We have a new President. Regulations will be changed, diminished or eliminated. What has not changed is the growing consumer demand for goods and services that align value with values.
What has not change is a disruptive, global technology revolution involving artificial intelligence (AI), the Internet of Things (IoT), renewable energy and batteries. We are on the cusp of these technologies disruptively reshaping our homes, cars, businesses, factories, farms and cities.
The question is whether a new U.S. government can retard or stop a global, multi-trillion dollar Green Economic Revolution? Will gutting the EPA and emissions regulations block the adoption of electric cars and solar power? Will America really shift back to coal as a result of this election?
Economics always wins, even green economies
Businesses from Apple to Walmart are adopting clean/smart tech and sustainable best practices. The two principal drivers pushing companies to go green are:
- Clean/smart technologies offer tremendous ROI through cost reductions
- Healthier and more sustainable products win customers.
The term Green Giants describes the growing number of companies like Costco, Target and Walmart that are selling billions of dollars annually of organic and more sustainable products. It also describes the growing number of companies like DuPont, Ford and General Motors that are saving billions of dollars annually by adopting zero waste best practices.
Price competitiveness is the growth driver of sustainability and clean/smart technology.
Today it costs only 75 cents per gasoline gallon equivalent to fuel an electric car. Electric cars in 2017 will enter their age of affordability with the launch of the Chevy Bolt and the Tesla 3. This is a global trend. From Asia to Europe the world’s car companies are creating economies of scale in manufacturing and innovation that will make smart, autonomous and electric cars the least cost solution.
The electricity to supply electric cars is also on a technology track to becoming more sustainable and cheaper. Wind and solar energy is disrupting the utility industry because their costs are now at, or below, the cost of fossil fuel generation. It is the lower cost for solar and wind, not regulation, that is shifting the world’s economy from coal. The emergence of net zero energy buildings enabled by solar, batteries, IoT and AI will disruptively reduce the amount of energy consumption per human occupant.
Changes in government regulation can enable or retard technology economics. We may be entering a period where government policy enables coal for political reasons. That type of action, because it damages our country’s economic competitiveness, is not sustainable. The economic realty is that solar and wind have zero incremental fuel costs. Declining battery costs, combined with natural gas fueled power plants, will enable renewable energy to bridge periods when the sun does not shine and the winds do not blow. Coal, even with government regulatory support, has a diminished future based on its decreasing price competitiveness against solar, wind, batteries and smart buildings. The real question is whether U.S. politics will allow utilities and coal companies to create barriers to entry that artificially preserve coal’s market share until its price disadvantage causes a consumer/voter rebellion on behalf of cheaper renewable energy?
Consumers vote for more triple bottom line solutions
Consumers vote everyday at the cash register. They are voting for changes that align with their search for satisfaction on value and values.
Consumers are driving companies like McDonald’s into a revenue crisis. Consumers, confronting a weight/health crisis, are rejecting fast food loaded with fats, sugars, salt, caffeine and artificial ingredients even if they are offered at super-size-me prices. Today’s consumers, most especially millennials, seek tasty, price competitive and healthier food.
What consumers really thirst for are triple bottom products that are fun to use. Today, buying green feels too much like work. Plus, green products still can cost more than less sustainable products. Too often it is consumer guilt rather than fun that drives today’s green product consumption.
That is about to disruptively change. Smart/clean technologies are heading toward being engaging, liberating and fun. For example, autonomous electric vehicles will liberate us from seven year car loans plus deliver a huge fun factor. Consumers will be supplied with continuous choice in vehicles through mobility as a service. It will be fun and liberating to be able to pick among autonomous, smart and electric vehicles based on need, cost, convenience and fun. Lower emissions will be a “feel good” ancillary benefit.
CSR wins customers and millennial work associates
While America’s businesses may soon be operating in a less regulated environment, none should lose sight of the role that corporate responsibility (CSR) plays in winning customers and millennial generation work associates. CSR is now, and will remain, the basis of a business’ brand authenticity. Among millennials CSR is the human resources path to successful work associate recruitment.
The business bottom line is that CSR wins competitive advantage. It is the foundation of business success in the Green Economic Revolution. Look no further than Clif Bar’s 17% annual compounded growth rate to see how a triple bottom line focus builds business success. That is why companies from Google to Patagonia to Unilever place a strong focus on their CSR commitments.
“It’s the economy” is true in politics and the Green Economic Revolution
The Green Economic Revolution is not driven by government policy. It is an economic revolution. Change is achieved from customers buying green products that win on price, fun and values. The Green Economic Revolution is also a global technology trend that will disruptively change the economics of consumers, businesses and countries. Governments policy can slow or accelerate this 21st century mega trend. But they cannot stop it. The Green Economic Revolution is the invisible hand of the market driven by consumer demand and business opportunity.
About the author
Bill Roth is a clean tech pioneer who led the team that launched the first hydrogen fueled Prius. He is a featured contributor on Triple Pundit and Latin Business Today. His book, The Secret Green Sauce, has been used by thousands of business people to implement proven green best practices that make money and a difference. Bill’s latest book, The Boomer Generation Diet, is his personal story on how to achieve sustained weight loss while still having fun and living more. The book’s ten customizable best practices are the sustainable solutions to our national weight crisis that threatens our health and medical cost bankruptcy.