Companies cut costs by going greenBusinesses are increasingly concerned about using renewable materials in their production processes, and not just because they're environmentally friendly. More frequently, corporations are strategically sourcing green products to save money.

The 2012 Corporate Renewable Energy Index listed more than 300 companies based on their renewable resource procurement practices, and surveyed the businesses on why they used such tactics.

The report discovered that more businesses are starting to ensure more of their materials are green or renewable. Even though not all companies are employing strategic sourcing to obtain green materials, many are slowly beginning to procure these goods, which can cut costs for corporations.

Many businesses are also often employing green techniques throughout their production processes. After they've procured green goods, they use renewable energy resources to power their facilities. Green energy, such as hydroelectric power, solar power or wind turbines, allows producers to cut down on manufacturing costs.

The CREX report predicted that this trend will only continue, as companies look for ways to be socially responsible and save money. Some businesses are also motivated to use renewable energy or source green materials because of government incentives. The report noted that policymakers have the potential to influence the future sourcing choices of some companies with taxes or business incentives.
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