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29
At 3M all corporate personnel from the shop floor upward are mobi-
lized to contribute their knowledge and observations to the pollution
abatement programs adopted. To qualify as a 3P program, a proposal has
to eliminate or reduce a pollutant; bring about reduced energy use or more
efficient use of raw materials like water; include some innovative features;
and bring monetary benefit through reduced or deferred controls or manu-
facturing costs, increased sales of existing or new products, or reduced capi-
tal or running costs. Pollution has been efficiently lessened, not by install-
ing pollution control plants, but by reformulating products, redesigning
equipment, modifying processes, or recovering materials for reuse.
Growth boost.
If taking such a positive approach to environmental protection can
help companies maintain their profit, it can also help them grow. In the
United States this year, environmental business has been almost a $50 bil-
lion affair and has recently been increasing 20% a year.
This new commercial area has brought in its wake a wave of new
businesses. In the Federal Republic of Germany, more than 200 new com-
panies have recently been set up to provide environmental products and
services. In the United States, there are companies like Apollo Chemical
Co., which started in the air pollution business some 15 years ago employ-
ing 10 people, but which now employs over 400 and has subsidiaries
around the world. Another is Waste Management, Inc., a garbage-handling
business based on a new technology that yields a turnover of $350 million.
Exhibit II. Number of innovations in which environmental concerns
have been considered
*
Industry
France
Fe
d
eral
Republic of
Germany
Japan
Netherlands
United
Kingdom
Total
Auto
m
o
b
iles 4 12 2 10 28
Chemicals 9 12 6 5 12 44
Co
m
p
uters 5 9 7 10 31
Consumer electronics 7 8 6 3 8 32
Textiles 10 6 7 6 29
Total 35 47 21 15 46 164
_____________________
*
Source: National Support for Science and Technology; An Examination of Foreign Ex-
perience (Cambridge: Massachusetts Institute of Technology, 1976).
30
Even more significant, many large companies have added divisions
to provide environmental goods and services. In the United States, Boeing,
FMC, Exxon, Dow Chemicals, 3M, and Caterpillar Tractor all market envi-
ronmental products and services. In Europe, Shell, BP, Ciba-Geigy, Krupp,
and Philips market specialized environmental services.
New growth areas tend to stem from technological innovation, and
innovation tends to result from external need or pressure. Environmental
pressure generates innovation.
Environmentally induced economic activity continues to stimulate
the economy. It is an estimated 2% of the gross national product in coun-
tries like the United States. The amount of employment engendered by all
aspects of environmental protection in the United States was, at the 1977
Environmental Improvement Council Conference, reported to be 2 million
jobs. Direct employment induced by the National Environmental Policy Act
runs at about 75,000.
Japan, in recession in 1974, used strict pollution control to boost con-
struction and engineering and hence restimulate the economy; 20% of its
economic growth since then can be attributed to its new strict environ-
mental legislation. Japanese companies are world leaders in supplying some
kinds of advanced pollution control equipment.
Survival of the fittest.
In determining the direction of their future growth, companies as well
as nations will more and more have to take environmental concerns into ac-
count. The ultimate objective of the corporation is survival, and reaching that
depends very much on the adaptation of the corporation to its environment.
Such major companies as Shell and BP are directing their develop-
ment by forecasting from scenarios. They describe all the possible envi-
ronmental conditions that might control their growth and make decisions
accordingly. AKZO, the Dutch chemical multinational, constructs elaborate
scenarios based on the social, political, physical, economic, and technologi-
cal environments that it feels may prevail in the future and then determines
which products and services will be most compatible with such conditions.
More and more companies are assessing the environmental impact of
projects they are about to introduce. Enterprises accept the validity of envi-
ronmental concern and encourage environmental awareness on their staffs.
They can minimize the negative and maximize the positive impacts of their
new projects.
They can also prevent their projects from being blocked by the courts
or by citizen protest actions. By becoming concerned about environmental
At 3M all corporate personnel from the shop floor upward are mobi- Even more significant, many large companies have added divisions lized to contribute their knowledge and observations to the pollution to provide environmental goods and services. In the United States, Boeing, abatement programs adopted. To qualify as a 3P program, a proposal has FMC, Exxon, Dow Chemicals, 3M, and Caterpillar Tractor all market envi- to eliminate or reduce a pollutant; bring about reduced energy use or more ronmental products and services. In Europe, Shell, BP, Ciba-Geigy, Krupp, efficient use of raw materials like water; include some innovative features; and Philips market specialized environmental services. and bring monetary benefit through reduced or deferred controls or manu- New growth areas tend to stem from technological innovation, and facturing costs, increased sales of existing or new products, or reduced capi- innovation tends to result from external need or pressure. Environmental tal or running costs. Pollution has been efficiently lessened, not by install- pressure generates innovation. ing pollution control plants, but by reformulating products, redesigning Environmentally induced economic activity continues to stimulate equipment, modifying processes, or recovering materials for reuse. the economy. It is an estimated 2% of the gross national product in coun- Growth boost. tries like the United States. The amount of employment engendered by all If taking such a positive approach to environmental protection can aspects of environmental protection in the United States was, at the 1977 help companies maintain their profit, it can also help them grow. In the Environmental Improvement Council Conference, reported to be 2 million United States this year, environmental business has been almost a $50 bil- jobs. Direct employment induced by the National Environmental Policy Act lion affair and has recently been increasing 20% a year. runs at about 75,000. This new commercial area has brought in its wake a wave of new Japan, in recession in 1974, used strict pollution control to boost con- businesses. In the Federal Republic of Germany, more than 200 new com- struction and engineering and hence restimulate the economy; 20% of its panies have recently been set up to provide environmental products and economic growth since then can be attributed to its new strict environ- services. In the United States, there are companies like Apollo Chemical mental legislation. Japanese companies are world leaders in supplying some Co., which started in the air pollution business some 15 years ago employ- kinds of advanced pollution control equipment. ing 10 people, but which now employs over 400 and has subsidiaries around the world. Another is Waste Management, Inc., a garbage-handling Survival of the fittest. business based on a new technology that yields a turnover of $350 million. In determining the direction of their future growth, companies as well as nations will more and more have to take environmental concerns into ac- Exhibit II. Number of innovations in which environmental concerns count. The ultimate objective of the corporation is survival, and reaching that have been considered* depends very much on the adaptation of the corporation to its environment. Federal United Such major companies as Shell and BP are directing their develop- Industry France Japan Netherlands Total ment by forecasting from scenarios. They describe all the possible envi- Republic of Kingdom Germany ronmental conditions that might control their growth and make decisions Automobiles 4 12 2 10 28 accordingly. AKZO, the Dutch chemical multinational, constructs elaborate Chemicals 9 12 6 5 12 44 scenarios based on the social, political, physical, economic, and technologi- Computers 5 9 7 10 31 cal environments that it feels may prevail in the future and then determines Consumer electronics 7 8 6 3 8 32 which products and services will be most compatible with such conditions. Textiles 10 6 7 6 29 More and more companies are assessing the environmental impact of Total 35 47 21 15 46 164 projects they are about to introduce. Enterprises accept the validity of envi- ronmental concern and encourage environmental awareness on their staffs. They can minimize the negative and maximize the positive impacts of their _____________________ * new projects. Source: National Support for Science and Technology; An Examination of Foreign Ex- perience (Cambridge: Massachusetts Institute of Technology, 1976). They can also prevent their projects from being blocked by the courts or by citizen protest actions. By becoming concerned about environmental 29 30
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