Summary

Renewable Energy and purchasing Carbon Credits are not always the first options for many existing business. Let’s follow Air Tran & UPS sustainability lead. 

Analysis

On July 9th, Air Tran agreed to assess its environmental impact and reduce its carbon footprint, solid waste disposal, fuel consumption, and water usage.  The report says the airline is working with the state government in developing mutual goals.
 
On July 7th, UPS announced it plans to reduce emissions by 20% from 2005-2020.  UPS plans to take a strategic approach by:
 
  • Creating a Sustainability Committee
  • Formalizing and documenting enterprise-wide sustainability strategy
  • Improving transportation planning
  • Establishing KPI’s
Both sustainability industry leaders are implementing similar strategic, low cost solutions.  At the end of the day, they are taking action which will improve the environment and improve their long term cost structure.
 
Maybe our elected leaders should take action and follow the lead of sustainability leaders such as UPS & Air Tran and focus their efforts on the environment, as well as collaboration, and long term business cost. 
 
The bottomline for the investment community, continue a wait and see attitude until Carbon Cap and Trade details are flushed out.  Low cost sustainability solutions are the right approach during this period of flux.  This is not the time for huge early sustainability investment.    
 

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Analyses are solely the work of the authors and have not been edited or endorsed by GLG.