Page 180 - Design for Environment A Guide to Sustainable Product Development

Design Rules and Guidelines 159

FIGURE 8.9 Microchannel
reactors provide high
throughput with small
capital footprint.

practices contribute to shareholder value in a broader and more
strategic way—by strengthening brand equity, reputation, human
capital, alliances, and other important “intangibles” that can account
for up to 90% of a firm’s market value (see Chapter 4). It has been
shown that proactive initiatives to address environmental issues
can lead to new product innovation, development of new markets,
and improved process technologies. For example, 3M and Bristol-
Myers Squibb have incorporated product life-cycle review into their
new product development processes, resulting in faster times to
market and reduced compliance burdens (see Chapter 10). In addi-
tion, differentiation of a company through a reputation for corporate
responsibility can enhance brand equity and strengthen its license to
operate. For example, Dow Chemical and DuPont have been recog-
nized as industry leaders through their initiatives to reduce air and
water emissions in their global operations (see Chapter 13).
As discussed in Chapter 4, the most direct way to generate
shareholder value through DFE is to develop innovative products
and processes that address unmet needs in the marketplace. Exam-
ples include renewable energy systems, nutritional organically
grown foods, and products designed for economically disadvan-
taged populations—the so-called “base of the pyramid.” Even with
conventional products and services, adherence to DFE principles
can reduce the cost of ownership for customers and enhance cus-
tomer loyalty. Many companies have succeeded in linking their
brand with an “eco-friendly” image, improving consumer aware-
ness and customer loyalty. However, if such marketing campaigns
are not backed up with a genuine enterprise-wide commitment,
they can be viewed as “greenwashing.” Finally, transparency is crit-
ical; companies must live up to their social responsibility commit-
ments by clearly disclosing their policies and practices, as well as
their shortcomings.