Case Studies in Corporate Environmentalism · Case Studies in Corporate Environmentalism by...

Case Studies in Corporate Environmentalism

by Kathleen M. Victory Editor, Business and the Environment

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AT&T ............................................................ 5 How AT&T Uses Benchmarking and Quality Management to Achieve Its Pollution Prevention Goals (Originally published in BATE, February 1992)

Union Carbide Publishes Second Environmental Progress Report (Originally published in BATE, March 1992)

Fashioning a Radical Shift at Esprit (Originally published in BATE, April 1992.)

How Mary Kay Cosmetics’ Environmental Initiatives Inspired Other Dallas-Based Companies (Oripdly published in BATE, May 1992.)

How Syntex Chemicals Uses a Community Advisory Panel to Improve Communication -and Image (Originally published in BATE, July 1992.)

Digital Equipment‘s ’Toint Solutions” Program Solves Expensive Waste Problem, Sets Pace for Other In-House Initiatives (Originally published in BATE, August 1992.)

Regional Research Center Builds Synergy for Pollution Prevention Efforts (Originally published in BATE, January 1993.)

Launching a Design for Environmental Quality Program at Pitney Bowes (Originally published in BATE, February 1993.)

How Informal Public-Private Partnerships Reconcile Economic and Environmental Concerns in Southern California (Originally published in BATE, March 1993.)

Union Carbide Corporation. .............................................. 7

EspritIntemational ................................................... 9

Mary Kay Cosmetics .................................................. 12

Syntex Chemicals, Inc ................................................. 14

Digital Equipment Corporation ........................................... 17

Pacific Northwest Pollution Prevention Research Center ............................ 19

Pitney Bowes, Inc ................................................... 21

Southern California EdisodSouth Coast AQMD ................................. 23

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How AT&T Uses Benchmarking and Quality Management to __

Achieve Its Pollution Prevention Goals Problem: AT&T has set deadlines for achieving am- bitious pollution prevention goals - and has made progress - but there’s much left to do and time is getting short. Arthur Soderberg, AT&T’s manager of corporate environment and safety quality, talked to BATE about how he’s using benchmarking and total quality management (TQM) principles to develop programs to meet goals as the deadlines loom. Background: In April 1990, AT&T set certain corporate goals that would move it beyond compliance to sustainable development. These goals included eliminating the use of CFCs, changing product packaging, addressing recyclability, and eliminating toxic waste and emissions. Company executives limited the use of TQM principles to minimizing waste and use, and to accelerating the pace of AT&T’s environmental program.

AT&T’s Environmental Goals Achieve a 100% CFC phaseout by 1994 (60% reduction achieved to date); Reduce total toxic air emissions 95% by 1995, goal is 100% by 2000 (66% cut achieved to date); Decrease total manufacturing process waste disposal by 25% by 1994 (8% reduction to date); and Increase paper recycling 35% by 1994, and decrease paper use 15% by 1994.

Beginning With Benchmarking After 30 years with AT&T in quality management and engineering, Soderberg has taken on the role of

berg says he’s starting to sense pressure as the deadlines move closer. “1994 and 1995 are not far away. The goals’ curves are declining faster toward zero, so we need programs with solutions. That‘s where benchmarking comes in, to help AT&T move toward achieving its goals.”

Benchmarking, as Soderberg defines it, means polite- ly borrowing the ”best-in-class” ideas from other

implementing AT&T’s environmental goals. Soda-

people. He emphasizes the depth of involvement necessary to conduct and implement a good benchmarking program. ‘The objective is to understand huw to get there, not just what the goal is. You must understand your processes before you reen- gineer them to reach your goals.”

Choosing Pollution Prevention as a Focus One initial project was CFC reduction. AT&T formed a Coalition with Hewlett-Packard, Intel, IBM, Digital, and General Electric. “We looked at the companies’ individual programs, and concluded that we were good, if not best-in-class, within the group. So we decided to look at new projects. We listed about 30 areas related to new or emerging issues, and decided which ones were of high importance to us. We also assigned ourselves grade levels (A through F) for each one. The idea was to identify new emerging issues that were important to us, and on which we graded ourselves ‘poor.’ We decided that pollution prevention was the most important to benchmark for 1991.“

Obtaining top management support was not an obstacle at AT&T. In fact, getting buy-in from AT&T Chairman Robert E. Allen from the start made the process easier. David R Chittick, AT&T’s vice president for environmental and safety engineering, authorized the money and provided the passport to hire Brenda Klafter, a benchmarking quality specialist from AT&T Bell Labs, to work on these issues. Chitlick has been approached with a list of additional items to benchmark, according to Soderberg. ‘This included items like auditing, energy, Super- fund, and international regulations. What do we focus on? Where do we get the most return for our dollar? These are topics to evaluate for future benchmarking.” ”AT&T and Intel formed a Pollution Prevention Benchmarking Team, and put together a program to benchmark five outside companies and ourselves,” said Soderberg. ’‘We developed a set of 100 questions and interviewed all seven companies to dis-



Washington, DC, USA, sponsored by the Global En- vironmental Management Initiative.) ~

as you would in any good quality program.” AT&T evaluates vendors with a 17-element Quality J

“Cost of quality is defined as appraisal, internal and external failure, and prevention. As you shift to prevention, there aremany benefits you can trans- late into economic terms, including lower compliance and disposal costs, reduced liability and employee exposure. Some benefits are tangible; others, like an improved image, are intangible. But if you can state them economically and make the case that prevention is good business sense, then management will agree that it‘s worth trying.’’

’We have the ability from a corporate perspective to aggregate the environmental issues raised by process owners (individuals at the factory level) all over the world,” said Soderberg. “We can see the commonality of problems, discover the hot buttons, and redirect our research and development efforts. We have been collecting information from our 40 factories, and we have a multitude of processes in each one to analyze.” “Our initial results indicate there are two phases to a pollution prevention program: development and sustaining. In the development phase, you need structure, strategic direction, and a selling program, among other processes. In the sustaining phase, you need a framework, motivation, research, and communication processes. If necessary, you can benchmark for each element in each category in the process. This uses a lot of resources, but it starts pushing you from just doing things right into doing the right thing, to quote some management experts.“ The whole process of benchmarkjng and qualityleads naturally into addressing similar issues with sup pliers. “In quality management, you must consider the impact your suppliers will have,” Soderberg noted. “If you’re changing your process, your s u p pliers must understand why. Additionally, you don’t

s+ products -we Want to know what a supplier is doing to build quality in,” said Soderberg. “In some cases, we have created an 18th element for environment and safety, or we will evaluate environment and safety issues within the 17 elements. We won’t tell a supplier whether they’re in compliance, but we can go back to our purchasing department and make recommendations based on our evaluation.” So far, AT&T has done this sort of supplier evaluation in about 7 of its 40 factories worldwide. ”Our initial project addressed domestic benchmarking; next, we’d like to see what is best-in-class worldwide. We’ve also benchmarked corporate programs, but now we need to see how well these programs are working at the factories. Before a full- blown roll-out, we plan to do a beta-site test of our composite best-inclass pollution prevention program. We don’t know the cost to implement a best- in-class prevention program, and how much to invest is still to be addressed.” AT&T won’t change its goals while the project is under way, except to raise them, said Soderberg. “We know from the benchmarking that some companies are doing better than we are in the areas of reducing manufacturing process waste and certain toxic emissions. There are companies that are achieving goals faster than we are. For example, one will eliminate CFCs 100% by June 1992.” As long as AT&T can see that other companies are finding a way to do it, Soderberg and his colleagues are not giving up until they find a way too. For more information: Rich Larris, Media Relations, Environment and Safety, AT&T, Room B1338,131 Morristown Road, Basking Ridge, NJ 07920, USA. Tel: +1908 204 8264; Fax: +1908 204 8549.

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Union Carbide Publishes Second Environmental Progress Report ~

Challenge: How could Union Carbide Corporation put together its 1991 environmental report, in light of the comments and criticism about the first version? Background In December 1989, Union Carbide published a progress report on the company’s environmental programs, including information on emissions and waste reduction. Internal reaction to the report was positive, but external critics charged that it was ”puffery,” with unverifiable numbers. As a result, the company decided that the next report should address positive and negative issues, plus internally unpopular questions. Union Carbide released its second Environmental Progress Report in December 1991. It‘s 20 pages long (compared to 12 in the first version), and printed on a coated recycled paper. (”his seems to be an average length, based on other corporate environmental reports we’ve seen to date.) What‘s substan- tively different about the current version is that it spells out specific goals and deadlines, which the first version did not. This report discusses Union Carbide’s management systems in health, safety, and environmental protection, as well as risk management and tracking systems. The report includes information about the company’s pollution prevention efforts and highlights from data on emissions of hazardous and toxic chemicals. Union Carbide summarizes its goals as follows: ‘Tollution reduction is always welcome, but it is not enough. Continual improvement requires clear goals and planning.” Union Carbide is mmmitted to ”continuously upgrading technology and operating practices to eliminate emissions of known and suspect human carcinogens; operating with the as- sumption that all spills and incidents can be eliminated; and taking precautions so that even major incidents can be controlled and adverse ef- fects on employees, neighbors, or the environment “ i z e d . ” But the company goes beyond the general to include specific goals for 1995, such as reducing certain air and water emissions by specific percentages.

According to F d M o ~ r e , &istant director of environmental affairs, the major criticism of the first report was the lack of verifiable numbers. ‘We tried to tell some good stories. Our philosophy was, let‘s get a report card out there. We feel good about the second version, and expect it will be better next year. It probably has more ’fluff‘ than some would want. But we wanted to tell people verbally what we’re doing, not just using hard numbers.” ’The internal reaction was 3 to 1 positive from employees who sent back response cards,” said Scott Brier, a Union Carbide business communications manager. ”The negative responses were primarily from people concerned about whether we could afford to do this right now.”

Changes Add More Information ’The latest report includes international data, and showed our good and bad points, so people can understand the major issues,” said Moore. ’We had m e good stories to tell on carcinogens, but not as good on RCRA [Resource Conservation and Recovery Act of 19761, where our progress has been flat overall. We‘ve tried to direct our limited resources where they’ll do the most good, where they would have r e d u d the most potential risk - reducing carcinogenic emissions, for example.” The latest report also includes more data about Carbide’s international operations than the first one. “It didn’t take a lot of pulling to get international data in, because our CEO had decided a year before that we were going to start collecting international data,” explained Moore. The company will continue to collect international data. ”Next year will be the first year we can show international trends, and we will probably be adding more data as we go along.”

The report also refers to the 1984 Bhopal, India, tragedy, in essence acknowledging that event as a catalyst for taking a hard look at the company’s environment, health, and safety policies and proce- dures. (”he first report made no mention of Bhopal.) Moore commented: “It was an attempt at

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being honest, but does it help Carbide to look back? Probably anytime you go forward, you must look at the past. We wish it had never happened, but we‘re

re-evaluation.” From a communications standpoint, Moore and his

to tall< about our community activities, and involve-

data makes it difficult for the public to pull out rolled-up information. This report provides an accurate representation of our progress.”

emissions numbers, but the one thing lacking - as it is in many other similar reports - is some inter-

etation of the raw numbers. What do these num-

numbers don’t give information on risk,” Moore ac-

U L

ment in the chemical Mandacturers Association’s Responsible Care program.” ’‘It was more a question of where do we stop, so we didn’t end up with a report 100 pages long,” added Moore. ”One issue is whether we should have a separate report on health and safety. We usually address it in the annual report, because it does not require as much text to tell the story. We probably will not have an environmental section in the 1992 annual report, but will refer readers to the environmental progress report. The 1991 annual report con- tained a few pages of text about environmental goals and progress.” How is industry in general doing on these reports? Moore thinks Union Carbide’s report is state-of-the- art in terms of specific data and charting. Union Carbide has received good feedback on the report from other companies’ environmental counterparts, including Monsanto, Dow, and Shell. ”Our intent is to publish these annually,” said Moore. ”There’s no other way for the public to track us. We would rather provide a concise package with information than have someone else pull out the Toxics Release Inventory (TRI) data that may not be correct. We still see inaccurate data being reported else where. It still takes a certain amount of technical expertise to access the TRI data, and it‘s a problem for the US Environmental Protection Agency to maintain a perfectly accurate database. The mass of

knowledged, nGting that Carbide is starting to explore these issues in the context of its community advisory panels. ”Along with information on amounts of chemicals released, we’re able to talk about exposure and the associated risk. Industry is faced with balancing reducing the volume of emissions and reducing risk, and the public demands both.” The report is critical for building credibility in the company’s intemal and external communications efforts. All employees receive a copy so they can see progress by location and in the company overall. ’We have made a lot of progress to date, but we still have a long way to go; we’re not yet doing everything right,” said Moore. “It‘s important to get out a consistent, accurate message, not only to our employees -who are our best ambassadors -but also to others who may have issues to pick with Union Carbide.” According to Brier, people within Carbide are already talking about what to do to improve the report. ’The next generation could have more data, and less text.” As in the company’s operations, the aim is continual improvement. BATE readers can request copies of the report from: Scott Brier, Business Communications Manager, Union Carbide, 39 Old Ridgebury Road, Section C2207, Danbury, CT 06817, USA. Tel: +1203 794 701 1; Fax: +1203 794 7031.

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Case Studies of the ’90s


Esprf 7 Fashioning a Radical Shift at Esprit Challenge: Overcoming internal and extemal obstacles in the course of implementing the "ecollection" at Esprit International. Background In November 1991, Esprit launched its "ecollection," a line of classic clothing made with materials and processes that " i z e environmental impact. Before this product saw the light of day, Esprit designer Lynda Grose went through the year- long process of convincing people inside the company to do the project. She also had to persuade outside suppliers to meet her Tequests. She asked textile mills, for example, if they could keep organic cotton segre- gated from conventionally treated cotton through all stages of the spinning and weaving process. Her internal selling job was made somewhat easier by the fact that Esprit's corporate culture encourages employees to be social and environmental activists. For example, about ten months after Grose presented the idea for ecollection, an inhouse seminar on leadership versus management challenged everyone in the company to be a leader, and to come up with innovative ideas that go beyond their job descriptions.

Applying Values at the Product level At an initial meeting with top management (in 1990), Grose emphasized that doing the ecollection would be a way for the company to apply its values at the product level. "As far as Esprit's owners [Susie Tompkins and Isaac Stein] were concerned, there was no question that we'd do it, it was just a matter of how," she recalled. "I explained that the shift in customer values would be followed by a shift in behavior. During a later meeting with main Esprit International shareholder Peter Buckley, he encouraged us to do a company em-audit using people like Amory bvins [of the Rocky Mountain Institute]. I made the point that we could also be leaders with the product, and after I explained how we'd communicate this, he said we should do the ecollection as a nonprofit." Grose studied the Elmwood Institute's eco-audit guidelines (see BATE, 22 November 1991) and applied theprin- ciples through ecollection.

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To think of a new line in terms of research and development (R&D), rather than a profit center, is, by most corporate standards, a radical shift. Grose pointed out: "It's one thing if a company has made a product on such principles from the start, like The Body Shop, and quite another if a company intends to shift its way of doing business." According to Grose, Esprit has always been socially and environmentally aware, but until this point had not related that awareness to product design. Esprit does not have a green product marketing strategy for the ecolledion. "Instead, we're ap- proaching it as R&D for a new concept of doing business that we could eventually apply to the main line. The ecollection is serving as a sort of beta-test of how the entire company could operate someday. Top management has this vision, but middle management, which has to facilitate this, has a different focus. They're not ready yet to use organic cotton for all Esprit t-shirts. There's more of an emphasis on growing the ecollection business. The block is there, not so much with individuals, but with goals and aims. As ecollection's success grows, there wiJl be more willingness to apply it to the main lines."

Building Internal Networks and Spreading Ideas How does Grose keep the project true to its original focus? "Usually I'll hook up with those who think as I do, and create a network within the company. The tactic is to convince people from behind the scenes. Contagious enthusiasm helps, as does avoid- ing the skeptics. Patience and endurance are paramount qualities for the mllection team. Having a six-person full-time team on the project multiplies the energy. As upper management sees the project's success and importance, it approves the allocation of time and resources. The intemal and external perception of the ecollection project has changed since we've had good reaction from outside the company. There's more curiosity inside the company as the coverage of ecollection increases. '"here's not yet a formal structure within the company to communicate information about what can

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be applied to other lines. If people don't under- Communicating With Suppliers

we give them the bmplete information, they can easily apply what we've learned. Some ideas are more difficult to implement than others, but we're trying to at least start them in a small way. Now there are four different applications in other Esprit divisions that were initiated by emllection. These include the use of metal alloys, organic cotton, tagua nut buttons, and handpainted buttons. "One of the most difficult aspects is that this new way of working is also new for me," said Grose, describing a feeling that's no doubt familiar to anyone who's recently taken on the role of "environmental champion" in his or her company. "I" learning the language - from technical to business language - and how to articulate the issues. I find it helpful to hunt for proof supporting what I'm trying to convey. Whenever I see any proof that these ideas are becoming mainstream - such as comments from suppliers or the press - I send it right off to middle and top management. "Having a visual presentation of what the products could look like was important, and the fact that others in the industry were doing or starting to do this helped a bit," Grose recalled. She used strong visuals illustrating alternative fabrics and alternatives to plastic buttons and electroplating, and had sample buttons made up in alternative alloys. She had some naturally colored cotton fabric knitted up and made into a t-shirt. Because color was a big issue, she obtained color charts from the dyestuff company to break through the perception that an eco-line had to be beige. Another advantage was that she was plugged into the eco-grapevine, and knew in advance, for in- stance, that Levi Strauss was trying ~ t ~ r a l l y colored cotton in its clothing. Grose did her home work, and collected information about other initiatives in the fashion industry, such as Patagonia's and Smith & Hawken's using tagua nut buttons on the clothing they market, and a student boycott in Albuquerque, New Mexico, USA, protesting the use of strip-mined pumice stones in making stonewashed jeans.

pany. The right question was, Where & we make a difference with dyes? not 'Can we use vegetable dyes on a commercial scale? " Grose noted that the latter question would be more appropriate if she were talking to craftspeople. "At the early stage, I was asking for nonelectro- plated metals," Grose continued. "Because it's not a normal stock item, the mill must special-order sheet metal to accommodate your order. An order has to be large enough to use up all the sheetmetal and avoid creating inventory for the mill. We ask other Esprit divisions and other companies thinking along similar lines if they could also use this material, so we can meet the mill's minimum order requirements. For example, we ourselves may need only one quarter of the minimum order for the ecollection. It actually takes a lot of convincing within the company, because of costs. I have to constantly demonstrate the advantages of the environmental benefits relative to the costs, and emphasize the importance of applying ecollection discoveries to the main lines. 'The role I have is unusual, in that I must connect with all types of specialists, who aren't always communicating with each other," Grose added. 'The challenge is to create the bridges, and get everyone working in partnership. The electroplating engineer was glad I called, because he was concerned about the waste problem, but no one had ever asked him for alternatives to electroplated items. There's limited communication between the mill and the farmer, the designer and the metal plater, or even the designer and the customer. It makes sense for everyone to work together, and collaboration can have exciting results. In fact, breakthroughs can often not happen without collaborative efforts." Implementing a project like this takes a willingness to rock the boat. "Because the industry is set up to accommodate large orders, coming in with a small order puts a monkey wrench in the system," said Grose. 'The fact that we even ask suppliers these questions is against the flow, as are the requests we make. It takes a lot of energy to persuade them, because people tend to perceive special requests as a hassle. However, you can find people who get an

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Case Studies of the '90s


inkling of the vision, or who understand the environmental questions. Focusing on the realities and the possibilities helps you realize that some

step towards a longer-term vision.”

sends copies of articles on ecollection to suppliers, so they can recognize the concept‘s success and pass the word to their managers. ’“This has been amazingly successful, especially com-

’t

there would be a positive decision. But now that we’re doing it and suppliers are starting to get orders, we can go back and push a little more, and use these examples with other suppliers.” Grow also

For more information: Lynda Grose, Esprit, Ecollec-

USA. Tek +1415 550 3831; Fax: +1415 641 5964 or 415 550 0724.

know where I got the nerve, because 1 wasn’t s u e tion, 900 Minnesota street, sari CA 94107,

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Marv Kav Cosmetics How Mary Kay Cosmetics’ Environmental Initiatives Inspired Other Dallas-Based Companies Opportunity: Dallas, Texas, USA-based Mary Kay Cosmetics, Inc used its in-house recycling efforts as a springboard to start other companies in Dallas on a city-wide recycling program. The company’s experience is a good example of how to start an environmental program in-house and then take it outside to the broader community. “Our recycling efforts began in 1989 with a group of concemed employees who presented the idea of recycling to President Richard Bartlett,” recalled Liz Barrett, corporate public relations coordinator and environmental affairs manager at Mary Kay. ”Bartlett, who is a concerned leader and conser- vationist, said, That‘s a great idea - go for it!’ So we had immediate support from top management, which was extremely valuable.” ’We assembled a group of 10 people from different areas of the company - from marketing to engineering to maintenance - and this ’Creative Action Team’ organized the in-house recycling efforts,” Bar- rett continued. ”Since the program began in March 1989, we have collected over 7 million pounds of materials for recycling. The program changes every few months, as the recycling markets change.” ’“he main obstacles to recycling in companies are lack of top management support, and concern about the cost,” said Barrett. ”A few years ago, people were getting money from recycling. We ended up using some of our proceeds to support the program and donating about $2O,OOO to the Texas Nature Conservancy and the Dallas Parks Foundation. Since that time, the markets have changed, and recycling doesn’t bring in much anymore. But the environment is an issue that isn’t going away. It will behoove businesses to minimize their environmental impact. Instead of worrying about making money from it, companies have to just do it. We’re not a ’green’ company, but the least we can do is ” i z e the burden we place on the environment.” Banettsaysthecompanydidenmunterafewobstaeles in starting its recycling efforts. “In-house, we ran into some people who didn’t want to be bothered.

We had ’recycling police’ stationed in the cafeteria, to teach people not to throw non-recyclable trash into the recycling bins. Now, about 95% of our employees parhcipate in the pogrm, whether it‘s having a box for paper recycling, or bringing in recyclables from home. It‘s gratifying to see how proud people are to work for a company that cares about the environment. Again, we would not say we’re a ’green’ company, but we don’t mind being perceived as a good neighbor and a good corporate citizen.”

Program Prompts Changes in Packaging Mary Kay’s environmental efforts were not limited to diverting materials from the office waste stream. The company also looked at ways to make less of an environmental impact with its product packaging. ’We began the switch to recycled paperboard packaging in June 1990, and now 90% of our products come in cartons made of recycled paperboard. We sacrificed a few aesthetic points in that switch, because we eliminated the gold hot-stamped graphics to make the package recyclable. We asked our sales force to compare the old white glossy box with the new one, and they said, ‘Recycled is better.”’ AU the plastic jars and bottles are coded for recycling, and the company does its in-house printing on recycled paper. Mary Kay is also trying to con- vert its glossy product brochures to recycled paper. “Recycled stock for fourcolor printing is available, but at a premium that prohibits constant use. We were one of the first major users of a recycled stock for four-color pieces. The idea is to help support the market for these products.” ’We use peanuts made of recycled polystyrene to pack our orders, and get lots of calls on this,” Barrett noted. ”We have yet to find an alternate material that is equally costefficient and protective. Many consultants end up recycling them, by taking them to local packaging companies or to local Mary Kay distribution centers. The company also has a Dart polystyrene densifier on-site, which crushes polystyrene cups and plates and sends them to a company that resells the material to plastics manufacturers.”

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The company is working on refillable containers, Taking a Program Outside but direct selling presents unique challenges in Corporate Recy-

November 1989.

you can buy refills. The company c ~ ~ ~ e n t l y sells reusable compacts that allow customers to insert dif-

fairs staff had been working with state officials and some other

plan to do so on another product sooh. It‘s been in response to sales force concern about source reduction and our own efforts to reduce packaging. We have 220,OOO Mary Kay representatives to help edu- cate customers about our environmental efforts. They’re proud of it, and often talk about it with their customers. Some of our beauty consultants offer customers discounts on purchases if they return empty product jars and bottles, and then take the containers to their own local recycling programs.” According to Barrett, a program like this works best with support at all levels of the company. “It‘s also

ges in the knowledge about best practices. Take the time to determine what the best options are for the long run. We’ve also found it‘s crucial to communicate the program’s achievements to employees and the sales force, and to reward them for their efforts.” For example, the company ran an advertisement in The Dallas Moming N m s in April 1991 to publicly thank its employees for their efforts during the first two years of recycling. ”During the first two months of our recycling program, we had an incen- tive program,” Barrett added. ”When you brought in recyclables from home, you could enter a weekly drawing for such prizes as movie tickets. Eventual- ly, we found it was unnecessary, because people were bringing in materials and not even putting their names in for the drawing.” A task force of six people meets quarterly to assess programs and progress at Mary Kay. ”We’re looking into composting our landscaping clippings, and we’re conducting an energy audit of our lighting

mize our environmental impact as much as we can, from every angle.” Mary Kay has a policy of monitoring suppliers’ en- vimnmend performance and policies. ”Our vendor

cycled material,“ said Bamtt. ”Boise Cascade, our main supplier of office products, puts all recycled products up front in the catalog they customize for US.”

important to stay informed, to keep UP with chan-

and W A C Systems. Overall, OUT goal is to mini-

of cartonspassesthetest,withproductsof 1 W O r e

Kay, Traxknell Crow International, and All W&te Paper Recycling. The group now has 175 member companies, and six other CRCs have been founded in other Texas cities after the Dallas CRC model. ”We host bimonthly CRC meetings featuring experts from private industry and city government,” said Barrett. “It‘s a place to exchange ideas and solutions. Initially, we recruited members by word of mouth, until we formally organized. We then pooled our resources and sent out a mailing of 300 to 400. We‘ve had good publicity in Dallas. We take out ads in the local papers when they publish special issues on recycling. We also send a bimonthly newsletter to members.“ TheDallasChamberof CommercehasanEnergyand Environment Committee, with a subcommittee on recycling. Barrett and Mary Kay’s president serve on this subcommittee, whose goals are very similar to those of the Dallas CRC. ’We’re working to involve the two groups in joint projects and events. The CRC has become the dominant business/environment group in Dallas. Entrepreneurs working in the environmental arena have gotten new leads and new business from being members of the CRC.” “It takes a lot of commitment to start something like this. We have seen some CRCs get up on wobbly legs, because they’re not sure about who their initial members should be. We found it was important to have broad representation -from corporations, recycling vendors, solid waste management companies, and environmental groups. The input has been very valuable, and we’ve found companies to help underwrite programs and supply in-kind services. The recycled paper companies who are members, for example, have been generous about donating paper for the CRC letterhead and the newsletter.” The lessons Mary Kay’s executives have learned in this process are valuable ones that can apply to your own company’s efforts to build a coalition and persuade other annpanies and organizations to cooperate. For more information: Randall Graham, Mary Kay Cosmetics, Inc., Corporate Public Relations, 8787 Stemmons Freeway, Dallas, TX 75247-371 3, USA. Tel: +1214 905 5500; Fax: +1214 905 5721.

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BUSINESS AND THE ENVIRONMENTrM

Syntex Chemicals, Inc. ~

How Syntex Chemicals Uses a Community Advisory Panel to Improve Communication - and Image Challenge: Syntex Chemicals, Inc, a Boulder, Colorado, USA-based pharmaceuticals maker, had an image problem. Operating a chemical plant in an otherwiselightly industrialized and environmentally conscious community subjects the company to a relatively high degree of public scrutiny. In 1991, the local environmental group Citizen Action tabbed Syntex Chemicals as the sixth worst polluter in Colorado and the worst in Boulder County on the basis of SARA (Superfund Amendment and Reauthorization Act) Title 111 statistics on air emissions reported to the US Environmental Protection Agency for 1989 (but not released until 1991).

As a result, Syntex released "An Open Letter to the Boulder Community," pointing out that during 1990 it achieved a reduction of nearly 30% in SARA Title 111 emissions, and that it had been working to lower other air emissions that are not part of the Title 111 program. Part of the statement was a four-point "Good Neighbor Pledge," in which Syntex vowed to operate its plants and facilities in a manner designed to protect the environment and the health and safety of employees and the larger community, and to make these considerations a priority in planning for all existing and new products, processes, and facilities. Syntex also pledged to reduce its total air emissions by at least 50% from 1989 levels by 31 December 1994.

The fourth point of the pledge concerned the formation of a community advisory panel, which Syntex hoped would serve as a "major means of communication" between Syntex and the Boulder community in addressing environment, health, and safety issues and concerns. (See BATE, 9 August 1991 .) ''The Good Neighbor Pledge is tangible, and gives others a benchmark for measuring our progress and lets them know we're accountable," said Donald Fitzgerald, director of environment, health and safety at Syntex Chemicals. Syntex earned praise for the pledge from Citizen Ac- tion (which has since closed its Colorado office). The group stated publicly: "Syntex's willingness to look beyond the strict compliance requirements of

- existing law and to deal openly with the Boulder Community are commitments that every corporation in Colorado would do well to copy."

Panel Helped Start a Dialogue Syntex wanted to find mechanisms to open up dialogue. "What's been most useful is the 12-member community advisory panel, which held its first meeting in October 1991," said Fitzgerald. 'We tried hard to get a cross-section of the community, and we have seen positive results from this. For example, Syntex was able to provide an especially outspoken critic with information about its plans and efforts to comply, and correct some misinformation." "Everything in the pledge was something the company was doing or planning to do," said Ellen Ar- nold, coordinator of Responsible Care programs for parent company Syntex Corporation, and former director of environmental affairs at Syntex Chemi- cals. 'We had been working independently on emissions reduction and the idea of a community advisory panel. We wanted a way to get the word out, and came up with the idea of a pledge as a visible way to go on record and invite people to track us in the future. When the pledge first a p peared, we had a lot of reaction and interest, but those who have been most vigilant in terms of fol- lowup are those on the community advisory panel." The Boulder, Colorado-based consulting f& En- vironmental Communication Associates (ECA) helped Syntex build a working relationship with environmental groups, organize the community advisory panel, and develop employee training programs - all part of implementing the Chemical Manufacturers Association's (CMA) "Responsible Care" principles. According to ECA President Andrea "A.J." Grant, Syntex is a good model of a medium-size company that's doing a lot and operating in a community that's environmentally oriented. Grant gave Syntex credit for involving more voices in making decisions, part of what she calls "the new corporate

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Citizenship."

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Case Studies of the '90s


”The big job is starting to develop relationships, and gaining trust and building credibility,” Grant continued. ’Where it breaks down is communication;

The idea is to state what you will do and let people track you. Although an industry may be working from a below-zero level of trust, if you speak with

Feland has encouraged people making strong negative statements to come to panel meetings, state their concerns, and work together tq find-mlutions

anon on concerns m e me ef- fects of incinerating solvents. “Although I might get discouraged by the pace, it has been a very solid effort. We have developed trust and respect for each

Th&e will always be a certaii percentage that never believe that a company can be good, but that doesn’t mean you give up.” ”Syntex is way ahead, compared to where it was in 1991, in terms of being heard, and hearing from people who previously wouldn’t talk to them,” said ECA’s Robert Farentinos. ’’Some things Syntex can’t change Wckly -for example, process changes need Food and Drug Administration approval. But getting these complexities across is part of the education process.” “As a group, the panel members have learned to work together and engage Syntex in a meaningful dialogue,” Farentinos added. “It‘s a long-term, ongoing process. It took several meetings for people just to get comfortable with one another. Syntex managers are not part of the panel, but they attend the meetings. [One panel member is a Syntex employee.] Syntex is now feeling more comfortable with the panel. There’s still an undercurrent of dis- trust and lack of credibility on certain issues. But on other issues, people are willing to give Syntex the benefit of the doubt.”

Building Trust Takes Time The chair of the panel’s subcommittee on communications is Judy Feland, residential Syntex neighbor, outspoken critic, and neuromuscular therapist. She told BATE that the views of panel members range from very impressed with the changes Syntex has made to very skeptical. “Develop- ment of trust takes time. We’re in a transition phase, in terms of communicating with Syntex. They often put things off by saying, The experts say...’ but we feel the need to hear from experts outside Syntex. To be fair, it‘s a new concept for all of us, and we‘re all figuring out what our role is. I feel they’re doing a lot voluntarily, and I’m encouraged by their commitment to monitoring and emissions reduction efforts. The main thing is that we’re talking to each other.” ’The panel is veryimportant in terms of employee morale,” Feland added. ”ECA videotaped one of our sessions to show to Syntex employees, who then had a chance to respond and asked us to meet with them.” Taking somewhat of a mediator‘s role,

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’We approached the formation of the panel with a certain amount of trepidation, but now that we have done it, I personally wish we had done it four to five years ago,“ said Arnold. “It makes sense, and is an excellent opportunity for us to discover people’s concerns. In general, it‘s really a good thing for the people and the company involved. In the past, we always prided ourselves on being responsive, but our response was based on what we thought people were concerned about. We responded to calls and letters, but assumed that in the absence of those that there were no concerns. We‘ve learned that there are concerns simmering under the surface. It‘s a matter of being proactive rather than reactive.”

involving Employees in Communications Efforts ‘When the SARA 111 numbers came out in 1988 and in 1989, Syntex was the largest emitter in Boulder County, and that has been anything but a point of pride for our employees,” said Fitzgerald. ‘We’ve tied to make our employees aware of what the SARA numbers mean, and to provide them with training on how to handle questions from friends in the community. In the latest round of training, we stress the reduction in emissions we’ve been able to achieve, even with an increase in production. We hold environmental forum meetings with all employees to convey information about the a p proach Syntex is taking. Everyone has a part of that as his or her responsibility - not just the environmental engineers.” It‘s impossible to have an active external communication program without the involvement of employees and internal management. ’We have a highly educated work force,” Fitzgerald added. ’We help them try to communicate the numbers in terms of risks, and how to compare them to other emissions from other sources as a way of putting things in perspective.”

Lessons learned According to ECA’s Grant, Syntex has done several things right. ‘They really believed in what they were doing, rallied around the direction, and com- mitted to the process. This gave them the strength



h & g to inform people of your progress: saia ~ t z - gerald. ”Setting goals and following through builds credibility, as does being responsive to needs and comments. Among the obvious techniques that work well are demonstrating progress, and a dedication to the goals you’ve set. A lot of the opposition to [plant] expansion is from people operating with par- tial information. Providing the full picture and information is the best thing to do. We build credibility by continuing to inform the public voluntarily.”

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and the will to do it. Syntex implemented training for all its employees, so everyone had the sense that the whole topic of environment is elevated within

environmental issues on that.”

“Syntex is something of a pioneer because it‘s one of the smaller companies to do a community advisory panel,” said Arnold, noting that at least 150 such

company, with existing resources and without a

~~~ ~ ~ wehoem 4 m w F h d - ~

I c o m e e s . w

sharing their exueriences. In turn. we‘ve tried to do ~

some &beach b other smaller CMA-member companies that might be able to learn from our efforts.” For more information: Donald Fitzgerald, Syntex Chemicals, Inc., 2075 North 55th Street, Boulder, CO 80301, USA. Tek +1303 938 6433; Fax: +1303 938 6413. Environmental Communication Associates, Inc., 1881 9th Street, Suite 200, Boulder, CO 80302. Tel: +1303 444 1428; Fax: +1303 444 9128.

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Digital Equipment’s ‘‘Point Solutions’’ Program Solves Expensive Waste Problem, Sets Pace for Other In-House Initiatives

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Challenge: Ih 1990, Digital Equipment Corpora- tion discovered it was spending a considerable amount to landfill the cathode ray tubes (CRTs) and monitors from its computers. CRTs can pose a hazardous waste problem because the glass itself is leaded and the phosphors in the tube contain heavy metals. Even though many of Digital‘s CRT designs didn’t fail toxicity tests required under stringent new hazardous waste regulations, the company decided to stay ahead of the curve and treat all CRTs as if they were hazardous waste. As part of the search for environmentally safe and financially feasible solutions to landfilling, the ’Toint Solutions” program was born. The idea behind Point Solutions is to recover specific materials or assets instead of throwing them away. To solve the CRT problem, Digital linked up with two other Usbased companies and ended up with a process to recycle glass from CRTs and computer video dis- play terminals. More importantly, the program has helped spur efforts to introduce Wecycle assessment thinking throughout the corporation. Bonnie Moss, waste management and EH&S manager in the US acquisitions group, acted as project manager for the CRT recycling program. (Point Solutions also encompasses plastics and components; see BATE, 28 June 1991 for information on a four-way partnership involving McDonald’s, GE Plastics, Digital, and Nailite to make roof tiles out of recycled plastics from computer housings.) ”Cus- tomers are asking us to take back computer terminals, some through trade-ins; other equipment is obsolete material or may be line fallout [products that might not have passed Digital‘s quality standards],’’ said Moss. ’The number [of computers] coming back is escalating, and the company is ex- amining different approaches to taking back equip ment. We want to be in the position of having ways to deal with this material when it comes back.” [Digital is aware of the proposed German regulations that require manufacturers to take back products, and one senses that Digital is anticipating having to deal with this.]

Finding Solutions Through Partnerships Digital went through a prioritization of various means of disposal, with i a n d f i l h g at the bottom. ’We found there was no alternative to landfilling, at least in traditional terms - we couldn’t incinerate the CRTs or send them to secondary smelters,” said Moss. “Our research involved contacting CRT sup pliers to investigate reuse, and talking to smelters who dealt with batteries and to individuals doing r e search and development work. We decided to focus on complete recycling of CRTs because it was the most reasonable option from both an environmental and a cost standpoint.” In 1991, Digital approached two companies for help. One was Envirocycle Inc of Vestal, New York, USA, a small company in the business of breaking down electronic equipment into components for recycling. ”Although Envirocycle was willing to look at the CRT problem, we knew we couldn’t stop there,” Moss explained. ’We needed to have a market for the material, so we called Coming Asahi Video Products of Corning, New York, and asked them about designing a specification for glass cullet to reintegrate into their lots of glass.” (Corning makes glass tubes for CRT manufacturers.) The three companies announced their joint recovery and recycling project in December 1991. Digital sup plies entire computer monitors to Envirocycle, which processes them and ships the crushed glass to Coming Asahi for use in manufacturing new CRTs. At present, Corning uses 15% recycled material in its CRTs. As of August 1992, the venture has recycled over 65,OOO Digital CRTs. The challenge, according to Envirocycle, was to develop a process that separates glass from the other materials in an economic fashion. According to Ben Smith at Matco Group Inc (the corporate parent of Envirocycle), the process involves remov- ing the glass from the monitor, and sending the plastic back to GE Plastics, where it eventually becomes roof shingles. Envirocycle then puts the CRT through a process that cleans cadmium, phosphors, and anti-reflective coatings from the leaded glass.

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(The lead is bonded into the glass and cannot be removed.) “Before Digital approached us, we were

(which gets back to the cost involved); and suggestions from internal and external customers. Reac-

lessons Learned Among the lessons learned or reinforced in the process of this program, Moss emphasized: ’ W s ab- solutely critical to have commitment at the appropriate management level. Thankfully, Digital does have that commitment from on high. I can’t imagine doing a program like this without it.” “It‘s also important to stay focused,” Moss continued. “Some of these problems may seem to present difficult obstacles, and seem to have no solution. But you must dig far enough We ran into a lot of obstacles. It helps to find some entrepreneurial partners to work with.” “Another lesson is that Point Solutions don’t have to be expensive. At DEC World [Digital‘s annual con- ference and exhibition], people were asking me how much it is costing the company. If you plan far enough in advance, it doesn’t have to be expensive. But if you wait until the eleventh hour, [when it becomes a matter of compliance] then it gets expensive.” The cross-functional team at Digital drew from the EH&S, purchasing, legal, security, and technical departments. The effort involved about half of Moss’ time, and about 15% of the time of the other Digital staffers. Moss estimates the total as equivalent to having one person full-time on the project, a significant allocation of resources. ’The whole process took a year, from developing the priorities to locking in on the solution. The rest was development time.” What numbers did they marshall to convince others in-house of the need for alternative solutions? ’The primary statistic was the outflow of cash in dispos- ing of CRTs in landfills -that was not a static rate, and was increasing all the time. It‘s really important to get peoples’ attention by showing them the positive side. As a result of the CRT program, Digital is ~wsaving85%ofitsoriginaldisposalcostsancRTs.” ”The public seems to be extremely interested, and customers are increasingly sensitive to recycling issues,” said Moss. ”The initial drivers can be boiled down to legislation and regulation; competitiveness

benefit: Digital saves money on Gaste disposal and gets points for practicing product stewardship, En- virqclehas a thriving business, and Corning uses less virgin lead and less energy to make glass for CRTs.

Point Solutions in a Larger Context ”Looking at this from a broader perspective, what we’re trying to do is to integrate full lifecycle management into everybody’s job,” said Moss. ’We’re looking at every single thing that we buy, and we want every manager to integrate this into his or her role. The idea of product lifecycle used to cover the ground from the early design stages to customer service. Now, with the paradigm shift- ing, it means taking into consideration what h a p pens after a product‘s useful life has ended, and going back to the concept and design phases to see how you can avoid end-ofcycle problems al- together. That‘s the ultimate goal.” Earlier in 1992, Digital‘s Vice President of Purchas- ing MUnrin Lackey issued a position statement to the effect that everyone should be sensitive to environmental impacts, and that the company will work along the lines of the International Chamber of Commerce’s Business Charter for Sustainable Development. In fact, Digital has dedicated resources to working on the charter, especially in the new product engineering area. While some people are more couched in the old school of thought than others, Moss noted, ’This is an area that people get excited about. I’m pleasantly surprised by the enthusiasm. This is totally new - it feels like people weren’t aware of the idea’s full potential until now. Some people like to apply environmental feeling to their everyday work. I think it‘s less an intellectual response to the various charters and more a gut reaction to the opportunities that hadn’t been looked at before.” ’With its positive visibility and cost savings, the Point Solutions program has generated energy,” said Moss, adding that there are some discussions in the works on future programs. For more information: Ann McDonough, Digital Equipment Corporation, 4 Results Way, MRW 3/C10, Marlboro, MA 01752-9102, USA. Tel: +1508 467 7203; Fax: +1508 467 3106.

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Regional Research Center Builds Synergy for Pollution Prevention Efforts The+acific Northwest Pollution Prevention Research Center (PPRC) is a nonprofit research foundation that funds research projects, hosts roundtables and lectures, fosters information transfer, and serves as an information clearinghouse for the region. The PPRC, established in 1991, serves the US states of Washington, Oregon, Idaho, and Alas- ka, and the Canadian province of British Columbia, offering an innovative solution to the challenge of persuading companies that pollution prevention makes economic and environmental sense. Financial support for the center comes from industry and government. Corporate donors include Boeing, ARCO, Hewlett-Packard, Weyerhauser, the American Electronics Association, British Petroleum, Burlington Environmental, Conoco, ECOS, Intel, Rabanco, and Ross & Associates En- vironmental Consulting, Ltd. The center receives support from the US Environmental Protection Agency (EPA) and the US Department of Energy, as well as the states of Alaska, Idaho, Oregon, and Washington, and the British Columbia Hazardous Waste Management Corporation. According to Executive Director Madeline M. Grulich, the catalyst for the PPRC was the US Super- fund Amendments and Reauthorization Act (SARA). ”Back when SARA passed, there was a provision that forced states to provide EPA with as- surance that they had the capacity to handle hazardous waste generated,” she recalled. ’The Pacific Northwest took a unique approach, and assembled a Hazardous Waste Advisory Council to take a detailed look at what could be done regionally to do a better job. The group came up with recommendations, including a 50% reduction in hazardous waste generation by 1995, and better communication among the states in the region. The council‘s third suggestion was a nonprofit foundation set up with public and private support. Here’s where they broke with convention, in considering pollution a multimedia concept. For 20 years, US environmental regulations have looked at waste in a media- specific way. Now it‘s time to look compehemively at priorities and big questions.”

-The PPRC, set up to do just that, opened on 22 April 1991. Grulich doesn’t know of any centers exactly like PPRC, set up with public and private funds, although there are other organizations in the US doing similar work. ”One gauge of success for the center will be whether or not we‘re consulted for a broad view of industry‘s response,” she said. “If pollution prevention is such a good idea, why aren’t more companies doing it? We hope to be able to find some answers in these discussions. There’s a feeling among some companies that ‘no good deed goes unpunished.’ Companies are concerned about reporting the good they’ve done, for fear that what they’ve done will be incorporated in regulations, limiting their flexibility.’’

Roundtables Help Build Relationships Organizing a series of roundtables that bring together various perspectives on a given industry has been an important part of the PPRC‘s work so far. The PPRC has held two roundtables to date, one for the seafood processing industry and one for the oil and gas production industry. The first roundtable involved seafood processing companies, a maker of trawling nets, a boat design company, regulators, academics, and representatives from Alaska’s pollution prevention technical assistance program and the Alaska Fisheries Development Foundation. The second included representatives from the oil and gas companies themselves, supporting industries, public interest groups, and the state’s pollution prevention technical assistanw program. ‘To organize the first roundtable, we had a small steering committee that asked industry for ideas as to who should be at the table,” said Grulich. “In this case, the industry had felt a lot of regulatory pressure. We were asking the people concerned about the obstacles to doing things more efficiently. For the second roundtable, we retained an industry facilitator who made lots of phone calls, and routed a list of potential invitees.” The purpose of these roundtables is to identify o p portunities, obstacles, and research needs, according to Grulich. ’The process gives people a feel for what needs to be done, not just speculation. We will

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publish reports on these first two roundtables, and distribute them to technical assistance programs and providers of research funding.” The PPRC

aluminum smelting, and pulp and paper industries. “Industry reaction has been positive to the first two roundtables,” Grulich continued, noting that the

p b in this area. We‘re putting together case books of electronics industry efforts with economic analysis. We will indude small companies, to il-

d a m to hold future roundtables for the anriculture, ~~ lustrate that YOU don’t have to be big to get results. “When assessing pollution prevention options, companies will often first look at housekeeping measures - spills, leaks, or foolish waste like throw-

facd a lot of regulatory pressure, I think they -had real reservations about coming, fearing that there was some sort of hidden agenda. But they did find it useful, a good f o m for exchanging notes. Par- ticipants also discussed a potential link between fish waste and some work going on at Battelle Labs that has the potential to lessen the use of diesel fuel by fish processors. The oil and gas roundtable went better from the beginning. The industry was very receptive to it from the start, to the point that we were turning people away. Both roundtables have spawned ongoing relationships.” In April 1993, the PPRC published a pollution prevention resource guide that‘s an extension of a guide put together for libraries. On tap is a direc- tory of organizations that fund pollution prevention research. The center has created a database of over 5,000 pollution prevention contacts in North America. The PPRC has already published a study on volatile organic compound (VOC) emissions from spray gun operations, and will publish future studies. The center also publishes two newsletters, one for the business community and one for information center managers in corporations, academia, and public agencies. The center has awarded over US $200,000 in grants to support eight research projects. These have the potential to eliminate millions of pounds of pollution, in areas ranging from metal cleaning to agricul- tural irrigation. Grant recipients provide the center with preliminary quarterly reports.

Motivations for Pollution Prevention Grulich pointed out that while there are many success stories in pollution prevention, these successes are often the result of many failures. “Different companies are taking different approaches to pollution prevention, prioritizing action according to their own needs. Wing, for example, is working on hazardous materials management. The company has enormous facilities, and very little control on hazardous materials purchases. They’re looking carefully at what they’re purchasing, which will have tremen- dous ramifications for pollution prevention down the line. The electronics industry is doing a good

CFC taxes. - m y companies see small early success, and then go on to larger ones. In other cases, regulation forces companies to act, and the results motivate them to go on.” Grulich added: ’When I hear a case study presented in glowing terms, with a company presenting itself as a proenvironment ‘good guy,’ I find that if you probe more deeply, you often find something like a major fine within the past few years that really shocked the company. The larger the company, the more the desire to be seen as a good citizen can be a big motivator. One company I know of doesn’t consider that it has a pollution prevention program, but it does have a system that fosters and encourages change. This company accepts suggestions graceful- ly and runs an efficient plant. Pollution prevention is all about culture change. “You can only have success in pollution prevention if you address the manufacturing process as well as having a better product leave the factory,” said Grulich. ’We’re thinking about putting together presentations related to design for the environment (DFE). I see pollution prevention sparking DFE interest, especially in architecture and electronics. The proposed product stewardship legislation in Ger- many is a real concern that has spurred interesting discussions. Companies are genuinely worried about what their responsibility will be. ‘What‘s potentially great about the center is the potential synergy among members: industry, government, academia, public interest groups,” said Grulich. “It‘s extraordinary to see my board work together to deal with issues and set priorities. The synergy is exciting, and it‘s really the only hope we have for the future. We need to get out of the courts, and start solving problems in a collaborative way. There are win-win solutions out there for the environment and the economy. We can find them if we sit down together and listen and talk.” For more information: Pacific Northwest Pollution Prevention Research Center, 1218 3rd Avenue, Suite 1205, Seattle, WA 98101, USA. Tel: +12M 223 1151; Fax: +1206 223 1165.

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Launching a Design for Environmental Quality Program at Pitney Bowes ~

Pitney B--Inc, the world's largest maker of postage meters and mailing equipment, recently launched a design for e n d m e n t a l quality DFEQ program. The challenge for those leading the effort was to sell this idea at a time when the company had haeased its emphasis on careful spending and operational efficiency. BATE explores how that process worked. The DFEQ program grows out of Pitney Bowes' pollution prevention efforts, which in tum are part of the company's goal of working toward sustainable development. "Our corporate policy is to incorporate environmental protection goals in the design of new products and materials specifications, and new manufacturing and assembly processes," said Betty A. Ryberg, a x " t o r , design for environmental quality in Pitney Bowes' corporate environmental engineering department. 'The DFEQ effort is the step that will take us into the sustainable development phase." The DFEQ program has four objectives: to minimize environmental impact of new products; to eliminate and/or minimize employee exposure to potentially hazardous materials; to conserve energy and materials; and to maximize reuse/recycling opportunities by applying a lifecycle inventory throughout the product development process. What was the catalyst for this effort? "As part of our pollution prevention effort, we have a zero discharge program in place at all our domestic manufacturing sites. It's been a money-saving program that's justi- fied itself. We've also begun another pilot effort, recognizing that inappropriate disposition of used equipment can-ies a potential liability we needed to get a handle on. We're running a pilot product disposition center in two business units. This program readies the company to take back and recycle products if necessary. While that effort deals with existing equipment, the new DFEQ program will attempt to avoid creating environmental risks. If you take zero dischargea step further, you need to go back to product and process design and materials speafications." Ryberg began her research on DFEQ in December 1991, combining her experience in the R&D division with the corporate environmental engineering group, which wanted to inform the product desig-

ners about environmental issues. After extensive research, Ryberg developed a proposal that asked for both input and funding. 'We did get a commitment this year. We need to be sure we have even greater commitment for next year. We formed a multidis- ciplinary DFEQ team to review and refine the draft version of a design guide, which applies a pollution prevention hierarchy to each product lifecycle stage from raw materials acquisition through design, manufacture, distribution, use, and disposal." The team draws from various functional areas of the company, including systems, manufacturing, operations, sales, purchasing, and product development. 'We hope to pilot use of the design guide in new product development, because designing for environmental compliance is more efficient than managing waste. The team will develop a final version of the design guide by April 1993, and a design manual and training program for new product development staff by the end of the 1993."

Building Support In November 1992, Ryberg organized an in-house symposium on DFEQ and brought in people from GE Plastics, Xerox, and AT&T Bell Labs to give presentations. 'We used this 'Awareness Day' to feature external initiatives in the DFE area, as well as to benchmark the program," she recalled. "The presentations made by people from outside helped Pitney Bowes executives recognize that other companies are actively working on this, and that a vi- able DFEQ program may enhance the companfs ability to compete in the international marketplace. "Because Pitney Bowes is very interested in and focused on quality and customer satisfaction, benchmarking [a tool used in total quality management] worked for us," said Ryberg. "In addition, research and visits to other companies helped stimulate other ideas about ways to justify the program." The in-house communications strategy was to go top down and bottom up. "Once the Corporate Responsibility Committee of the board of directors embraced the program, we then went to the other key executives. But we also talked to the operating

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people to make sure they understood the program. To be embraced, the program m&ed to make good business sense for each division impacted.”

Crossing Boundaries The DFEQ systems approach crosses traditional corporate and industry boundaries. How do you com-

could not acc6mplish with this program in the short term. I made sure I had their objectives in mind, and could show them honestly how this program fit in.

“Given all the objectives that are set for our product design team, it was not surprising that people initially voiced amams about the priority and timing of this program as related to other product design criteria.” In a presentation to various functional p u p s within the company, Ryberg stressed that the laws are be coming more market-based and product-specific. She noted that in the US, Europe, and Japan, pending or enacted legislation touches on product certification, packaging, battery recycling, and product takeback. All these will have the effect of pushing manufacturers to internalize product end-of-life costs - creating challenges and opportunities. ”Engineers usually look at such product characteristics as cost and servkability, but unless we meet the new qdatory requirement, we don’t really have a product for that market. For example, I emphasized that if the German [product takeback] law comes into effect in 1994 as planned, we must be prepared to comply, in the event that significant design changes are neces sary. Currently my p b is to raise everycme’s level of awarenes, identify risks, and to outline a plan of action. ”One of the biggest problems is figuring out which element in the pollution prevention hierarchy to pur- sue, when design constraints preclude certain o p tions,” she added. ”Some of the principles involved, such as concentrating on product families and recy- clingopporhmities,requireafdghtthatappma&es prediction of technological discontinuities.” Another concern was the cost to implement such a program. “Our objective at the corporate level is to infuse DFEQ into engineerhg objectives,” Ryberg amtinued. ’While we have always complied with product safety and environmental regulations, they are now taking a different twist. As mentiod above, takeback and other market-based regulations intemalh end-of-life costs that may not be recognized at the engineering design stage. Engineers who are asked to design products to meet cost and time spwfications will want to incorporate end-of-life costs into the analysis. This all speaks to the overall issue of a company’s responsibility as a product steward.”

positive and negative issues, and education regard- ing DFEQ, is the start of crossing boundaries. “I regularly give presentations at departmental staff meetings, to keep these issues before people,” said Ryberg. ’The more you talk about it, the more they make connections when they hear about it from others inside and outside the company. For example, the universities are inundating our recruiters with information on their environmental design cum- &. The sales and service people are getting questions from customers about environmental and product end-of-life issues. We also utilize an in- house newsletter, Pitney Bozoes Environment, to communicate environmental news to our employees.” The DFEQ effort may eventually call for some sort of supplier certification program, according to Ryberg. ’We envision that the team will set up task forces to address such issues as OEM purchases. We would like to have the people who buy components to use the design guide, and also want to distribute it and offer training to our suppliers.”

Key Lessons Ryberg emphasized that to sell an idea like DFEQ, you must: 1 ) Do your homework; 2) Understand the concerns of your customers,

3) Speak the language of your audience; 4) Know the limits of DFEQ and focus on what you

can do in every phase of the product lifecycle; and 5) Have a thorough understanding of existing and

pending endnmental regulations that currently or potentially will impact the company’s operations.

’Terhap the most significant lesson we learned was to learn from ourselves,” said Ryberg. ‘We are the experts at designing our products. In turn, we can most successfully innovate cost-effective solutions, provided the necessary engineering tools and information are available to facilitate the process.” For mow information: Betty A. Ryberg, Pitney Bowes, Inc., One Elmmft Rd., MS G35, Stamford, CT 06926- 0700, USA. Tel: +1u)3 351 7821; Fax: +1203 351 6844.

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How Informal Public-Private Partnerships Reconcile Economic and Environmental Concerns in Southern California

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Southem Califomia Edison and the South Coast Air Quality Management District (AQMD) are involved in business retention efforts that offer a prac- tical illustration of how to reconcile environmental and economic concerns. This informal partnership involving a utility, a state environmental regulatory agency, and the California Trade and Commerce Agency (CalTrade) is one effort to stem the tide of companies considering relocation or expansion outside California, a state with complex environmental regulations. The three organizations recently helped reestablish in Southern California a furniture maker that had moved more than 50% of its operations to Mexico in 1989. California has lost 800,000 jobs during 1991 and 1992; about 10% of these losses come from company relocations to Mexico and other westem US states, according to studies conducted by Edison. To counteract this trend, Edison has developed a business retention program. In 1992, Edison worked with over 80 companies and helped retain 20,000 jobs in Southern California. By helping businesses stay or expand in their present location, Edison is also helping itself: these companies represent annual sales of 940 million kilowatt hours, and revenues of US $67 million. ’“he utility has been working in this area since 1987, but 1992 was the first year it was authorized by the Public Utilities Commission to engage in the activity,” said Barry Sedlik, Mison’s manager of Business Retention. “For some time, we have been working closely with our large industrial customers to help them deal with difficulties in complying with the state’s strict environmental rules. The regulatory process itself in California is very difficult to deal with, so we help them cut through the regulatory morass and assist with the permitting process. We also help companies identify new cleaner technologies and offer energy efficiency programs.” Edison goes beyond technical assistance to help companies obtain low interest rate loans to buy new, less-polluting equipment.

New Technologies Help Companies Meet Coals ”Many companies faced with compliance issues don’t have the in-house expertise to handle them,” Sedlik told BAT€. ‘We can match companies with the newest clean air and energy technologies that meet their needs, and help companies learn how to use them. Edison’s Customer Technology Applica- tion Center (CTAC) lets companies experiment with the technologies on their own products. Small- and medium-size companies don’t have access to research facilities, but some large companies also have similar difficulties due to downsizing.” M&J Desk Company had moved half its operations to Mexico to avoid being fined by AQMD. But, according to Adolfo Agramonte, M&J Desk’s executive vice president, ’“he lead time to get products down and back was killing us, as well as the diffi- culty in finding a skilled work force.“ While working with another fumituremanufacturer, Edison representatives heard about M&J Desk’s wish to return to southern California. They set up a meeting that included the AQMD and several state economic development agencies. Over the next several months, Edison recommended that the company explore more efficient furniture finish application technology to cut down the use of paints and lacquers, and brought M&J Desk’s management and production teams to the CTAC. There the CTAC technical staff, with help from Sher- win Williams Paints, found an acceptable coating with lower volatile organic compound WOC) emissions. M&J Desk was pleased with the solution, which improved its products as well as letting it reestablish its business in the US. The company has moved its three furniture coating lines back into its City of Industry facility, adding 30 jobs and future expansion possibilities. At the same time, AQMD met with the company and converted its permit from a coating usage limit to an emissions limit, allowing M&J Desk to use an increased quantity of the new lower-VOC coatings. Edison also audited the company’s facility for energy management and conservation opportunities.

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’The coatings area is where most of the regulatory pressure is,” Sedlik noted. For example, the manufacturer of Fender guitars was faced with changing its process to comply with the same air rules that M&J Desk f aced. “Fender brought un- finished guitars to the CTAC and found another lower-VOC coating that worked. We helped them develop a compliant process with no emissions and

can, without injuring our mission,” said Nick Nik- kila, director of economic development for AQMD. The success with M&J Desk illustrates a way to in- s~ economic viability for tion for the environment. ’ wave of future partnerships among Califomia’s public and private companies and agencies. We all realize that the economy and the environment are in- ~

tivity improv&&ts.8‘

Team Efforts Bring Success ’We’re not doing this in isolation - we’re part of a team that includes state agencies and universities,” said Sedlik. ’The AQMD is one of Edison’s most important partners in these efforts, since it makes the rules in the first place, and also detemhes whether a given process will meet the rules. Edison works with other state agencies and universities on an as- needed basis. “California is a big state, with complex rules, and things tend to get lost in the middle, ” Sed& added. ’We see ourselves as a catalyst, helping make linkages between business and government. We can bring the parties to the table and channel information to those who need it. We have a rapport with companies: they see us as independent and objective when we inform customers of programs.” ’We thought it would be a good idea for us as regulators to help the economic situation where we

and nurtured.” AQMIYs Economic Development office also worked with furniture maker Kushwood Manufacturing, which considered relocating to Mexico because it was afraid it wouldn’t be able to expand under its current emissions limit. “Kushwood spoke with CalTrade and AQMD, which issued some additional permits for spray booths,” said AQMD spokesper- son Lisha Smith. “Kushwood bought these permits from a company going out of business at one-fifth the cost they would have paid on their own. They were able to keep 15 jobs in the City of Industry, and add another 15 in Orange County.” For more information: Bany sedlik, Southern Califomia Edison, Business Retention Division, 2244 Walnut Grove Avenue, Rosemead, CA 91770, USA. Te1+1800 3 EDISON; Fax: +1818 302 5669. Nick Nikkila, South Coast Air Quality Management Dis- trict, 2186 East Copley Drive, Diamond Bar, CA 91765, USA. Tek +1909 3% 2660.

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