greenwashing

What Motivates Companies to Make Environmental Choices? The Bottom Line

Without a federal cap-and-trade program or a national clean energy standard, why do some companies evaluate and reveal their environmental impact? Because it makes good business sense. The “triple bottom line” — which measures success with an eye toward finances, the environment and social impact — is beginning to merge with the plain old bottom line. Saving money means increasing efficiency, and increasing efficiency leads to better environmental decisions.

This trend is seen with such companies as FedEx, which has announced environmental targets to lower emissions. Similarly, UPS is trimming its jet fuel use. Lessening fuel consumption, for both companies, improves the bottom line. Businesses that take such steps are often lauded for their environmental awareness, but does the bottom line — even as it now blends with the triple bottom line — deserve kudos?