Going green makes money and also, makes you feel good! The depletion of non-renewable resources, a growing population and global warming all make a compelling case for going green.  Though corporates generate positive vibes with an eco-friendly image, the greatest incentive to going green is a positive effect on the bottom line. Understanding that improvements in operational efficiency and reducing carbon foot print are not mutually exclusive, in the long term will help businesses embrace the concept of going green. The Financial Supply Chain (FSC) is a good place to start.

Going green improves the bottom line, in the short term too

Enterprise-wide analysis and streamlining of business processes requires commitment in time and investment from top management. Business process re-engineering should not only encompass the whole organisation, but also consider the entire physical supply chain. Benefits may not be quantifiable in the short term, but the use of technology in the FSC can prove to be a win-win situation. According to an Aite Group Survey, nearly 70% of large financial institutions surveyed (asset size of US $300 Bn and above) have implemented FSC. Having a holistic approach will bring operational efficiency, expedient, and effective decision making in the here and now, while at the same time going green.

Caution

Backups have to be maintained on a periodic basis at a remote location. Securing information is also imperative, especially in view of increasing cybercrime (information/identity theft, etc.).

In conclusion

Businesses need to be aware that green technology and efficiency is imperative for sustainability in the long run.  The use of green technology without proper analysis could be counterproductive.  Awareness and training across organisations is needed to reap the benefits.  FSC management is one of the most paper intensive operations in companies and by using technology, treasury management can see that with improving operational efficiency, they can also improve their financial results.