New York, USA - Retail businesses from Wal-Mart Inc to Nike Inc are finding that green investments in their operations and products are more than just Earth-friendly - they’re boosting the bottom line while helping to save the planet. This is the main conclusion of a report released by the Environmental Defense Fund.

The new wave of environmental investments goes beyond fixing stores with energy-saving lighting or buying recycled office supplies and double-side printing says the report. Companies are now investing in full scale green projects.

For instance, companies such as Wal-Mart, Microsoft Corp, Macy’s Inc., Target Corp and Whole Foods Market Inc. have signed power purchase agreements with solar developers to set 15- to 20-year fixed costs for their electricity, reducing their reliance on utility-supplied power and trimming their carbon output while getting predictable power bills – often below the typical retail price level.

Such agreements are becoming more common place and help finance installation of the clean energy source by selling several years’ worth of electricity under a single contract.

Wal-Mart’s long-term goals are to power its operations through 100 percent renewable energy, to create zero waste, and to sell products that sustain our resources and the environment. A prototype store in Las Vegas is making use of evaporative cooling-radiant-flooring technology expected to make the store 45 percent more energy-efficient.

Consumer products maker Johnson & Johnson focused on implementing energy efficiencies in its facilities and created an “enhanced best practices” checklist that seeks innovations that provide a return on investment within five years.

The move has paid off, the company said in the report, by reducing its greenhouse gas emissions by 34,500 metric tonnes in 2006 - and creating an annualized cost savings of $30 million.

Managing greenhouse gas emissions in the short-term may also pay off in the near future as both the US and Canada are working on climate change policy. Both countries have suggested that a cap and trade mechanism for reducing greenhouse gas emissions is likely.

Impending legislation on emissions is seen as a potential risk by 96% of suppliers taking part in the Carbon Disclosure Project (CDP) survey. The CDP is a collaboration of 385 institutional investors representing some of the largest business in the world, with assets under management of $57 trillion.

Creative product strategies, from waste reduction to design efficiencies are also becoming more commonplace.

For example, the Nike shoe company has released two new product lines which are created from recycled materials and factory waste. The process reduces the need for toxic adhesives while reducing the costs of shipping waste.

“The use of recycled materials is a critical component in a company’s broader sustainability model and the effort offers not only ‘green’ benefits, but societal, stakeholder and even economic benefits that are far-reaching,” said Tamara Bekefi, principal of Daedalus Strategic Advisors, a business consulting group.

As noted in a previous GLOBE-Net Article Extended Producer Responsibility and the E-waste problem, a growing electronics companies are also investing in green practices through E-waste solutions.

PC maker Dell promotes refurbishing and reusing its products as an alternative to recycling them. The benefits are twofold: the lifecycle of refurbished products is longer, and the day that Dell must manage the collection, sorting and recycling of them at their end of life, is pushed out. Dell also forged a partnership with Goodwill to collect and either resell or recycle used machines.

Besides savings, these socially responsible green choices also have an impact on the consumer, with the potential to increase profit. A growing number of companies are beginning to realize that green decisions foster stronger bonds with increasingly environmentally-conscious customers as well as attract and retain talented employees.

“Today, corporate responsibility programs are a large part of what customers demand,” said Jim Maurer, Grant Thornton’s national managing partner of the consumer and industrial products practice. “What’s more, if implemented correctly, they can also serve as a highly effective means of recruiting and retaining talent.”

According to a report released by Ernst & Young in April 2008, the environment is one of the top 10 risks facing business in 2008. The report notes that businesses that do not take environmental responsibility will pay the price. Companies that manage these challenges will develop a competitive advantage in accessing new opportunities and attracting capital.

“Corporate responsibility programs have moved out of the realm of public relations to become real tools for improving the bottom line. Companies are realizing that strong investment in corporate responsibility programs is both a civic obligation and a successful business strategy,” said Maurer.