Greentech refers to a type of technology that is considered environmentally friendly based on its production process or its supply chain. Greentech which is an abbreviation of “green technology” is an umbrella term that describes the use of technology and science to create products and services that are environmentally friendly. Greentech is related to cleantech, which specifically refers to products or services that improve operational performance while also reducing costs, energy consumption, waste, or negative effects on the environment.
A Greentech company is one that has positive environmental impact at its core.
The goal of a Greentech company/organization is to protect the environment, repair damage done to the environment in the past, conserve natural resources and preserve the Earth’s natural resources. Greentech has also become a burgeoning industry that’s attracting enormous amounts of investment capital.
The use of Greentech can be a stated goal of a business segment or a company. These goals are typically outlined in a company’s environmental, sustainability, and governance (ESG) statement, or can even be found in the mission statement of a firm. Increasingly, socially responsible investors are looking to narrow down their prospective investments to only include companies that specifically employ or produce green technologies.
Some specific goals of greentech include:
- Sustainability – The act of fulfilling societal needs in a manner that can be utilized well into the future. Preserving resources is key to sustainability.
- Cradle-to-cradle design – Current manufacturing processes often create products with the ability to be used only a limited number of times, sometimes intending for products to be used just once before disposal. “Cradle-to-cradle” manufacturing replaces this “cradle-to-grave” method of production by shifting focus to creating products that can be reused or recycled.
- Innovation – Technology that is in-use today can have catastrophic results on the environment, global health and the survival of future generations. Innovation seeks to replace these technologies with more efficient means through constant research, design and development.
- Viability – Adopting new methods of green technology, creating new careers that facilitate preservation and designing supportive economic measures that embrace sustainability enable the success of preservation efforts, creating viability.
- Source reduction – Changing production methods and reducing the consumption of resources in a widespread manner reduces waste and pollution, facilitating the success of conservation efforts. This can be referred to as source reduction.
An awareness of greenwashing and a commitment to honest communication is central to Greentech companies/organizations. Communications should educate and inspire, encouraging a move towards sustainability. Greentech companies/organization lead by example, reducing their own carbon footprint as much as possible and offsetting when necessary.
From food to finance, supply chains to consumption behaviour; Greentech companies have an unlimited range of focus, as long as the following criteria are met:
Founded with the purpose of protecting the environment.
Have a science-based, measurable impact.
Remain true to their mission and do not engage in greenwashing.
Greentech companies have one common goal: to conserve the natural environment and the resources necessary for continued prosperity on Earth.