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Industrial Ecology:
The Only 3 Things Business Needs to Do to Save the Earth

Wendy B. Pratt and William K. Shireman

Industrial ecology is the application of ecological principles to industrial processes. Its objective is to continually increase the resource-efficiency of those processes -- in other words, to increase their knowledge-content.

The objective of industrial ecology is not merely to reduce pollution and waste as traditionally conceived. It is to reduce throughput of all kinds of materials and fuels, whether they leave a site as products emissions, or waste.

To achieve these efficiencies, future practitioners of industrial ecology can apply principles that operate in nature -- diversity, specialization, complexity -- to tap the knowledge intrinsic to them, to systematically replace the energy, materials, pollution, and waste associated with all industrial processes, from manufacturing to distribution, sale, and use, so that they become continuously more efficient and profitable.

Ecological management, as it is presented here, can be thought of as a set of management tools, many of them familiar, that allow a company to implement the concepts underlying industrial ecology. It is a systematic approach, emphasizing the interconnectedness of processes, units, and individuals both within and external to a corporation. As an Arthur D. Little report on industrial ecology noted, "The concept of industrial ecology may at first appear impractical or overly idealistic, but it is almost certainly the most plausible model for the industrial-environmental nexus of the future." This guide attempts to move a company from the idealistic stage to the plausible implementation of industrial ecology.

There is a growing corporate commitment to move from the traditional industrial approach to a more systematic, ecological approach. Many companies have developed corporate philosophies that include social and environmental issues as well as economic, and that take a broader view of corporate citizenship and corporate stewardship towards the environment than has been traditional.

These are positive steps. However, the more pragmatic individuals responsible for implementing these visions may be asking:

  • How can a visionary theory progress to practical application?
  • What programs can be developed to implement policies such as these?
  • Can it be done while still making a profit?
  • How can the results be measured?
  • How can the entire company be brought on-board?

There are many actions that a company can take to implement a forward-thinking corporate philosophy. In fact, ecological management could include a broad range of actions -- ranging from social to environmental to economic. This report provides one such path, one that a company can take to establish a strong ecological management framework -- one that will result in economic savings and that can further support and reinforce the corporate philosophy and promote the transition to an industrial ecology approach.

Many companies have adopted this approach without taking any explicit steps to do so -- it has simply evolved as the most effective practice. Other companies, such as AT&T; and GM, are actively studying or promoting the concept of industrial ecology to develop a more systems-oriented and sustainable business approach. Following the steps in this guide will allow companies of all sizes to implement this approach.

The 3 Things

To profit from the practice of ecological management, a business need not do 100 little, disconnected things. It need do only three simple but extraordinarily powerful things, over and over again:

  1. Identify specific examples of materials use, energy use, pollution and waste (any form of throughput).
  2. Brainstorm, test, and implement ways to reduce or eliminate it.
  3. Count the money. Count how much was saved, then count how much is stillbeing spent to create waste and pollution, and start the cycle over.

Those three steps may sound modest. In concept, they are. They are based on well-established business management practices. Yet they go way beyond the ad hoc, programmatic approach we take to most pollution problems. They take a systematic approach -- really an eco-systematic approach. They literally design pollution and consumption out of the production process. They squeeze out raw materials and energy, replacing them with knowledge and ingenuity. They cultivate systems of management and production characterized by increasing specialization, diversity, and interdependence or teamwork -- ecological complexity. In this sense, they represent a first step toward institutionalizing industrial ecology.

These "3 things" -- essentially audits, a quality management approach, and activity-based accounting -- are part of an interrelated ecological management framework. One way to implement them is through a series of perhaps fourteen specific steps, spiraling outward from the first step -- overall corporate commitment, to the "final" step, continuing the process, which flows back into the cycle of continuous improvement:

Step 1: Company-Wide Commitment

Step 2: Organize the Management Effort

Step 3: Organize the Audit

Step 4: Background Information Gathering

Step 5: Detailed Assessment

Step 6: Review and Organize Data

Step 7: Identify Improvement Options

Step 8: Prioritize Options

Step 9: Implement Fast-Track Options

Step 10: Analyze Options

Step 11: Implement Best Options

Step 12: Measure Results

Step 13: Standardize Improvement

Step 14: Continue the Process

Because they are part of a systematic approach, each of the components within the "3 things" do not necessarily fall into discrete categories. For clarity of presentation, each of the "things" is divided into steps. Note, however, as the figure and Table 1 illustrate, that these steps overlap and are repeated within this approach. For this guide, the steps are categorized as follows:

This guide provides the tools to lead a company through an ecological management system. The company must provide the overall commitment and leadership that will drive this process forward (and around). The guide begins with background and theory that supports an industrial ecology approach. The main body of the guide provides step-by-step directions to implement the "3 things." Each section includes case studies to demonstrate how other companies have benefited from this approach. The appendices provide worksheets to guide project teams through each step, analysis tools, and a list of resources.

On a practical note: while the steps within each task are outlined in detail, and worksheets are provided for each task, simply following step-by-step will not be enough. We strongly recommend that a company draw on in-company expertise and enthusiasm as well as outside assistance, to the maximum extent possible. It is important, if these steps are to have their maximum impact, that the individuals and groups assessing waste, identifying options, and measuring results have a clear sense of the possibilities and the methodologies -- and know what to look for and think about. If these resources are not available within a company, consider bringing in a consultant to help with this process. It is as important to have inside expertise, familiar with internal practices, as it is to have fresh outside insights and expertise in the process. By putting a bit more effort and money into the front-end, the savings on the back end are likely to be much greater.


Source: Global Futures Foundation, World Wide Web, 1997.

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