While obtaining financing for green projects such as solar energy installation or wind energy implementation was once seen as a risky business move, more companies are taking the plunge and adding sustainable technologies to their everyday operations.Â
According to a new survey by the Carbon Disclosure Project, more than 70 percent of respondents are concerned about the cost implications of climate change, and as a result, 38 percent have set emission reduction goals. Companies are quickly realizing that by obtaining business financing to invest in green energy throughout their supply chains, they can attempt to limit climate change, which has the potential to wreak havoc on carefully planned procurement, production or logistical tactics.Â
Swedish furniture company Ikea is one business looking for sustainable alternatives to traditional energy sources. The retailer will increase its investment in sustainable technology to $4 billion by 2020 to help cut corporate expenses, make products more affordable and commit to green energy. Companies like Pepsi and Puma are also slated to increase their green operations and the amount they spend on sustainable measures. But it's not just large corporations that are looking for sustainability - small companies are also looking to green energy solutions.
Obtaining financing to increase sustainability can be a way for business owners to cut costs after the initial investment. However, some entrepreneurs have trouble getting the funding to get their companies off the ground, let alone obtain additional loans for green energy installation. Those business owners struggling to achieve their dreams of running an environmentally friendly and socially responsible corporation may need to look to smaller banks for financing. With fewer of the traditional restrictions and requirements large banks insist upon, small and mid-sized banks can provide entrepreneurs with more opportunities and better solutions to their business needs.Â
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