Coral reef ecosystems are beautiful and vibrant underwater communities inhabited by a spectacularly diverse and abundant array of organisms essential to human needs. Reefs are severely threatened worldwide-estimates are that one-fifth of coral reefs have already been lost or severely damaged, and the rest are expected to disappear before the end of this century. The intrinsic value of coral reefs is incalculable and immense, and this technical note seeks to educate students about that value, as well as the threats-global and local-to coral reefs.
Many companies view financial variables independently from ecological and social variables. Is it possible to hold one's organization equally accountable for financial performance and social responsibility? This field-based case is suitable for MBA and undergraduate courses or modules in sustainability and innovation, ethics, and corporate social responsibility. For REI, an outdoor gear and apparel manufacturer, the challenge lies in how to expand sustainability awareness through consensus building across the organization and with outside collaborators. As it designs a new strategic framework for the operations footprint, the company seeks to adopt a corporate strategy on product stewardship and adapt its philanthropy strategy around sustainability objectives.
The scientific consensus on climate change's origins in human activities has begun to influence international law and corporate policies. Suitable for MBA and undergraduate students, this technical note is a compilation that replaces a three-part series of the same name (UVA-ENT-0036, -0037, and -0038)International concern over global climate change began in the late 20th century, when scientists saw a correlation among increasing atmospheric concentrations of certain gases, human activities emitting those gases, and an unusual increase in global ambient temperature readings. The scientific community was joined by international policy makers who had grown concerned about reports of climate change impacts ranging from melting polar icecaps to regional flooding, drought, and extreme-weather events. While a small number of scientists disagree, most researchers suggest that prudence requires action to reduce human contributions to atmospheric pollutants that cause the greenhouse effect.
This note provides background on a new certification process for B Corporations that enables companies to assess, compare, and protect the sustainability practices they integrate into corporate strategy. B Corporation status explicitly acknowledges stakeholder strategies and helps companies preserve triple bottom line accountability when and if they are sold/acquired.
This brief background note provides an explanation and examples of biomimicry as an approach that provides insights into the innovative design of products and corporate strategy framing. Biomimicry uses nature's laws and successful strategies to inform commercial innovation.
This technical note introduces the concepts and terms entrepreneurial innovators use in addressing sustainability. It explores the evolution of such terms as sustainable development, environmental justice, earth systems engineering, sustainable science, the Natural Step framework, industrial ecology, and bio-mimicry. It also explores how paradigms are created and replaced.
Unlike conventional supply chains, green supply chains are designed to ensure that value creation, rather than risk and waste, accumulates at each step, from design to disposal and recovery. As a primer, this note is suitable for undergraduate, MBA, or executive students exploring corporate response to environmental degradation, rising energy and materials prices, and the growing challenges of international global supply chains. Managing complex relationships and flows of materials across companies and cultures poses a key challenge for green supply chains. But "greening" a supply chain nets many benefits.
Implementing a sustainability strategy requires firms to consider economic, strategic, environmental, and community perspectives. Suitable for MBA, undergraduate, and executive learners, this sustainability case covers innovation, intrapreneurship, and strategy. A technical note entitled, "Corporate Greenhouse Accounting: Carbon Footprint Analysis" (UV2027) is an effective complement. Frito-Lay's Arizona facility pilots a program to take its snack chip manufacturing off the grid. Decision makers discuss operating, financial, marketing, and corporate strategy as the facility calculates its carbon footprint, converts to non-fossil-fuel energy sources, and stops relying on the scarce local water supply.
Stakeholder climate change actions worldwide have prompted companies to measure their greenhouse gas emissions and reduce their carbon footprints by decreasing energy and fuel use. In the process, they are cutting costs, decreasing exposure to severe weather, reducing energy vulnerability, and potentially opening up revenue sources for carbon credit sales in the emerging markets for carbon trading. This note is effective in MBA, undergraduate, and executive education courses on clean commerce innovation, carbon markets, sustainability, and environmental and regulatory issues. This technical note stands alone and also works as a companion note to "Frito-Lay North America: The Making of a Net-Zero Snack Chip" (UV2025). For instructors, a teaching note is available, along with a supplemental Excel spreadsheet for use in performing carbon emissions calculations.
With Method standing at number seven on Inc. magazine's list of the 500 fastest-growing companies in 2006, cofounder Adam Lowry is searching for a biodegradable cleaning cloth to expand Method's line of "green" household products. Sustainable design principles have been a guiding force in Method's strategy, and being biofriendly is critical. So is sourcing in the United States. But only China can manufacture the corn-based cloth Lowry has in mind, and there is no way to certify that the product is free of genetically modified organisms. Lowry has to balance his firm's fundamental commitment to environmental sustainability against the fact that some retailers refuse to carry products containing GMOs.
This is a minicase, one of 10 in a set of short cases written to illustrate the business benefits companies realize through adopting sustainable business strategies. This minicase discusses the formation and implementation of Nike's sustainability strategy in the 1990s through 2006 including changes to product designs and supply chain policies.
Environmentally preferable or "green" building uses optimal and innovative design to provide economic, health, environmental, and social benefits. In 1993 the U.S. Green Building Council (USGBC) was formed by a broad range of building industry stakeholders from the public, private, and nonprofit sectors. It is a committee-based, member-driven, and consensus-focused nonprofit coalition leading a national effort to promote high-performance buildings that are environmentally responsible, profitable, and healthy places to live and work. In 2000, USGBC created the Leadership in Energy and Environmental Design (LEED) rating system. That voluntary standard was intended to transform the building market by providing guidelines, certification, and education for green building. LEED is a comprehensive, transparent, and market-driven framework for assessing buildings' environmental performance. Compared to standard practice, "green" buildings can provide greater economic and social benefits over the life of the structures, reduce or eliminate adverse human health effects, and even contribute to improved air and water quality. Opportunities for reducing both costs and environmental impact include low-disturbance land use techniques, improved lighting design, high performance water fixtures, careful materials selection, energy efficient appliances and heating and cooling systems, and on-site water treatment and recycling. Less familiar innovations include natural ventilation and cooling without fans and air conditioners, vegetative roofing systems that provide wildlife habitat and reduce storm water runoff, and constructed wetlands that help preserve water quality while reducing water treatment costs.
The growing impact of toxic chemical use is a major issue corporations face in the 21st century. This note offers an overview of the effects of toxins on human health and the natural environment: Cancer, nervous system disorders caused by workplace exposure. Impaired endocrine, reproductive, and immune systems. Impeded physical nad intellectual development. All are attributed to toxic exposure-sometimes even at very low levels. Toxic chemicals-ubiquitous in industrial processes and consumer products-represent both challenges and opportunities for business. One approach reduces a company's use of chemicals identified as problematic for human and ecosystem health. A second approach designs hazardous materials out of products or recaptures toxins in closed-loop cycles to be productively used again. Companies moving from a reactive stance to the redesign of products and processes not only reduce liability but differentiate their products and brands for competitive advantage.
This case engages students in a real decision context: an electric utility evaluates the opportunities in emissions trading. It exposes students to fast-changing markets for pollution credits and to the environmental and economic benefits thereof.
A new frontier of innovation exists where economic and population growth collides with natural systems (the environment). This note details the changing character of environmental issues and outlines the opportunities for entrepreneurial thinkers. It provides excellent fodder for discussion of sustainability as an opportunity for corporate innovation.
This note can be used as informational background reading on fuel cells, an environmentally attractive alternative technology for power generation and transportation. Courses that deal with innovation, technology, entrepreneurship, environment, energy/power/transportation issues, or sustainable business may find this useful. This note accompanies a case on fuel cells (UVA-ENT-0018). The note explores fuel cell technology including its history, current and potential applications, fuel sources, environmental issues, and manufacturing challenges. The commercialization issues covered include: performance requirements, time to market, costs, and other outside driving forces such as fuel distribution infrastructure, power generation reliability, fuel prices, etc. Fuel cells are an electrochemical energy source with the potential to take a significant market share from traditional electrical power generation and automobile propulsion technologies. Over the next decade fuel cells may provide more reliable energy and cleaner air while decreasing dependence on fossil fuels for transportation and stationary applications.
This case describes the process that entrepreneur Paul Farrow went through to establish his kayak company between 1992 and 1996. After being laid off from a more traditional corporate position, Farrow came across an idea that suited his business skills, experience, and values. The case chronicles the steps he took to be the first in the industry to design and produce an inexpensive, high-performance recreational kayak from recycled plastic materials. Key to Walden Paddlers' $1-million sales in 1995 was the company's ability to forge close alliances with key suppliers and customers while keeping fixed costs down by managing a virtual corporation.
In 1996, IKEA's $5 billion in revenues made it the world's largest retailer of home furnishings. This case uses IKEA to analyze how large companies can retain their entrepreneurial roots and innovative capacities through various means, including the management of global networks of alliances, internal systems that encourage innovation, and a strong corporate culture. IKEA has extended its activities as an innovator through its incorporation of the Natural Step framework for assessing the ecological and social sustainability of commercial activity. The case lends itself to class discussions on entrepreneurship and innovation in large firms, environmentally responsible strategies and network ties, leadership, and corporate culture/values.
Susan Lyons, a vice president at DesignTex, a firm that develops high-end custom fabric collections, wants to create an environmentally responsible fabric that will provide a model for sustainable design. Lyons consults with William McDonough, a noted designer of environmentally sustainable buildings and materials, whose stated ideal is that "no environmental risk is acceptable." The A case follows the development of a new furniture fabric and asks students to decide whether McDonough's principles go too far--whether it is really necessary or feasible to redesign the chemical protocols to produce a completely compostable product that emerges from an absolutely clean manufacturing process. See also the B case (E-0100).