Wade on In or Wait it Out?
The newsletter for professionals cautiously approaching the discussion about climate, but pretty sure they should.
Issue Number : 15
Is it worth the effort to be an early adopter in the carbon space? .
“If you’re not first, you’re last” -Ricky Bobby
It is good to be first-first place in a show, first in line at the Thanksgiving dinner, or first in a race, as Ricky Bobby so elegantly says in the quote above. But what about when being ‘first’ means being an early adopter, especially in the emerging space of agricultural carbon markets? Lately, I heard a person make the comment:
“There really isn’t much credit for being an early adopter in an industry that will someday just become regulated.”
Cynical or true? Or somewhere in the middle? Are there advantages to being involved early or should we just wait?
Let’s just explore.
Advantages of Being an Early Adopter
Competitive Advantage: Early adopters can gain a competitive edge by demonstrating their commitment to sustainability and environmental responsibility. This can attract environmentally conscious customers and partners, such as farmer landowners or buyers willing to pay a premium.
Cost Savings: Typically, we might think of cost savings as an immediate advantage, but in truth, practice changes may cost more up front. But, implementing carbon reduction strategies and technologies before they are mandated can lead to significant cost savings in the long run.
Innovation Leadership: Early adopters are often seen as leaders in their industries. They have the opportunity to innovate and develop new products and services that cater to the growing demand for environmentally friendly solutions. I once had a client who LOVED to be seen as a leader, he was always testing ‘a beta’ for some company or another. I assume he does a lot with carbon credit programs.
Access to Green Financing: Some financial institutions and investors are increasingly interested in funding sustainable and environmentally responsible projects. Early adopters may have an easier time accessing green financing options, which can help fund their sustainability initiatives and expansion plans.
Brand Reputation: A strong commitment to environmental responsibility can enhance a company's brand reputation. Early adopters can build a positive brand image and gain the trust of consumers who are increasingly conscious of the environmental impact of their choices.
Regulatory Preparedness: Early adopters have the advantage of being well- prepared for future carbon regulations. They are already tracking emissions, implementing reduction strategies, and have the necessary systems and processes in place to comply with potential future regulations when we are talking about the stick and not the carrot.
Learning Curve: By starting early, individuals and businesses have more time to learn and refine their sustainability strategies. This experience can lead to more effective and efficient carbon reduction efforts.
Global Market Access: As global efforts to combat climate change intensify, being an early adopter can position businesses to access international markets and partnerships that prioritize sustainability.
Competitive Edge: Being among the first to adopt new technologies can give individuals and businesses a competitive advantage. It allows them to differentiate themselves from competitors and demonstrate their commitment to staying ahead of the curve.
From what you just read, it probably appears that being an early adopter in the space is an easy route to, well, easy street. But, it’s just not that simple. So, stay tuned for our second September issue; I’ll explore the drawbacks of jumping in early and build a conclusion on the question about what’s better-wading in or waiting it out!