The turn of the 20th century saw a decline in harsh environmental impacts due to the increased consumption of pollution-reducing alternative products. As a result, the development of green technology in the 1990s brought forth solutions for manufacturers to create products that are considered environmentally friendly.
Green Technology can shape the vision, thrust, and goals of a company. Typically found in its Environmental, Sustainability, and Governance (ESG) statement, potential stakeholders are keen on directing their investments onto companies that employ or produce green technologies.
All the attention towards green solutions from manufacturers, companies, investors, and even the government has made green technology both an increasingly popular and widely adopted concept in this day and age. Based on a report by the United Nations in 2018, $2.9 trillion have been directed towards solar and wind power sources since 2014 and global investments in renewable energy and green technology processes have surpassed $200 billion in 2017.
Green Technology may be utilized in recycling wastes, purifying water, creating clean energy and conserving natural resources. Take for instance the case of Starbucks Corporation. A study made in 2014 revealed that 70% of the company’s emission came from the purchase of electricity used to power their stores. The company has since been working to redirect its power sources to renewable energy encompassing its global store operations, global supply chain and of course, corporate offices. Moreover, this resulted in the company’s increased investments in wind and solar energy. These would include a 140,000 acre solar farm in North Carolina, which would be equivalent to powering 600 Starbucks retail stores, and a wind project investment in 2019 intended to provide power for 116 select stores in Seattle, Washington and Illinois.
The increase in investor interest and support for green technology may be realized through Social Responsible Investing or SRI. Investments through this channel may alternatively be known as green funds, SRI funds or ESG funds. It is important to note though, that the tern ‘green’ may have several connotations, interpretations and applications and the variance may differ from industry to industry. Hence, when investors take interest in green technology initiatives through their respective ventures, it is encouraged that due diligence be adopted to confirm the validity of a certain company’s claim on green policies, standards and accomplishments.
In summary, green technology’s goal is to protect the environment, restore damage from past practices, and sustain the earth’s natural resources. Green technology is a concept that seems to be an essential part of business practice as well as human pursuit to create a more robust living situation for all, as well as the generations to come.
