Businesses have a lot to contend with these days. Recessionary pressures, fierce global competition and various environmental issues are fundamentally reshaping markets. Although different industries are affected in different ways most can expect:

• Changes in consumer behavior: the recession has made many consumers realize that they need to live within their means. Rising concern over the environment is also shifting consumption patterns.
• The introduction of a price on carbon: whether through a cap-and-trade system, taxation or other means it is almost inevitable that carbon will soon have a price changing the basic cost structures in almost all industries
• New regulatory pressures: whether imposed by the governments or by citizens many industries are exposed to increased scrutiny

Facing this uncertain environment companies are responding in many ways.

There are immense opportunities as we move to the low-carbon economy and some are investing heavily in building the infrastructure of tomorrow. Major players like GE, IBM and Cisco are developing and deploying new wind and solar technologies, creating smart grids and building energy friendly, networked appliances for the home. A host of startups are competing to give people the tools to measure and manage their resource usage – including energy, water and natural gas. Stimulus funding by world governments is fueling the growth.

Most companies are also making efforts to improve the efficiency of their own operations. Leaders such as Nokia are coming up with best practices and guidelines for their operations which are then implemented across the company and the supply chain. Eco-friendly product innovations are also shared across the board.

Despite overall progress some are still struggling to figure out how to deal with the green consumer. Industries, such as power generation, will have to undergo fundamental changes to better align with the 21st century. Companies that are merely “greenwashing” their products and services will soon need to contend with the better informed consumer. Those that don’t change risk obsolescence in the new economy.

Fundamentally the picture is optimistic. Businesses and corporations are here to serve their customers and as citizens become more educated and aware of looming environmental issues the private sector will need to follow.