending the stalemate. Harvard Review, 120-134.
Renato J.Orsato. (2006). Competitive environmental strategies: When does
it pay to be green? California Management Review, Vol 48, 127-143.