STRATEGIES FOR SUSTAINABILITY

Author(s): Marylynn Placet, Roger Anderson and Kimberly M. Fowler

Source: Research Technology Management , September–October 2005, Vol. 48, No. 5
(September–October 2005), pp. 32-41
Published by: Taylor & Francis, Ltd.

Stable URL: https://www.jstor.org/stable/24134797

JSTOR is a not-for-profit service that helps scholars, researchers, and students discover, use, and build upon a wide
range of content in a trusted digital archive. We use information technology and tools to increase productivity and
facilitate new forms of scholarship. For more information about JSTOR, please contact support@jstor.org.

Your use of the JSTOR archive indicates your acceptance of the Terms & Conditions of Use, available at
https://about.jstor.org/terms

Taylor & Francis, Ltd. is collaborating with JSTOR to digitize, preserve and extend access to
Research Technology Management

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
To address the need for processes that leverage the value KEY CONCEPTS: sustainable development, innova
of intellectual capital, DuPont participated with the tion, customization, business strategy, cement industry,
Rockefeller Foundation and several other biotechnology State of Arizona.
companies to create the African Agricultural Technol
ogy Foundation. Based and led from Africa, AATF will An increasing number of companies, industry groups,
transfer selected agricultural technology from developed communities, government planners, non-governmental
economies to smallholder farmers in sub-Saharan Africa. organizations (NGOs), building and facility owners,
Their website—http://www.aftechfound.org/—has and research organizations/laboratories around the world
details. Over time, these capacity-building projects will are exploring sustainable development. They are seek
create new markets and customers for agriculture-based ing creative approaches to integrate their pursuit of
businesses. economic prosperity with the assurance of environmen
The final and fundamental question we have to addresstal protection and quality of life for current and future
is, do we have a choice? Current growth patterns and generations.
processes are unsustainable and, at some point, willAccepted definitions of sustainability suggest three
create increasingly undesirable outcomes. Business,principal goals or "cornerstones": environmental stew
supported by governments, academics and NGOs, mustardship, social responsibility and economic prosperity.
step up to the challenge of transforming to sustainableEnvironmental stewardship involves protecting air,
growth. R&D management and professionals are at the water, land, and ecosystems, as well as effectively
leading edge of change and need to be fully engaged andmanaging the earth's natural resources (including fossil
driving the fundamental changes in technology that willfuels). Social responsibility means improving the quality
be needed. ®
of life and equity for employees of the enterprise and for
society as a whole. Economic prosperity results from the
creation of economic opportunity for both the enterprise

STRATEGIES
and its stakeholders (e.g., the communities in which it is
located).

While in theory all three goals can be embraced simulta

FOR SUSTAINABILITYneously, the development of a comprehensive sustain
ability strategy that can actually be implemented is
clearly a challenge. Furthermore, development of such
a strategy can be met with skepticism within the organi
Innovation and customization are critical, zation. In a business setting, strategy development
studies for the cement industry and typically focuses on expansion of revenue-generating
activities and reduction of non-essential costs. Environ
State of Arizona reveal. mental protection measures and benefits for employees
and other stakeholders could be viewed as costly and
unnecessary.
Marylynn Placet,
However, pursuing the first two goals—environmental
Roger Anderson and stewardship and social responsibility—is likely to
enhance the prospects of the third goal—profit and
Kimberly M. Fowler economic growth. For example, increased resource pro
ductivity through more efficient use of materials and
OVERVIEW: Sustainable development has three broad
reduced amount of waste leads to lower production costs.
goals: environmental stewardship, social responsibility
A company's proven record of environmental compli
and economic prosperity, for both the organization and
ance may improve its ability to site a new plant in a devel
its stakeholders. In a successful sustainability-focused
oping country and hence increase its ability to expand its
business strategy, these three goals will be inter-related
revenue-generating operations. A company's demon
and supportive of each other. Developing such a strategy
strated concern for its workers is likely to lead to
requires careful study and analysis to fully understand
improved productivity, fewer workdays lost, company
sustainability-related opportunities and threats. Bat
loyalty, and decreased turnover—all of which improve
telle 's consulting work with the cement industry, thethe bottom line.
State of Arizona and others, shows how innovation is a
key element of sustainability-focused business strategy. Economic prosperity and increased profitability, in turn,
Furthermore, such business strategies must be custom provide the means to achieve the first two goals. Without
ized to meet an organization's core competencies,a strong economic base, a company's concerns for the
financial situation, skills, resources, and the sustainabil environment and social issues usually take a back seat to
ity challenges it faces. survival. So, the goals are inter-related, and strategies for

Research • Technology Management

0895-6308/05/$5.00 © 2005 Industrial Research Institute, Inc.

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
 consumption (3). Proponents of sustainability contend
all three cornerstones are best developed simultaneously
(see illustration, next page). Developing a strategy that
that resource consumption in all industries must decrease
transitions from traditional resource-intensive and by a factor of four (4), or even a factor of ten (5) to secure
volume-maximizing operations to an approach that auses
sustainable future.
fewer resources and maximizes both stakeholder and
Making small improvements, while maintaining the
shareholder value requires leadership, commitment,
status quo, is unlikely to result in the required slowdown.
planning, and innovation.
Radical innovation will he needed to develop novel
Requirements for Sustainability processes that are less disturbing to the environment, to
create new products that are better for the environment
Battelle has been in the business of scientific exploration,
(or that go a step further and improve environmental con
technology development and contract research ditions),
for to formulate improved business processes that
75 years (7). Over the past 15 years, Battelle customers
incorporate social and environmental considerations into
have increasingly faced environmental compliance and both long-term strategy and day-to-day operations, and
social issues that have been draining financial resources
to invent brand-new industries devoted to improving
from their core business objectives. Recognizing this environmental and social conditions.
trend, Battelle has moved not only to understand the
benefits of a sustainability-oriented approach to A second insight is that the concept of sustainability must
business, but to develop a leadership position in be tailored to the situation at hand. "Cookie cutter" strat
the
egies
practical application of sustainability principles. As a aimed at sustainable design and development
won't work, because each industry, location and culture
result, for more than a decade, Battelle has been working
with industries, community, and government groups is to
subject to its own particular environmental and social
pressures, which change over time. So, sustainability
turn environmental and social liabilities into opportuni
strategies must be "customized," and they take thought
ties through the application of sustainable development
and design concepts. ful planning and time to develop.

This article provides case studies that illustrate each of

One insight drawn from the Battelle experience is that
sustainability requires innovation (see "What is Innova
these insights. The first relates to the cement industry,
which
tion?", page 35) (2). Researchers have estimated that, if is faced with the prospects of dramatically
the per-capita resource consumption rates currently increasing product demand resulting from rapid infra
experienced in the developed world are extrapolatedstructure
to expansion in the developing world, coupled
with environmental and societal issues that will become
the developing world, we will eventually need the
even more acute in the future in the absence of change in
equivalent of three Earths to support our rate of resource

Marylynn Placet is the technical group manager for ment;

the planning for sustainable development and eco
Energy Policy and Planning Group in the Washington, nomic development based on sustainable technologies.
D. C. office of Pacific Northwest National LaboratoryHe currently manages a Pacific Northwest collaborative
ofof
(PNNL), operated by B attelle for the U.S. Department four universities and two national laboratories aimed
Energy. During her 25 years of experience, she at hasapplying geospatial technologies to regional resource
focused on analyzing energy and environmental issues management needs. He holds an M.S. in forest ecology.
andersrg@battelle.org
for government and industrial clients. During 2000-2002,
she played a key role in the study, described in this paper,
Kim Fowler is a senior research engineer at Pacific
conducted by Battelle for the World Business Council for
Northwest National Laboratory in Richland, Washing
Sustainable Development (Geneva, Switzerland) to ton, specializing in sustainable development, pollution
examine innovation and sustainable development strat
prevention, and environmental management systems.
egies for the global cement industry. She holds an M.B.A.
She works for industrial and government clients estab
from Georgetown University, m.placet@pnl.gov
lishing strong environmental programs, evaluating
Roger Anderson is a senior program manager at Pacificsystems for efficiencies, and assessing the environmen
Northwest National Laboratory in Seattle, Washington, tal, social and economic consequences of process,
with over 30 years' experience in managing projects product, and facility designs. She is an adjunct faculty
focused on natural resources, science and technology member at Washington State University in the Environ
institutions, and sustainable development. He has mental Science and Engineering Departments and a U.S.
conducted projects involving water resources assess Green Building Council Leadership in Energy and Envi
ronmental Design (LEED) accredited professional. She
ment; environmental monitoring; institutional capacity
holds an M.S. in environmental engineering.
building for ecological, engineering, safety, regulatory
kim.fowler@pnl.gov
and other objectives; policy analysis; technology assess

September—October 2005

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
 Three Cornerstones of Sustainable Development

ECONOMIC BENEFITS

Environmental
SOCIAL BENEFITS
benefits w
W

Environmental protection and Improved health and welfare; Improved quality of life for
resource conservation on local, preservation of ecosystems for employees and society as a
regional, and global scales future generations whole

Figure 1.—Sustainable development involves the integration of three goals: environmental stewardship, social
responsibility and economic prosperity for both the enterprise and society as a whole. In a successful
sustainability-focused business strategy, these three goals are inter-related and support each other.

industry practices. The case study emphasizes potential

cement industry as a whole could evolve to better meet
innovation pathways that, based on the Battelle the need for global sustainable development while
study,
enhancing
could lead to more sustainable practices. The second case shareholder value. Critical features of the
project,
study focuses on customizing sustainability strategies towhich helped ensure its success, included com
mitment
meet regional needs. It describes an approach taken by on the part of the CEOs in all participating
the State of Arizona, with assistance from Battelle, to
companies and a considerable investment of their staff
identify new industrial development opportunities resources
that to work with the WBCSD and Battelle team.
would not only lead to regional economic growth, but to
sustainable economic growth. Cement is made by heating a mixture of limestone, clay
and small amounts of other raw materials at a very high
Sustainability-Focused Innovation temperature, grinding the resulting substance, called
clinker, and blending it with gypsum and other additives.
In 2001, the World Business Council for Sustainable It is the key ingredient in concrete, which is produced by
Development (WBCSD) based in Switzerland commis mixing cement with sand, water and small rocks
sioned Battelle to conduct a comprehensive study aimed (aggregate). Concrete is second only to water as the most
at developing a sustainable development strategy for the consumed substance on earth, with nearly three tons used
cement industry (6). The multi-year study entitled, annually for each person in the world. Cement produc
"Toward a Sustainable Cement Industry," represents the tion is a very capital-intensive and resource-intensive
effort by ten major cement companies to explore how the industry. As a rule of thumb, 1.5 to 1.6 tons of dry raw

Research • Technology Management

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
materials
materials (limestone
(limestoneand
andsome
some
other
other
materials)
materials)
are are
required
required to
duction
toproduce
produceone
duction consumes
oneton
consumesabout
ton
ofof
clinker
about2 2percent
clinker
percent
ofof
(7).(7).
global
Cement
global
Cement
primary
propro
primary
Inertia is one of the
energy
energy (5)(5) and
andproduces
producesabout
about5 percent
5 percentof of
thethe
world's
world's
carbon
carbon dioxide
change.
dioxideemissions,
change. Hence,
Hence,the
emissions,which
theresource
resource
which contribute
intensity
contribute
intensityissue
issue
to climate
to climate
andand
thethe
assoasso
greatest barriers to
sustainability-focused l
ciated
ciated climate
climatechange
changeconcern
concernareare
key
key
drivers
drivers
forfor
sustain
sustain
ability
ability in
in this
thisindustry.
industry.On
Onthe
the
other
other
hand,
hand,
production
production
of of
this
this product
productisiscritical
criticaltotosupport
support
infrastructure
infrastructure
develop
develop
ment,
ment, especially
especiallyininemerging
emerging economies.
economies. innovation.
One
One of
of the
thegreatest
greatestbarriers
barrierstoto
sustainability-focused
sustainability-focused
innovation is inertia—the tendency for companies to
innovation is inertia-the tendency for companies to In additlQn tQ jtstofocus
In addition Qn stakeholder
its focus interaction,
on stakeholder the
interaction, the
continue operating as they have in the past. Resistance to
continue operating as they have ,n the past. Resistance tostudy
stud also induded
also includedsub.studies that reSearched
sub-studies topics topics
that researched
change and skepticism about new ideas are typical of
change and skepticism about new ideas are typical of im important
rtant t0 sustainabllity in this in
to sustainability particular industry,industry,
this particular
mature industries (see "Risks Associated with Innovat
mature industries (see Risks Associated with Innovat- inc]udi (he mdust
including ^s tential potential
the industry's contnbut]on t0 green to green
contribution
ing," page 39).
ing, page 39).Because
Becausemarket
marketprices for for
prices cement are are house emissions and climate ch k for_
cement house gas emissions and climate change; key perfor
relatively uniform across companies within any region,
relatively uniform across companies within any region, mance
mance indicat life.cycie
indicators; assessment;
life-cycle industrial
assessment; industrial
cement companies are likely to hesitate to make
cement companies are likely to hesitate to make gcol ecology;
environment, health and
environment, safety;
health andland use; land
safety; biodiuse; biodi
sustainability-focused
sustainability-focusedinvestments
investments
that
that
areare
notnot
clearly
clearly
linked to near-term cash flow. Even in less mature indus
versity;
versity; socioeconomic
socioeconomic development;
development;
public
public
policypolicy
instruments;
instruments;thethe
"business
"business case"
case"
for for
sustainability;
sustainability;
and and
tries, the focus on near-term profitability can be an the
the role
roleof
ofinnovation
innovation(9).(9).
impediment to sustainability-focused investment.
After
After completion
completionofof
detailed
detailed
analyses
analyses
of these
of these
topics,
topics,
Battelle
Battelleintegrated
integratedthe
the
insights
insights
gained
gained
and and
formulated
formulated
ten ten
The
The
Driving Forces Driving Forces
key
key recommendations
recommendations aimed
aimedat helping
at helping
the industry
the industry
„ A , iii £• , • • progress on a path toward sustainability.
progress on a path toward The first seven
sustainability. The first seven
Battelle
Battelle's s challenge
challenge wasall
was to study to study
the all the forces driving A S ■ ■ . , te ,
forces driving
, ,, ■ ,■ recommendations are issue-oriented recommendations are(focused
issue-orientedon(focused
the on the
change
changein this industry, as wellin as those impeding
this industry, as w
onon no it-* fhio inHiiot n r a n iiral n n thonn i »-v-» ^ /A i n /y v

seven
sevenkey environmental key
and societal issues
envirthat
change, and filter them through the lens of sustainability
change and filter them
emerged from the research), and the lastthro
three are
to develop a comprehensive strategy for the industry as a
to develop a comprehensive
focused on enabling processes: st
whole. The
whole. The study
studyincluded
includeda aseries
seriesofof stakeholder
stakeholder
"dialogues"
"dialogues"ininsix
sixlocations around
locations aroundthethe
world, aimed
world, at • at
aimed • Climate
Climate protection.—Establish
protection.—Establish corporate
corporate carbon
carbon manman
gaining insight
gaining insightinto
intohow
howthethecement
cement industry
industry is viewed agement
is viewed programs,
agement programs,set
setcompany-specific and industry
company-specific and industry
by people
by peoplewho
wholive
livenear
near cement
cement plants,
plants, environmental
environmental widewide medium-term
medium-term COzC02 reduction
reduction targets,
targets, andand initiate
initiate
governments, the
groups, governments, the academic
academic community,
community, long-term
long-term process
process and product
product innovation.
innovation,
employees
employees within
within the
theplants,
plants,and
anda arange
rangeofofother
other stake
stake
holders. • Resource productivity.—Facilitate the practice of
industrial ecology (10) and eco-efficiency in the cement
industry.

• Emissions reduction.—Continuously improve and

What is Innovation? make more widespread use of emissions control tech
niques.
More than 60 years ago, economist Joseph Schumpeter
described innovation as a process, starting from a kernel • Employee well-being.—Implement programs to
of an idea and continuing through all the steps needed to enhance worker health, safety and satisfaction.
reach a marketable product that changes the economy.
The concept of innovation has changed significantly • Community well-being.—Contribute to enhancing
since then. We now distinguish levels of innovation quality of life through local stakeholder dialogue and
(e.g., incremental to radical) and no longer restrict the community assistance programs.
term to the creation of new products that change the
economy. Innovation is also no longer restricted to • Ecological stewardship.—Improve land-use practices
product innovation, although this is still the primary by disseminating and applying best practices for plant
focus of much of the literature. Finally, innovation is site and quarry management.
not necessarily restricted to the process of creating
something new from beginning to end but includes the • Regional development.—Promote regional economic
capacity to quickly adopt externally created innovations growth and stability by participating in long-term
that may benefit the organization.—M.P., R.A. and planning and capacity-building, especially in developing
K.F. countries.

September—October
September—October 2005
2005 35

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
• Business integration of sustainable development.— (Note that cross-industry initiatives that encourage use of
Integrate sustainable development principles into wastes and by-products are being pursued by the U.S.
business strategy and practices in order to create share Business Council for Sustainable Development under
holder value. the title "By-Product Synergy," with support from the
• Cooperation.—Work with other cement companies U.S. Environmental Protection Agency and the U.S.
and external organizations to foster sustainable develop Department of Energy (14).)
ment practices and remove barriers. By using waste fuels, cement companies may also
• Innovation.—Encourage sustainable development provide community service by reducing the need for
related innovations in product development, process landfills and destroying hazardous wastes that could leak
into the environment. The industry should pursue these
technology and enterprise management.
opportunities, while simultaneously investing in the
Innovation Pathways longer-term product and technology R&D that will
Although innovation is called out as a separate recomprepare it for future, substantially larger reductions. In
mendation, it is really integral to all of the recommenda this way, the industry can remain viable and profitable in
a future carbon-constrained world.
tions. The sub-study on innovation, which was part of
first phase of the study, provides examples of potential Product Innovation
sustainable cement innovation pathways associated with
each of the recommendations stated above. Product innovation may also assist the industry in
meeting the climate-protection as well as resource
Each possible innovation pathway is categorized as aintensity recommendations. Emissions of C02 will be
process, product or management initiative (see Table,
reduced if less limestone must be calcined to produce the
next page). The process initiatives are generally orientedsame level of cement performance, so cementitious
toward reducing resource consumption and environmen products that are developed using alternative processes
tal effects. Product initiatives focus primarily on creating or that combine cement with other cementitious agents
higher-value products that result in less overall material could be part of the solution. In the near term, cement is
and energy inputs over the product lifecycle. Manage increasingly being mixed with waste products, such as
ment initiatives include measures companies could takefly ash from coal-fired power plants and slag from the
to monitor progress and improve information needed to iron and steel industry.
make sustainability-focused decisions.
In addition, modified cements that produce concrete with
The intention of the sub-study was to document the longer lifetimes can improve the longevity of buildings
current state of innovation and provide ideas thatand structures as well as reduce the total amount of
could stimulate corporate thinking about sustainabilitycement used over the span of many decades, and hence
focused innovation in the cement industry over both thethe cumulative energy use and C02 emissions. Over the
short and long term. longer term, various avenues for developing alternative
The study did not attempt to make specific recommencement-like products are being explored at universities
dations about which process, product or business and by entrepreneurs (15). For instance, some ideas
strategy innovations individual cement companies involve using coal-fired boilers to produce a cement-like
should pursue. Company-specific factors must be byproduct, because coal and clinker have the same basic
included in such strategy decisions. chemical makeup.

Process Improvements However, product innovation presents a number of chal

lenges. "Ordinary Portland Cement" is a mature product
With regard to the recommendations for climate protecfamiliar to customers. Making changes in cement or
tion, long-term process improvements might involve concrete recipes or manufacturing processes has proven
deployment of carbon capture and sequestration technoldifficult because materials and construction specifiers
ogy; development and deployment of biomass fuels,and users want to be able to rely on consistent product
which are considered carbon neutral (II), in cement
characteristics. Product standards for cement and
kilns; or novel kiln concepts that lower temperatures concrete are intended to ensure safety and integrity of
(resulting in less fuel use). Unlike many industries, the
built structures. While the standards protect both the
cement industry also has a unique opportunity to begin public (by ensuring the safe concrete structures) and the
reducing emissions in the near term at relatively low cement industry (by ensuring the demand for their
cost (12). "ordinary" product), the standards can also provide a
The cement production process is amenable to using roadblock to innovation. If some kind of disruptive
waste products from municipal sources (household product innovation occurs, either within or outside the
waste, tires, etc.) or other industries as substitutes for cement industry, rigorous product testing and consider
fossil fuels, because the high temperature in the kilns able time and effort will have to occur to break down this
tends to destroy hazardous combustion byproducts (13). formidable obstacle.

Research • Technology Management

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
 Potential Future Innovation Pathways

Climate Protection Process:

Carbon capture and sequestration technology.
Development of biomass fuels or lower-carbon, hydrogen-rich fuels for ce
Management:
Measurement and monitoring programs for C02.
Development of C02 offset programs, in collaboration with governments.
Note: The items discussed under "Resource Productivity" also apply to "C
Resource Productivity Process:
Co-production of cement and electricity (based on the principle that coal ash and clinker are
created through high-temperature burning and both have the same basic chemical makeup).
Technologies for safely increasing use of waste fuels in kilns.
Advanced monitoring for combustion processes using wastes.
Advanced kiln concepts that lower temperature or fossil fuel use.
Product:
Innovations that lead to much lower use of limestone in cement by increasing performance of
blended/composite cement or concrete.
Novel cement products using fewer virgin resources (cement with lower calcium content or higher
reactivity; new types of cement made by completely new processes).
Management:
Use of lifecycle analysis and other analysis techniques to better understand the relative impacts of
various possible resource productivity improvements.
Emission Reduction Process:
Continuous improvement in emission reduction technology.
Management:
More widespread use of continuous emissions monitoring and environment
systems.
Ecological Stewardship Management:
More widespread use of good land use practices and expanded use of new quarrying techniques,
such as semi-open cut mining (17).
Employee Well-Being
Weil-Being Management:
Improved methods to measure and ensure worker safety, including the handling of wastes.
Community Weil-Being Process:
Innovative ways to destroy hazardous substances in cement kilns, providing a benefit to society.
Product:
New applications of cement to ameliorate environmental problems.
Management:
Innovative stakeholder communication methods.
Better ways to evaluate benefits to society of waste destruction and other innovations.
Regional Development Product:
Novel cement-based products that lower costs of infrastructure development in emerging
economies.
Cement products that can extend the life of existing structures, and better scientific understanding
to evaluate life extension strategies.
Business Integration and Process:
Stakeholder Value Continuous improvement in process efficiency and cost reduction.
Product:
High-value products that
that have
have environmental
environmental and
and societal
societal benefits.
benefits.
Management:
New business models that
that change
change the
the way
way shareholder
shareholder value
value is
is produced
produced byby cement
cement companies;
companies;
e.g., new ways to market
market and
and distribute
distribute cement
cement and
and concrete
concrete products
products in
in developing
developing countries.
countries.

Agenda for Action individually and develop strategies unique to each

company's situation and competencies. Specific innova
Future innovations that occur within individual com tions in cement products and production processes are
panies will result from each company's own research,likely to remain proprietary, as are company-specific
product development and management processes. business process innovations.
Cement companies compete with one another, including
on some aspects of sustainable development. As com However, in some cases joint projects are possible and
petitors, there are legal and practical limits to the
desirable. Subsequent to the Battelle study, the cement
companies' abilities to cooperate and collaborate. So,
industry participants developed a five-year "Agenda for
Action," outlining the kinds of joint projects and indi
for many aspects of sustainability, companies must act

September—October 2005

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
vidual
vidual actions
actions
they planned
they
to take
planned
in six key areas:
to take in six key areas:
climate
climateprotection,
protection,
fuels and raw fuels
materials,and
employee
raw materials, employee
health
healthand safety,
and emissions
safety, reduction,
emissions
local impacts,
reduction, local impacts,
and
andinternal
internal
business processes.
business Some processes.
of the noteworthy Some of the noteworthy
joint
joint
cement
projects
cement
projects
include: develop
industry
industry
include:
a C02 protocol
(this is already
(this
develop
completed);
develop individualized
develop individualized
for thea C02 protocol for the
is already
investigate completed); investigate
public
publicpolicypolicy
emissions;
emissions;
and market and
develop develop
mechanisms
market for reducing
guidelines forguidelines
mechanisms
C02
strategies unique to
for reducing C02
responsible use offor responsible use of ■ Mm m M

alternative
alternativefuels andfuels
raw materials
and inraw kilns; materials
set up a in kilns; set up a
Health
Healthand Safety
and Task
Safety
Force and
Task
establish
Force
a healthand S and
and establish a health
safety
safetyinformation
information
exchange; develop
exchange;
an industry develop an industry
protocol
protocol for airfor
pollution
air emissions
pollution
measurement,
emissions
moni measurement, moni
toring
toring and reporting;
and reporting;
develop an Environmental
develop andan Environmental and
Social
SocialImpact
Impact
AssessmentAssessment
process; and investigate
process;
use and investigate use
of
ofkey
key
performance
performance
indicators for monitoring
indicators progress
for monitoring progress
on sustainability.
on sustainability. broad-based sustainable systems
broad-based sustainable systems industry. industry.
Arizona Arizona
„ , . , , „ , , Al . might also be considered might also be a "living
considered laboratory"
a "living laboratory" for arid for arid
Only
Only time
time andand thethe market
market will willtell
tellwhether
whetherthis thismature mature ? . , ... . . . , r
, , ... , - rx. ^ and semiarid lands, which and semiaridcomprise
lands, which comprise moremorethan a thirdthan
of a third or
industry
industry will will bebe strongly
strongly affected
affected by bythe thepressurespressuresfor for, T, ^ ^ . ,.
the developable
the land in the world. The
developable
state has a diverse
J J j i thp nnoh a onn in fno n/nrm I hp cfofp noc o riuiprop

sustainability
sustainabilityand the role that radical and
innovation the
plays in role that
population,
population,
located in both large cities and dispersed loc
meeting
meetingits challenges. its challenges.
rural rural
towns, reflecting a spectrum of challengestowns,
to sus re
tainable
tainable economic development. econom
AA
Customized
Customized
Strategy for Sustainable Strategy for
Economic
Economic Development
Development In an earlier study, Battelle
In an earlier study, identified
Battelle identified sustainable sustainable
Systems
Systemsfor
forArizona
Arizonasystems as one of four
systems as"technology platforms"
one of four "technology platforms" that could that could
bebediscerned
discerned
among the among
core competencies
the ofcoreArizona's
competencies of Arizona's
Asthe
As the previous
previous case
case study study just
just discussed, discussed,
companies thatresearch
research companies
universities
universities
that could serve as the that
that
engines
could
of serve as the engines of
compete
compete in thein the marketplace
marketplace must develop
must develop individualized economic
economic growth. individualized
growth.
For example, theFor example,
Consortium for the the Consortium for the
strategies
strategies uniqueunique to their
to their situations andsituations
competencies.Studyandof Rapidlycompetencies.
Study of Rapidly
Urbanizing Regions atUrbanizing
Arizona State Regions at Arizona State
Developing
Developing a strategy
a strategy aimed regional
aimed at sustainable at sustainable is a world leader,isasregional
University
University a world
indicated by theleader, as indicated by the
economic
economic development
development
can follow a similar
can follow
approach. Aa extension
similar
extension ofseveral
of several
approach.
ofofitsits studies
A to other
studies to other cities
cities around
around
sustainable
sustainable regional
regional strategy
strategy should should
consider the compe-theconsider
theworld.
world.The
Thethe compe
project
project endeavoredto
endeavored toconvert
convertthe the oppor
oppor
tencies
tencies within
within the regionthe
(e.g.,region (e.g.,
types of skills types
available of inherent
tunities
tunities skills in
inherent available
in thesustainable
the sustainablesystems
systems platform
platform into
into
within
within companies,
companies, government government agencies,
agencies, universities aadevelopment
development universities
path,with
path, witha avision
vision
toto guide
guide thethe process
process
and
and other
other research
research facilities),facilities), its natural
its natural resources, and its resources,
and
and identification
identification and
ofof its
the
the investments
investments requiredtotocreate
required createa a
sustainability
sustainability challenges
challenges (including
(including environmental environmental
and sustainable systems
sustainable and
systemsindustry
industry from
fromboth
boththe
theexisting
existingandand
social
socialissues). issues). emerging technology base.
emerging technology base.

In
In2003 and 2004,
2003 andBattelle's
2004,Technology PartnershipTechnology
Battelle's The methodologyPartnership
included: The methodology in
Practice
Practiceconducted
conducted
a study for the aArizona
study Commerce
for the Arizona Commerce
and
and Economic
Economic Development Commission and the
Development Commission
• Analysis of and the
national • Analysis
and international of trends.
market national an
Arizona
Arizona Department of Commerce, in
Department of association
Commerce, with For in association
example, the U.S. marketwith For example,
for advanced municipal the U
Arizona's
Arizona's public universities and the Arizona Board
public universities andof the
waterArizona Board of
treatment technologies waterto treatment
is expected grow at an tec
Regents,
Regents, entitled: DevelopmentDevelopment
entitled: and Investment Prospec and average
Investment
annual rate Prospec-
of 23.1 percent.average annual rate o
tus
tus to to
Create
Create
a Sustainable
a Sustainable
Systems IndustrySystems
in Arizona Industry in Arizona
(16).
{16). Arizona
Arizona is the firstisstate
the first
known state
to examine • A benchmarking
theknown to examine analysis the
of other
• Astates and regions
benchmarking a
potential
potential for sustainable
for sustainable
systems from asystems considering elements of
statewide perfrom a statewide per- consideringsustainable systems, to identify
elements
spective
spective in order
in to develop strategies
order to develop that leverage best practices
strategies that andleverage
other lessons best
learned. practices
For example, six and oth
industry
industry and university
and university assets
assets in the creation U.S. states and two international
of newin the creation of new U.S. states regions have displayed
and two i
markets,
markets, companies and companies
jobs. and jobs. an impressive
an impressive commitment
commitment to sustainability as a funda to
mental
mental ethicethic
of government
of government
and private-sectorand opera
private-s
During
During theofcourse
the course the study,ofthe the
planningstudy,
team foundthe planning team found tions.
tions.
that
that Arizona
Arizona
is home tois numerous
home companies
to numerous committed companies committed
to
tosustainable
sustainablebusiness practices
business (e.g., practices
over 100 compa(e.g., over 100gap
• An infrastructure contpa- • An intensive
analysis, through infrastructure
uni
nics
nies focus
focus on prevention
on pollution pollution prevention
and recycling, and and government
versity, recycling, and versity,
and industry interviews togovernmen
deter
over
over 50 focus
50 focuson energy onefficiency).
energy Arizona
efficiency).
also Arizona
mine strengths, also mine
opportunities, strengths,
weaknesses and threats oppor
possesses
possesses entrepreneurs
entrepreneurs
and university and research university
facing theseresearch facing
industries in Arizona. these federal
For example, industries
strengths
strengths that, collectively,
that, collectively, could form the basis could form
for a funding thebetween
is split basisseveral
for agencies
a funding
without cenis split be

Research
Research • Technology
• Technology
Management Managem

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
tralized, coordinating capacity for sustainability, pre To realize this vision, the Prospectus recommended
senting a challenge for funding research projects. several linked strategies. For example, the state could
leverage university strengths in water R&D and manage
• Development of a 10-year vision for Arizona in this ment to take advantage of projected growth in related
competency area. industries; harness the sun for power, fuel, food and
• Development of a set of mutually reinforcing strate
medicine, taking advantage of its climate to develop
industries ranging from solar electricity to greenhouse
gies and action plans, including resource needs, to
based crop production. In addition to recommendations
further position Arizona in these industries.
regarding specific industry niches, the recommendations
The proposed sustainable systems vision is for Arizona also included cross-cutting strategies such as creating
to become a premier national and international leader for the business infrastructure for a sustainable systems
employing sustainability principles for "arid lands li industry.
ability." The vision further includes a regulatory and
policy climate to encourage sustainable operations by all Actions for Arizona to Take
segments of society. As a result, Arizona can be a model
for quality of life in arid/semiarid lands and export sus Finally, the Prospectus recommended specific actions
tainable systems, products and services worldwide, with to be taken by a partnership of Arizona government
attendant economic benefits for Arizona citizens. agencies, universities, industries, and NGO advocates,

Risks Associated with Innovating (and Not Innovating) producing a set of standardized commodity products). In
1975, the mini-mill was introduced as a new process that
Innovation can be risky. When established industrial produced a product, initially considered inferior to normal
players that already occupy a strategic position try to stra
steel, that eventually took over 40 percent of the market.
tegically innovate toward sustainability, they will have to
manage their existing strategic position while movingThe mini-mill process recycles scrap steel, drastically
into a new one. In the process, they may have difficulty reducing virgin material and energy use. It was first used
escaping their mental models of who their customers to convert scrap steel into reinforcement bars (a low
really are and what they should be offering those margin product), which are used in concrete construction.
customers. They may have to overcome complacency andThe mainstream steel industry, which was focused on
increasing its revenues from high-value products, had little
managerial confidence in their current situation. This is
especially problematic when a company or an industry concern
is for this new entrant capturing a low-margin segment
profitable and successful. Accomplishing sustainabilityof the market. Mainstream steel industry profit margins
actually increased when mini-mills were first introduced.
oriented innovation requires strong leadership, long-term
vision and an expanded view of risk. As Hardin Tibbs Over
of time, the mini-mill technology improved, and the
the Global Business Network wrote (18): quality of its products increased to the point where it could

Organizations intending to take action on the issue of sus

compete for high-value products (20). Now North
America's mini-mills are the most efficient, lowest-cost
tainability face decision-making paradoxes that preclude
steel makers in the world, and these mills are much less
a clear logical rationale for taking action. Sustainability
therefore confronts organizations with the need to resource- and energy-intensive than mills that process
virgin iron ore.
determine what they think should be done, rather than
only what can be analytically justified. Assessing the seri
Could there be a "mini-mill" analogy in the future of your
ousness of unsustainability requires organizationalindustry? Could a new process be invented outside the
decision makers to make a judgment, based on theirmainstream industry that could produce a more sustain
beliefs and values and a holistic assessment of risk. Such
able product that will eventually compete successfully
an uncomfortable but unavoidable position will involve with traditional products? Or can the mainstream industry
organizations in the wider social process ofexploring newdevelop such innovations itself?
values.
While there is a risk associated with innovation, there is
Some research supports the supposition that innovative also a risk associated with not innovating. And when we
factor in the risk of business disruption that could be
companies are more successful financially than those that
caused by environmental and social issues, such as
do not innovate (19). In addition, companies or industries
that do not innovate may more likely be confronted with climate change and political activism, the case for inno
"disruptive" innovations from outside the mainstream. vation toward sustainability becomes even stronger.
Disruptive innovations can be based on the principles ofCompanies that believe change is needed to support a sus
sustainability (e.g., recycling instead of using virgin tainable world are challenged to find the right kinds of
materials), and simultaneously result in lower production
product, process and managerial innovations that will lead
to that more sustainable world but also maintain or
costs. For instance, consider the case of the "mini-mill"
introduced in the steel industry (a "heavy" industry increase profitability.—M.P., R.A. and K.F.

September—October 2005

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
such
such as the
as the
development
development
of a statewide
ofworkforce
a statewide workforce
education
education
actions
actions
strategy
would
strategy
would
for sustainable
be taken
for sustainable
beintaken
industry. These industry. These
a phased in
process,
a phased
beginning
process, beginning
Consi
r
with
with thethe
mostmost
critical critical
actions, andactions,
made in accordance
and made in accordance
with
with a financial
a financial
plan andplan
investment
and portfolio.
investment portfolio.

Several
Severalsteps have already
steps been taken
havetoward the
already
vision. been taken toward the vision.
Arizona
Arizona Governor Janet
Governor
Napolitano recently announced
Janet Napolitano recently announced benefits-including
benefits—incluilng
the
theformation of "Water University,"
formation of "Water an interdisciplinary __ , , , , , _ , an
University," . . , _interdisciplinary
, j ,,,,,, , _
of the state's three universities focused on G||| U LH ! jgJ |[lll[rj|[rj|l K ji risks and benefits of
collaboration of the state's three universities focused on
collaboration
water
water research,
research,
community assistance
community
and economic assistance and economic
development.
development.The governorThe
also established
governor a workingalso established a working
group
group
ment
ment
to recommend
to recommend
of renewable
policy actions to promote
of renewable
energies and energy
policy
energies
develop
actions to promote develop
efficiency inand energy efficiency in
M innovating.
not innovating.
Arizona.
Arizona.The U.S.The
Department
U.S.of Department
Agriculture has bro of Agriculture has bro
ken
ken ground
glOUltd on Arid-Land
011 a $28 million a $28Agricultuial
million needsArid-Land
and aspirations mostAgricultural
efficiently. .. . [I]nnovation
needscanandenable
aspirations most efficiently. ... [IJnnovation can enable
Research
Research Center in Center in toMaricopa,
Maricopa, Arizona, Arizona,
be completed our global to be
economy to depend morecompleted
on human ingenuity ourthan on theeconomy to depend more on human ingenuity than on the
global
inin
2006.2006. In the
In addition, addition, theofArizona
Arizona Department exploitation of Department of more sustainable
nature. If we are to become in theof nature. If we are to become more sustainable in the
exploitation
Commerce
Commerce is adding a is adding
business a representa-
development business development
way we live our lives, we must representa
find new ways to do oldwaythings,
weaslive
well our lives, we must find new ways to do old things, as well
tive
tive to recruit
to recruitand fosterandsustainable
fostercompanies. as new ways companies.
sustainable to do new things (3). as new ways to do new things (3).

This
This typetype
of comprehensive effort, taken on a broad
of comprehensive geo- Developing
effort, takena sound broad geo Developing
on asustainability-focused strategy is a sound sustainability-focused strategy is
graphic
graphic scale and
scalebuilding
andupon a foundationupon
building of existing not an easy process.
a foundation of As not an easy
the Arizona Department
existing of process. As the Arizona Department of
and
and emerging
emerging core competencies, is being implemented Commerce
core competencies, is being example Commerce
demonstrates, the strategy
implemented develop example demonstrates, the strategy develop
ininsimilar ways in ways
similar other regions of the U.S.regions
in other and abroad. ment
of theprocessU.S.
may involve
and market
abroad. analysis, ment
benchmarkprocess may involve market analysis, benchmark
As
Asit it unfolds, it may serve
unfolds, as a guiding
it may serve example
as aofguiding
how ing, gapexample
analysis, visioning
of how ing,strategy
and detailed gap analysis, visioning and detailed strategy
science
science and technology
and technology may be used to helpmay be used Similarly,
build a development. to help build
in the cement astudy,development.
a great deal Similarly, in the cement study, a great deal
framework
framework for sustainable regional development.
for sustainable The of effort
regional was placed on gathering
development. Thebackgroundof effort
informawas placed on gathering background informa
opportunity
opportunity for industrial
for R&D leaders in building
industrial R&Dthis tion and in
leaders studying in detail the
building this tion and studying in detail the sustainability-related
sustainability-related
framework
framework is significant, but their role is stillbut
is significant, not well issues role
their affecting
isthat not well issues affecting that industry.
industry.
still
defined.
defined. IndustrialIndustrial
organizations, organizations,
including the Indus including the Indus- „ , , . ■ , • c j
. , „ , - ^ f . .' . , ,j . Some suggestions for developing
Some suggestions sustainabihty-iocused
for developing sustainability-focused
trial Research
trial Research Institute,
Institute, are are beginning
beginning to addressto addressthis this . . ■ • , ,
, „ strategies include: strategies include:
challenge.
■ Ensure
Ensure that that many
manysustainability-focused
sustainability-focused options
options
forfor
DevelopingSustainability-Focused
Developing Sustainability-Focused Strategies the future are being considered.—Explore a wide range
Strategies the future are being considered.—Explore a wide range
of innovative,
innovative, sustainability-focused
sustainability-focusedopportunities
opportunitiesthat
that
The two
The two case case studies
studies presented
presented here here demonstrate
demonstratethe the can simultaneously
can simultaneously result in additional
result revenues,
in additional revenues,lower
lower
steps
stepsthat
thatcan be be
can taken to incorporate
taken sustainability
to incoipoiate into a into a costs,
sustainability costs,higher
higherproduct
product value,
value, or
or otherwise
otherwise lead to
strategy
strategy for
forbusiness
businessgrowth—be
growth—beit it forfora company,
a company, an an economic prosperity
economic prosperity.
industry as a whole, or a region. As the cement industry
case suggests,
case suggests,such
suchstrategies
strategies need
need to to realistically
realistically ■ Examine
taketake ■ Examine the the options
options from
from a holisticenvironmental
a holistic environmental
into account
into accountboth
boththethedrivers
drivers forfor sustainability
sustainability the the cindand
and and societal
societal perspective.—Considerthe
perspective.—Consider thefull
fullrange
rangeoiof
impediments that
impediments that may
may bebe encountered.
encountered.Business
Businessleaders environmental
leaders environmental and quality-of-life
and quality-of-life effectseffects
of allofthe
all the alter
alter
sustainable development
who believe sustainable development is is an important natives.natives.
an important Tradeoffs
Tradeoffs will have
will have to beto considered;
be considered; lifecycle
lifecycle
elementof
element oftheir
theirstrategy
strategy(or(or perhaps
perhaps a long-term
a long-term assessment
impera- assessment
impera techniques
techniques andand tools
tools toto estimatethe
estimate thevalue
valueto
to
tive for
tive for survival)
survival)must
mustfind
findthethesustainable
sustainable products, societysociety
products, of various
of various innovations
innovations couldcould
be be employed.Some
employed. Some
processes and
processes andnew
newventures
ventures that
that contribute
contribute products
to improved products
to improved or process
or process changes
changes maymay reduce
reduce oneenviron
one environ
environmentaland
environmental andsocial
socialconditions
conditions while
while maintaining mental
maintaining mental or societal
or societal problem
problem butbut create
create others.The
others. Thefull
full
enhancing profitability.
or enhancing profitability.Strong
Strongleadership
leadershipfrom
from CEOs, impactimpact
CEOs, of changes
of changes should
should be fully
be fully evaluated.
evaluated.
CTOs and other corporate leaders is important. And
■ Consider
Considerstakeholders
stakeholdersperspectives.—Identifying
perspectives.—Identifying
innovation
innovation is element,
is a key a key as element,
the statement as below
the statement
high below high- • . , , , . , , \ , . , V , , /
... J b internal (enterprise) and internal external (enterprise)stakeholders
and external stakeholders ofot anyany
lights:
° '' business decision is an important business decisionstep in the
is an important process.
step in the process.
Companies
Companies have the
have the opportunity opportunity
to improve to improve people's lives through _ . , .... ,, „ 7
people's lives through
what
what they
they do and howdo
they and how
do it, and in doingthey
so, builddo
theirit.
■ Consider
and in doing
business.
financial
so. build risks business.
their and benefits, "including
Considerthe financial risks
Both
Both technological
technological and
and social innovation can social
do much toinnovation
improve risksdo
can andmuch
benefitsto of not innovating.—Competitors,
improve risks and benefits of not
quality
quality ofaddress
of life and lifethe and address
depletion of resourcesthe depletion
and the build-up suppliers, customers,
of resources and the andbuild-up
new entrantssuppliers,
to an industrycustomers, and n
ofpollution
ofpollution around
around the world. Markets the world.
foster innovation by Markets
encour (e.g., developers
foster innovation of "disruptive"
by encour-technologies)
(e.g.,pro developers of disr
aging
aging experimentation
experimentation and rewarding thoseand rewarding
ideas that motingthat
meet people's those ideas sustainable
meet products/processes
people's motingcould takesustainable
market products/p

Research
Research • Technology
• Technology
Management Management

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms
share or value from your industry or region. On the other 6. The WBCSD is a coalition of almost 200 international companies
united by a shared commitment to sustainable development. The
hand, there are risks associated with innovation, and mission of the WBCSD is to provide business leadership as a catalyst
hence potential benefits of not innovating. Organizations for change toward sustainable development and to promote the role of
will have different tolerances for risk, and different phi eco-efficiency, innovation and corporate social responsibility.
Members of the WBCSD have engaged in several industry-specific
losophies about the desirable level of innovation. studies, including the one discussed in this paper for the cement
industry, as well as sustainability studies for the mining and transpor
In the end, the strategy must be customized for the tation industries.
specific situation. Although the cement industry chose 7. Best Available Techniques for the Cement Industry. Brussels:
joint activities to pursue, the companies are also adamant CEMBUREAU, 1999.
8. The Reduction of Greenhouse Gas Emissions from the Cement
that they are strong competitors and must follow their Industry, Report PH3/7. Paris: International Energy Agency, 1999.
own pathways. Although each company produces the 9. The sub-studies, including the sub-study on innovation; the inte
same basic product, their cultures, competencies, grated report with Battelle's recommendations; and the industry's
"Agenda for Action" can be found on the WBCSD's website: http://
internal resources, locations, and business priorities are
www. wbcsd. org/web/publications/
considerably different. There is no one set of sus 10. Industrial ecology is a framework for improvement in the effi
tainability-oriented innovations that is right for all of ciency of industrial systems by imitating aspects of natural ecosys
them. tems, including the cyclical transformation of wastes to input
materials.
11. The carbon stored in biomass as it is growing offsets the carbon
In emerging industries and industries that do not produce released from combustion of biomass as a fuel.
commodity products, even more opportunity exists to 12. See: Sub-Study 8: Climate Change Management and the Cement
develop novel sustainable products and business propo Industry, available on the WBCSD website (Reference 10).
13. Some stakeholders are concerned about the possibility of toxic
sitions. In Arizona, a sustainability-focused strategy is emissions associated with the use of alternative ftiels and the health
being tailored to its unique environment—arid land. effects of adding waste-derived materials, such as fly ash from coal
Considerable thought must be given to which business fired power plants, into the cement itself (an increasingly popular
practice). Although scientific studies indicate that alternative fuels
opportunities can be fostered, keeping all three of the
and raw materials can be used safely, the public is sometimes
sustainability goals in the forefront. skeptical, despite waste recovery and fossil-energy reduction
benefits. This is an area for continued stakeholder involvement, but
Most important, to achieve viable solutions that meet the also continued scientific research.
triple bottom line will require R&D leaders to customize 14. The opportunity to use what is often categorized as waste as a
sustainable processes and products to specific regions starting material for another industry can be achieved only by greater
coordination within regions, which is being facilitated by the
and raw materials. As seen in these examples, it may be USBCSD. An R&D effort is usually needed to tailor these streams,
necessary to transcend traditional internal and external resulting in the innovative use of technologies. The broader look at
boundaries to find breakthrough solutions to sustainabil industry-wide processes and product life cycles, following the
concept called "industrial ecology," can open doors to innovative,
ity. A multidisciplinary approach involving national sustainable solutions. See http://www.usbcsd.org/byproductsynergy.htm
laboratories, nonprofit research organizations, other 15. The report, Sub-Study 7: How Innovation Can Help the Cement
non-governmental organizations, and industry can facili Industry Move Toward More Sustainable Practices, available on the
WBCSD website (reference 9), provides many examples discovered
tate the effort. ®
during the research.
16. This case study is taken directly from material presented in the
Executive Summary of the project report, which was prepared by
References and Notes
Battelle in three volumes in March, 2004. The full report is available
at http://www. azcommerce. com/prop/eir/addreports. asp
1. Operated by Batteile Memorial Institute for the U.S. Department
of Energy. 17. Siam Cement in Thailand designed an innovative method that
combines the two traditional methods known as open pit mining and
2. Based, in part, on writings of the economist, Joseph Schumpeter.
He first discussed the importance of entrepreneurs in 1934
open cut mining. The mining operation occurs in the exposed area,
and the level of the mining is adjusted downward as the limestone is
(Schumpeter, J. The Theory of Economic Development. Cambridge:
removed.
Harvard University Press, 1934). The thesis was later extended byThis creates an effect that looks like the rows of seats in a
Schumpeter in 1942 (Schumpeter, J. Capitalism, Socialism sports stadium inside the quarry. On the outside, the outer inclined
and
Democracy. New York: Harper Torehbooks, 1942). shell of the mountain remains intact. The inner crust is excavated, but
3. Holliday, C. and Pepper, J. Sustainability through the the shell is left wide enough to retain a stable shape that will not later
Market:
Seven Keys to Success. Geneva: World Business Council forcave in. This method makes it easier to fill soil on top of the excavated
Sustain
able Development, 2001. Note: Charles Holliday is chairman areas and
and promptly plant vegetation, instead of reclaiming the quarry
CEO of DuPont. At the time the report was published, JohnatPepper
the end of its life.
was chairman of Procter & Gamble. Sustainability through 18. Tibbs,
the H. Sustainability. Emeryville, California: Global Business
Market includes six additional "keys to success" including: Network,
practice 1999.
19. See
eco-efftciency, move from stakeholder dialogues to partnerships for example: Jonash, R. S. and Sommerlatte, T. The Innova
for
progress, provide and inform consumer choice, improve tion Premium. Reading, Pennsylvania: Perseus Books, 1999. In
market
framework conditions, establish the worth of the earth, and make addition,
the Fortune magazine has ranked the "most admired"
market work for everyone. companies both globally and in the United States and includes inno
4. Lovins, L. H., Weizsäcker, E. von, and Lovins, A. B. Thevation Factor
as one of the criteria in the ranking. Innovation rankings were
Four. London: Earthscan. 1997. directly correlated to rankings for shareholder return across most
5. DeSimone, L. and Popoff, F. with the World Business Council forindustries.
Sustainable Development. Eco-Efficiency: The Business Link to Sus
20. The mini-mill example was taken from: Christensen, C. M. The
tainable Development. Cambridge: MIT Press, 1997. Innovator's Dilemma. Boston: Harvard Business School Press, 1999.

September—October 2005

This content downloaded from

45.77.104.39 on Sat, 01 Jun 2024 22:30:44 +00:00
All use subject to https://about.jstor.org/terms