How green is General Electric’s (GE) green business?


BloggingStocks – September 14, 2007

No one should be surprised at this. Evidently GE is getting push-back from its customers and its shareholders on the company’s "green" efforts. GE is one of the oldest corporations around and has a wide assortment of businesses. Some of these businesses thrive off the use and production of electricity, so some customers are not too keen on GE condemning the way electricity is used and produced.

In addition, this ecological effort undoubtedly has extra costs or lower margins than a more traditional approach. This then reduces the profitability of GE which impacts its shareholders. In this current business environment, companies need to be very concerned about upsetting their shareholders!

GE cites some impressive statistics to bolster its claim of campaign success. GE expects to sell $14 billion of its self-described environmentally friendly products in 2007, anticipating 10% annual growth in the category through 2010. … And GE says it reduced its own greenhouse-gas emissions by 4% between 2004 and 2006, even as revenue grew 21%.

…GE’s utility industry customers don’t find it amusing to learn about Immelt’s efforts to lobby the U.S. to reduce carbon dioxide emissions since such limits could cut their profits.

As a shareholder, I hope GE knows that ecomagination’s benefits will outweigh its costs.

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2 thoughts on “How green is General Electric’s (GE) green business?”

  1. Shelly says:

    Compaired to other companies, GE has pulled their way way over par. There is always going to be critics that don’t want change. The thing is those critics are ultimately biting themselves in the ass. Even though better power and electricity alternatives cost more, the bottom line is they are saving all of us from a worse fate.

  2. admin says:

    While I understand your sentiment, GE still should probably identify this cost and this value and pitch it to their shareholders as “good will” or “image marketing” or they will be in danger of shareholder revolt.

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