Environmental Environmental OperationsOperationsLeeds School of BusinessLeeds School of BusinessUniversity of ColoradoUniversity of Colorado

Professor Stephen Lawrence

Environmental CrisesEnvironmental Crises

Global WarmingGlobal Warming Ozone DepletionOzone Depletion Acid RainAcid Rain DeforestationDeforestation PesticidesPesticides Nuclear PowerNuclear Power

AutomobilesAutomobiles Resource DepletionResource Depletion PlasticsPlastics ElectromagneticsElectromagnetics Oil SpillsOil Spills Toxic ChemicalsToxic Chemicals

Bast, Hill, and Rue, Eco-Sanity, Madison Books, Lanham MD, 1994

World Resources Institute (www.wri.org/wri)

World Resources Institute (www.wri.org/wri)

Who is Responsible ??Who is Responsible ?? Rapacious CorporationsRapacious Corporations

– Oil companiesOil companies– Mining companiesMining companies– Paper and timber millsPaper and timber mills– Chemical industryChemical industry– Most all businesses !!Most all businesses !!

Uncaring Business PeopleUncaring Business People Greedy CapitalistsGreedy Capitalists Antigovernment ConservativesAntigovernment Conservatives

Environmental CrisesEnvironmental Crises

Global WarmingGlobal Warming Ozone DepletionOzone Depletion Acid RainAcid Rain DeforestationDeforestation PesticidesPesticides Nuclear PowerNuclear Power

AutomobilesAutomobiles Resource DepletionResource Depletion PlasticsPlastics ElectromagneticsElectromagnetics Oil SpillsOil Spills Toxic ChemicalsToxic Chemicals

Bast, Hill, and Rue, Eco-Sanity, Madison Books, Lanham MD, 1994

Seeds of a Solution...

Changing Conceptions Changing Conceptions of the of the

Natural EnvironmentNatural Environment

Thomas Malthus 1766-1834Thomas Malthus 1766-1834“In Essay on Population (1798) Malthus posited his hypothesis that (unchecked) population growth always exceeds the growth of means of subsistence.  Actual (checked) population growth is kept in line with food supply growth by "positive checks" (starvation, disease and the like, elevating the death rate) and "preventive checks" (i.e. postponement of marriage, etc. that keep down the birthrate), both of which are characterized by "misery and vice".  Malthus's hypothesis implied that actual population always has a tendency to push above the food supply.  Because of this tendency, any attempt to ameliorate the condition of the lower classes by increasing their incomes or improving agricultural productivity would be fruitless, as the extra means of subsistence would be completely absorbed by an induced boost in population.  As long as this tendency remains, Malthus argued, the "perfectibility" of society will always be out of reach. ”

http://cepa.newschool.edu/~het/profiles/malthus.htm, April 2002

Romanticism Romanticism (18(18thth-19-19thth Centuries) Centuries)

Albert Bierstadt (1830-1902), The Rocky Mountains, Landers Peak, 1863, oil on canvas, Metropolitan Museum of Art, New York.

Industrial RevolutionIndustrial Revolution

The Start of EnvironmentalismThe Start of Environmentalism

Limits to Growth (1972)Limits to Growth (1972)

Suter, Fair Warning? The Club of Rome Revisited, Australian Broadcasting Corp, 1999. http://www.abc.net.au/science/slab/rome/default.htm

Evolution of Green SentimentEvolution of Green SentimentSometime in the late Sixties, pollution ceased to be a morally neutral problem Sometime in the late Sixties, pollution ceased to be a morally neutral problem

subject to rational analysis and balanced solutions; it acquired instead, the subject to rational analysis and balanced solutions; it acquired instead, the status of sin. Congress wrote tough legislation -- the Clean Air Act status of sin. Congress wrote tough legislation -- the Clean Air Act amendments of 1970 and the Water Pollution Control Act amendments of amendments of 1970 and the Water Pollution Control Act amendments of 1972 -- to stamp it out.1972 -- to stamp it out.

– Leonard, Leonard, Pollution and the Struggle for the World Product,Pollution and the Struggle for the World Product, Cambridge (1988), p81Cambridge (1988), p81

Although many environmental requirements have been written into law, the law Although many environmental requirements have been written into law, the law alone will never make our air and water clean. A full compliance with the alone will never make our air and water clean. A full compliance with the law can never be achieved by a government agency trying to ram it down law can never be achieved by a government agency trying to ram it down everyone’s throat.everyone’s throat.

– Quarles, Quarles, Business and EnvironmentBusiness and Environment, Conservation Foundation (1977), , Conservation Foundation (1977), p57p57

The real pressure to be green is coming not from environmental pressure The real pressure to be green is coming not from environmental pressure groups, or even from the green consumer: it is coming from inside business.groups, or even from the green consumer: it is coming from inside business.

– Pearce, Pearce, The Greening of Business, The Greening of Business, University Press (1991), p2University Press (1991), p2

Emerging Conceptions of Emerging Conceptions of Commerce and the EnvironmentCommerce and the Environment

Business and EnvironmentalismBusiness and Environmentalism Waste is the common enemy of Business and of the Waste is the common enemy of Business and of the

EnvironmentEnvironment Pollution is Waste!Pollution is Waste!

– wasted raw materialswasted raw materials

– wasted handlingwasted handling

– wasted cleanup expensewasted cleanup expense

– wasted transportationwasted transportation

– wasted disposal expensewasted disposal expense

– wasted legal expensewasted legal expense

Business attention moving from environmental compliance to Business attention moving from environmental compliance to proactive cleanupproactive cleanup

TQM and EnvironmentalismTQM and Environmentalism Initial focus on cleaning up Initial focus on cleaning up

problems “at the end of the problems “at the end of the pipelinepipeline

Later, attention to improving Later, attention to improving processes and eliminating processes and eliminating problems at their sourceproblems at their source

Then, recognition that Then, recognition that pollution is waste, and that pollution is waste, and that environmentalism is cost environmentalism is cost effectiveeffective

Finally, involvement of all Finally, involvement of all employees in a program of employees in a program of continuous improvementcontinuous improvement

““Greening” OperationsGreening” Operations

The Three R’sThe Three R’s

RecyclingRecycling

ReuseReuse

ReductionReduction

Reduce and eliminate waste streams by:

RecyclingRecycling

Most well-known and popular pollution Most well-known and popular pollution prevention methodprevention method

Arguably the easiest method Arguably the easiest method Paper, plastics, glass, metals, oil and Paper, plastics, glass, metals, oil and

solventssolvents Example: reprocessing waste plastic into Example: reprocessing waste plastic into

durable shipping and warehouse palletsdurable shipping and warehouse pallets

BMW -- RecyclingBMW -- Recycling

German “green” laws make manufacturers German “green” laws make manufacturers responsible for products thru their life-cyclesresponsible for products thru their life-cycles

““Cradle-to-grave” responsibilityCradle-to-grave” responsibility BMW designing autos to be easily recycledBMW designing autos to be easily recycled Easy disassembly, marked parts, and “pure” Easy disassembly, marked parts, and “pure”

(unpainted, unglued, ...) materials (unpainted, unglued, ...) materials 81% of 3-Series coupe can be recycled81% of 3-Series coupe can be recycled Opening up recycling centers in Germany, Europe, Opening up recycling centers in Germany, Europe,

and United Statesand United States

Automobile Recycling at FordAutomobile Recycling at Ford

ReuseReuse Reuse materials wherever possibleReuse materials wherever possible

– Example:Example: refill rather than discard a 55 refill rather than discard a 55 gallon drum used to ship a hazardous gallon drum used to ship a hazardous chemicalchemical

Design for reuse where possibleDesign for reuse where possible– Example: Example: HP Laserjet print cartridges HP Laserjet print cartridges

returned to factory for refillingreturned to factory for refilling

Reuse at ChryslerReuse at Chrysler

Packaging and shipping containers provides Packaging and shipping containers provides lucrative opportunity for reuselucrative opportunity for reuse

Wooden pallets have life of 2-3 uses; recycled Wooden pallets have life of 2-3 uses; recycled plastic pallets last 20-30 usesplastic pallets last 20-30 uses

Similar benefits from replacing corrugated boxes Similar benefits from replacing corrugated boxes with plastic containerswith plastic containers

Chrysler has reduced consumption of disposable Chrysler has reduced consumption of disposable containers by 55%containers by 55%

Goal of 95% reductionGoal of 95% reduction

ReductionReduction

Most difficult method to implementMost difficult method to implement Method with greatest potentialMethod with greatest potential Design, manufacture, and use of products to Design, manufacture, and use of products to

reduce the quantity and toxicity of the waste reduce the quantity and toxicity of the waste producedproduced

Difficult to generalizeDifficult to generalize Strong parallels with Quality movementStrong parallels with Quality movement

– Eliminate waste streams, don’t wait until back end of Eliminate waste streams, don’t wait until back end of process to clean-up wasteprocess to clean-up waste

Reduction at Aircraft PlantReduction at Aircraft Plant

Touch-up paints and sealants often Touch-up paints and sealants often hardened in the containerhardened in the container

Began buying in smaller containersBegan buying in smaller containers Saved over $250,000 per yearSaved over $250,000 per year

The Fourth R: The Fourth R: ReclamationReclamation

Restore land to previous state afterRestore land to previous state after– logginglogging

– miningmining

– waste dumpswaste dumps

– manufacturingmanufacturing

– farmingfarming

– developmentdevelopment

We’re not making more land…We’re not making more land…

ISO 14000ISO 14000

International standardInternational standard Strengthen environmental mgmt systemsStrengthen environmental mgmt systems Control environmental impactsControl environmental impacts Commitment to environmental targetsCommitment to environmental targets

– regulatorsregulators– insurance interestsinsurance interests– stakeholdersstakeholders– publicpublic

Reconciling CommerceReconciling Commercewith Ecologywith Ecology

Natural Capitalism Natural Capitalism andand

Industrial EcologyIndustrial Ecology

Natural CapitalismNatural Capitalism

1.1. Increase productivity of natural Increase productivity of natural resourcesresources

2.2. Shift to biologically inspired Shift to biologically inspired production modelsproduction models

3.3. Move to a solutions-based business Move to a solutions-based business modelmodel

4.4. Reinvest in natural capitalReinvest in natural capital

Industrial EcologyIndustrial EcologyIndustrial Ecology is the study of the Industrial Ecology is the study of the means by which humanity can deliberately means by which humanity can deliberately and rationally approach and maintain a and rationally approach and maintain a desirable carrying capacity, given current desirable carrying capacity, given current economic, cultural, and technological economic, cultural, and technological evolution.evolution.

Graedel and AllenbyGraedel and Allenby

Industrial EcologyIndustrial Ecology Industrial SystemsIndustrial Systems

– viewed in the context of surroundings, not in viewed in the context of surroundings, not in isolationisolation

Optimization of entire materials cycleOptimization of entire materials cycle– virgin to finished materialvirgin to finished material– component to productcomponent to product– obsolete product to disposalobsolete product to disposal

Optimization of resources, energy, capitalOptimization of resources, energy, capital

SustainabilitySustainability Sustainable development:Sustainable development:

– development that meets development that meets the needs of the present the needs of the present without compromising without compromising the ability of future the ability of future generations to meet their generations to meet their own needsown needs

Brundtland CommissionBrundtland Commission

Industrial EcologyIndustrial Ecology Five perspectivesFive perspectives

1. Long term habitability1. Long term habitability

2. Mitigating disruptions for 2. Mitigating disruptions for fundamental life-supporting cyclesfundamental life-supporting cycles

3. Global scope rather than transitory 3. Global scope rather than transitory issuesissues

4. Identify and avoid instances where 4. Identify and avoid instances where human activity overwhelms naturehuman activity overwhelms nature

5. Understanding and modifying 5. Understanding and modifying

behavior rather thanbehavior rather than condemningcondemning

Type I Industrial EcosystemType I Industrial Ecosystem

Type II Industrial EcosystemType II Industrial Ecosystem

Type III Industrial EcosystemType III Industrial Ecosystem

Kalundborg, DenmarkKalundborg, Denmark

Kalundborg, DenmarkKalundborg, Denmark

But what about But what about the rest of the world?the rest of the world?

Where do Ships go to Die?Where do Ships go to Die?

“At Alang, in India, on a six-mile stretch of oily, smoky beach, 40,000 men tear apart half of the world's discarded ships, each one a sump of toxic waste. Environmentalists in the West are outraged. The shipbreakers, of course, want to be left alone -- and maybe they should be.”

Langewiesche, "The ShipBreakers," The Atlantic Monthly, April 2000, http://www.theatlantic.com/issues/2000/08/langewiesche.htm

Waste Not,Waste Not,Want NotWant Not

Let’s go to the video!Let’s go to the video!

LessonLesson::

The bottom line ofThe bottom line of

GreenGreen is (often)is (often)

BlackBlack

3M Company3M Company

Pollution Prevention Pays (3P)Pollution Prevention Pays (3P)

First formal pollution reduction program (1975)First formal pollution reduction program (1975) Encourages employees to identify pollution reduction Encourages employees to identify pollution reduction

opportunitiesopportunities Uses the 3 R’s, focus on source reductionUses the 3 R’s, focus on source reduction

3M will...3M will... Solve its own environmental problems. Solve its own environmental problems. Prevent pollution at the source. Prevent pollution at the source. Develop products that have a minimum effect on the Develop products that have a minimum effect on the

environment. environment. Conserve natural resources through reclamation and Conserve natural resources through reclamation and

other appropriate methods. other appropriate methods. Meet and sustain government regulations. Meet and sustain government regulations. Assist government agencies in environmental Assist government agencies in environmental

activities wherever possible. activities wherever possible.

1975-19951975-1995

3P Results3P Results

Air pollutants 178,000 tons

Water pollutants 31,000 tons

Sludge/solid waste 475,000 tons

Wastewater 2.7 billion gals

3P Projects 4,400

Savings $750 million

Savings from first year only

U.S. Sources of EnergyU.S. Sources of Energy

Sources of Energy

0

2040

6080

100120

140

 1980   1990   2000   2001   2010   2020   2025 

Year

Qu

ad

rilli

on

Btu

pe

r y

ea

r

Other

Renewable

Nuclear

Coal

Natural Gas

Petroleum

2003 Power Technologies Databook, National Renewable Energy Lab, U.S. Department of Energy (www.nrel.org)

U.S. Uses of EnergyU.S. Uses of Energy

Uses of Energy

0

2040

6080

100120

140

1980   1990   2000   2001   2010   2020   2025

Year

Qua

drill

ion

Btu

per

yea

r

Transportation

Industrial

Commercial

Residential

2003 Power Technologies Databook, National Renewable Energy Lab, U.S. Department of Energy (www.nrel.org)