Green is the new gold. Companies have found that embracing an environmentally friendly stance is good for business as this wins over like-minded customers. But going green is a huge business in its own right. The Wall Street Journal assessed that the worldwide market for carbon emissions permits has boomed from 700 tonnes of tradable carbon credits—given to companies that pollute below their carbon allowance levels—to over 2,600 tonnes in a span of two years to 2007. As this translates directly to profits and tax savings, the incentive for reducing emissions becomes enormous.
In the food processing industry, the risk of air pollution runs throughout all processing stages. As a company’s track record in green initiatives can be a crucial performance indicator, multi-nationals are beginning to see the value of running a green supply chain. To help companies make the most out of greener supply chain networks, ILOG has added a new application in network design and planning solutions. An extension of an existing suite, LogicNet 6.0 XE helps companies assess their carbon footprint and how current processes impact the environment. Asia is fast becoming one of ILOG’s biggest growing markets, says Foo Jong Tong, general manager of ILOG Asia Pacifi c. Demand from the region, excluding Japan, is growing by about 28 percent on average each year. Foo estimates that 85 percent of this demand comes from Asian and local companies. Quantifying the trade-offs between production, warehousing, transport costs and service needs helps supply chain managers act to reduce emissions that can then be traded as credits with less efficient companies. Companies can not only assess their corporate green objectives and comply with environmental regulation, but also find a new source of profit in carbon emissions trading. Good business cents indeed.
