TRANSFORMING SUSTAINABILITY STRATEGY INTO ACTION€¦ · 3.1 Overview, 27. Marianne Lines (BRIDGES to Sustainability) 3.2 The Chemical Industry and the Public: Will the Chemical Experiment

TRANSFORMINGSUSTAINABILITYSTRATEGY INTOACTION

The Chemical Industry

Edited by

Beth BeloffMarianne LinesDicksen Tanzil

BRIDGES to Sustainability

Houston, TX

A JOHN WILEY & SONS, INC., PUBLICATION

Innodata0471755982.jpg


The Chemical Industry

Edited by

Beth BeloffMarianne LinesDicksen Tanzil


Houston, TX

A JOHN WILEY & SONS, INC., PUBLICATION

Copyright # 2005 by John Wiley & Sons, Inc. All rights reserved.

Published by John Wiley & Sons, Inc., Hoboken, New Jersey.

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Library of Congress Cataloging-in-Publication Data:

Transforming sustainability strategy into action : the chemical industry / edited by Beth

Beloff, Marianne Lines, Dicksen Tanzil.

p. cm.

ISBN-13: 978-0-471-64445-3 (cloth)

ISBN-10: 0-471-64445-5 (cloth)

1. Chemical industry--Environmental aspects--Management. 2. Sustainable development.

3. Industrial management--Environmental aspects. I. Beloff, Beth, 1947- II. Lines,

Marianne, 1954- III. Tanzil, Dicksen, 1973-

HD9650.5.T73 2005

6600.06802--dc222005043920

Printed in the United States of America

10 9 8 7 6 5 4 3 2 1

MA 01923, (978) 750-8400, fax (978) 750-4470, or on the web at www.copyright.com. Requests to

http://www.copyright.comhttp://www.wiley.com/go/permissionhttp://www.wiley.com/go/permissionhttp://www.wiley.com

To Mark for his love, support, and encouragement; to my children – Justin,

Carrie, Aaron and Darcy – who inspire my passion to preserve and enhance

future opportunities for their generation and their children’s. Justin, your new

journey to understand sustainability is truly breathtaking! May you help drive the

change we all seek!

Beth Beloff

To Brian and my family, who have encouraged me to follow my passions, to grow

with change and to make a difference.

Marianne Lines

To Yanhui for her heartfelt trust and support; to many who have taught me

so much.

Dicksen Tanzil

CONTENTS

Foreword xix

Preface xxiii

Acknowledgments xxv

1 Introduction 1

1.1 Organization of the Book, 3

Reference, 5

2 Addressing Sustainability in the Chemical Industry 7

Marianne Lines (BRIDGES to Sustainability)

2.1 Introduction, 7

2.2 Understanding the Chemical Industry, 8

2.2.1 Sector Profile, 8

2.2.2 Contribution to the Economy, 9

2.3 Drivers of Sustainability, 10

2.3.1 Chemical Sector Survey, 10

2.3.2 Survey and Focus Groups Key Findings, 18

2.3.3 Current Status of Sustainability Programs, 20

2.4 The Role of Responsible Carew in Advancing

Sustainable Development, 20

vii

2.4.1 Public Trust and Environmental Performance, 22

2.5 Challenges Ahead, 24

References, 25

3 Views on Key Issues Facing the Chemical Industry 27

3.1 Overview, 27

Marianne Lines (BRIDGES to Sustainability)

3.2 The Chemical Industry and the Public: Will the

Chemical Experiment Continue?, 31

Beverley Thorpe (Clean Production Action)

3.3 Risk Assessment, 35

3.3.1 Chemical Risk Assessment as Used in Setting

Regulatory Levels or Standards, 35

Bernard K Gadagbui, Lynne T Haber and Michael L Dourson

(Toxicology Excellence for Risk Assessment [TERA])

3.3.2 The Limits of a Risk Assessment-Based Approach to

Sustainability in the Chemical Industry and the Need

for a New Paradigm Based on Precaution, 42

Joel Tickner (Lowell Center for Sustainable Production,

University of Massachusetts–Lowell)

3.4 Limits of Risk Management and the New Chemicals Policies, 52

Ken Geiser (Lowell Center for Sustainable Production,

University of Massachusetts–Lowell)

3.4.1 Conventional Chemical Risk Management Policies, 53

3.4.2 New European Chemicals Policies, 55

3.4.3 New International Chemicals Policies, 57

3.5 Impacts to Human Health and the Environment, 58

3.5.1 The Challenge of PBTs for the Chemical Industry, 58

Joanna D Underwood (INFORM)

3.5.2 Hormone Disrupting Chemicals (Endocrine Disruptors), 62

Richard A Liroff (Toxics Program, World Wildlife Fund)

3.6 Impacts of, and Issues Associated with, Chemical Production

from Manufacture to Final Use and Disposal, 65

Richard Sigman (Organisation for Economic Co-Operation and Development

[OECD])

3.6.1 Use of Natural Resources and Releases to Air and Water

and Waste Generation, 65

3.6.2 Environment, Health and Safety Issues and Policies, 68

viii CONTENTS

3.7 Closing the Gap on Chemical Plant Security, 69

Agnes M Shanley (Pharmaceutical Manufacturing Magazine)

3.7.1 Doing the Right Thing, 73

3.7.2 The Human Factor, 73

3.7.3 Implementation is a Weak Point, 74

3.7.4 Need to Look Offshore, 74

3.8 Economic Issues and Competitiveness, 75

Peter H Spitz (Chemical Advisory Partners)

References, 81

4 Planning for Sustainability 89

Beth Beloff (BRIDGES to Sustainability)

4.1 Planning Overview, 89

4.1.1 Planning Framework, 89

4.1.2 Corporate Sustainability Learning Curve, 92

4.2 GEMI’s Approach to Sustainable Development

Planning, 95

Elizabeth C Girardi Schoen (Pfizer, Inc.), Stephen Poltorzycki

(The Boston Environmental Group)

4.2.1 Planning Framework, 96

4.2.2 Who Should Use SD Planner TM?, 97

4.2.3 Company Experience with SD Planner TM, 103

4.2.4 Conclusion, 104

4.3 Environmental Management Systems (EMS) Frameworks

for Sustainability, 105

4.3.1 Expansion of Environmental Management Systems to

Address Sustainability, 105

Art Gillen (First Environment, Inc.)

4.3.2 The American Chemistry Council’s Responsible

Carew Management System, 108


4.3.3 EMAS versus ISO 14001, 110

Rainer Ochsenkuehn (First Environment, Inc.)

4.3.4 Occupational Health and Safety Assessment Series

(OHSAS 18001:1999), 114


4.3.5 Using Six Sigma Management Initiatives, 116

Robert B Pojasek (Pojasek and Associates)

CONTENTS ix

4.4 The Natural Step Framework: Backcasting from Principles of

Sustainability, 119

Karl-Henrik Robèrt (Blekinge Technical University and The Natural Step,

Stockholm), Sissel Waage (The Natural Step, USA) and Dicksen Tanzil

(BRIDGES to Sustainability)

4.4.1 “Backcasting” from Principles of Success:

Introduction to The Natural Step Framework

and Approach, 120

4.4.2 Understanding Complex Systems and Thinking

Upstream: Rationale for the Principles of The

Natural Step Framework, 121

4.4.3 Applying The Natural Step Framework:

A Strategic Sustainable Development

Decision-Making Process, 123

4.4.4 Integrating Sustainability Thinking into Action:

The Dynamics of Dematerializations and

Substitutions, 124

4.4.5 Industry Example: PVC Production at

Hydro Polymers, 126

4.4.6 Discussion and Conclusion, 128

4.5 Natural Capitalism for the Chemical Industry, 130

Catherine Greener (Rocky Mountain Institute)

4.5.1 What is Natural Capitalism?, 130

4.5.2 Four Principles of Natural Capitalism, 131

4.5.3 The Natural Capitalism Framework, 132

4.5.4 Implementing Sustainability through

Natural Capitalism, 139

4.6 Sustainable Value in the Chemical Industry, 140

Dave Sherman (Sustainable Value Partners)

4.6.1 The Chemical Industry’s Challenge, 140

4.6.2 Who are Stakeholders?, 142

4.6.3 The Need for a New Approach, 143

4.6.4 A Disciplined Process, 146

4.6.5 Three Key Phases, 146


4.7 CSR/SRI Reporting Complexity and the Future 500 CAPGap AuditTM: An Opportunity for Improved Strategic

Business Planning and Stakeholder Alignment, 150

Cate Gable (Future500)

4.7.1 A Business Case Introduction, 150

x CONTENTS

4.7.2 The CSR/SRI Standards, the Future 500 CAP Gap AuditTM,and Business Planning, 152


References, 159

Suggested Reading, 161

5 Designing for Sustainability 163

5.1 Designing for Sustainability: Overview, 163

Dicksen Tanzil and Earl R Beaver (BRIDGES to Sustainability)

5.1.1 Designing for Sustainability: What It Means, 164

5.1.2 Design and Lifecycle Assessment, 166

5.1.3 Sustainable Design Strategies and Implementations, 168

5.2 Cradle-to-Cradle Material Assessment and Product Design, 179

Lauren Heine (GreenBlue)

5.2.1 The Cradle-to-Cradle Model, 179

5.2.2 The Context for Cradle-to-Cradle, 180

5.2.3 The Cradle-to-Cradle Approach to Material Assessment

and Product Design, 181

5.2.4 What the Chemical Industry Can Do, 186

Acknowledgment, 188

5.3 Principles of Sustainable Engineering, 188

Martin A Abraham (University of Toledo)

5.3.1 The Principles, 189

5.3.2 Discussion of the Principles, 189

5.3.3 Concluding Comments, 194

References, 194

6 Implementing Sustainable Development: Decision-Support

Approaches and Tools 199

6.1 Assessing Impacts: Indicators and Metrics, 199

6.1.1 Overview, 199

Dicksen Tanzil and Beth R Beloff (BRIDGES to Sustainability)

6.1.2 The GSK Approach to Metrics for Sustainability, 214

David J C Constable, Alan Curzons, Ailsa Duncan,

Concepcion Jiménez-González and Virginia L Cunningham

(GlaxoSmithKline, USA)

6.1.3 The Eco-Efficiency Analysis Developed by BASF, 220

Ernst Schwanhold (BASF Aktiengesellschaft)

CONTENTS xi

6.2 Assessing Values: Costs and Benefits, 228

6.2.1 Overview, 228


6.2.2 Intangibles and Sustainability, 229

Karina Funk (Massachusetts Renewable Energy Trust),

Pamela Cohen Kalafut and Jonathan Low (Predictiv)

6.2.3 Total Cost Assessment: Looking at All the Costs Involved

with a Decision, 234

Lise Laurin (EarthShift), Greg Norris (Sylvatica)

6.2.4 Societal Costs, 238

Beth Beloff, Dicksen Tanzil and Matthew Retoske

(BRIDGES to Sustainability)

6.2.5 Valuing Ecosystem Services, 249

Mitchell Mathis (Houton Advanced Research Centre [HARC])

6.3 Auditing Sustainability Performance, 256

6.3.1 Introduction, 256

Karen L Coyne (CoVeris, Inc.)

6.3.2 Sustainability Auditing, 257

Karen L Coyne (CoVeris, Inc.)

6.3.3 Corporate Responsibility Auditing: Assuring

What Companies Say to the Public is Truthful, 272

Neil Smith and Paul Scarbrough (Smith OBrien)

6.3.4 Auditing Responsible Carew Worldwide, 277

Brad Verrico (Verrico Associates)

6.3.5 EHS Management System Audit Strategies for RCMS,

RC14001, and ISO 14001, 278

Rainer Ochsenkuehn (First Environment, Inc.)

6.3.6 New Mexico’s Green Zia Environmental Excellence

Program: Third-Party EMS Performance

Auditing, 280

Jeff Weinrach (New Mexico Environment Department)

6.4 Reporting Sustainability Performance: Latest Trends in Corporate

Reporting, New Tools, and Practices, 287

Stephanie Meyer (Stratos Inc.)

6.4.1 Sustainability Reporting is Becoming a More

Common Practice, 287

6.4.2 The Organizational Scope of Reporting Varies

Substantially, 290

xii CONTENTS

6.4.3 There are Sound Business Reasons Why Companies are

Reporting, 290

6.4.4 This is a Time of Experimentation: To be Effective,

Reports Should Evolve to Address a Number of

Emerging Issues, 291

6.4.5 Moving Forward on Sustainability Reporting, 297

6.4.6 Sustainability Reporting Case Study: Conducting

Today’s Business with Tomorrow in Mind

Thomas C Pasztor, (PotashCorp), 297

6.4.7 Tales from the Trenches, 298

6.5 Security and Sustainability, 299

Scott Berger (American Institute of Chemical Engineers [AIChE])

6.5.1 The Roots of Terrorism, 300

6.5.2 Terrorist Strategies and Tactics, 300

6.5.3 Security Vulnerability Analysis, 301

6.5.4 Security Countermeasures, 306

6.5.5 Long-Term Security Management, 306

6.5.6 Can Sustainability Prevent Terrorist Attacks?, 307

6.6 Building Corporate Social Responsibility, 307

Neil Smith and Joan Bigham (SmithOBrien)

6.6.1 The Business Case for Corporate Social Responsibility, 308

6.6.2 Managing Responsibly, 310

6.6.3 Drivers of Corporate Social Responsibility, 311

6.6.4 Managing Supply Chains Responsibly, 315

6.6.5 Protecting and Contributing to the Community, 318

References, 321

7 Future Directions for the Chemical Industry 329

7.1 Sustainable Directions for the Chemical Industry:

A Look to the Future, 329

Ken Geiser (Lowell Center for Sustainable Production, University of

Massachusetts–Lowell)

7.1.1 Chemical Stewardship: Services, 330

7.1.2 Green Chemistry: Materials and Function, 331

7.1.3 A Look to the Future, 333

7.1.4 Moving Towards Sustainability, 334

7.2 Rethinking Products, 335

7.2.1 Safer Chemicals Within Reach, 335

Beverley Thorpe (Clean Production Action)

CONTENTS xiii

7.2.2 Addressing the Challenge of PBTs, 339

Joanna D Underwood (INFORM)

7.3 New Directions, 342

7.3.1 Biomimicry: How and Why R&D Should Be Driven

By Nature’s Design, 342

Mark Dorfman

7.3.2 Sustainability, Environment and Nanomaterials, 348

Mark R Wiesner (Environmental and Energy Systems Institute, Rice

University)

7.3.3 Entrepreneurship and Innovation, 352

Andrea Larson (Darden Graduate School of Business Administration)

References, 357

8 The Business Case for Sustainable Development 361

8.1 Overview, 361


8.2 2004 Chemical Industry Sustainability Survey (Compiled by

PricewaterhouseCoopers, LLP), 363

Andrew Savitz, Douglas Hileman and Michael Besly

(PricewaterhouseCoopers, LLP)

8.2.1 Overview, 363


8.2.3 Survey Analysis and Follow-Up, 366

8.2.4 Focus Groups’ Perspectives, 375

8.2.5 Comparison to Other Published Surveys, 378

8.2.6 Conclusions and Path Forward, 380

8.3 Sustainability and Performance: An Overview, 382

Karina Funk (Massachusetts Renewable Energy Trust)

8.3.1 Intangibles and Value Creation, 384

8.3.2 Sustainability in Practice, 385

8.3.3 Driving Innovation, 386

8.3.4 Communicating Transparency, Transparently, 387

8.3.5 Creating Differentiation, 388

8.3.6 Managing Risk, 388

8.3.7 Enhancing Growth and Expansion, 389

8.3.8 A Company-Level Sustainability Model, 390

8.4 DuPont: Growing Sustainably, 392

Dicksen Tanzil (BRIDGES to Sustainability), Dawn G Rittenhouse (DuPont),

Beth R Beloff (BRIDGES to Sustainability)

8.4.1 Sustainability as a Growth Strategy, 392

xiv CONTENTS

8.4.2 DuPont’s Journey, 395

8.4.3 Realizing the Transformation, 396

8.4.4 Managing Sustainable Growth, 397

8.4.5 Sustainable Growth in R&D, 397

8.4.6 Sustainable Growth in Operations, 398

8.4.7 Results and Challenges, 400

8.4.8 The Business Case, 401

8.5 Business Value from Sustainable Development at shell, 402

Mark Wade (Shell International Limited) and Joe Machado (Shell Chemical LP)

8.5.1 The Lessons of the 1990s, 403

8.5.2 Responding to the Challenge, 404

8.5.3 A Different Way of Doing Business, 405

8.5.4 The Business Case for Sustainable Development, 406

8.5.5 Embedding Sustainable Development into the Organization, 407

8.5.6 Measuring and Communicating Performance, 409

8.5.7 Engaging with Stakeholders, 410

8.5.8 Working with Others, 410

8.5.9 Contributing to Sustainable Development and the

Use of Finite Resources, 411


8.6 Sustainable Development: An Integral Part of BASF’s

Corporate Values, 413

Ernst Schwanhold (BASF Aktiengesellschaft)

8.6.1 Values and Principles, 414

8.6.2 Our Commitment to the Global Compact, 414

8.6.3 Management Structures, 414

8.6.4 Examples for the Implementation of Sustainable

Development within BASF, 415

8.6.5 The Eco-Efficiency Analysis, 418

8.6.6 Dialog: An Important Part of Sustainability, 420

8.6.7 Financial Markets Honor Sustainable Development, 421

8.6.8 Conclusions, 422

8.7 The GSK Approach to Sustainable Development, 422

David J C Constable, Alan Curzons, Ailsa Duncan, Concepcion

Jiménez-González and Virginia L Cunningham (GlaxoSmithKline, USA)


8.7.2 Sustainability Strategy, 424

8.7.3 Designing Products for Environmental Sustainability, 427

8.7.4 Green Chemistry Guide, 428

8.7.5 FLASC#: Fast Lifecycle Assessment for Synthetic

Chemistry, 429

CONTENTS xv

8.7.6 Materials Guides, 430

8.7.7 Conclusions, 434

8.7.8 Acknowledgments, 434

8.8 Moving 3M Toward Sustainability: The Business Case for

Sustainable Development, 435

Keith J Miller (3M)

8.8.1 Transition to Sustainability, 436

8.8.2 Organizing the Move Toward Sustainability, 437

8.8.3 Sustainability and Growth, 438

8.8.4 Sustainability and Risk Management, 440

8.8.5 Benefits/Opportunities, 4418.8.6 Challenges, 442

8.8.7 The Business Case for Sustainability:

The Bottom Line, 443

8.9 Achieving Business Value: The Investment Community Perspective

on the Importance of Including Environmental and Social Aspects

in Valuations, 444

Don Reed (ECOS Corporation)


8.9.2 Environmental and Social Issues as Business Issues, 444

8.9.3 “Value at Stake”: Environmental and Social Issues

in the Chemical Industry, 446

8.9.4 Examples of How Sustainability Leaders in the Chemical

Industry View Value, 447

8.9.5 The Prevailing View of Mainstream Investors on Sustainability

in the Chemical Industry, 450

8.9.6 Sustainability Research, Ratings, and Indexes, 451

8.9.7 Key Issues for Analysts of the Chemical Industry

Now and in the Future, 453

8.9.8 What the Future May Hold for Investors, 453

8.9.9 What Could Be Next for Chemical Companies, 454

8.10 Investment Analysis: Dow and Bhopal, India, 455

Marc Brammer (Innovest Strategic Value Advisors)

8.10.1 The Meaning of Bhopal for Investors, 456

8.10.2 The Bhopal Disaster, 459

8.10.3 History of the Bhopal Case, 460

8.10.4 After the Dow Chemical Acquisition of Union Carbide, 462

8.10.5 Union Carbide’s Pending Criminal Charges in Bhopal, 462

8.10.6 Toxic Wastes and Contaminated Groundwater, 463

8.10.7 Impact on Dow Chemical’s Reputation, 466

xvi CONTENTS

8.11 Scientific, Political, and Investor Drivers of Chemical Industry

Sustainability: An NGO Perspective, 468

Richard Liroff (WWF)

8.11.1 New Scientific Understanding of Chemicals’ Health Effects, 469

8.11.2 Increased Biomonitoring Programs, 469

8.11.3 Media and Public Attention to Chemical Exposures

and Disease Incidence, 470

8.11.4 Changing Demand From “Chemical Choosers,” a/k/aConsumer Goods Companies, 470

8.11.5 Convergence of Nonprofit Groups’ Environmental and

Public Health Agendas, 471

8.11.6 Tightening Regulations in Europe and at the State and Local

Level in the United States, 472

8.11.7 Increasing Investor Concern, 472

8.11.8 Insurer and Reinsurer Concern, 473

8.12 The Role of Leadership and Corporate Governance, 474

David Robert Taschler (Air Products & Chemicals, Inc.)

8.12.1 The Case for Leadership Commitment, 474

8.12.2 Identifying the Leaders, 475

8.12.3 The Role of Champion, 475

8.12.4 Engaging the Board, 476

8.12.5 Experience Necessary, 476

8.12.6 Affiliation with Other DJSI Companies and Sustainability

Initiatives, 477

8.12.7 Communicating the Commitment, 478

8.12.8 Walking the Talk, 479

8.12.9 The Call to Action, 480

References, 481

Appendix 1 Responsible Carew Global Charter 487

Appendix 2 Directory of Standards and CSR-Related Organizations 492

Appendix 3 Author Biographies 502

Index 513

CONTENTS xvii

FOREWORD

DAWN RITTENHOUSE

A sustainable chemical industry. To many that sounds like an oxymoron. How can

the industry that produced the materials that caused Love Canal, Bhopal, and the

ozone hole ever be sustainable?

However, I would argue that the question cannot be “Can the chemical industry

become sustainable?” The questions must be “How does the chemical industry

become sustainable?” Today, synthetic chemicals are part of every product we use,

from cell phones and computers, to our clothes, our automobiles, and our housing.

BASF got it perfect with their tag line – “We don’t make the products you use, we

make the products you use better.” If we do not figure out how to make the chemical

industry sustainable, we will not, by definition, develop a sustainable world.

Right now, sustainability is a journey . . . maybe someday, if we are successful, itwill be an endpoint. The chemical industry took the first step of the journey in 1985

with Responsible Carew. Responsible Carew was fundamentally about taking

responsibility for our operations, and through product stewardship, our products

throughout the lifecycle. Not a bad start; in fact, for the time, an amazingly proactive

initiative.

Despite the effort that has gone into implementing Responsible Carew globally,

public perception of the industry is still very low. Probably not surprising. The

World Wildlife Fund (WWF) tested the blood of 14 European Union Environmental

Ministers to determine levels of persistent chemicals (they all had man-made chemi-

cals in their blood) and recent studies have indicated that Arctic animals have high

levels of the brominated compounds that are typically used as fire retardants. With

that kind of news in the media, it is hard to imagine a positive industry image.

So, 20 years on from the introduction of Responsible Carew, what is next? Many

chemical companies are starting to ask the hard questions about what a sustainable

xix

chemical industry looks like . . . what’s in, what’s out and, more importantly, whatdoes the path look like, and how are we going to get from here to there?

Fortunately, we are not alone. Many other sectors are also struggling with the

question and are developing ways to approach sustainability that in some cases

are driving demand for more sustainable solutions from the chemical industry.

HP, for example, has an extensive supplier survey to understand how their suppliers

operate and how they manage their operations to enhance safety, health, environ-

mental, and social performance. SC Johnson has a process called the “Greenlist”

to help their product designers focus on raw materials that are more sustainable in

the long term. The chemical industry is also reaching out to a broad group of

stakeholders to help with what sustainability really means. Dow has a Corporate

Environmental Advisory Committee, and DuPont has a Biotechnology Advisory

Panel.

Beth, Marianne, and Dicksen have gathered a lot of information on tools like

metrics and lifecycle analysis. They have also gathered information on what a

number of companies have done and why. There are no silver bullets or quick

fixes in the book. None of the companies is close to operating in a truly sustainable

way. They have taken on different approaches so may be ahead in one area while not

engaged in another area at all. But credit is due; they are leaders out there trying to

forge a path.

Ideally, the companies who are leaders will be successful financially because

nothing encourages imitation like the opportunity to gain a competitive advantage,

or the fear of losing market position. If the leadership companies outperform their

peers, then the business case will be evident and the transition to more sustainable

actions will be quick. More than likely though, there will be successes that encou-

rage imitation and there will be failures that become the reasons for some to main-

tain the status quo rather than seeing them as learning opportunities.

Transforming Sustainability Strategy into Action: The Chemical Industry pro-

vides an understanding of what the many facets of sustainability mean to the chemi-

cal industry and how one may take on the challenge of building an integrated

sustainability approach. Anybody interested in sustainability can learn from this

book, whether you have been engaged in the process for a while or are just beginning

to think about sustainability as a strategy. Enjoy the journey.

BRAD ALLENBY

Underlying the interest in “green chemistry,” “sustainable engineering,” “sustain-

ability,” and similar formulations is the beginning of what for many people is a

frightening realization: we now live in an anthropogenic world. The Industrial Revo-

lution was in many ways a revolution in material sciences and chemistry, and even

today the implications of nanotechnology – chemistry at small scale – continue that

revolution. The history of the human species, in fact, is in large part a history of

learning to manipulate the material world, and our success in that endeavor is a

significant reason why we now live in what the journal Nature calls “the

xx FOREWORD

Anthropocene” – the Age of Humans (Editorial, Nature, 2003). Humans increas-

ingly dominate the dynamics of many natural systems and material cycles; given

the coming convergence of foundational technologies, especially nanotechnology,

biotechnology, information and communication technology, and cognitive sciences

(dubbed “NBIC”), this trend will not only continue, but intensify. And our use and

management of materials will remain a central feature of our continuing terraform-

ing of this planet.

The evolution of this human world raises a number of difficult questions. For one

thing, many people would rather it did not exist, and so retreat to simplistic formu-

lations that may be psychologically satisfying, but are increasingly unrealistic, even

dysfunctional. So it becomes a major challenge just to recognize what it is we have

already wrought, and what is coming down the road, quite rapidly, directly at us.

Beyond that, of course, even if we perceive the difficulties, we lack tools and meth-

odologies with which to deal with them. In particular, we are institutionally and

intellectually constrained in our ability to deal rationally with complex adaptive

systems, such as complicated material and technological patterns in a rapidly

evolving and increasingly global economy.

But this should not be taken pessimistically tomean thatwe are powerless; rather, it

should be encouragement to continue to research and learn, and not to let the best

become the enemy of the good. In this regard, the history of chlorofluorocarbons

(CFCs) offers some useful insights. First, it is important to remember than when

CFCs were introduced, they are adopted because they were that era’s equivalent of

“green chemistry.” Theyweremuch safer than the chemicals they replaced (ammonia

in refrigeration uses, for example, or toxic chlorinated solvents in cleaning appli-

cations); they were stable; they were energy efficient – in other words, they were a

perfect example of “green chemistry.”Only later did it turn out that they had the unfor-

tunate and unanticipated ability to migrate to the upper atmosphere and there break

down to reduce stratospheric ozone concentrations. This threatened the ozone layer,

which absorbs high-energy ultraviolet radiation from the sun before it gets to the

Earth’s surface and thereby protects biological systems from its detrimental effects.

As this effect was validated, a number of initiatives, including international legal

agreements and technological innovation, reduced CFC emissions with the result

that, at this point, we have both reasonably safe industrial processes and products,

with much less potential for stratospheric ozone depletion.

What are the lessons from this experience? First, that “green chemistry” and other

reductionist approaches, while often quite valuable, must be understood at the con-

text of the modern globalized economy, where chemical and material science inno-

vations can rapidly expand to a scale where fundamental natural systems can be

impacted. In other words, it is inadequate to consider systemic effects only at a

small scale; rather, we must learn to explore potential impacts at all scales, including

emergent behaviors at very large scales that may be completely unanticipated. We

must also learn to consider the relevant systems as a whole, not jsut as particular

interests or academic disciplines dictate. Bluntly put, “it’s the system, stupid.”

Secondly, the story does not end with the successful commercial implementation

of a material or chemical innovation. Rather, we must learn to dialog with these

FOREWORD xxi

systems on an ongoing basis, so that subtle but important effects are not missed, or

ignored until they become irreversible except at great cost. This capability, which

right now is not the responsibility of any institution, should be a priority for all con-

cerned. But – and this is the good news – the CFC story, for a number of reasons, is

a success story. It was complicated chemistry, complicated politics, emergent and

unanticipated behaviors – but in a very short time, relatively speaking, our

human systems responded. We are not powerless, unless we choose to render

ourselves powerless.

We do so in two important ways. First, blinded by ideology or simply afraid of

the magnitude of the challenge posed to us by the anthropogenic Earth, we may

choose not to perceive what is actually going on around us. Secondly, even if we

do realize what is going on, we can choose not to act, either because inaction is

more comfortable, or because we cannot at this point know what might be best,

rather than simply an improvement. Both options are arguably unethical.

Transforming Sustainability Strategy into Action: The Chemical Industry takes

another path. Eschewing simplistic silver bullets, it pushes us forward both concep-

tually and operationally into new approaches, new ways of thinking, that in turn

enable us to begin a rational, and ethical, interaction with this unique and strange

new age that we have done so much to bring about. Forget Mars: humans have

terraformed a planet already, and this book is another small step in responsibly

responding to that reality. Certainly we do not yet understand the complex systems

within which we are already operating, nor do we know what the best actions might

always be. As this book illustrates, however, we have both the will and the capability

to begin building a better world. And so the Anthropocene begins.

REFERENCE

Editorial, “Welcome to the Anthropocene” Nature, 424; 709 (2003).

xxii FOREWORD

PREFACE

When I was approached by Wiley to write a book on sustainable development in the

chemical industry, my first concern was that, by addressing only the chemical indus-

try, the view on sustainability would be too limited. Upon greater reflection, this

industry represents an opportune lens through which to fashion a book on sustainable

development for numerous reasons. Chemicals have been linked to the first trumpet-

ing of alarm that heralded in the environmental movement, with the writing of Silent

Spring. The chemical industry was among the first to organize on a significant scale a

voluntary programwith hopes of transforming itself and the perception of others into a

responsible environmental actor (Responsible Carew). And lastly, the industry’s pro-

ducts are ubiquitous in commerce and are found in the supply chains, if not lifecycles,

of virtually all products and services. Correspondingly, they are also found in all eco-

systems around the globe. So, utilizing the issues of sustainability to be representative

of the broader set confronting business in general makes sense.

The second concern I pondered was how to present a book that is balanced in

representing the perspectives of multiple stakeholder groups of importance, broad

in the handling of an array of topics, yet pragmatic in its quest to be of value to

those most interested in operationalizing sustainability in their daily activities, on

“Monday morning.” It was clear that I needed to work on a team with others repre-

senting areas of knowledge deeper than my own, and further, that we needed to

maintain, wherever possible, the voices of others as co-authors.

And so I asked Marianne Lines, my dear friend and colleague, to become co-

editor. Marianne’s exceptional organizational skills and sense of enjoyment from

details, well-honed experience in pulling together expert stakeholders, and funda-

mental knowledge of sustainability issues were my primary reasons for inviting

her to participate, and she has surpassed all of my expectations.

xxiii

Further, Marianne and I wanted a third team member imbued with specific

knowledge of the chemical industry and with technical expertise in the area of

chemical products and processes. Dicksen Tanzil kindly accepted our invitation

to fill that spot. His dedication, sense of purpose, intelligence, and willingness to

take on any task required, made him an invaluable member of the team.

This rounded out our editorial team. And so BRIDGES to Sustainability, our non-

profit organization housing the three of us in our quest to bridges between technical

and management issues, between short- and long-term values, between companies

and their stakeholders, and between strategies and actions, became again a bridge

between thought and words.

Finally, we wanted to create a comprehensive resource on the topic of oper-

ationalizing sustainability, which could be used as a reference on a variety of sus-

tainability how-to topics. As a result, we developed a compendium drawing upon

conceptual, technical, and practical perspectives of sustainability. Rather than

being comprehensive, we offer representative approaches in short form, with

references as to where to find more information.

Our main goal of this book is to provide a framework for companies to adopt sus-

tainable business practices; to demonstrate how businesses can translate sustainabil-

ity strategies into action. Our focus is how to operationalize sustainability, and we

seek to be relevant to not only managers in industry, but also to future managers

in business and engineering educational programs.

We are motivated by a desire to be better: better corporate players, more socially

responsible, creating fewer negative impacts and more positive benefits from our

actions as well as those of others constituting our “value chain”, improving the qual-

ity of life in our communities, protecting our children’s quality of life in the future. If

this book offers insights into how to move closer to any of these, we have accom-

plished our mission. Please take as many of these ideas as you wish, expand upon

them, and use them. That will be the ultimate test of the success of this endeavor.

Beth Beloff

Marianne Lines

Dicksen Tanzil

xxiv PREFACE

ACKNOWLEDGMENTS

Assembling and writing portions of this book have led us on an incredible journey.

We never envisioned how much effort this would entail, or how much give-and-take

and rethinking of the final product would be involved with every interaction with

each contributor, author, or reviewer. We have had the kind support of professional

colleagues, friends, and family, all of whom have helped to broaden our understand-

ing of our mission and keep us on target. And to the many agents of change who

have inspired us by their own thoughts, actions, and written words, we say thank

you. You know who you are.

Brad Allenby, Chuck Bennett, Karen Coyne, Pogo Davis, Dawn Rittenhouse, and

Darlene Schuster all took time out of their busy schedules to comment among the

way about the direction we were taking and gave valuable insights as to how to

correct course.

The earliest reviewers of our book concept gave us much appreciated feedback

and guidance. They include Tarcisio Alvarez-Rivero, Karen Coyne, Pogo Davis,

Tom Gladwin, Dawn Rittenhouse, and Darlene Schuster. Further guidance on over-

all concept came from Chuck Bennett and Frank Dixon. Both wrote various pieces

that fundamentally inspired our compendium, even though their contributions are

not directly found in the book. Brad Allenby, John Carberry, and Dave Constable

provided significant critique to the sections on Sustainability Planning and

Design. Beverley Thorpe provided invaluable insight into public perceptions of

the chemical industry. Ken Geiser and Joel Tickner kept us abreast of emerging

international policies on the management of chemicals. Karen Coyne jumped in

without hesitation to organize the auditing section when we were confronted with

a vacuum there, and Art Gillen filled the same role in the management systems

area when we were confronted with similar issues.

xxv

Joanna Underwood reconnected as a friend and colleague, and provided moral

support as well as professional wisdom. Mitch Mathis and Marilu Hastings, in

spite of experiencing a time of great personal angst, came through with their per-

sonal and professional support. Ann Goodman shared her writings to inspire our

case study development. Priscilla Johnson shared invaluable insights into the

business case for sustainability. Dave Taschler and Tim Donnelly provided excellent

insights and critique of our business case section, as did Gautham Parthasarathy

from Solutia.

The development of the Chemical Industry Sustainability Survey was more of a

challenge than expected. The PricewaterhouseCoopers team, comprised of Andy

Savitz, Doug Hileman, and Michael Besly, was extraordinary in their dedication

to an excellent product. When funding for the effort fell through, they graciously

contributed their time and effort, for which we are extremely grateful. Through

industry focus groups we vetted the survey findings to both clarify and validate

interpretations. Darlene Schuster, as leader in AIChE’s Institute for Sustainability,

was a dedicated partner in the review of the survey instrument, marketing of the

survey, and in the organization of the focus groups. Charlene Wall (BASF), through

AIChE’s Center for Sustainable Technology Practices, was also instrumental in

organizing an excellent group of industry leaders to participate in the focus

groups. Those participants include Emanuel Baba (FMC), Earl Beaver (IfS), Tim

Donnelly (Rohm & Haas), Karen Koster (Cytec), Joe Machado (Shell Chemicals),

Ada Nelson (BP), Dawn Rittenhouse (DuPont), Dave Taschler (Air Products), Joe

Zola (Eastman Chemicals), and Elaine Zoeller (Eastman Chemicals). Terry Yosie

(ACC) was also generous with his time in participating in a focus group.

Finally, we would like to thank the Board and Advisory Council, as well as the

extended family, of BRIDGES to Sustainability for their dedication to the mission of

the organization and their crafting a more sustainable future with us.

xxvi ACKNOWLEDGMENTS

1INTRODUCTION

BETH BELOFFMARIANNE LINES


In recent years, many top leaders have committed their companies to the concept

of sustainable development. The practical implications of such a commitment for

a corporation is that performance is considered along three dimensions – economic,

environmental, and social – rather than a single-minded drive for immediate econ-

omic value. While this growing commitment to sustainability has been driven by

many complex factors, such as changing societal expectations, stakeholder activism,

and regulatory activity, for reasons regarding competitive advantage, business

leaders are considering the possibility of long-term economic performance being

enhanced by a commitment to strong environmental and social performance. This

means that in the next decade or so, competitive advantage may migrate to those

firms that learn to create customer and shareholder value in ways that do not

harm the environment and benefit a broader spectrum of society.

For those of us who have been working in the field encompassing sustainable

development, sustainability, or corporate social responsibility – among an array

of other terms-of-art – it is heartening to observe the recent explosion of venues

and opportunities featuring this topic. In the United States, these expanding

venues include publication of books and journal articles, conferences, technical

society and industry association initiatives, and university initiatives in the form

of new centers and institutes, course additions, or campus physical site planning

and management. Recent initiatives among technical and industry associations

include the new Institute for Sustainability (IfS) at the American Institute of

Chemical Engineers (AIChE), Green Chemistry Institute at the American Chemical

1

Transforming Sustainability Strategy into Action: The Chemical Industry, Edited by B. Beloff, M. Lines,and D. TanzilCopyright # 2005 John Wiley & Sons, Inc.

Society (ACS), US Green Building Council, US Business Council for Sustainable

Development (USBCSD), SD Planner and the newly formed Metrics task forces

at the Global Environmental Management Initiative (GEMI), as well as the Auditing

Roundtable’s new initiative to include sustainability auditing.

In addition, there is a proliferation of global agreements, standards, guidance

documents, and frameworks related to sustainability practices, and increased

stakeholder pressure to subscribe to them. They include the United Nations’

Global Compact, Caux Roundtable Principles for Business, CERES Principles,

Sustainability Reporting Guidelines of the Global Reporting Initiative (GRI), the

Global Sullivan Principles, Organisation for Economic Development and

Cooperation’s Guidelines for Multinational Enterprises, Social Accountability SA

8000, and Dow Jones Sustainability Index (refer to Sections 4.7 and Appendix 2 of

this book). The investment community is beginning to pay attention to sustainability,

as sustainability ratings with respect to corporate performance are drawing the

attention of Socially Responsible Investing (SRI) funds as the number of rating organ-

izations is growing. The evidence that sustainability is becoming a more accepted

concept to business and is emerging as a driving force is a subtext of this book.

While many companies embrace the concept of sustainability, few know how to

make it operational. Further, there is a lack of accepted methods to assess an organ-

ization’s progress toward this important goal. If the goal of sustainability is to be

incorporated into management decision-making, indicators of progress are needed

that take into consideration the impacts of the organization, its processes and pro-

ducts, in terms of resource depletion and pollution emissions, corporate and societal

costs and value-added, and impacts along the lifecycle that the processes, products,

and services generate.

The principal strength of this book is that it provides a framework to enable

companies to adopt sustainable business practices. The book is intended to:

† provide managers with a practical framework to identify and assess options forimproving the sustainability of their companies’ and supply chains’ current

and future business practices, products, and manufacturing or production

methods;

† demonstrate how businesses in the chemical sector can translate sustainabilitystrategies into action;

† focus on operationalizing the environmental, economic, and social value ofsustainable development for chemical industries; and

† contribute to the body of evidence regarding the business case for sustainability.

Building on current initiatives and leveraging partnerships, this unique work

provides practical mechanisms to help managers understand how to recognize and

monitor the value of sustainability in their decisions. The work focuses on oper-

ational aspects, decision support, practical tools for measuring progress, and

case studies of barriers and opportunities associated with the pursuit of corporate

sustainability – all with a look to the chemical industry.

2 INTRODUCTION

Documents

TRANSFORMING SUSTAINABILITY STRATEGY INTO ACTION€¦ · 3.1 Overview, 27. Marianne Lines (BRIDGES to Sustainability) 3.2 The Chemical Industry and the Public: Will the Chemical Experiment