Green is good

“The point is, ladies and gentlemen, that greed, for lack of a better word, is good. Greed is right, greed works. Greed clarifies, cuts through, and captures the essence of the evolutionary spirit. Greed, in all of its forms; greed for life, for money, for love, knowledge has marked the upward surge of mankind.”

The quote is from Wall Street, the classic movie from the 1980’s, and Gordon Gecko is speaking. The corporate raider eloqently captures the de facto truth established in our corporate mindset. Economic growth and development is powered by the desire to earn greater profits, thus forcing individuals, institutions and companies to constantly improve productivity and efficiency to create maximum value at a minimum cost.

Greed, for lack of a better word, is the fuel and grease that keeps the machinery going. Simultaneoulsy, on a global scale we are also starting to understand that some costs are not easily measured in monetary amounts, likethose associated with the greenhouse effect.

For example, lower cost transportation does not necessarily translate into lower greenhouse gas emissions. Governments around the world are therefore struggling to come up with good incentives for lower emissions that will fit in the capitalistic mindset that our corporations live after. Most of us understand that something needs to be done, but also admit that it is hard to get going before our business cases also include the hard “cost” of contributing to the degeneration of our planet.

Government mandated emissions-reporting is a first step towards putting the environmental aspects on the agenda of free market economy actors. The French Decree for example, requires companies operating transports in France to get a grip on their environmental footprint. More countries are expected to follow with similar legislation.

As with all externally imposed challenges, whether it is in the form of an economic recession, unforeseen disasters or new legislation, companies learn to adapt. Shippers that take on the challenge will also find solutions to minimizing the emissions their transports produce, even within their context of being for-profit.

Working with Primelog, companies can gain an advantage by:

• Acquiring the data needed for reporting
• Analyzing the information to find the specific legs of transportation that cause excessive emissions
• Acting on opportunities to improve, for example: optimizing loads, choosing the best transportation modes and/or even re-shaping the supply chain network

The takeaway: Don’t be afraid of new challenges. Maybe someday we will realize that “Green is good” as well – also from the corporate perspective. The pursuit of a greener planet can drive cost-saving innovation and change, given the incentives are right and effective.

Magnus Molin
R & D Director
magnus.molin@primelog.com