Green companies are more productive

When sustainability is first brought up, many businesses express concerns about productivity and financials. Some executives are still under the impression that sustainable practices may translate into greater financial costs, such as more expensive materials, subsequent steps to prevent waste or more time-consuming practices.

However, new data from the University of California at Los Angeles and France's University Paris-Dauphine suggests this misconception is wrong. In fact, eco-friendly firms tend to be more productive. UCLA researcher Magali Delmas found that employees at green companies are more motivated, receive more training and have better relationships with their firms. This makes them more active when compared to workers at conventional businesses.

“Adopting green practices isn't just good for the environment,” Delmas said, as quoted by One Green Planet. “It's good for your employees and it's good for your bottom line.”

The average green firm is 16 percent more productive. The news source notes that sustainability is also viewed as a desirable company feature among potential employees. Not only do people work harder at sustainable businesses, more prospects also want to work there, which means eco-friendly practices can also help attract high-quality talent.

“These findings are consistent with studies that have argued that a firm's involvement in social causes (such as improvement of environmental reputation) generally enhances a firm's reputation, which leads to a positive impact on employee work attitudes,” Delmas added.

Going Lean to go Green

Business-minded executives can maximize this effect by also integrating Lean methodologies. Lean manufacturing revolves around the elimination of wasteful procedures. When used in unison with green techniques, Lean may help businesses reduce their environmental impact while also maximizing productivity and efficiency.

Lean has established itself as a means of improving business functions. However, not every company realizes how it can synergize with green efforts. By planning Lean and green movements at the same time, businesses can achieve both their efficiency goals and sustainability objectives in a single swoop. The key is realizing the strengths and weaknesses of both approaches and designing an implementation strategy that can utilize both Lean and green effectively.