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Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell
Edition 10ISBN: 978-1259179396Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell
Edition 10ISBN: 978-1259179396 Exercise 9
Banks Increase Investment in Sustainability
What does banking have to do with green technology? If companies such as Bank of America, Goldman Sachs, and Wells Fargo have their way, banks will be seen as major supporters of sustainability. Banks not only want to incorporate greener processes into their operations, but they are also investing in green technology initiatives. For instance, in addition to reducing its paper and energy consumption, Bank of America is investing in projects that focus on areas such as water reduction and energy conservation. Goldman Sachs has pledged $40 billion toward solar, wind, energy storage, and transportation initiatives.
Wells Fargo has set lofty goals for the year 2020. The company announced that it was pledging $30 billion toward green technologies, increasing its own operational sustainability, and pledging $100 million in grants for grassroots environmental projects. In reducing its own environmental footprint, Wells Fargo plans to decrease its greenhouse gas emissions by 35 percent over 2008 levels. Although these initiatives will cost Wells Fargo in the short term, the company believes that sustainability is the future of business. In interacting with customers in an online forum, Wells Fargo found that 80 percent valued environmental commitment on the part of businesses. By investing in greener initiatives, banks such as Wells Fargo and Bank of America could create competitive advantages through better customer relationships and a more positive reputation. 9
Do you think Wells Fargo's sustainability goals represent a genuine commitment, or are they more window-dressing to make the company look good?
What does banking have to do with green technology? If companies such as Bank of America, Goldman Sachs, and Wells Fargo have their way, banks will be seen as major supporters of sustainability. Banks not only want to incorporate greener processes into their operations, but they are also investing in green technology initiatives. For instance, in addition to reducing its paper and energy consumption, Bank of America is investing in projects that focus on areas such as water reduction and energy conservation. Goldman Sachs has pledged $40 billion toward solar, wind, energy storage, and transportation initiatives.
Wells Fargo has set lofty goals for the year 2020. The company announced that it was pledging $30 billion toward green technologies, increasing its own operational sustainability, and pledging $100 million in grants for grassroots environmental projects. In reducing its own environmental footprint, Wells Fargo plans to decrease its greenhouse gas emissions by 35 percent over 2008 levels. Although these initiatives will cost Wells Fargo in the short term, the company believes that sustainability is the future of business. In interacting with customers in an online forum, Wells Fargo found that 80 percent valued environmental commitment on the part of businesses. By investing in greener initiatives, banks such as Wells Fargo and Bank of America could create competitive advantages through better customer relationships and a more positive reputation. 9
Do you think Wells Fargo's sustainability goals represent a genuine commitment, or are they more window-dressing to make the company look good?
Explanation
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Business 10th Edition by Ferrell,Geoffrey Hirt,Linda Ferrell
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