Page 76 - Design for Environment A Guide to Sustainable Product Development

Business Value Drivers 55

of their products and facilities. This leads them to move from
an opportunistic approach to a systematic approach, with
environmental considerations factored into virtually all deci-
sions. In fact, environmental decision making is no longer a
separate exercise—it becomes an integral part of business
decision making. These companies will invest in environmen-
tal technology and performance improvements, to the extent
that they earn an adequate return on investment. If they are
able to leverage their skills and technologies to profitably
achieve superior performance, environmental or otherwise,
this will constitute a competitive advantage.
The life-cycle management approach leads naturally to the prac-
tice of DFE in the context of marketing innovation and new product
development, while also incorporating the traditional risk manage-
ment concerns associated with environmental health and safety.
Companies that create value by leveraging their creativity and envi-
ronmental insights have found the experience rewarding in many
ways—intellectually, emotionally, and financially.

Pathways to Value Creation
Corporate sustainability commitments should not be based on
citizenship alone. Every company that has invested substantial re -
sources in sustainability improvement has done so because of a
persuasive business case. The drivers of business value relevant to
DFE include productivity, profitability, enhanced reputation, and
competitive advantage. Short-term economic drivers are often the
catalyst, and there is no question that rising energy prices have
helped to motivate companies to take a harder look at their resource
efficiency. But besides contributing to the bottom line, sustainable
business practices create shareholder value by strengthening intan-
gible factors such as brand equity, reputation, and human capital.
A significant driving force for corporate sustainability has been
the World Business Council for Sustainable Development (WBCSD),
mentioned in Chapter 2, a Geneva-based consortium of over 150
leading companies [6]. WBCSD has published a series of studies
that demonstrate the business value of sustainable practices and
present agendas for change in industries such as pulp and paper,
mining, cement, transportation, and electric power. WBCSD has
also been instrumental in developing tools and best practices for
eco-efficiency and environmental footprint assessment. Like many
other organizations, WBCSD conceives of the goals of economic,
social, and ecological well-being as a “triple bottom line” that ex -
pands upon the financial bottom line [7]. The three elements can be
defined as