In honor of Earth Day, we decided to take a look at whether going green can play a role in a business’s overall risk management strategy. Here’s an overview of ways you can make your business practices more eco-friendly while simultaneously minimizing the risks to your operations.
Using Less Energy = Lower Overhead Costs
Cutting water and energy costs often requires an upfront investment from businesses: from buying new light bulbs to changing air filtration and heating system, setting up green infrastructure can require a significant commitment of funds.
In the long term, though, going green has the potential to save a business significant money on energy costs. If done right, savings from implementing green projects can help lower your company’s operating expenses, which in turn helps you improve your odds of succeeding in various ventures. The result? Lower overall business risk.
Choosing Non-Toxic Office Space = Fewer Workers’ Compensation Claims
Building or furnishing your office with non-toxic, eco-friendly furniture, carpets, and light fixtures may cost more money than going with less eco-friendly options. But buying green (or choosing to house your firm in a certified green space) can benefit your bottom line by contributing to your employees’ overall health.
Chemicals from building materials can cause a number of serious health conditions (most people have heard of Mesothelioma, a form of lung cancer caused by asbestos). If your employees can demonstrate that they contracted such a condition from your workplace, you could be on the hook for costly Workers’ Compensation expenses, which could make your coverage costs skyrocket.
Promoting Biking and Green Eating = Fewer Health Insurance claims
When the Affordable Care Act goes into full force next year, many small-business owners will be required to provide health insurance for their employees. Considering that health insurance costs are among the biggest expense many employers face, savvy business owners are looking for ways to lower their healthcare obligations.
Promoting green practices such as biking or walking to work and eating fewer animal products helps reduce employees’ carbon footprints while simultaneously improving their health, which saves you money on overall healthcare costs.
How Is Your Business Celebrating Earth Day?
Do you have any plans for celebrating today? We’d love to hear about them!