2008 Woodie Awards
The cost-effective side to being green.
Saving money is a benefit of College's greening efforts.
Alexander Richards
Issue date: 4/23/08 Section: Green Page
As the environmental and sustainability movement continues to expand exponentially, courting disciples from the most unlikely walks of life and industry, one must question why "going green" is becoming so universally popular.
It would be easy to say that the world has simply discovered its moral center, and the newfound commitment to eco-friendly business and living is essentially an outgrowth of a reawakened spirit of environmental citizenship.
In reality, however, many companies that profess an outward façade of environmentalism are actually "going green" for much more practical reasons. Due to rising oil prices, raw material costs, and federal regulation, going green is simply becoming cheaper. Practices that still turned large profits in earlier decades, like the relatively prosperous 1990s, are no longer efficient - economically or environmentally speaking.
Perhaps the most telling example of the practicality of greening is found in the agricultural industry. In 1995, the average price for a barrel of crude oil was $16.75. As markets neared closing on April 22, 2008, prices lingered dangerously close to $120 per barrel. Accordingly, profit margins for grocery chains plummet when oil prices rise as transporting goods from depot centers to outlet stores often occurs across thousands of miles. These profit margins are further reduced when farmers are forced to raise crop prices. This rise in price comes also comes as a corollary to rising crude oil prices as the production of pesticides, operation of farm equipment and refrigeration costs all require significant amounts of petroleum.
Accordingly, many grocers are refocusing their product lines on locally grown foods. On the one hand, this promotes a positive public image of local responsibility, while simultaneously cutting transportation and preservative costs. Simultaneously, many farmers are making the initial investment of replacing inefficient farm equipment in order to continue cutting costs in the long run.
It would be easy to say that the world has simply discovered its moral center, and the newfound commitment to eco-friendly business and living is essentially an outgrowth of a reawakened spirit of environmental citizenship.
In reality, however, many companies that profess an outward façade of environmentalism are actually "going green" for much more practical reasons. Due to rising oil prices, raw material costs, and federal regulation, going green is simply becoming cheaper. Practices that still turned large profits in earlier decades, like the relatively prosperous 1990s, are no longer efficient - economically or environmentally speaking.
Perhaps the most telling example of the practicality of greening is found in the agricultural industry. In 1995, the average price for a barrel of crude oil was $16.75. As markets neared closing on April 22, 2008, prices lingered dangerously close to $120 per barrel. Accordingly, profit margins for grocery chains plummet when oil prices rise as transporting goods from depot centers to outlet stores often occurs across thousands of miles. These profit margins are further reduced when farmers are forced to raise crop prices. This rise in price comes also comes as a corollary to rising crude oil prices as the production of pesticides, operation of farm equipment and refrigeration costs all require significant amounts of petroleum.
Accordingly, many grocers are refocusing their product lines on locally grown foods. On the one hand, this promotes a positive public image of local responsibility, while simultaneously cutting transportation and preservative costs. Simultaneously, many farmers are making the initial investment of replacing inefficient farm equipment in order to continue cutting costs in the long run.
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