Monday, October 06, 2008
Will the Green Movement Become a Victim of the Global Financial Crisis?
The Dow ended down 369 points today, after having been down 800 points earlier in the day. The Dow finished below 10,000 for the first time in years on worries that the financial mess is spreading quickly to various international markets. With the global financial crisis deepening, one wonders about the impact on various companies. Today, I began wondering about the green movement. For the past few years, we have seen companies trying to become more environmentally conscious. Many firms tried to reduce their carbon footprint. You have to wonder, however, whether these firms will cut back on their environmental programs given the tough economic climate. Yes, some pro-environment moves by firms actually reduce their costs. However, other initiatives cost money in the short run, even if they do pay off over the long haul. Will firms scale back their environmental iniatives to try to preserve cash and bolster their financial position in this difficult economic environment? I think they will. It will be interesting to watch these developments.