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Is Going “Green” Profitable?

Is Going “Green” Profitable?

Photo: clipart.com


Some business leaders in Iowa claim reducing a company’s carbon footprint can run counter to increasing their profit margins. Others say sustainable practices save them money through reduced energy costs and more efficient practices. For many companies, sustainability comes in the form of LEED certification — a set of “green” building and efficiency goals that can qualify a project for financial incentives. But Mike Smith, who directs sustainability at Hy-Vee, says companies shouldn’t let LEED certification “drive the bus.” He says the supermarket chain has reduced energy costs by designing stores with natural light and installing doors on refrigerators, but other changes, like a storm-water cistern in Waukee, were less cost-effective.


Some companies have been slow to adopt environmentally-friendly business practices, citing profit margins and high up-front costs. Smith argues businesses should recognize climate change as a force that impacts their supply chain.


Smith said a grocery company, like Hy-Vee, depends on the stability of the agricultural system, which is directly impacted by increasingly unpredictable weather patterns. Smith spoke at a sustainability forum in Des Moines with representatives from Wellmark and Integrated Power Corporation.

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