• E-mail
• Print
• Comment
• Font Size
• Digg
• del.icio.us
• Discuss article

INDUSTRIAL INGENUITY: the Renewable Resource

Posted on: Wednesday, 15 March 2006, 12:00 CST

By Milano, Carol

For many businesses, environmentalism was something imposed by regulatory fiat. But now innovative companies are showing that going green is not just good for the corporate conscience. It is a boost to the bottom line.

What happens to all of the original building materials thrown away during commercial and industrial renovations? Usually, it lands in a crowded landfill. But a leading tile manufacturer saw a better destination. In 2000, Armstrong World Industries, of Lancaster, Pennsylvania, began to collect discarded ceiling tiles, and bring them to their nearest facility to use to make new acoustic tiles. Armstrong's Ceiling Recycling Program avoids source pollution, lowers expenses for raw materials and has already kept over 7,000 tons of construction waste out of landfills.

The construction of tiles from old waste exemplifies industrial ecology. This young, fast-growing field develops scientific solutions for environmental manufacturing problems. "Industrial ecology is a set of concepts that includes a set of tools," says Cliff Davidson, Ph.D., head of Carnegie Mellon University's new Center for Sustainable Engineering. Those tools and concepts can help reduce environmental impact, develop more efficient processes and conserve scarce natural resources.

But why does sustainability matter? Historically, American businesses used to extracting and consuming irreplaceable raw materials, were never overly concerned with future needs. But growing populations and rapidly industrializing countries are accelerating global demand for products dependent on natural resources. As supplies of oil and other raw materials shrink, a new strategy is becoming a better option. "Right now, our industrial systems are not resilient," says Davidson. "We're taking a certain amount of risk by maintaining the same mode of operation, looking at short-term payoffs instead of longterm survival."

The good news: other than fuels, most materials are potentially recyclable. Serving the marketplace as well as the environment, industrial ecologists are leading the slow march towards sustainability. (The field is sometimes called green chemistry, environmental manufacturing or green architecture.)

"What we call waste is residue that we have not yet learned to reuse efficiently," says Nicholas Themelis, Ph.D., director of the Earth Engineering Center at Columbia University. He notes that three paths lead toward "zero waste," which is the heart and soul of sustainability:

Reuse. Develop processes incorporating parts of former products into the next generation. By turning petrochemicals into textiles, Atlanta-based Interface, Inc. produced one million pounds of synthetic carpet and fabric daily and seven tons of air pollutants annually. Now they reclaim their own products, using them as raw materials for new textiles.

Recycle. Transform unwanted items into marketable or useful goods. Kettle Foods in Salem, Oregon, makers of organic potato chips, opted to convert all used vegetable oil from its fryers into biodiesel fuel. "It pollutes the air up to 50% less, and it is a renewable fuel source," Kettle Foods executive Jim Green says proudly.

Reduce. Find ways to use smaller quantities of, or alternatives to, finite materials. Interface has significantly decreased their use of nonrenewable petroleum-based substances, and the volume of carbon dioxide they release into the air. They are requiring suppliers to provide only recyclable, nontoxic materials.

Health and Safety Benefits

Founders of Paneltech, a producer of resins for wood products, worried about both employee and customer health. "Since we started in 1998, we've wanted to use less methanol," says president Roy Nott. "It's explosive, can catch fire and is a large source of volatile organic compounds (VOCs). Inhaled VOCs are harmful to workers and also consumers-in things like kitchen countertops-in enclosed spaces." In response, the Hoquiam, Washington company recently developed a far safer product with a 100% water-based formula and far fewer VOCs.

"If we know we're exposing workers and community residents to toxic fumes, we should take steps to lower that risk," urges Davidson, citing a University of Michigan research project seeking safe alternatives to the hazardous fluids of metalworking. These release fumes can cause breathing problems for workers and environmental damage when they are discarded and flow into groundwater.

Aerospace manufacturer Pratt & Whitney, of East Hartford, Connecticut took a similar approach when, in the early 1990s, it started its ambitious Green Factory initiative to keep workers injuryfree, develop safer products, protect the environment and help prevent pollution. By 1999, the company's output of hazardous waste had decreased by 80% and toxic air emissions by 98% thanks to innovations such as water-jet cleaning and green coating materials.

Is "Greening" Affordable?

Yes, environmental improvements can improve worker and community safety-but will going greener turn your bottom line red? Not if you make ingenuity your main expense.

"We're a small company," says Nott. "We can't compete with capitalintensive big guys. From necessity, we spend less on fixed costs up front, more on the technical side of what can be done at lower volumes. Consultants may tell you that complying with a new regulation-such as reducing sulphur levels-will cost $100 million. Our reaction is, how do we do this creatively for much less?"

Environmentalism can reduce certain expenses. Interface, for instance, in their first three years of sustainability efforts, saved $50 million on costs of materials and energy.

Hazardous material use is expensive, contends Kathleen Sayce, Bank Scientist at ShoreBank in Ilwaco, Washington. "You may have to document arrival, ship them specially, track with separate paperwork, store them in locked and fireproof cabinets, provide proper safety covering and worker protection, and pay for safe post- use disposal. How much does that product cost you? Multiply that by eight: the cost for you to manage hazmat," she says. "The bottom line: finding an alternative to those toxic materials improves worker safety-and saves a ton of money."

Summit Brewing Co. in St. Paul, Minnesota did not have a hazardous materials issue, but it did have its own environmental mandate to fulfill, so it joined the Forest Stewardship Council. "Buying certified pallets from well-managed forests lets us reassure customers that we're protecting both forests and clean water resources-an essential ingredient in quality beer," says Christopher Seitz, vice president for operations. He had anticipated paying premium prices, but, fortunately, their supplier had begun manufacturing certified pallets.

It is important to weigh nonmonetary gains, too. Summit Beer got fan mail about their forestry. "It didn't cost us a thing-the best kind of advertising," Seitz says.

Prices of various supplies fluctuate. When certified pallet costs soared, Seitz switched to cheaper recycled pallets. In exchange for lower pollution, Kettle Foods accepted biodiesel's higher costs. However, that $3 per gallon no longer seems extravagant, given recent gasoline prices.

Kettle Foods feels premium prices for organic local produce are worth the cost, for their niche product. "Our customers don't mind paying more for higher quality," says Green. His coworkers manually restored federallydesignated wetlands bordering their headquarters, creating a natural area for employees and residents to enjoy. "It's wonderful public relations. We even put it on some of our packaging."

What about potential conflicts between corporate growth and greater sustainability? Davidson suggests getting together with other companies. "Think about what might be a longterm survival strategy for your industry," he says. "If materials and energy costs go up, can you create a win-win situation so everyone can benefit? You need longterm planning as a group, as a community."

Some environmental solutions will also require investment in research, says Davidson. Looking ahead, industrial ecologists want to defer major changes until they are sure it will work. "This will minimize the risk of making wrong, expensive modifications," says Davidson.

Still, Themelis believes that environmental thinking can become integral in company strategy, for competitive position, growth and profitability. Gradually incorporate "green" improvement costs into your pricing structure, he recommends.

Potential Improvements

How can your company become environmentally innovative? First, identify possible improvements and savings by surveying the ways you currently manage energy, water, waste and undesirable materials.

A fresh perspective may bring unexpected pay-offs. A Northwestern dried fruit producer, for example, was fined by the state environmental protection department because it used fruit brines that were polluting a significant stretch of local waterways. A biologist helped them seek out potentially valuable alternatives. The company soon found an affordable way to put the brines into a centrifuge, allowing on-going re-use and substantial savings on raw ingredients for brine. Then the firm arranged with an ethanol plant to haul them away af\ter final use-and pay the fruit producer for its former waste brines.

Before costly redesigns, target low-tech problems requiring only small steps, says Sayce. "Improve employee safety and efficiency with better lighting so they can see well enough to avoid injuries. On an assembly line, remember that people are different sizes and proportions. What's perfectly comfortable for one person can lead to carpal tunnel syndrome or shoulder pain in another. Make recycling safe, convenient and straightforward. Also, place enough receptacles so that people can easily reach them. This will lead to higher compliance, and possible savings as you may be paying to dispose of something now going into the trash. Instead, seeing what else can be recycled will at least save carting costs, or even bring in money, depending on a material's value."

Building a "Green Team"

What kind of input can deepen your company's environmentalism? Start by asking employees what they'd most like to change. To encourage workers' enthusiastic participation, carefully appeal to their self-interest.

Pratt & Whitney developed three techniques for staff involvement. First, assign managers accountability and oversight at all levels, emphasizing injury prevention plans and safety goals. second, require annual program evaluations looking toward continuous improvement. Third, involve employees in decision-making and problemsolving, especially in risk identification, incident investigation and workplace safety procedures.

Required to reduce sulfur emissions, Paneltech put its operators on the problem-solving team, led by a resourceful chemist lured from retirement to work quarter-time. The scientist made suggestions to lower emissions, collaborating with operators who pinpointed problems and explained what their machines could (or could not) do. The chemist kept experimenting with modifications, and returning to the operators, until everyone agreed on a viable solution.

The marketplace is also a good information source. "More and more customers are saying they prefer environmentally friendly products. It's really good business," says Nott. On its modest budget, Paneltech "is trying to be creative, to be both competitive and environmentally conscious."

Incorporating Industrial Ecology

Environmental awareness can also ease the sting of EPA and Department of Energy regulations. Kettle Foods' 600 employees include food chemists, mechanical engineers and a staff member overseeing state, local and federal regulatory compliance. Kettle Foods' own choices often exceed government stipulations, Green says. "It's woven into the fabric of our company that we look at and think about them in all of our processes."

Paneltech strives for full compliance, "but it's a barrier for a small company," Nott says. "It's hard to follow all the layers of regulations without a full-time expert. We sometimes have to hire air-quality consultants to help us figure out how to comply." A strong proponent of hiring retired professionals as part-time experts, Nott values their extensive experience (and lower costs).

For particular aspects of industrial ecology, your company may want to consult a specialist. An environmental engineer, green chemist or green architect will suggest specific improvements, which your staff can adapt to match your own budget and time frames.

In reality, industrial ecology's incentives go far beyond resource protection or regulatory compliance. "We call it 'green chemistry' because that's the color of both our environment and our money," says Paul Anastas, founder of the Green Chemistry Institute in Washington.

For all the greens, "Store up ideas for the most expensive things you plan to do eventually," says Sayce. "The more you think long- term, the better prepared you'll be to make needed changes and take advantage of opportunities along the way, too. All of these steps make companies more efficient and profitable. This is truly natural capitalism."

Serving the marketplace as well as the environment, industrial ecologists are leading the slow march toward sustainability.

"Buying certified pallets from wellmanaged forests lets us reassure customers that we're protecting both forests and clean water resources-an essential ingredient in quality beer."

Carol Milano is a freelance writer based in New York.

Copyright Risk Management Society Publishing, Inc. Mar 2006

Source: Risk Management

More News in this Category