Can Environment Regulation Be Good For Business?

Yes it can according to a recent article by AMR Research analyst Eric Karofsky.

He contends that the innovation processes that companies must develop to comply with environmental laws, both stateside and global, translate into a competitive edge.

An example cited in the article includes a Tier 1 automotive supplier that has chosen to update its process and enabling technology to comply with an EU automotive regulation which has in turn allowed it to keep its spending on another compliance regulation, RoHS (Reduction of Hazardous Substances), to less than 1% of its revenue. This cost figure is less than the 2%-4% its competitors spend on compliance.

Another company, Fujitsu Transaction Systems, has approached environmental regulation compliance as an opportunity to form a closer partnership with its suppliers.

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