Why Go Green? A Clear-eyed Manifesto for the Anti-Tree Hugger

Put aside for a minute those arguments about environmental responsibility and doing the right thing. Silence your inner tree-hugger. There are some hard core, red-blooded reasons that you and your company should be considering the option of going green. Here are seven reasons to act:

1. You can increase your revenue. According to real estate studies cited in the 11/13 issue of NREI corporate users say they would pay a 3% premium for rent in a green building. In addition to charging more to your tenants or subtenants, you can also take advantage of government incentives and tax advantages and rebates from utilities.

2. You can reduce your operating costs. You can lower your utilities costs by investing in projects with a quick payback. There are simple measures you can take (such as installing LED lighting) which have same year payback, and other, more exotic measures which take longer but save you money and reduce maintenance costs, too. Some insurers (e.g., Novato) offer lower rates for green buildings.

3. It’s a hedge against energy cost volatility. This point is the companion to the one above. We all remember $4 gasoline prices and many experts predict greater volatility of oil prices gong forward. Goldman Sachs predicts oil will rise to $95 a barrel in 2010, an increase of about 25% vs. today’s prices. The reasons for this increase are simple: surging world economies mean greater demand for oil, increased volatility in the Middle East, and reduced production from OPEC.

4. Government regulation will require it. It’s coming and we all know it. There are major federal initiatives making their way through Congress (cap & trade, and the Kerry-Boxer bill) and some states have already passed tougher requirements (California’s new CALGREEN legislation.) Local building codes are changing, too.

5. Associate productivity increases (and they care about sustainability). Studies show that absenteeism decreases, turnover declines, and associates self-report greater productivity when working in green workplaces. These factors translate to lower labor costs for companies. Also, employees care more and more about their employers’ commitment to sustainability. In the war for talent, sustainability can be one of your secret weapons.

6. Your competitors are already doing it. The number of green buildings was up by 47% in 2009 according to USGBC and the pipeline indicates the number of certified buildings will quintuple in the next year or two. If you aren’t becoming more sustainable you are losing ground to your competition. How does that impact your brand? Your earnings and stock price?

7. It will help our country become less dependent on imported oil. The more we increase our energy efficiency and migrate to renewable and low carbon resources, the less we depend on a few volatile countries to supply us with the energy to run our economy.

Improving sustainability is one of the few win/win opportunities readily available. There are lots of arguments to be made for going green but if you’re one of the pragmatists who has resisted being swept up in a swirl of green euphoria please consider these real-world benefits and act now. It’s in your company’s best interest.