How environment can impact an organizational performance.

Martin Bennett and Peter James looked at the ways which a company's concern for the environment can impact on its performance.

(a) Short-term savings through waste minimization and energy efficiency schemes can be substantial. 

(b) Companies with poor environmental performance may face increased cost of capital because investors and lenders demand a higher risk premium. 

(c) There are a number of energy and environmental taxes, such as the UK's landfill tax. 

(d) Pressure group campaigns can cause damage to reputation and/or additional costs. 

(e) Environmental legislation may cause the 'sun-setting' of products and opportunities for 'sunrise' replacements. 

(f) The cost of processing input which becomes waste is equivalent to 5-10% of some organizations’ revenue. 

(g) The phasing out of CFCs has led to markets for alternative products.
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