Environment
October 01 2000
by Mike TuffreyIn the run-up to the Rio Earth Summit the battle was to persuade companies they actually had some responsibility in the small matter of saving the future of the world. A few pioneers stepped up to the challenge, ably led by Stephan Schmidheiny, the driving force behind what has become the World Business Council for Sustainable Development.
Today pretty well every major company admits to the problem and many are engaged in vigorous action internally to improve eco-efficiency, with typical business-like focus on results: individual schemes to eliminate waste, cut energy consumption, install environmental management systems and re-engineer products for reduced impact. (For example, General Motors in the US just won an award for a recycling scheme which cut waste by 30% and saved $15 million a year.) The big firms are now moving beyond their owned and operated functions, down into the supply chain.
But still too few - we cite some above - are moving up the value chain, towards the consumer. That is why we cannot yet say, in the run up to the next earth summit, that the planet is on course for a sustainable future. Indeed most of the indicators are still heading in the wrong direction, despite efficiency gains, because consumption is growing. (For example, Austria, Germany, Japan, the Netherlands and the USA together have increased total output of waste and pollutants by 28% since 1975.) Companies may have got the message, but most consumers have not.
A few leaders are starting to talk about these issues. Bill Ford Junior is saying Ford's future can only be as a provider of transport, not of motor vehicles based on the internal combustion engine. John Browne is repositioning BP as 'beyond petroleum'. But neither can put products in the market place which consumers won't buy. Progress so far has focused on internal eco-efficiency - driven by saving money. Now the challenge is to change patterns of consumer demand - and find ways to make money. Much harder, but more rewarding.