The Natural Step Report Essay Example

transformations into different forms.

Moreover, matter does not disappear but instead undergoes a state change. For instance, if you have ever boiled water on a stove to make soup but then forgot about it, you may have observed the apparent disappearance of the water. However, in actuality, the water underwent a transformation into steam. This scenario demonstrates the first scientific principle. The second principle affirms that matter and energy tend to disperse in accordance with the second law of thermodynamics.

Even though energy does not disappear according to the first scientific principle, it becomes less useful as it changes form because it spreads out and is no longer consolidated. The third scientific principle states that material quality can be determined by the concentration, purity, and structure of matter. Therefore, when material disperses, it loses its value and usefulness since the value of material and energy come from their cohesiveness. Once energy or material is used and broken up, it is no longer of use. The final principle states that the net increase in material quality on earth is a result of sun-driven processes.

According to the first scientific principle, material does not increase or decrease, but energy does increase. The sun provides us with more energy every day, which can be seen in plants through photosynthesis. These conditions and scientific principles serve as the foundation for understanding sustainability and are crucial for organizations. This book includes case studies of four companies (IKEA, Scandic Hotels, Interface, and Collins Pine Company) that prioritize sustainability. It helps businesses comprehend how to follow in their footsteps, anticipate challenges they may encounter, and learn how to address them. IKEA, founded by Ingvar Kamprad

in Sweden, was the first company to adopt The Natural Step process.

Ingvar Kamprad is a man who always disliked waste, but it was the bad publicity that arose in the 1980s and early 1990s that truly drove the company towards sustainability. Some of IKEA's products in Denmark contained levels of formaldehyde that surpassed the legal limit, leading to lawsuits and fines. Moreover, Danish television negatively highlighted this issue, causing a temporary 20% decline in sales in Denmark. In Germany, which is IKEA's biggest market, the company faced criticism for its utilization of PVC and excessive packaging waste.

Environmental criticisms arose against the catalog of IKEA, but the final straw came when a product named the "Billy bookshelf" had to be recalled due to high formaldehyde emissions, which were exposed by an investigative journalist report. The news spread worldwide through media organizations, resulting in significant financial losses for the company. This incident made Kamprad realize that his company had to prioritize environmental friendliness to ensure its survival.

In addition to scientific principles and four system conditions, IKEA introduced eight key concepts to implement, such as adopting renewable materials and energy, promoting efficiency, and embracing resource reuse. Employee training became crucial after defining these concepts. Initially, IKEA believed that providing education alone would lead to behavioral changes among workers. However, they soon realized that more involvement was necessary to drive change. To adapt their plan, follow-up education seminars were introduced for all employees, progress reports on sustainability ambitions were shared, and extensive training was provided for specialists, environmental coordinators, and suppliers.

Another challenge arose when IKEA planned the development of a special line of environmentally safe products.

In order to be

truly environmentally conscious, IKEA recognized the importance of making all their products eco-friendly. Simply offering a single line of sustainable products would not have a significant impact and could draw attention to their cheaper but environmentally harmful items. As a company that sells a large quantity of manufactured goods, IKEA understood that achieving sustainability would be a lengthy and challenging task. They approached this goal in several steps. The first step involved ensuring that their products did not contain lead, cadmium, PCP's, AZO-dyestuffs, formaldehyde, or PVC. The next step focused on reducing the environmental impact during the manufacturing process by avoiding chlorine bleach and organic solvents, minimizing heavy metal residue, and maintaining pH levels between 4.5 and 7.

In the process, the third step focuses on evaluating the environmental impact of the product throughout its lifecycle. This involves reducing emissions and finding proper disposal methods for when the product becomes obsolete. The fourth step aims to replace traditional production materials with organically grown materials. IKEA understands the importance of incorporating environmental principles into all aspects of its operations. Consequently, they collaborate with others to develop sustainable products, ensure that 75% of their raw materials come from sustainably sourced forests, work with suppliers to promote sustainability, encourage telecommuting to reduce transportation, explore eco-friendly transportation solutions, and adopt environmentally friendly practices in their stores. Nattross and Altomare also examined another case study involving Scandic Hotels and their journey towards sustainability during the recession in the early 1990s.

The company was on the verge of financial collapse and required a strategy to reorganize its operations and cut expenses. The Swedish term "omtanke" encapsulates the underlying philosophy of the company, which

centers around demonstrating care and thoughtfulness. This principle applies to all stakeholders including employees, customers, the community, and the environment. In order to embrace this ethos, Scandic's CEO Nilsson actively engaged with environmental organizations for their expertise and to assess the feasibility of implementing alterations within the organization.

Nilsson acknowledged the importance of achieving long-term sustainability, but emphasized the need for immediate action. As a first step, the company aimed to educate all employees on the issue. Additionally, Nilsson recognized the significance of supporting employees by providing them with the necessary tools and knowledge to make informed decisions and take appropriate action. It was crucial for the company to monitor and evaluate the actions taken by employees to continually improve the system. Furthermore, establishing minimum environmental standards was a key objective.

Similarly, Scandic provided its employees with specific actions to follow, creating a structured approach. By adhering to these courses of action, Scandic expected to enhance their reputation within the community and reduce waste, resulting in cost savings and increased competitiveness. Scandic mirrored IKEA's perspective that environmental care must be seamlessly integrated into every aspect of business operations, evident in their courses of action.

Interface, a carpet tile manufacturer discussed earlier in chapter six, also aimed to achieve environmental, financial, and social sustainability.

They believe that these three things are interconnected and mutually supportive. In the 1980's, Ray Anderson chose to become a frontrunner in the carpet industry despite being a relatively inexperienced company competing against major players. By 1994, Anderson acknowledged the necessity of reducing waste and conserving natural resources to attain the long-term objective. At this juncture, the company set a new enduring goal that would coexist

with the previous one: "To be both the first truly sustainable company in the world and also the first restorative company."

Interface, in addition to following The Natural Step, utilizes two other programs known as QUEST and PLETSUS. QUEST, which stands for "Quality Utilizing Employee Suggestions and Teamwork", measures the company's environmental progress. On the other hand, PLETSUS, which stands for "Practices Leading to Sustainability", functions as a suggestion box to enhance the company's environmental standing. Similar to the aforementioned companies, Interface integrates its environmental practices into all aspects of its business operations while recognizing the importance of educating and training its employees in order to achieve its goals. The company has developed seven fronts, including waste elimination, renewable energy, efficient transportation, and creating a cyclical business model like nature instead of a linear one.

Interface communicates these guidelines to all employees and provides incentives for compliance. A portion (15%) of an employee's bonus is contingent upon the company achieving its environmental objectives each year. The most recent case study focused on Collins Pine Company, the oldest company among the group, established in 1855. As a timber industry company, Collins Pine recognized the necessity of employing sustainable forestry practices to maintain profitability. The company shares the fundamental principles of the previous three companies, which include continual environmental improvement, social responsibility, and empowering employees to take action. Jim Quinn, the President and CEO, discovered The Natural Step in 1992 and was so enthusiastic about it that he traveled to Sweden to gain further knowledge on the program.

After his trip, the individual immediately developed a program to initiate employee training on The Natural Step. Collins Pine successfully tailored The

Natural Step to fit its own company and established its own objectives. These objectives encompass the following: the cessation of waste disposal in landfills, the maximization of renewable energy utilization, the provision of community support, and the education and inspiration of employees. Subsequently, the company commenced adjusting its operational systems to align with its objectives. This entailed evaluating products to ensure their sustainability, measuring their environmental impact, establishing environmental standards, and offering support to sustainability partners. The company actively promoted recycling among its employees, installed bailers for cardboard recycling, initiated a water conservation program, and assumed responsibility for cleaning up litter on a designated highway. The book outlines five elements shared by all four companies in their pursuit of sustainability: educating employees about their environmental impact, setting goals, measuring progress towards those goals, creating environmental standards, and integrating these principles throughout all aspects of the company.

Understanding these aspects is essential for companies if they aspire to have sustainability as part of their future.