8-c.
Sustainability & Natural Resource Management?
A Case Study in Private Sector Solutions
Larry D. Sanders
(SPRING 2006)
Dept. of Ag Economics Oklahoma State University
1
INTRODUCTION
Purpose:
– to become aware of one example of private
sector innovation to attain sustainability
Learning
Objectives. To understand/become
aware:
1.government intervention is not the only solution.
2. how the private sector can be profit oriented
and move toward goals of sustainability that
consider social benefits and costs.
2
Examples of “No Government” or
“Government and Private Sector Partnerships”
 Non-traditional
Farming/Ranching
 Land
Trusts
 Utility and Energy sectors
 Research and Development of new technologies
that are more environmentally friendly and/or
more conserving of nonrenewable resources
 Private industry (Interface case to follow)
3
Can Private Sector Profit Motive Coexist
with Environmental Goals?
 Traditional
argument:
– Choose profits and survival or environmental protection and
business failure
– Choose to be competitive or lose competitive edge
– Choose economic development or environmental protection
– Government must intervene to stop private greed from
destroying/exploiting the environment
 Soft
path model:
– Profits and environmental protection can coexist
– Some companies may be both competitive and protect the
environment
– Some companies can self-regulate and achieve
comprehensive sustainability that considers economics,
environment and community
4
Case Study: Interface Inc.--2004
 Atlanta-based
commercial flooring & interiors
business
 Founded by Ray Anderson in 1973
 Leading a worldwide effort for sustainable
development
 Built the company into the world’s largest commercial
flooring business
 Inspired by “The Ecology of Commerce”, by Paul
Hawken (1994)
 A petro-intensive company striving to “never have to
take another drop of oil from the earth”
 Bred a culture of “ferocious cooperation”
5
Case Study: Interface Inc. Vision
“To be the first company that, by its deeds,
shows the entire industrial world what
sustainability is in all its dimensions:
People, process, product, place and
profits—by 2020—and in doing so we will
become restorative through the power of
influence.”
6
Case Study: Interface Inc. Mission
“. . . become the first name in commercial and
institutional interiors worldwide. . . . Create
an organization wherein all people are
accorded . . . respect and dignity. . . . honor
the places where we do business, . . a
corporation that cherishes nature and
restores the environment. . . . lead by
example . . . including profits, leaving the
world a better place than when we began . .
..
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Case Study: Interface Inc. Sustainability
Overview
 Why
important?
“ . . . the rate of material throughput is endangering our
prosperity, not enhancing it. . . . we recognize we are part
of the problem. . . .
“What’s the solution? . . . not sure, but we have some ideas. . .
. cure for resource waste that is profitable, creative and
practical. . . . addresses the needs of society and the
environment . . . [decreasing] our costs and . . . Reduces the
burdens placed upon living systems. What we call the next
industrial revolution is a momentous shift in how we see the
world, how we operate within it, what systems will prevail
and which will not. . . .”
8
Case Study: Interface Inc.—”The climb to
the top of Mount Sustainability…”—7 Steps
1.
2.
3.
4.
5.
6.
7.
Eliminate Waste
Benign Emissions—no toxic emissions
Renewable Energy—use sustainable energy
Closing the Loop—cyclical material flows (retain
control)
Resource Efficient Transportation—move
information, rather than people and products
Sensitivity Hookup—create community within and
around Interface supportive of sustainability
Redesign Commerce—own and external operations
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Case Study: Interface Inc. --Update




Waste Elimination: $231million savings
since 1995
Energy consumption: down 31% in mfg.
fabric & down 35% in mfg. carpet since
1996; over 12% of energy from renewable
sources
Greenhouse gas emissions: reduced CO2
emissions by 46%
Water intake: down 78% in carpet process,
down 40% in broadloom facilities
10
Case Study: Interface Inc. –Update
(continued)




Petro-based raw materials: reduced over 28%
Safety: reduced frequency of injuries by 47%
Social measurements worldwide (2003): social
events (250), training/employee (9 hrs avg),
charitable contributions ($400 thousand), employee
community volunteer hours (12,000), women in
mgmt (28%)
Global community (12 plant locations): Thailand,
Canada, US, England, Australia, Holland; business
offices in over 100 countries
11
Case Study: Interface Inc.
--The Natural Step
 International
non-profit advisory and research
organization, science-based
 Goal: accelerate global sustainability
 Founded: Sweden, 1989
 “Sustainability is fundamentally about
maintaining human life on the planet and, thus,
addressing human needs is an essential element
of creating a sustainable society.”
12
Case Study: Interface Inc.
--The Natural Step (continued)
 Principles
(minimum conditions for
sustainability):
– Not increasing concentrations of substances
extracted from earth’s crust
– Not increasing concentrations of substances
produced by society
– Not increasing degradation by physical means
– Meet human needs worldwide
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Case Study: Interface Inc.
--The Natural Step (continued)
 Other
Case Studies
 http://www.naturalstep.org/learn/case_sum
maries.php
 Bank of America
 Home Depot
 McDonald’s
 Starbucks
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Case Study: Interface Inc.
--Sources
 http://www.interfaceinc.com/
 http://www.naturalstep.org
 Anderson,
R.C., Mid-Course Correction Toward a
Sustainable Enterprise: The Interface Mocdel, Chelsea
Green Publishing.
 Benyus, J.M. Biomimicry, Perennial, 2002.
 Hawken, P. The Ecology of Commerce: A Declaration
of Sustainability, Harper Business, August 1994.
 Hawken, P., A. Lovins, H. Lovins. Natural Capitalism,
Little, Brown & Co., 1995.
Note: Thanks to Leslie Wildesen, Environmental Training &
Consulting International, Portland, OR, for introduction to the
Ray Anderson story, 2003.
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L8c: Homework
 Find
another case study similar to Interface
Inc & The Natural Step; introduce the case
and summarize the situation and success in
a one-page description; be sure to cite
sources (13 Apr)—4 points
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