Description
part of the environmental management course. It talks about the eras of environmental management. It then describes whether the win-win situation which is being highlighted is actually a myth. Then it goes on to describe the various alternative solutions.
IT?S NOT EASY BEING GREEN
ERAS OF ENVIRONMENTAL MANAGEMENT
• Restraint adaptation (1970 -1985) – Compliance with regulation – Stymieing the regulations – Environmental issues – not part of business
• Embracing environmental issues without innovation (1985-1991) – Pollution control (air, water, solid reduction) eg. TEXACO 40% in pollution 58% reduction in toxic emissions through tight controls
Era of „Win-Win? situation
• Idea of integrating Environmental issues as business strategy – deemed to result in – constant innovation – Creating new market opportunity – Wealth creation • Eg 3Ms – emission reduction– $500 million savings • Regulations provide competitive advantage by adhering to the rules
• Eg Chlorine free paper production – Louisiana- Pacific mills
• Re-engineer – lower cost – quality improvisation • Improved shareholder?s response
“Win – Win” – myth?
• Inadaptability by all industry – Eg. Oil and Gas Industry –regulation compliance – billions together • Environ expenditure – 12.9% while direct labor and employee benefits – 10.3% • Environmental parameters – arithmetic growth Related cost – geometric growth • Long Term commitment and co-operation to environment Vs. Shareholder’s interest
– TEXACO –investing 7 Billion US $ twice the amount of its asset
• Indirect Implications
– Toyota?s Prius – electric car – electricity derived from nuclear energy and thermal fuel
Alternative solutions - Pragmatism
• “Trade-off Zone” – Cost Vs Benefits - Share holders interest along with stakeholders • Approach to environmental issues – Strategic Issues ( as a business strategy saving reactive and functional costs) – Operational Issues (minimum expenditure and maximum impact - complying to regulations – where objectives are clear and well defined) – Technical Issues (As a day to day issues but effect on value to the company can be very high) • Each of the issues require different managerial approaches
“The metric for the organisation?s environmental issues is not the compliance, emissions or costs but how much it creates value to shareholders”
“Solution should be well defined tradeoff which is environmentally sound and financially viable is more sustainable for both the organisation and the community.”
doc_490924514.ppt
part of the environmental management course. It talks about the eras of environmental management. It then describes whether the win-win situation which is being highlighted is actually a myth. Then it goes on to describe the various alternative solutions.
IT?S NOT EASY BEING GREEN
ERAS OF ENVIRONMENTAL MANAGEMENT
• Restraint adaptation (1970 -1985) – Compliance with regulation – Stymieing the regulations – Environmental issues – not part of business
• Embracing environmental issues without innovation (1985-1991) – Pollution control (air, water, solid reduction) eg. TEXACO 40% in pollution 58% reduction in toxic emissions through tight controls
Era of „Win-Win? situation
• Idea of integrating Environmental issues as business strategy – deemed to result in – constant innovation – Creating new market opportunity – Wealth creation • Eg 3Ms – emission reduction– $500 million savings • Regulations provide competitive advantage by adhering to the rules
• Eg Chlorine free paper production – Louisiana- Pacific mills
• Re-engineer – lower cost – quality improvisation • Improved shareholder?s response
“Win – Win” – myth?
• Inadaptability by all industry – Eg. Oil and Gas Industry –regulation compliance – billions together • Environ expenditure – 12.9% while direct labor and employee benefits – 10.3% • Environmental parameters – arithmetic growth Related cost – geometric growth • Long Term commitment and co-operation to environment Vs. Shareholder’s interest
– TEXACO –investing 7 Billion US $ twice the amount of its asset
• Indirect Implications
– Toyota?s Prius – electric car – electricity derived from nuclear energy and thermal fuel
Alternative solutions - Pragmatism
• “Trade-off Zone” – Cost Vs Benefits - Share holders interest along with stakeholders • Approach to environmental issues – Strategic Issues ( as a business strategy saving reactive and functional costs) – Operational Issues (minimum expenditure and maximum impact - complying to regulations – where objectives are clear and well defined) – Technical Issues (As a day to day issues but effect on value to the company can be very high) • Each of the issues require different managerial approaches
“The metric for the organisation?s environmental issues is not the compliance, emissions or costs but how much it creates value to shareholders”
“Solution should be well defined tradeoff which is environmentally sound and financially viable is more sustainable for both the organisation and the community.”
doc_490924514.ppt