Three decades into the environmental revolution, many companies in the industrialized nations have recognized that they can reduce pollution and increase profits at the same time. Stuart Hart, director of the Corporate Environmental Management Program at the University of Michigan School of Business, explains the imperative of sustainable development and provides a framework for identifying the business opportunities behind sustainability.
Companies normally frame greening in terms of risk reduction, reengineering, or cost cutting.
But, says Hart, when greening becomes part of strategy, opportunities of potentially staggering proportions open up. A number of companies are moving in that direction. BASF, for example, is colocating plants to make the recycling of waste feasible, and Xerox is reusing parts from leased copiers on new machines. But companies will not benefit from such efforts unless they draw a road map that can show them how new products and services must evolve and what new competencies they will need. Businesses that create a vision of sustainability will be ready to take advantage of the opportunities presented by the need for a sustainable global economy.