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Sustainable = Green + Profitable

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prabhakar_deosthali
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The true green energy
prabhakar_deosthali   8/15/2012 7:33:34 AM
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In my opinion while talking about the solar energy or any such alternate energy we must consider the total enrgy spent on producing the equipment for such alternate enrgy generation products. For example the manufacturing of the solar panels or the wind mills itself consumes a lot of fossil fuels. More the proliferation of these technologies more will be the consumption of the fossil fuels to supply the equipment for the enegry generation.

We need alternate technologies for solar or such alternate energy generation which are "green" all the way through.

Douglas Alexander
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Re: Measuring profit
Douglas Alexander   8/14/2012 11:16:37 AM
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@Bolaji, Good question. At the Engineering Level, development costs can be tracked by using project numbers. Usually, a Top level number like 2002 might represent an overall product development and adding a pre assigned suffix like -003 and -004 might represent Cad and Assembly respectively. So 2002-004 on a time card would show the hours of a engineering efforts by type. The different departments are assigned an hourly rate and after each employee has submitted time cards to their managers, the managers aggregate the hours by project and forward to finance. As the product efforts dedicated to Green development are tracked, finance can track their costs. If each operation in the company touches green tech records hours, the finance can either expense the costs under R&D or include any materials and direct labor into the COGS for accounting purposes. The impact on sales may or may not be detectable, but going greener from an environmental viewpoint is good marketing fodder and where regulatory mandates are served, then going green is just the cost of doing business. If you product is similar to your competitions at roughly the same price, then all other things being equal, if you gain market share, you could consider green as your edge and easily justify the added expenses...if any. If going green reduced your cost of materials or recovery, then the benefits will be immediately obvious. Finance will pick up the delta in COGS pre and post green.

Bolaji Ojo
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Measuring profit
Bolaji Ojo   8/14/2012 8:35:02 AM
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Douglas, I wonder how CFOs determine whether their efforts in green are contributing to profit?

stochastic excursion
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Stock Keeper
Re: Re : Sustainable = Green + Profitable
stochastic excursion   8/13/2012 2:38:33 AM
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Generally the product life cycle tends toward a greater sustainability as time goes on.  The free market, as it minimizes costs, will generally minimize negative impacts of production on its resource base.  Government too has an important role as we can see, as it chooses what infrastructures to develop that are truly business-friendly.

Ariella
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Supply Network Guru
Re: Sustainable = Green + Profitable (+ Humane)
Ariella   8/12/2012 7:40:04 PM
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@cryptoman Yes, as the motivation is usually monetary, I can see that happening.

Cryptoman
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Re: Sustainable = Green + Profitable (+ Humane)
Cryptoman   8/12/2012 1:18:30 PM
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@Ariealla The environmental risk of losing forests for installing solar panels can be an issue in developing and third world countries. If the stakes are high enough in renewable energy in such countries, wildlife and forests can easly be compromised. I know of many cases where the forests were destroyed in order to build luxurious apartment blocks in the Middle East, for example. To me solar panel farms are no different. If there is a financially strong enough incentive to destroy forests, this usually happens. Sad but true...

Ariella
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Re: Sustainable = Green + Profitable (+ Humane)
Ariella   8/12/2012 10:53:01 AM
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@Cryptoman very intersting. Have any forests been cut down for solar energy harvesting? That would be a concern, as well as counter-productive if one's goal is to maintain the enviornment by setting up a clean energy source. I never thought about the aesthetics involved. Perhaps that is something for engineers to work on: solar panels that maintian full function without diminsihing the curb appeal of where they are placed. 

Edited to add: there's an article on solar power in today's NY Times

anandvy
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Re : Sustainable = Green + Profitable
anandvy   8/12/2012 1:31:46 AM
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@Douglas, thanks for the post. Solar panels can be used not only to generate electricity but also to stop water evaporation. In India solar panels were placed on a .75 km stretch of a canal, thus saving land costs as well as preventing water evaporation.

anandvy
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Re: Sustainable = Green + Profitable (+ Humane)
anandvy   8/12/2012 1:31:44 AM
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the only thing against solar power in my area is the installation cost- pretty high for now though blessed with enough sun light.

@Adenji, That is the disadvantage of solar power. Initial cost will be very high but its a one-time cost. Is government taking any steps to bring down this cost ? 

Adeniji Kayode
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Supply Network Guru
Re: Sustainable = Green + Profitable (+ Humane)
Adeniji Kayode   8/10/2012 11:06:06 PM
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I am  interested in seeing a design that is really flying creatures friendly.That may be hard to come- by due to the aero-design  but will be a very good innovation.

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