Why Are Some Companies Still Not Going Green?

Many companies have expressed their interest in adopting environmentally sustainable practices but some of them are still not making the eco-shift. These companies tend to be the SMEs.

The bottom line of a business is always profit. As environmentally friendly materials tend to be more costly, companies can either choose to decrease their profits or pass on the costs to consumers. Most companies would choose the latter, if there is a demand for it. However, according to Asiawide Print Holdings’s chief business officer, there is very low demand for eco-friendly paper products from the consumers. Hence, companies facing similar situations are not willing to go green because they are afraid of losing customers once product cost is increased. Moreover, it will cost an average of $5000 for a company to get its product line green-certified which can be financial taxing for SMEs.

In the midst of the haze situation, it is interesting to consider why there are companies continuing to cause environmental problems despite public outcry. Besides poor enforcement of rules and regulations by the Indonesia’s government, consumers and investors also contributed to the haze problem. Consumers are still buying their products and investors are continuing to invest in their stocks. Hence, there is no disincentives for these companies to stop their malpractices.

Solutions 

We need to find a way to increase demand for eco-friendly products. With enough demand from the consumers, the cost of eco-friendly materials will be reduced. Eventually, consumers will be paying competitive prices for eco-friendly products. Consumers must also be educated on the environmental consequences of the products they buy. Consumers first need to be aware of the companies that are involved in unhealthy practices. They then need to cultivate a habit of checking labels during shopping. For example, choose products that are stamped with Singapore Green Label. Collective effort is definitely more effective to get businesses reflect and change their operations for the better. Few months back where there were heavy coverage on the haze situation, consumers expressed dissatisfaction with supermarkets that carry Asia Pulp & Paper (APP) Group products as it was suspected to contribute to the haze. Soon after, large supermarket chains such as FairPrice and Sheng Shiong withdrew all APP products. Similarly, investors should only invest in companies that are responsible to the environment.