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 THE STAT 26Percentage of wireless customers who use their cell phones to take picturesMore Vitals
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MAY 1, 2003
Earth's Best Friend: Corporate America? [Page 3 of 3]
NO COMPROMISES. Other companies are uncovering environmentally friendly materials that improve a product's performance. Cargill Dow, a privately held producer of materials made from natural products, has developed the world's first biodegradable plastic from corn. It's already used in carpets, T-shirts, and the plastic baskets that hold strawberries at some grocery stores -- as well as in some comforters sold at retailer Bed, Bath & Beyond (BBBY ). The material is good at drawing moisture away from the skin. And when used in making packaging, it's extra clear. Making plastic from corn instead of petrochemicals delivers a 20% to 60% reduction in the emission of greenhouse gases during manufacturing, says Karl Rabago, whose title at Cargill Dow is "sustainability alliances leader." Still, "you can't walk in the [customer's] door in this business before first talking about performance," he says. "They expect the environmental features, but they don't want to compromise." CD's Nebraska plant, which can produce up to 300 million pounds of corn-based plastics pellets annually, should reach full capacity by the yearend, says Rabago. Customer goodwill is another motivating force behind many environmental initiatives -- such as the decision by a number of electronics manufacturers to offer recycling after their products wear out. A year ago, computer-monitor maker NEC-Mitsubishi Electronics Display launched its Total Trade Program, in which it connects its customers with recycling companies. The components of a monitor can be toxic, leaving the customer with potential liability if it isn't properly disposed of. A 17-inch CRT (cathode-ray tube) monitor, the TV-set-like predecessor of today's flat-panel displays, contains nearly two pounds of lead. NEC, which acts as an intermediary between its corporate customers and recycling services, benefits by selling more new monitors to customers who are relieved to be rid of the old ones, says Al Giazzon, NEC's vice-president for marketing. "GREEN CHEMISTRY." Similarly, on Mar. 25, Dell Computer (DELL ) announced that it will pick up old printers from customers who buy its new ones -- at no extra charge. Customers who purchase a new Dell printer can simply put their old one in the box their new Dell came in, attach the pre-paid shipping label, and follow the enclosed instructions for returning their machine. Also in March, Dell announced that it will let customers order home pickup of unwanted notebooks, desktops, and monitors for $15 per unit. Customers who purchase the service or donate used equipment to specified charities receive 10% off their next online purchase of Dell software and computer products. Many corporate initiatives remain much more complex -- such as the effort to lessen or eliminate pollution before it's created using "green chemistry" -- preemptive manufacturing measures that companies hope will decrease their future liabilities. For example, the National Environmental Technology Institute -- created by the Massachusetts legislature, the chemical industry, and the University of Massachusetts -- is working on plant-based materials to replace the toxic ones in foams and adhesives, says Chad Nelson, NETI's director. It's also developing water-based coatings for cedar and yellow pine. Those would replace oil-based paint, which, as it dries, contributes to smog. FEDERAL ENFORCEMENT. In sum, despite the weak economy, many companies remain committed to their environmental efforts. DuPont CEO and Chairman Charles Holliday has promised Wall Street that by decade's end, 25% of the company's revenues will come from the sale of products based on renewable resources, as will 10% of the energy DuPont uses. Still, corporations will implement such environmentally friendly processes only if they results in cost savings or higher sales -- which isn't always the case. In theory, that's where federal regulations should come in. On Apr. 21, in fact, the EPA and the Justice Dept. announced the largest Clean Air Act settlement ever with a utility -- Virginia Electric Power Co. -- which agreed to spend $1.2 billion by 2013 to eliminate 237,000 tons of sulfur dioxide and nitrogen oxides emissions each year from its eight coal-fired generating plants in Virginia and West Virginia. Also in April, the EPA proposed tightening pollution standards for big diesel trucks. Still, in the March Gallup poll, only 44% of those surveyed said President Bush was doing a good job on the environment, down from 50% a year ago. Many experts say the government ought to step up its efforts. But as Bush's budget deficit heads toward the stratosphere, chances of that happening are waning. That could leave Corporate America with responsibility for setting the pace on environmental advances -- and in the driver's seat -- for years to come.
 By Olga Kharif in Portland, Ore. Get BusinessWeek directly on your desktop with our RSS feeds.  Add BusinessWeek news to your Web site with our headline feed. Click to buy an e-print or reprint of a BusinessWeek or BusinessWeek Online story or video. To subscribe online to BusinessWeek magazine, please click here. Learn more, go to the BusinessWeekOnline home page  | | |
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