Achieving eco-efficiency through design for environment

“Eco-efficiency” is a term that does not yet appear in dictionaries but has already gained considerable force in shaping the environmental policies and practices of leading corporations. The Business Council on Sustainable Development (BCSD) sounded a trumpet call with their 1992 manifesto, “Changing Course.” Due to the credibility of the companies that constitute BCSD's membership—including Dow Chemical, 3M, Northern Telecom, Ciba-Geigy, Volkswagen, Nissan, Mitsubishi, and many others—their message has had a substantial influence on the strategic thinking of company executives around the world, BCSD's concept of eco-efficiency suggests an important link between resource efficiency (which leads to productivity and profitability) and environmental responsibility. Eco-efficiency makes business sense. By eliminating waste and using resources wisely, eco-efficient companies reduce costs and become more competitive. As environmental performance standards become commonplace, eco-efficient companies will be at an advantage for penetrating new markets and increasing their share of existing markets. This article describes the business practices companies are adopting to increase their eco-efficiency and improve their competitive advantage. “Corporations that achieve ever more efficiency while preventing pollution through good housekeeping, materials substitution, cleaner technologies, and cleaner products and that strive for more efficient use and recovery of resources can be called eco-efficient.” Declaration of the Business Council on Sustainable Development, 1992.     

The whole relationship between environmental variables and firm performance: Competitive advantage and firm resources as mediator variables

The examination of the possible direct link between environmental protection and firm performance in the literature has generally produced mixed results. The present paper contributes to the literature by using the resource-based view as a mediating process in this relationship. The study specifically tests whether or not the resource-based view of the firm mediates the positive relationships of proactive environmental management and improved environmental performance with competitive advantage, which also has consequences for financial performance. We also check the possible link between the adoption of a pioneering approach and good environmental management practices. Our findings support that early investment timing and intensity in environmental issues impact on the adoption of a proactive environmental management, which in turn helps to improve environmental performance. The findings also show that a firm's resources and competitive advantage act as mediator variables for a positive relationship between environmental protection and financial performance. This contribution is original because the present paper develops a comprehensive whole picture of this path process, which has previously only been partially discussed in the literature. In addition, this study clarifies a relevant point in the literature, namely that the effect of environmental protection on firm performance is not direct and can vary depending on the sector considered. Whereas competitive advantage in relation to costs influences financial performance in the IPPC law sector, the relevant influence in the hotel sector comes from competitive advantage through differentiation.     

Measuring environmental performance at niagara mohawk power

A system for measuring environmental performance is important to the success of a company's environmental excellence program. In 1991, Niagara Mohawk Power Corporation (NMPC) unveiled a new corporate policy on protection of the environment. To measure and communicate progress in achieving the goals and objectives embodied in the new policy, an environmental performance index (EPI) was developed. In this article the author shows how the EPI utilizes a weight and rating scheme to reflect environmental performance in three categories: emissions/wastes, regulatory compliance, and environmental enhancements. Performance goals have been established for the period 1992–1995, and actual performance data has been compiled for 1992 and 1993. While the EPI is designed to measure changes in NMPC's environmental performance over time, it does not provide information on how the company's performance compares to that of other electric utilities. Accordingly, NMPC is developing an environmental benchmarking program with a group of Northeast electric utilities that will allow comparisons of environmental performance between utilities.     

Developing new environmental excellence programs: Lessons from epa's environmental leadership program

Interest in the concept—and implementation—of environmental excellence is at an all-time high. A wealth of examples from individual companies, trade associations, states, industry coalitions, and the federal government illustrate the growing acceptance by a wide range of stakeholders of a management systems approach to environmental issues. Perhaps nowhere is this more clear than in the collection of public comments submitted to EPA in response to its January 15, 1993, Federal Register notice, which proposed the creation of an Environmental Leadership Program (ELP). The authors, both of whom worked on the ELP, review these public comments and offer a set of “do's and don'ts” for organizations interested in establishing an environmental excellence program. In addition, the authors outline the Green Track proposal, a plan to structure an alternate regulatory pathway based on environmental excellence.     

A proposal for design-based auto industry environmental regulation

As the U.S. auto industry tries to remain competitive in the face of evolving environmental rules, the new administration is presented with the opportunity to achieve environmental and economic goals through an industry-government partnership. The authors suggest a policy of total environmental quality as a starting point.     

Metrics,decisions, and strategies: Environmental performance measurement in the electric utility industry

The twin challenges of increased competition and environmental consciousness are causing companies in the utility industry to re-examine their methods for measuring environmental performance. A new paradigm is emerging which has already appeared in other industries—treating environmental quality as a potential source of profitability and competitive advantage. This article discusses how utilities and industrial companies can develop an environmental performance measurement framework, integrate it into their strategic and operating business practices, and use it for evaluation of alternative environmental strategies.     

Environmental Management: Testing the Win‐Win Model

The debate over the possibility of seeking competitive advantages through greener strategies versus the scarcity of such opportunities is not yet resolved. This study is an attempt to test the win-win model. The role of the variables at the core of the win-win model, such as the regulatory factors, environmental strategy and environmental innovativeness, was examined. The results validated the positive competitive and financial impact of progressive environmental strategies contingent upon the presence of favourable external and internal conditions. From purely a profitability standpoint, it is important to seek a balance between the environmental measures and market expectations. Comprehensive superiority in relative environmental performance will not necessarily lead to environmental competitive advantage.     

Why—and how to—benchmark for environmental excellence

Benchmarking your company'S environmental program against that of another company or organization is one of the more effective means of assuring it is on track toward environmental excellence. If used properly and objectively, it provides a means of gauging the progress of your environmental program while allowing both companies to benefit from new and innovative ideas for improvement. Benchmarking is capable of measuring program efficiency, program design, and program outputs. Benchmarking also provides environmental managers the unique opportunity of sharing successes and failures with respect to program integration into operations. This article describes the steps involved in designing and implementing benchmarking to assess the design of an overall environmental management program.     

Environmental management information systems: New tools for measuring performance

Successful implementation of environmental management information systems (EMIS) has become essential to the success of total quality environmental management (TQEM) programs. Effective TQEM programs will be early indicators of which companies survive and thrive in today's competitive business environment. Highly competitive industries such as chemicals, electronics, and oil and gas are becoming very effective in cooperating to develop metrics, models, and tools that are based on business processes rather than regulatory edicts. Now electric power companies, newly exposed to market competition, are starting to develop and implement these metrics, standards, and tools. That industry provides a model for joining TQEM and EMIS.     

Review of sustainability management initiatives within Finnish forest products industry companies—Translating Eu level steering into proactive initiatives

Sustainability has become a major focus area within forest products industry. The European operational environment and national environmental steering in EU member states highlight the importance of sustainable development and the development of associated new management approaches to promote sustainability. This article reviews some key elements of sustainability management, covering examples of both Finnish forest products industry initiatives and public environmental steering at the European level. An assessment is made of the current situation and an outline of a future outlook for sustainability management, with special emphasis on bridging the gap between industry initiatives and environmental steering in the form of legislation, policies and strategies at the EU level.This study applied a hybrid approach comprising a review of EU sustainability initiatives, a policy and legal review and a questionnaire survey of forest industry actors. The results of the future outlook indicate that energy efficiency is perceived to be the most important focus area in addition to e.g. environmental and waste management and recycling. Less than half of the companies aim at applying sustainability management. Life-cycle management is also considered to be important whereas product-based approaches, climate change and local industrial symbiosis receive very little attention. All responding companies aim to integrate the principles of sustainability into their operations and most companies consider that life-cycle thinking, management and assessment are useful for them. Energy efficiency is identified as the most important focus area with energy and materials efficiency seen as the most crucial factors for the achievement of responsible competitive advantage and building of sustainable value-added. The findings indicate that sustainability and life-cycle management are not receiving enough management focus at the moment and neither is the industry receiving enough guidance at either the EU level or via national steering and regulatory frameworks.     

Expanding the benefits of environmental management systems through DFE

Industry's role in environmental protection is changing and growing. Increasing evidence shows that a corporation's understanding and response to environmental issues and concerns can have strategically important consequences for some kinds of businesses.¹ Focusing on concepts of prevention, industry has developed and struggled with a number of environmental approaches, all of which attempt to link the environment with common business practice. Industry has followed and in some cases embraced concepts and approaches like sustainable development, eco-efficiency, green manufacturing, pollution prevention, and extended product responsibility. A particularly timely and promising strategy to reduce the environmental impact of both manufacturing and product use while enhancing business success is the integration of environmental management systems (EMS) with design for the environment (DFE) efforts. A desirable relationship can and should exist between DFE and EMS. This relationship has not been well understood, but is crucial to fulfill the promise of each. In application, the institutionalization of DFE in an organization is difficult and tenuous at best. Some authors suggest that management issues block the implementation of DFE.² Others say that DFE has not been institutionalized to the extent that pollution prevention has.³ This article suggests that through an explicit connection between an EMS and DFE, DFE can extend the promise of EMS to reduce industry's environmental impact and produce business success, and it can do so in an ongoing way. The authors will show the importance of an EMS/DFE linkage, suggest company types that might benefit from investigating these approaches, and then review a series of DFE tool types.     

Questions and answers. TQEM performance indicators—how do you measure up?

I have seen a number of corporations accept the philosophy of TQEM and start the process of total quality environmental management with great enthusiasm. I believe that many organizations are attracted because TQM principles demand measurements of success and results that are definable for the environment. It reduces the emotionalism that frequently tends to surround environmental issues. Emotionalism has perhaps been the bane and boon of efforts by corporations and advocacy groups to incorporate environmental issues into the day-to-day functions of organizations. Abt Associates, a well-known research-based consulting firm, recently completed a study of U.S. Fortune 250 firms' environmental management programs. Abt found evidence that environmental performance is a competitive issue. Benchmarking is hotly pursued to develop firm-wide indices of performance. One third of the benchmarking is against competition, another third is against worldwide firms. There is a race to develop “Best in Class” standards now. E2M and Abt Associates have combined resources to study corporate Canada's environmental management programs and compare these with those of the United States. This research will help companies benchmark activities and will build a strong North American data base. Unfortunately it will not be ready in time to answer TQEM's question for this issue. (The study results will be released to participating companies in Fall 1992.)     

Changing corporate environmental philosophy: Project renewal gets companies started

Project RENEWAL is an innovative new environmental business project taking place in New Jersey. Project RENEWAL stands for Resource Efficiency Network to Eliminate Waste and Liability. The purpose of this project is to investigate and promote the linkages between ecology, technology, and business economics for the benefit of the economy and the environment. This is a collaborative effort, initially focused on equipment and inventory assets, between the business and environmental communities in order to explore new ways to increase business efficiency and profitability and also benefit the environment. Participants in the project include representatives from industry, consulting, local and state government, environmental agencies, trade groups and academia. This article will outline the background and initial framework of Project RENEWAL's initiatives. (The authors are open to comments, suggestions, criticism, and most importantly input from others who share their vision and are willing to cooperatively accelerate the change process).     

Sustainable environmental careers and industries in the reengineering/EMS era

Environmental business and environmental professionals within industry will face unprecedented challenges in the late 1990s. The strategies of Business Process Reengineering (BPR) and Environmental Management Systems (EMSs) will require integrating environmental processes into mainstream business systems and reducing the role for “pure” environmental processes. This article describes some of the new skills that employees and consultants will need to learn in order to provide value to the customer's core business.     

Benchmarking for continuous performance improvement: Tactics for success

Benchmarking is a powerful management technique that can help improve an organization's environmental performance on a number of dimensions. Benchmarking is not a cookbook solution but a systematic process of searching for the organization that is the best at a given process (“best-in-class”) and continually adopting or adapting new processes to accelerate improvement. As a continual process including planning, analysis, integration, action, and maturity phases, benchmarking should be integrated into the planning stage of the management system. Once processes are strategically identified, they can be improved within the company's Total Quality Management program. Many benefits, such as teamwork and job satisfaction, accompany benchmarking, but the greatest companywide advantage is becoming more competitive. Finding a suitable partner is crucial to the success of the benchmarking process. This article shows the traditional one-on-one approach is the most effective because it saves time and money that allows organizations to learn from each other. In addition, examples of where benchmarking partners may be found, as well as several success indicators in the benchmarking process, are presented. Since the ultimate intent of benchmarking is positive change, the difference between reengineering and continuous performance improvement and the role benchmarking plays in each is also discussed.     

Environmental management and firm performance: a case study

This study has as its aim to help to clarify the relationship between environmental management and economic performance by integrating it into a wider framework that includes the relationship between environmental strategy and firm performance, the latter being understood as the combination of environmental performance, competitive advantage and economic performance. A case study of the COATO farming cooperative showed us that its environmental management, focused on prevention logic, has had a positive net effect on its environmental performance. Besides, the order in which these practices were adopted favoured the development of new organisational capabilities that have contributed to the appearance of advantages derived from the greater accumulated experience of employees in creating new projects that are designed to reduce residues and pollution. COATO has also obtained a competitive advantage in differentiation thanks to an improved brand image and to its increased credibility in business relationships. Finally, a positive correlation exists between the pioneering proactive strategy adopted by this cooperative and the improvement of its firm performance with respect to the other firms in its sector.     

Total quality product design—how to integrate environmental criteria into the product realization process

Recent case studies on the financial benefits of pollution prevention programs well attest to the notion that a commitment to the environment can help profitability not only by avoiding costs and potential liabilities, but also by generating environmentally-based opportunities for competitive advantage. Achieving these benefits, however, represents a complex management challenge that requires embedding environmental concerns in the day-to-day decisions and actions of a company'S employees. This article shows how the marriage of corporate environmental stewardship and TQM, better known as TQEM, is particularly well suited to the area of product design and why environmental health and safety experts can improve a product'S environmental performance.     

美国离境外包经济动向的环境影响

最近美国离境外包经济发展很快，并引发继第一次产业革命（即工业革命）和第二次产业革命（即服务业超过制造业）之后的第三次产业革命，进而美国大批制造业向国外转移。这对我国承接制造业的产业转移是重大机遇，但同时也会遇到污染、能源转移的问题。建议我国抓住机遇，保持和发挥人力资源优势，迅速发展制造业，同时积极应对环境影响，分类管理，严格执法。     

The chemical industry's commitment to continuous improvement in environmental performance

One of the greatest challenges facing the chemical industry today is regaining the lost confidence of the public. This concern led to the Chemical Manufacturers Association's (CMA's) adoption of the Responsible Care® initiative—not a slick new promotional campaign but a commitment to continuous improvement in environmental performance. The author highlights components of the program, which is seen as an outgrowth of Total Quality Management.     

Environmental cost accounting: The bottom line for environmental quality management

Recent years have seen the environment emerge as one of the most pressing issues facing American business. Eventually, environmental costs will affect the bottom line of every American company. A recent study in the National Law Journal estimates that cleanup of the nation's known hazardous wastes sites will cost $752 billion over thirty years under current environmental policies. Environmental legislation and regulations impose annual compliance costs estimated by the Environmental Protection Agency at more than $30 billion. In the near future, environmental expenses for cleanup, regulatory compliance, and management are anticipated to grow to between 2.5 and 3 percent of GNP. Corporations that wish to be competitive must successfully manage these costs while maintaining or improving their role as responsible corporate citizens. Implementing a comprehensive system for identifying and managing environmental costs requires a multidisciplinary team effort. Environmental costs impact product selection, design and pricing, capital budgeting, and future strategic direction. In order to make informed and meaningful managerial decisions on environmental programs, real cost data are vital. An environmental management systems (EMS) requires information to set goals and then monitor progress towards those goals over time. This article will discuss the current cost accounting systems (CASs) available to support the myriad goals of environmental management systems. In addition, the article will outline a framework for plotting the location of your current EMS on a matrix of regulatory and information requirements and evaluating whether your corporation's CAS is adequate to support the goals and objectives set by your environmental management program. By anticipating future regulatory and information requirements, flexible systems can be developed to adapt to new and more stringent regulations and more complex information requirements.