• M&G Consulting


The Green Economy is an economic development strategy geared to growth but also to reduce the environmental impact it causes. In other words, it is concerned with developing the various activities in an eco-sustainable way.

Let's see in detail how the green economy can improve your company.

In recent years we talk more and more often about the Green Economy, understanding why the focus is shifting towards this business model can bring benefits to your company.

One example is the giant Facebook Inc., president Mark Zuckerberg said that their operations have completely switched to renewable energy.

This business model is becoming increasingly popular also in Europe, Italy is encouraging small, medium and large companies to invest in the Green Economy with incentives and bonuses.

Green Economy, economia sostenibile verde per aziende M&G Consulting - meg consulenze

1. What is the Green Economy

2. What benefits does it have for your business

3. The main objectives of the Green Economy

1. What is the Green Economy

The term Green Economy means a theoretical model of economic development that takes into consideration the production activity by evaluating both the benefits deriving from growth and the environmental impact caused by the processing of raw materials.

It is therefore a model that examines not only productivity but also the impact it causes on the environment, in order to limit the environmental damage caused in the processing cycle of raw materials: extraction, development, transport, etc.

Boomerang effect

Another fundamental concept for the Green Economy is to prevent and quantify (also in economic terms) the boomerang effect.

The production, distribution, extraction and more generally the transformation of a good or a service always have impacts on the ecosystem (even if not immediately perceptible and visible) and with the passage of time these effects will be sufficient to produce responses. which will affect everything that relates to the environment itself, including our business. This cause and effect mechanism is a real boomerang effect.

Let's see an example:

A company, in the Oil-gas sector, extracts and refines oil regardless of the environmental impact it has on the environment and without even considering the environmental impact that will be generated by the use of third parties of the fuel it produces.

After several years, however, this slow pollution of the territory undermines all those activities that are based on the good quality of the environment such as the agricultural sector, fishing, tourism, etc ... The consequences? These activities will suffer a decline in activity and consequently in revenues due to the change in the ecosystem: fish no longer reproduce as before, air pollution has led to global warming and agriculture suffers, tourists. they decide to go to healthier locations where pollution is not present.

A contraction of the economy will be created, the effects of which will initially affect the smaller companies and workers but then will consequently also affect the oil-gas company.

This example, perhaps a little extreme, clarifies the concept of the boomerang effect a lot.

Basically, it is assumed that everything we do has an impact on the environment, but at the same time it is possible to improve one's economy, optimizing processes, developing new technologies and in general trying to limit the impact on the environment as much as possible.

The Green Economy was born as a growth system in stark contrast to the old economic model. After understanding how much the traditional production model is no longer sustainable, both from an environmental and a human point of view, it was necessary to rethink the entire production process. The birth of the Green Economy has transformed entire industrial sectors.

2. What are the advantages of companies that choose the Green Economy as a development model

In order to implement a true green transformation of your company, it is necessary to start from the analysis of the actual and potential environmental damage that your company could cause. This analysis is the starting point from which to understand what actions can be taken to reduce the environmental impact.

For example, a company may choose to recycle part of the waste it produces to reuse it.

Let's see in detail the benefits that a company can obtain by thinking about sustainability:

  • Cost reduction: the implementation of sustainable practices increases the efficiency of production systems, and through the rationalization of resources, waste is reduced with a positive effect on costs.

  • Corporate reputation: consumers who are attentive to ecological issues are constantly growing and direct their consumption in this direction by choosing more and more products that have less impact on the environment.

  • Social value: the interest in environmental issues and consequently the attention to the health and safety conditions of its workers, guarantees the loyalty and motivation of its human resources.

  • Support for companies: the European Union and the Italian government provide many incentives for companies that choose to launch sustainable models or to modernize their systems in an eco-sustainable key.

Do you have a company and want to be greener? Discover our Verdanza page and follow us on social media!

3. I principali obiettivi della Green Economy

So let's summarize the key points of the Green Economy

  • Reduction of harmful emissions of CO2 and greenhouse gases, which are mainly responsible for pollution and atmospheric changes;

  • Reduction of company waste.

  • Increased efficiency with which natural resources are used (avoiding the excessive exploitation of non-renewable sources and using renewable ones to a greater extent);

  • Reduction of waste material and waste in production processes, with particular attention to reuse and recycling;

  • Prevention of biodiversity loss and support of natural ecosystems.

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