What’s in it for me?
Direct Economic Benefits for Business

Foremost on the minds of most businesses is the bottom line. Environmental considerations and safeguards are often seen as roadblocks to maximum profits. This, however, is not necessarily the case. Numerous examples show that environmental practices can ultimately save many thousands, and often millions of dollars by incorporating measures to minimize material and energy over-use and to reduce waste and pollution before it happens.

Preventative measures to environmental damage have repeatedly shown that the costs of the program and technology implementation often pale in comparison to the costs of clean-up, waste disposal and possible litigation. In addition, by reducing the materials and energy needed to produce goods and services, businesses are seeing an additional drop in spending. Companies are beginning to realize the true economic benefit of “greening” themselves, beyond the social and ecological reasons for conducting business in an environmentally sound way.

A main driver for this change is technology. Although it may be daunting to a business at first, the expenditures are often a small price to pay for the increased productivity and decreased pollution. Technology is often seen as the catalyst for change in this area and can greatly benefit a business willing to place its long-term survival above short-term gain. If used properly, it can produce financial real gains, with the added benefit of helping the environment.

The following examples highlight direct environmental and economic benefits experienced by companies who have initiated system changes:

Environmental Management Systems (EMS) are increasingly being implemented by businesses and organizations around the world, thus drastically reducing costs to companies for both resource use (unregulated resources such as waste and energy) and clean-up (for regulated pollutants, emissions and toxins). Read more about EMS on the ISO 14000 website …

Case Study 1: 3M (take from Eco-Efficiency: The Business Link to Sustainable Development, 1997)

• Had a problem dealing with waste cardboard, foam and shrink wrap from shipping its orders.
   
• Designed a reusable package for shipping videotapes (minimum of 40 use cycles)
   
• Made from recycled material
   
• Since its introduction, it has reduced packaging waste by 45,000 cubic yards and saved 3M over $4 million between 1992 and 1997.

In its first 20 years, 3M launched 4,450 environmental projects. These cumulatively eliminated 1.2 billion pounds of pollution. The first year alone showed 3M a savings of more than $750 million.

• Generating a great deal of waste for paper breakage during manufacturing
   
• Process/equipment modification and new technology solved problem
   
• Annual savings of $118,000 on a $25,000 investment
   
• Decreases waste and river pollution

Case Study 3: Xerox (taken from Transformation Strategies)

• Recycling programs were implemented, including converting solid waste to useable energy
   
• They saved $12 million in 1995 alone

Case Study 4: IBM

Energy conservation initiatives were put into place, including refined manufacturing processes, updating HVAC systems, lighting, etc.

• $15.1 million was save in 1995
   
• Reduction of electricity use by 226 million kilowatt hours

References

Eco-Efficiency: The Business Link to Sustainable Development by Livio De Simone and Frank Popoff with the World Business Council for Sustainable Development (1997).

ISO 14000: Issues & Implementation Guidelines for Responsible Environmental Management by James L. Lamprecht (1997).

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