Green practices benefit not only through long–term cost savings, but also from brand enhancement with customers, better regulatory traction, attracting right talent and higher investor interest.
However, these plans require a long-term commitment and making trade-offs against short-term objectives, as the economics of green manufacturing is still evolving.
Kenya is focused on manufacturing playing a bigger role, pushing its contribution to the GDP to 15 per cent, from the current 10 per cent.
Green energy is a fundamental driver in achieving this target through the Renewable Energy Bill that has gone through the second reading in Parliament.
While at it, Kenya ought to get environmental priorities right by using energy and resources efficiently, for example minimising generation of waste.
‘Green Manufacturing’ must be seen beyond an empty slogan but used to transform industrial operations, developing and selling green products and employing green processes in business operations.
Green practices benefit not only through long–term cost savings, but also from brand enhancement with customers, better regulatory traction, attracting right talent and higher investor interest.
However, these plans require a long-term commitment and making trade-offs against short-term objectives, as the economics of green manufacturing is still evolving.
Indeed, the benefits of green energy go beyond reducing carbon emissions.
Here are reasons green energy should make its way to the Big 4 manufacturing agenda that the government is pursuing.
Growing energy prices pose a threat to power plant operators and end-users. The price of gas fluctuates across regions and fossil fuels are in a cyclical fashion. Green energy prices on the contrary will continually decrease.
Increased industrialisation and urbanisation have led to significant growth in waste generation and environmental pollution. Industrial waste can be dangerous to health if not treated the right way.
The release of industrial effluent into rivers and other water bodies is destroying local habitats.
There is an urgent need to adequately manage the use of wood, coal, oil, food, water and develop alternatives which are less scarce, for example wind and sun.
Businesses ought to graduate from taking green sources as ‘necessary evil’ to being seen as ‘good businesses’.
Companies that undertake green initiatives stand to enhance their brands and regulatory compliance, they attract and retain great talent, enhance customer retention and potential cost savings.
Green manufacturing is imperative, not just due to tightening of regulations or cost benefits, but also because consumers are demanding it.
Not only are consumers becoming increasingly aware and conversant with green, they are also adopting environment-friendly habits like buying green.
Across the world, the subject is gaining traction, meaning it presents a huge opportunity for smart companies.
It is, therefore, critical for companies to discover how their target consumer segments feel about going green, what they expect from related products and the prices they are willing to pay.
Kenya’s economic growth coupled with urbanisation has come at the high cost of increasing greenhouse gas emissions, raising demand for scarce resources like water and increasing waste generation.
The government has to play a key role in the transformation into ‘Green Manufacturing’. The promotion of green technologies has to be included in the draft strategy for the manufacturing sector.
The future competitiveness and profitability will be increasingly linked to the ability of business to make carbon reduction and creation of sustainable livelihoods an integral part of their value proposition to the consumer.
Ndirangu Ngunjiri, Financial analyst at Watermark Consultants.
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