The Impact of Environmentalism on Profits

What about the costs of environmental work? Will they have a negative impact on profitability? As described in the Ikea example above, there are undoubtedly some investments that have to be made in order to make progress. For instance, Ikea invested in renewable energy in stores and invested in human resources such as supplier auditors and forestry experts. Whether these expenses make sense from a profitability perspective depends on your time perspective regarding the business. In the short term, these items may show up on your balance sheet as negative ones, but in the longer-term perspective, there will be a positive return on these investments. Investing in renewable energy, for instance, may, given today’s energy prices, have a slight....