It’s time to stop crediting corporate sustainability efforts as acts of altruism. For big business, protecting the environment often means padding the bottom line.
Nike Inc. has come up with a way to weave more efficiently, reducing the raw material and labor time needed to make each shoe. That has kept more than 3.5 million pounds of waste from reaching landfills since 2012. But the good news doesn’t stop with the environmental impact. The company is spending less on transportation, materials and waste disposal.
The shoemaker’s “more environmentally conscious product has been a source of cost savings,” said James Duffy, an analyst at Stifel.
Those flimsy plastic water bottles sold by Nestle SA? The ultra-thin design has a smaller impact on the environment while pushing down costs associated with packaging and shipping. Amazon.com Inc. and Walmart Inc. have poured tens of millions of dollars into a fund that builds out recycling infrastructure, reducing landfill tipping fees and recovering material that could be sold as new products.
Tech giants have spent billions of dollars on solar and wind power, cutting greenhouse-gas emissions and energy expenditures at the same time. Alphabet Inc.’s Google, Amazon and Facebook Inc. are now some of the largest buyers of green power in America.
Turns out it’s not just easy being green—it’s also profitable.
“We’ve moved past this concept that business versus the environment is a tradeoff,” said Tom Murray, who advises companies on reducing emissions as Environmental Defense Fund, including Walmart, McDonald’s Corp. and Procter & Gamble Co. “The business benefits were always there, but more and more companies are going after them.”
The business case for going green has never been stronger as companies find ways to make more from less. Here’s a look at the ways corporate America is making environmentalism pay.
Lightweight Flights Cost Less
United Airlines Holdings Inc. has been making its planes lighter, driving down fuel use and costs. Airlines account for almost 2% global carbon emissions. Not even the in-flight magazine has been spared in the search for unnecessary heft: changing to a lighter paper stock saved almost $300,000 per year on fuel. United redesigned airplane bathrooms, switched out beverage carts and ended duty-free sales.
What it pays: United has saved more than $2 billion on fuel so far.