strategy
Integrating financial and environmental performance in industry
Description:
Demonstrating that good environmental performance contributes to good financial performance in industry and financial institutions. Implementation:
Anheuser-Busch, concerned about recycling, developed an aluminium can that is 33 percent lighter and a recycling plan that saves the company US $200 million a year.DuPont developed a family of herbicides that dramatically reduced herbicide application per acre with no drop in crop yields. More than 200 million fewer pounds of chemicals are applied to the soil each year because of the development, which means 4 to 6 billion pounds less waste. That breakthrough enabled DuPont to jump from eighth to second in market share in the crop protection chemical industry.
Volvo increased its market share in one truck segment by 35 percent over three years by differentiating its trucks on environmental factors like fuel efficiency and lower emissions. As a result, Volvo's truck operations jumped from 30 percent to 56 percent of the company's operating income in a three-year period.
ITT Nokia's market share in the Netherlands for 24-inch televisions increased by 57 percent and their gross revenue by 73 percent in the month after a consumer testing magazine rated their product as a "best buy," based in part on energy consumption, recycling, materials and use of hazardous materials.
Broader:
Advancing industrial environmental managementEnhancing corporate environmental responsibilityIntegrating environmental and economic decision-making Narrower:
Using environmental assessment components in economic valuationsDeveloping financial sector strategies for environmental protectionIntegrating environment performance indicators with financial informationUsing economic incentives to increase environmental performance standards Facilitated by:
Ensuring equitable access to international environmental funds Values:
Nonperformance References:
Repetto, Robert and Austin, Duncan: Pure Profit: the financial implications of environmental performanceThe Aspen Institute: Uncovering Value: Integrating environmental and financial performance Subjects:
Commerce → FinanceIndustry → Industry
Environment → Environment
Type Classification:
E: Emanations of other strategies Related UN Sustainable Development Goals:
