While some firms are on-message, others need persuasion that environmentally-sound, policies and making money are not mutually exclusive, writes John Downes

Maybe you think twice about throwing your rubbish in the bin. Or maybe you even go so far as separating it, making sure that cardboard and paper do not get included with the rest of the rubbish. Such efforts are to be applauded - we should all do as much as we can to help the environment.

But from a business perspective, what are the benefits - and challenges - for companies who choose to adopt an eco-friendly approach?

Peter Price-Thomas is a senior adviser with Natural Step in the UK, which helps companies to understand and move towards sustainable policies.

One challenge he faces lies in persuading companies that eco-friendly policies and making money are not mutually exclusive, he says.

Although most companies can see the benefits of being "green", they also need to see as many short-term cost savings from such policies as possible.

"You can have the most sustainable company in the world, but if you don't make money you are not going to succeed," he says. "But there are very real short-term benefits."

He cites as an example a recent survey which revealed that, in the manufacturing process, only 6 per cent of the materials are used in actually making the product, i.e. 94 per cent is thrown away as waste.

Clearly, reducing even a small amount of that waste can save on costs.

Multinational companies, in particular, are also increasingly aware that they are responsible for their whole supply chain, he says.

Where before a company could simply say it was "sustainable", they now face being audited to make sure they comply.

As a result, companies are eager to avoid what he calls "brand stain". If a company is seen as eco-unfriendly, this can have a real impact on its image among consumers.

Such policies can also leave it open to future liability for things such as pollution, for example. So Mr Price-Thomas advises his clients to be as forward thinking in their approach to green policies as possible.

"They should be pro-active rather than being forced to do this by legislation," he believes. "Those who innovate reap the rewards."

One Irish company that has built much of its corporate image around an eco-friendly approach is Airtricity, which promotes renewable energy in the form of wind-farms located around the country.

Mark Ennis, chief executive of Airtricity in Northern Ireland, acknowledges that one of the company's prime selling points is its "greenness".

However, while most people are very keen on renewable energy, they are very price-conscious as well, he says.

"Our primary sale is our greenness, but the customer's primary listening point might not be," he explains. "One of the big things is, how much am I saving?"

According to Mr Ennis, Airtricity customers can save between 5 and 10 per cent on their electricity bills.

However, although Airtricity has received a large amount of media coverage in recent years - it is the State's largest renewable energy company - Mr Ennis says this has not always translated into awareness among customers of the cost savings it can offer.

While most people in the electricity sector would have heard about the company, Airtricity's real challenge is to generate wider public interest in electricity, he believes.

"We are trying to raise the whole profile of renewable energy. Most people ask about problems with continuation of supply, for example. But because of the balance we have between our own supply, and an agreement with a Scottish company which generates hydro power, there is no shortfall."

Planning is another big consideration for a company like Airtricity, Mr Ennis points out.

Given that it uses wind farms to generate electricity, and is trading heavily on its green image, it spends a lot of money on environmental impact studies of any potential sites.

It also has to identify and purchase sites that will generate sufficient wind.

"We spend a lot of time both educating and carrying out proper environmental studies Everybody thinks they have a good windy site," he says. "Our sites are typically near the coast or on elevated areas. And we also have to negotiate with landowners."

Yet perhaps one of the biggest positives for any renewable energy business is that it is a constantly expanding and developing area, offering good scope for growth.

Indeed, Airtricity is currently investigating using the gas from landfills as a source of energy, Ennis says.

And any new eco-friendly source of energy can in turn have real benefits for the environment.

As we have seen, this is a fact that companies like Airtricity, and others including those advised by Natural Step, are only too happy to trade upon.