IKEA: A Better Everyday Life for the Many (PDF)

This is IKEA ® Even though the 1940s, right up to millions of the present. people know us...

This is IKEA ® Even though the 1940s, right up to millions of the present. people know us by name, we feel It’s the story of a brand little is known that has enabled millions about who we of people to create a really are. better everyday life. And intends to keep on So, if you’d like to listen, doing so for a long time. we’d love to tell you a bit more about IKEA. This is IKEA. From how it all started in This is IKEA // © Inter IKEA Systems B.V. 2017 1 Published: October 2017 An idea We’ve come a long way since Ingvar Kamprad founded IKEA in 1943. From being a tiny Swedish business, selling through a mail-order catalogue, we have become one of the most well-known home formed furnishing brands in the world. The landscape where Ingvar grew up, Småland, is stony and rugged. Back then, many of the inhabitants were poor and had to get by by the with small means. Because of this, Smålanders are often said to be thrifty and innovative, with a no-nonsense approach to everyday problem solving and business challenges. This heritage forms the backbone of who we are and lives on in our shared IKEA culture and values. landscape In the fast-moving world of today, our culture and our values are among our most valued, and useful, assets. They keep us grounded and encourage us to tackle complicated dilemmas with a mix of creativity and common of southern sense. Our heritage is also one of the main reasons why our vision is “to create a better everyday life for the many people”. Sweden. Around 200,000 people work for IKEA*. If we include the many thousands employed by our suppliers, we are talking about around one million people. Together with our customers, we want to be a positive movement in the world. A good example of how much you can achieve by working together and trying to be a force for good. *IKEA co-workers are employed by many different IKEA companies, with different owners. Read more on pages 11-12. This is IKEA // © Inter IKEA Systems B.V. 2017 2 Published: October 2017 IKEA at a glance ® Our Our vision business idea LO ICE PR To create a better W everyday life for To offer a wide range of the many people. well-designed, functional home furnishing products at prices so low that as many people as possible will be able to afford them. Our value Many, many chain people Our value chain is We are powered by people tailor-made to provide who share and embrace our the many people with culture and our values. home furnishing products, By customers, co-workers in the most sustainable and the people who work and cost-efficient way. at our suppliers. IKEA Facts & Figures Visit IKEA Highlights to find annually updated total IKEA sales, co-worker and store numbers, among others: https://highlights.IKEA.com This is IKEA // © Inter IKEA Systems B.V. 2017 3 Published: October 2017 Our vision Our vision is “to create It keeps us grounded a better everyday life and focused on being for the many people.” accessible and inclusive and doing what’s best That vision influences for the many. everything we do. The products we develop, We’re proud of our vision the ideas we share, the for a lot of reasons. raw materials we use, But most of all because yes, every little thing. it supports us in our daily That’s why our vision work. It’s a helpful tool is so powerful, and so and not just a phrase. delicate at the same time. Our vision lives in the Our vision is the compass everyday efforts of all that leads all of us in co-workers, all over the same direction. the world. This is IKEA // © Inter IKEA Systems B.V. 2017 4 Published: October 2017  DRAFT 3 28/09/2016 Our business idea While our vision tells us why we exist, our business idea tells us what we want to achieve. Our business idea is “to offer a wide range of well-designed, functional home furnishing products at prices so low that as many people as possible will worthy of the IKEA Brand and worthy of the many people. Democratic Design helps us to develop only products that have a beautiful design, good function, are sustainable, of good quality and are available at a low price. be able to afford them”. We Democratic Design might sound love those words because they a bit pompous, but we think capture the essence of IKEA. that’s fine, because it allows us to fulfil our business idea and The way we go about this job is bring the IKEA vision to life. led by what we call Democratic Design. That is our view on That’s huge to us, and hopefully how to create products that are to many others too! 2016 This is IKEA // © Inter IKEA Systems B.V. 2017 5 Published: October 2017  We like to do things differently. reflected in the image It’s in our DNA to try new of our brand. ways and to look for solutions Our in places we haven’t looked It’s the symbol of what we before. But we do it for a represent and it links all reason, we do it because IKEA retailers and other IKEA we think it’s the best way businesses together. It’s to stay creative, surprising something to protect with pride. and close to people. We do it because it keeps our brand IKEA unites thousands of fresh and exciting. co-workers and hundreds of brand companies with different owners Our brand represents the sum all over the world. It’s one of everything that we say and brand but it reaches millions do – and have said and done. of hearts and homes. Our relation to co-workers, suppliers and partners is also This is IKEA // © Inter IKEA Systems B.V. 2017 6 Published: October 2017  We side with the many people, but who do we refer to when we say accessible where everyone, especially people that we have a hard time reaching Many, many “the many people”? today, has a place and a voice. We embrace the many For us, the many people different realities around us are our customers, potential and allow for more of the customers, co-workers, many people to influence suppliers and beyond. and improve IKEA for We can make the biggest tomorrow. people difference for people with big dreams and thin Becoming more accessible wallets. It can be you, will require new or me, or anyone who collaborations, new mindsets dreams of a better everyday and a lot of hard work. life at home. It will require a true team effort, where we invite our Our big dream is to reach customers and our suppliers even more of the many to join us in the search for people. To get there we have the best ideas. to become more open and This is IKEA // © Inter IKEA Systems B.V. 2017 7 Published: October 2017  Our value chain The word value chain might have products might be, we have to reach a technical ring to it, but the IKEA out to people and make them part of value chain is all about people. our value chain. Great products that appeal to many people also open To begin with, it’s people who design up large production volumes and and develop our products. Most of low retail prices. And by asking that work is carried out in our home our customers to do some of the town of Älmhult in Sweden, in close assembly work, we can reduce our collaboration with our suppliers. We prices even further. share each other’s expertise, which strengthens our common knowledge At the end of the day, it’s people that about design, materials development, keep our value chain moving. Without sustainability and distribution. This the interaction with our customers allows us to produce better products and the collaboration with our at lower prices. suppliers, we wouldn’t get far. It’s our goal to only design products The IKEA value chain is a chain that we think many people will have of amazing people carrying out a need for. To understand what those amazing work. This is IKEA // © Inter IKEA Systems B.V. 2017 8 Published: October 2017 The IKEA value chain ® Design Listen and create and learn The product range is our identity and Democratic Design is how we design To enable the many people to create better products at lower cost. It’s our a better everyday life, we have to way of safeguarding form, function, understand their needs and dreams. sustainability, quality and low price. This is the first, and the last, step Simply, creating products that we love. in our value chain. By listening and working together with our customers, we can impove our offer and create even better products that will make a difference in people’s everyday life. To create a better everyday Manufacture life for and improve the many We like to form long-term Inspire partnerships with our suppliers and people we strive to always develop our and sell products on the factory floor. We’re always striving to do things in a better way, such as more responsible We try to make it easy and sourcing, using resources smartly inspiring for everyone to shop for and sustainably, with higher quality IKEA products. Every interaction, at lower costs as the end result. physical or online, is an opportunity for us to exceed people’s expectations and offer a rewarding and simple shopping experience. Being relevant in an inspiring and surprising way – Package providing solutions to people’s real life needs – is super important to us. and distribute We are known to be smart and save resources while we transport and handle products and materials. We find ways to automate for efficiency and design and use flat packs to save more. This is IKEA // © Inter IKEA Systems B.V. 2017 9 Published: October 2017 Our franchise system As the IKEA business was expanding The franchisees run the day-to-day in the early 1980s, Ingvar Kamprad retail business and pay a franchise fee. realised that he needed to protect the IKEA Concept. Our franchise system is people- oriented and encourages everyone to After a long search, Ingvar contribute. It forms an interdependent decided that a franchise system framework and lays a solid foundation would be the best choice for IKEA. for the IKEA Brand. It enables a It would allow for international scalable and dynamic value chain. expansion, while protecting the Last, but not least, it answers Ingvar underlying concept and stimulating Kamprad’s three desired intentions: the entrepreneurial spirit. It allows and encourages Inter IKEA Systems B.V. is the IKEA IKEA to remain entrepreneurial. franchisor who continuously develops It enables international growth. the IKEA Concept and ensures its It keeps the IKEA Concept implementation in all markets. strong and consistent. This is IKEA // © Inter IKEA Systems B.V. 2017 10 Published: October 2017 The IKEA franchise system ® a simplified overview Inter IKEA Systems B.V. is the owner of the IKEA Concept and worldwide IKEA of Sweden AB sets and develops the IKEA home furnishing product IKEA franchisor. range, IKEA Food Services AB sets and develops the IKEA Food & Beverage product range, IKEA Supply AG manages purchasing and distribution and The IKEA franchisees are authorised to market and sell the IKEA product IKEA Communications AB produces IKEA communication. range and operate IKEA stores and other sales channels around the world. In their everyday business and through specific assignments, INGKA* has been assigned by Inter IKEA Systems B.V. to carry out certain franchisees contribute to the development of the IKEA Concept. Together, assignments for the IKEA franchise system, such as development of we improve and develop IKEA to be more relevant and inspiring. ecommerce, IT development, IT operations, etc. As the simplified description below shows, Inter IKEA Systems B.V. has This structure helps to build a strong and vital IKEA Concept that the assigned other IKEA companies to develop range, supply and communication. franchisees use to market and sell the IKEA range around the world. IKEA franchisor IKEA franchisees Franchise agreements Inter IKEA INGKA* Dairy Farm Sarton Systems B.V. Assignments Al-Sulaiman MAPA Al-Homaizi IKEA assignments Al-Futtaim House Market Miklatorg IKEA of IKEA Food IKEA IKEA Sweden AB Services AB Supply AG Communications AB Ikano Northern Birch Sales and supply agreements The list above refers, in a simplified way, to companies/groups of companies operating IKEA retail businesses in one or more markets. The listed names do not represent the legal company name of the franchisee companies that have entered into franchise agreements with Inter IKEA Systems B.V. *INGKA refers to INGKA Holding B.V. and its controlled entities. This is IKEA // © Inter IKEA Systems B.V. 2017 11 Published: October 2017 IKEA franchisees ® around the world Through the franchisees, we are represented in many parts of the world. But as the map shows, there is plenty of room for growth. Glorious future! INGKA* Dairy Farm Australia, Austria, China (Hong Kong), Belgium, Canada, Indonesia, Taiwan China, Croatia, Czech Republic, MAPA Denmark, Finland, Turkey France, Germany, Hungary, Ireland, House Market Italy, Japan, the Bulgaria, Cyprus, Netherlands, Norway, Greece Poland, Portugal, Romania, Russia, Northern Birch Serbia, Slovakia, Israel South Korea, Spain, Sweden, Switzerland, Sarton United Kingdom, Dominican Republic, United States. Spanish Islands Al-Sulaiman Al-Homaizi Saudi Arabia Jordan, Kuwait, Morocco Al-Futtaim Egypt, Qatar, Miklatorg United Arab Emirates Iceland, Lithuania Ikano Malaysia, Singapore, Thailand The IKEA Delft store in the Netherlands is the only store directly owned and operated by Inter IKEA Systems B.V. The list above refers, in a simplified way, to companies/groups of companies operating IKEA retail businesses in one or more markets. The listed names do not represent the legal company name of the franchisee companies that have entered into franchise agreements with Inter IKEA Systems B.V. *INGKA refers to INGKA Holding B.V. and its controlled entities. This is IKEA // © Inter IKEA Systems B.V. 2017 12 Published: October 2017  The IKEA story is, to better shelters for refugees, and always will we’re always looking for new be, one of constant and better ways. Our change. Sometimes, our eagerness Our vision – to create a better and our curiosity lead us in everyday life for the many the wrong direction. That’s people – encourages us to be part of being an entrepreneur innovative, persistent and perfectly fine as long as and brave. we learn from our mistakes. next IKEA was founded by a very Our culture is built upon special man and will forever live enthusiasm, togetherness and through very special people. “get-it-done” attitude. We’re optimists, constantly looking for We don’t know exactly what the opportunities, always willing future has in store for us. But to lend a hand. we will continue to side with the steps many people. Those with big Whether its cutting down dreams and thin wallets. We’ve assembly time and making got big dreams as well and we our product joints stronger know that if we keep innovating with the innovative wedge and collaborating, tomorrow will dowel, engaging in new design be a great day! collaborations, or contributing This is IKEA // © Inter IKEA Systems B.V. 2017 13 Published: October 2017  Environmental Management in an Auto repair Garage (Fictitious case) Name of company: Auto repair Garage Sector: Automobile Sales and Repair Number of employees: 27 Country: Spain Abstract Auto repair Garage, established in one of the Valencian neighborhoods in 1967, employs 27 people. The garage sells automobiles as an official agent of Volkswagen (1 of the 5 top brand cars in Spain), and provides auto repair service. Implementation of environmental protection measures began at the garage in 2002. The garage's sales and marketing manager had a personal interest in environmental issues, and the garage also became involved in environmental programs launched by industry associations and state organizations in the region of Valencia. In 2002 the garage premises underwent major renovations, during which, environmental protection and health and safety measures were implemented. For example, the garage has converted to the use of water-soluble paints, and has developed a system for dealing with waste oil. 100 per cent of waste oil is now recycled, and there has been a 90 per cent reduction in solvent atmospheric emissions. The company is currently involved in the development of an environmental charter for garages in its region, and also works closely with regional organizations which aim to help this industry improving its environmental performance. In a period when most garages are experiencing major difficulties, Auto repair Garage has a growing number of customers and turnover is increasing at a steady rate. Country Overview Industrial activity in Spain is diverse, and international trade is an important contributor to the economy. A highly developed transport and communication system has helped Spain to develop its foreign markets and to become one of the European Union's most powerful economy. The automotive industry is a strategic and significant sector, alongside other industries, tourism, chemicals, and agriculture and food. The implementation of environmental policies on a national level has been hindered in the past by the high level of centralization of the country's administrative system around the capital city, Madrid. While there is a large number of government agencies responsible for environmental issues on the regional level, these organizations have partly overlapping functions and this has contributed to the complexity of the administrative structures. However, in more recent years the move towards decentralization has facilitated the introduction of more innovative local environmental programs. Sector Overview Spain is ranked second among European automotive manufacturers, and 12th globally. According to recent figures of industry associations, the automotive industry represents roughly 10 per cent of GDP and more than 87 per cent of all cars and components manufactured in Spain are exported abroad1. […] (Hogan Lovells, 2019). In the region of Valencia, the automotive industry is the most important sector with 24% of regional exports2 (ICEX Spain, 2023). Therefore there is a complete supply chain representation of this industry and deploys high investment in innovation. The type of innovations are associated to ways to: (i) embed recycling principles (use of recyclable or recycled 1 https://www.hoganlovells.com/en/publications/spain-automotive-2019 2 https://www.investinspain.org materials in the manufacture of automobiles to comply with European regulation that requires the reuse and recycle of 95% of the vehicle weight); (ii) adopt industry 4.0 digitalization (digitization of the process and use of technologies such as big data and additive manufacturing); to light the vehicle (lightweight materials to reduce the weight of a vehicle and hence greenhouse gas emissions); integrate new systems for vehicle propulsion and energy storage batteries, safe and connected cars (allowing data to be transferred via the Internet by means of an integrated communications module - smartphones-). Overall, the Spanish automotive industry prioritizes electrification and sustainable mobility. The Spanish sales and repair garage sector provides employment for about 326200 people (Eurostat, 2023). In the years between 2008 and 2014 Spain went through a financial crisis that consequently hit the automotive (sales and repair sector), and for the first time received state support in the form of subventions. Since 2010 automobile sales have been decreasing at a rate of two million per year. In 2012 the regional federation (Corporacion de los profesionales de la industria automotriz en Valencia), which represents the automobile sector's professional associations or "corporations" conducted a review of the sector. The review identified the main problems of the sector. It also served as a basis for the organization of an information campaign, and the development of training to help the sector meet the changing needs of its market. Small garages and independent repair mechanics are generally expected to be more flexible in the face of change. The review conducted by the sectors' regional federation showed that this was not the case. Smaller enterprises in the sector are in fact facing the greatest difficulties. The review highlighted the need to support small enterprises in particular, as they represent 90 per cent of the sector in the region. Following this, a support strategy for small enterprises was developed by the regional federation. Company Description Auto repair Garage is a family-owned enterprise which was established in 1967 by Mr. Adrian Montesalto in a neighborhood of Valencia. In 2002 the garage was taken over by the sons Arturo and Anselmo Montesalto, who are now the sales and marketing manager and the technical manager respectively. With 27 employees, the garage's activities are automobile sales, repairs and bodywork. The garage is an official sales agent of Volkswagen. In 2004 turnover was 7.7 million euros. Turnover increased to 22 million euros in 2015. 50 per cent of turnover is currently attributed to sales, 25 per cent to bodywork, and the remaining 25 per cent to repairs. Driving Forces The development of an environmental management strategy at Garage began with the personal interest of the sales and marketing manager. In addition, the garage has been involved with environmental programs in the Valencian region since the beginning of 2002 in particular in the “Prevalecer” project initiated by the Spanish Banque Populaire, of which the garage has been a client since 1988. The bank, an independent bank which is part of a national network, developed close contacts with Auto repair Garage, and in 2006 awarded the garage with the Small and Cottage Industry Management Prize.. In 2004 the Spanish Banque Populaire developed the concept of the “Prevalecer” loan. The loan was developed specifically for SMEs, cottage industry and farmers, and is available only for projects which favor environmental protection. It offers a preferential interest rate of six per cent (five per cent when originally launched), and can cover up to fifty per cent (maximum 300,000 euros) of the overall cost of a project. The bank created a structure for the project which ensured the participation of other regional partners, such as trade unions, local authorities, and the chamber of commerce. The “Prevalecer” committee of experts was formed with representation of the different partners. This committee decides which projects will be financed. In 2006 Garage obtained its first “Prevalecer” loan. This loan financed the installation of a CO-CO2 anti-pollution system. Through its contacts with the “Prevalecer” project the managers of Garage made contact with an eco-counsellor of the Valencian municipal administration, a partner of the Spanish Banque Populaire in the “Prevalecer” project. The contact with the eco-counsellor led to a greater awareness of environmental issues among the garage managers and employees. The organization ECO-Conseil Enterprise, set up to provide eco-counselling to small companies, was created as a result of co-operation between the Institute ECO-Conseil and the Valencian municipal administration. The eco-counsellor of the Valencian municipal administration now works partly for ECO-Conseil Enterprise. In 2002 the managers of the garage wanted to both expand and modernize the premises. These changes also provided the garage with an opportunity to identify ways of reducing its environmental impact and creating a cleaner image. The garage managers wanted to move away from the traditional "dirty image" more commonly associated with garages. They also saw the expansion of the garage as an opportunity to improve working conditions. A logical link was perceived between cleanliness, good working conditions, the environment and the quality of customer service. In this context the managers decided to renovate the premises, taking into account the environment and working conditions. The approach adopted by Auto repair Garage was an integrated one. Once the garage had decided to renovate the premises its main objectives were outlined as follows: reduction of environmental impact; improvement of working conditions; creation of a totally clean image; improvement of customer service. Problem Definition The managers of Garage have a detailed technical knowledge of operations. This knowledge combined with the advice of the eco-counsellor allowed the main environmental impacts of the garage to be relatively easily identified. In 2002 an eco-diagnosis was conducted at the garage. The method of eco-diagnosis was developed by ECO-Conseil Enterprise on the demand of the Prevalecer committee. All companies applying for a Prevalecer loan must complete this eco-diagnosis. The main impacts of Garage in relation to both the environment and working conditions are as follows: paint solvent emissions to air and water; water pollution by waste oil; hazardous wastes such as automobile batteries containing lead and sulphuric acid; noise pollution; air pollution, in particular fumes emitted from exhaust pipes and during paint application. Implementation Following consultation with their architect, the eco-counsellor and a water quality control engineer of the town of Valencian, Garage undertook a complete renovation of its premises. The garage also contacted clean technology supply companies. All clean technology purchased by the garage was available in Spain. The environmental measures implemented are as follows: complete renovation of the water drainage system: drainage of water used for hosing and for cleaning paint spray-guns, construction of collection points for waste water and a piping system for draining waste water and directing it to a decanting and degreasing tank;  conversion to water-soluble paints; installation of a painting booth with an air circulation and filtration system which reduces the level of emissions to below the legal limit; installation of an integrated system to collect waste oil and to distribute new oil in bulk; conversion to a gas heating system; renovation of the electrical system; insulation of the garage; installation of soundproofed ceiling; laying of anti-skid flooring. While renovations were underway, the garage also began to examine possibilities for improving waste management. The wastes which are dealt with in the garage's waste management system: are outlined below. Hazardous wastes paint solvents and degreasing agents cooling liquids and brake fluids used car batteries materials containing asbestos oil and gas cylinders waste oil Non-hazardous wastes waste paper waste plastics scrap iron car windscreens used tyres These waste materials are either eliminated in specialized waste treatment centers, or returned to the supplier and recovered and reused. Resources Invested Financing for the renovations totaled 4 million euros. Approximately 1.9 million euros can be attributed to environmental and health and safety measures. Sourcing this investment was one of the greatest problems faced by the garage. Due to its efforts to improve working conditions partial financing of ten per cent was provided by the Regional Health Insurance Fund (CRAM). The remainder was provided by a normal loan from the Spanish Banque Populaire. Partnerships The employees of the garage were involved in the process of change through an efficient internal communication system. The communication process benefited from the small size of the company and the good relations already existing between the employers and the employees. Following the renovations the employees were given informal training. The automobile federation of Valencia has existed at regional level since 2004. The guilds or "corporations" which exist at local level are members of this federation. The "corporation" of Valencia was established in 2004, and represents 450 garages in the department of the Valencia. When the "corporation" of Valencia was established, the position of environmental officer was also created within the association. The sales and marketing manager of Garage has held this position since its creation. Due to this position the manager was able to keep informed about developments in the area of environment and environmental management in the Valencia region. The garage is presently working with its "corporation" to create greater environmental awareness among other garages in the region. Following its initiatives, three other garages in the region have implemented environmental protection measures. These garages have been able to benefit from the experiences of Garage. In 2002 the four garages undertook the development of an environmental charter specific to their sector of activity. Results The implementation of environmental management has helped Auto repair Garage not only to reduce its environmental impact, but also to achieve its more general objectives of improving working conditions and the quality of its customer service. When the main renovations were completed, the garage held an open day to which it invited representatives of the Valencian municipal administration, the partners of the Prevalecer project, and its customers. This event gave the garage the opportunity to promote its activities, while additionally creating greater environmental awareness within its local community. Solvent emissions have been reduced by 90 per cent, mainly due to the conversion to water-soluble paints. Despite the fact that the surface of the garage increased following renovation, energy consumption has been reduced by approximately 15 per cent. 100 per cent of waste oil is now recovered and reused. This oil is collected through a national waste oil recovery system, a service for which companies do not have to pay. The cost of recovery and elimination of this waste is included in the original sales price of the oil. Garages in Spain hope that such a price structure will be applied to the sale of tyres. A collection system at regional level is in place for used tyres. The tyres are used as fuel in a local cement factory, but the garages are obliged to pay Euros 10 per tyre collected to cover the cost of the collection system. Automobile manufacturers in the region are also beginning to take back waste materials resulting from their products. Garage presently returns used batteries, bumpers, and catalytic convertors to Volkswagen, free of charge. The garage has continued to co-operate with ECO-Conseil Enterprise and the Spanish Banque Populaire. In 2007 it obtained its second Prevalecer loan, which it used to purchase equipment to control the fumes emitted by diesel vehicles. Through its work with both companies and regional organizations, Garage has become a point of reference in both the automobile sales and repair sector, and in industry as a whole in the region. At a time when most garages in Spain are experiencing a fall in business, Garage is thriving. The number of customers has increased steadily over the last few years, and turnover has also increased. The work atmosphere has greatly improved for the garage's employees, and the level of motivation is high. Over the last few years the garage has also obtained approval from the main insurance companies in the region. In 2008 the garage was placed third in the regional Good Corporate Citizen Awards. The Future Environmental Charter Garage intends to continue its efforts with the "corporation" to further the development of the sectorial environmental charter. The regional automobile federation is interested in the charter but has not yet taken concrete action for financial reasons. However, the garages which have already taken action believe that with time and a new generation of garage owners who are less resistant to change, the success of the environmental charter is assured. Waste Management Taxing automobile products at the source is an important issue for the automobile sales and repair sector. Garages currently deal with the majority of waste for their customers and automobile manufacturers, and also must pay for the disposal and treatment of this waste. The garage sector in Spain is working together with its trade unions and local authorities to ensure that the waste management costs will be integrated into the original sales price, and that more efficient waste management systems will be developed. Changes going on in the automobile manufacturing industry will have a great impact on garages in the future, and will simplify waste disposal and treatment procedures. Spanish automobile manufacturers are presently under legal obligation to take back 90 per cent of their materials. As a result, the manufacturers have begun to code and limit the various types of plastics used to facilitate the recovery and recycling of these materials. This development will in turn simplify waste management procedures for garages. The Prevalecer Project The Prevalecer project was successful since its creation in 2002. The bank has also begun to develop a similar project in the Hungarian region of Baranya, in co-operation with the regional bank, Szigetar Savings Bank. The experience of Garage and the problems faced in persuading other garages to support the development of an environmental charter are mainly linked to financial difficulties. Although the Prevalecer loan has motivated many SMEs in the Valencia region, the sector as a whole feels greater financial incentives and support are needed.  Journal of Cleaner Production 8 (2000) 215–223 www.elsevier.com/locate/jclepro Pollution prevention and industrial transformation Evoking structural changes within companies Theo J.N.M. de Bruijn *, Peter S. Hofman CSTM University of Twente, PO Box 217, 7500 AE Enschede, The Netherlands Received 22 April 1999 Abstract Pollution prevention has developed as an attractive method for improving the environmental performance of companies. Often the concept is promoted in a project format, for instance in a regional perspective or for a specific sector of industry. This article analyzes the contribution of pollution prevention projects to the transformation of industry. Different formats that have been carried out in the Netherlands during the last 8 years are evaluated in terms of direct results (implemented measures and their effects) and long-term effects. The main issue in this article is what contribution pollution prevention has in evoking structural changes towards more sustainable behavior in companies. The general conclusion is that pollution prevention is at least potentially a powerful and interesting concept. The current formats used to promote pollution prevention show some serious deficits, especially in failing to elicit a learning process within participating companies. The trend towards the use of quickscans as a prevention method is worrying in this respect. Some recommendations are given to improve future projects. © 2000 Elsevier Science Ltd. All rights reserved. Keywords: Pollution prevention; Industrial transformation; Environmental policy 1. Introduction current production processes. There is, however, less clarity as to what extent the concept of pollution preven- Since the late eighties pollution prevention or waste tion becomes incorporated in the strategy and manage- minimization has become a concept which is extensively ment of companies, and what the contribution of pol- used to influence the behavior of companies towards a lution prevention is to the transformation of industry more environmentally friendly direction. Previously, towards sustainability. environmental policy mainly used to lead to end-of-pipe This article aims to increase the understanding of solutions. Pollution prevention (policies) on the other these issues. First, we analyze the contribution of pol- hand aim at minimizing waste and emissions by lution prevention to the transformation of industry by reduction at the source or through internal re-use of evaluating the results of various pollution prevention material. In the past ten years pollution prevention has projects with different formats that have been carried out advanced from a concept to a proven, practical method in the Netherlands during the last 8 years.1 We focus on [1: 104]. direct results (implemented measures and their effects) Pollution prevention gives satisfactory results at first and long-term effects. In the second place, we analyze sight. Both the environmental performance and the econ- ways to improve pollution prevention. We weigh the dif- omic performance of companies often improve, although ferent formats to determine which format is most effec- exact figures prove to be hard to provide. The results tive and efficient. Furthermore we look for ways to of projects to promote pollution prevention mainly boil incorporate some aspects of other useful concepts, such down to the implementation of incremental changes in as industrial ecology and integral chain management. * Corresponding author. Tel.: +31-53-489-3203; fax: +31-53-489- 1 Our focus is on the format by which pollution prevention is pro- 4850. moted and not pollution prevention as a concept in general. Although E-mail address: [email protected] (T.J.N.M. de our empirical data concern pollution prevention projects in the Nether- Bruijn). lands, similar approaches can be observed in other countries as well. 0959-6526/00/$ - see front matter © 2000 Elsevier Science Ltd. All rights reserved. PII: S 0 9 5 9 - 6 5 2 6 ( 0 0 ) 0 0 0 0 5 - 6 216 T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 The main issue with which we therefore deal in this arti- changes. The second perspective therefore is called “sys- cle is what contribution pollution prevention has in tems change”. The core of the systems change per- evoking structural changes towards more sustainable spective is that business — and the economic system — behavior in companies. need to be perceived as part of larger social and ecosys- The article is set up as follows. First we go into the tems. Consequently they need to be compatible with question of what aspects industrial transformation com- these larger systems. Within the systems change per- prises. In Section 3 we describe the set-up and spective, emphasis is put on value-change and on more implementation of pollution prevention projects. A num- fundamental structural changes. ber of different formats are identified there. Section 4 In order to link economic, social and eco-systems, the focuses on results of these projects. Section 5 explores concept of industrial ecology can be helpful. The pri- the effects of different pollution prevention projects in mary goal of industrial ecology is to promote sus- terms of its contribution to industrial transformation. We tainability by optimizing resource flows in networks of end with a concluding section. firms. It is a systems view which seeks to optimize the total materials cycle from virgin material, to finished material, to component, to product, to obsolete product, 2. Industrial transformation and to ultimate disposal. The idea of industrial ecol- ogy is based upon an analogy with natural ecological After a decade of intensifying the goals and systems. In nature an ecological system operates through implementation of environmental policy the “low hang- a web of connections, in which organisms live and con- ing fruit” within companies has been picked [3: 175]. sume each other’s waste. In an industrial ecology, unit Especially in developed countries a lot of companies processes and industries are interacting systems rather have managed to improve their environmental efficiency. than isolated components. This view provides the basis At the same time economic growth nullifies much of for thinking about ways to connect different waste-pro- these benefits. The real challenge for the coming years ducing processes, plants or industries into an operating is in forcing fundamental, structural changes in the pro- web that minimizes the total amount of industrial duction and consumption system. After all, sustainable material that goes to disposal sinks or is lost in inter- development can only be achieved if these types of mediate processes. The focus changes from merely mini- changes are realized. mizing waste from a particular process or facility, to In the literature there are two perspectives on the minimizing waste produced by the larger system as a mode through which this transformation process shall or whole and the total restructuring of this system [12: 3]. should take place: eco-effiency vs. systems change. Although industrial ecology in theory comprehends Eco-efficiency means “doing more with less” (see for structural changes in the production function in society, instance [5,6]). Assuming that businesses will perceive the application in practice is often limited to recycling a growing pressure (from governments and other of waste streams (e.g. the well-known example of stakeholders), companies will be forced to change their Kalundborg in Denmark). Besides these incremental production step-by-step. Business will have to minimize changes in current production processes, a sustainable their inputs. Eco-efficiency therefore means : production also requires more fundamental innovations. These fundamental changes will often exceed the 앫 de-materialization; level of individual companies. Take for instance the car. 앫 maximizing the use of renewable inputs; In trying to reach for more sustainable transportation it 앫 minimization of the use of energy; is clear that car manufacturers are involved. But besides 앫 increasing the ability to recycle products. improving the efficiency of current car models (in terms of materials use and fuel consumption) future transpor- The eco-efficiency vision proclaims a step-by-step tation will also include other means of transport, such improvement out of the conviction that eventually this as high quality public transport. It is clear that besides will lead to sustainability. car manufacturers and their suppliers issues also arise Others point out that more efficiency will not be concerning the infrastructure, thus also involving public enough (see for instance [8,9]). Eco-efficiency makes the authorities and consumers. More fundamental changes current, destructive system less so. It slows down the in production processes and in product, in production rates of contamination and depletion, but does not stop and consumption, are therefore full parts of industrial these processes. Moreover, eco-efficiency does not transformation.2 pay attention to social dimensions of sustainability (for instance inter- and intra-generational equity). They ques- 2 For instance the Science Plan that is currently drafted on Industrial tion whether more efficiency in actual production struc- Transformation within the International Human Dimensions Program com- tures in the end will lead to a sustainable level of indus- prises three levels of analysis: the macro-level (material flows through trial production. This leads to a plea for more structural society), the production level, and the consumption level (IHDP-IT, 1999).  T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 217 McDonough and Braungart speak in this respect intensive [14: 1000]. In Hart’s model, pollution preven- about “the next industrial revolution”, a new way of tion can initiate a process of change that evolves from designing industrial production.3 Instead of becoming a more internally focussed pollution prevention strategy more efficient they argue for new designing principles, to external strategies with, for example, product such as “waste equals food” and “cradle-to-cradle”. responsibility and co-operation with stakeholders as core Building upon the same arguments as in industrial ecol- concepts. Co-operation with stakeholders can provide ogy, they distinguish between biological and technical starting points for more structural changes. Gray metabolism. Within the biological metabolism products points out that through collaboration actors can come to and materials have to break down under natural con- solutions that previously, from their own limited per- ditions. They are designed to return to the organic cycle spective, seemed impossible. Hartman et al. argue (“waste equals food”). Products composed of materials that more fundamental changes in production system that do not biodegrade should be designed as technical demand profound analysis of technological possibilities nutrients that circulate within closed-loop industrial and linkages between customers, suppliers and con- cycles (“cradle-to-cradle”). sumers along chains outside the company. Co-operation The perspectives of eco-efficiency and systems change will be indispensable for this type of change. shed different lights on the necessary process of trans- Empirical research on the actual processes of environ- formation. However, both perspectives acknowledge the mental change in companies also indicates the impor- need for efforts to start up this process of transformation, tance of pollution prevention as a first step towards a at every level of society and not least important in compa- more sustainability-based strategy. In an extensive nies. The concept of industrial ecology points at the fact analysis of the evolution of environmental management that material flows of different companies are to a great within a company Clarke describes how the attitude of extent interwoven. The transformation of industry there- a company towards environmental issues shifted from ad fore necessarily goes beyond the level of individual com- hoc policy and occasional measures through the intro- panies. Our article focuses on the question of what the duction of pollution prevention towards a system where contribution of pollution prevention projects is and can be the greening of the design process has become a core in initiating this process of change. element [18: 155–156]. In Clarke’s case study there is According to Hart pollution prevention will be a clear link between pollution prevention and initial steps an important step in a development path of companies in industrial transformation, such as greening the design towards a more sustainability-based strategy. An of processes and products. important premise is that pollution prevention, and the Although the discussion about industrial transformation knowledge and capacities it entails, forms a first step in still continues, we conclude that transforming industries a learning process of companies. A company needs to at least involves the minimization of waste streams and appropriate certain capabilities in order to develop a suc- the minimization of the use of materials including energy, cessful and competitive sustainability strategy. This spe- and besides incremental changes also requires more fun- cific knowledge and capacity can be acquired through damental innovations. These more fundamental inno- pollution prevention. It is important to note that this vations will not be limited to the production phase itself, implies the company specific translation of the general but also imply other ways of fulfilling societal needs. principles of pollution prevention. Lober views pol- Improvements can be initiated in individual companies lution prevention as a process of renewal. “Pollution pre- but will inevitably involve other partners. Broadening the vention forces the rethinking of the whole corporate scope from production processes towards improvements approach to material, energy, and water use and in products is, in full, part of industrial transformation. efficiency as well as to pollution control. By focusing on While it is clear that industrial transformation will require what enters and moves through the production processes, far-reaching changes, it is also clear that these changes managers can realign their thinking to make production will not come about in easy-to-handle, short-term pro- processes use less material and thereby have greater cesses of change. Starting up and continuing learning pro- yields while reducing their impact on the natural cesses will have to increase the long-term capacity for environment” [15: 29]. This process of learning implies change within companies. strong involvement of employees. The capacity for pol- The remainder of this article will focus on the role lution prevention increases as the concept becomes pollution prevention projects, as carried out in the embedded in larger numbers of employees. Therefore, Netherlands, play in this process. We will not only acquiring the capacities for pollution prevention is fore- evaluate the direct effects of pollution prevention pro- most a people intensive process rather than technology jects (in terms of measures and the decrease in environ- mental burden), but we will also look at to what extent these projects initiate learning processes within compa- 3 The next industrial revolution will in their perspective incorporate nies. Finally we will also analyze to what extent these three concerns: equity, economy and ecology (triple bottom line). projects bring about structural changes in production 218 T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 processes and products within companies and beyond the make use of an evaluation study of 11 projects carried boundaries of individual companies. out under the umbrella of the province of North-Holland with the participation of 182 companies. These pro- jects are referred to as “provincial projects”. 3. Varieties of pollution prevention projects The studies showed that different varieties of pollution prevention projects are in use. In this section we describe The Netherlands can be viewed as a front-runner when some of the differences. On the basis of an analysis of it comes to pollution prevention. As part of its environ- the 35 pollution prevention projects we can distinguish mental policy, prevention activities within companies between two main pollution prevention methods: have been stimulated throughout the last decade. Prov- inces have played the main role in the implementation 앫 Pollution prevention projects according to the of pollution prevention projects. Most provinces in the Prisma4-method; Netherlands have set up a special unit called “prevention 앫 Pollution prevention projects relying on a quickscan; team” within their organisational structure. These teams initiate and co-ordinate the pollution prevention projects and they often also provide the financial resources. The 3.1. Pollution prevention projects according to the Ministry of Environmental Affairs sets outs long term Prisma-method targets regarding the reduction of waste and emissions and the role of prevention in companies, and supports The first experiences with pollution prevention made projects by providing some financial resources. Other use of the so-called Prisma-method. This method was organisations involved in pollution prevention projects developed on the basis of a Prevention Manual of the include consultancy agencies or specialised research American Environmental Protection Agency. It con- institutes (such as research teams based at a university) sists of four steps, (1) planning and organization, (2) that often do the actual implementation of projects. They assessment, (3) feasibility study, and (4) implementation. assist companies and carry out some of the tasks needed, It essentially implies a comprehensive analysis of for example an analysis of material flows. Also, inter- material flows that leads to the generation and mediary organisations (e.g. trade associations) provide implementation of a number of prevention options. specific knowledge (such as knowledge on environmen- Most of the initial pollution prevention projects in the tal problems and possible solutions for a certain sector Netherlands made use of this method, sometimes in a of industry), assist in contacting companies and play a slightly moderated form. The implementation of these role in informing companies and others about the results project types requires active involvement of the partici- of projects. pating companies as they play a significant role in the This policy has resulted in projects that vary as to gathering of data, the analysis of material flows, and in their structure, methods used, implementation mode and the generation of prevention options. Thus, this pollution financial structure. In the projects that have been carried prevention method requires significant investments from out, different techniques are used, such as quickscans, companies and project agencies in terms of time and factsheets, Prisma, or the use of indicators. Besides this money. For example, the first two stages of planning and voluntary approach the legal authorities, often the organization and assessment typically took around 30 to municipality, have had the ability for a few years to 70 days from the company, and around 20 advisory days impose some elements of pollution prevention on com- from the researcher, in the first original Prisma project panies. Laggard companies can be forced to carry out a [22: 251]. In following projects based on these experi- quickscan and formulate a prevention plan to reduce ences, time was managed more efficiently with an aver- emissions. age of 20 days spent by companies for the whole project In two separate studies we have evaluated the set-up, (information from the national projects, [19: 78]). Sum- implementation, and effects of various pollution preven- marizing: Prisma requires a high level of involvement tion projects in the Netherlands. In this section we of companies, is a costly method and uses a thorough describe both the set-up and implementation of projects. and comprehensive analysis of the environmental situ- In the next section we will focus on the results of these ation. projects. We mainly use data from two different evalu- At the start of pollution prevention, government ation studies of pollution prevention projects. In the first agencies and companies (mainly in the larger category) place we refer to an evaluation study on commission of had the ability and willingness to make these invest- the Dutch Ministry of Environment. In this project we ments. Later on, the call for more efficiency and the tar- studied 24 projects carried out in different parts in the Netherlands with the participation of more than 1500 companies [2,19]. In this paper we refer to the projects 4 Prisma is a Dutch acronym for Project Industrial Successes with within this study as “national projects”. Secondly, we Pollution Prevention.  T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 219 geted introduction of pollution prevention in small and options and (2) long-term effects through the possible medium-sized companies (SME’s), with less investment follow-up of pollution prevention in companies. Infor- capacity associated to them, increased the need for mation on the results of pollution prevention projects is cheaper and less time consuming pollution prevention based on in depth studies of the impact of projects at methods. These new methods of pollution prevention are the company level. For 35 projects, a total of 65 compa- based on a quicker assessment of the opportunities for nies were interviewed to gather specific information on pollution prevention in companies and are less compre- the nature of generated and implemented prevention hensive than the original Prisma-method. options and the level of incorporation of pollution pre- vention in the companies. Some background data on the 3.2. Pollution prevention projects relying on a interviewed companies is provided in Table 1. To assess quickscan the implications of the use of quickscan methods the main comparison is made between the results of national The basic idea of the quickscan method is reflected in projects (mainly Prisma), and projects at the provincial its name: quickly scanning material flows of a company level (mainly quickscan). in order to assess the scope for pollution prevention. Companies participating in these projects have a rela- 4.1. Direct effects of pollution prevention projects tively passive role. In most cases data is gathered through a number of visits by prevention experts, com- Direct effects concern options and measures as well bined with data provided by the company. This leads to as the profundity of both categories. These results have a broad picture of both overall material flows and a gen- to be compared with the costs of the projects (in a broad eral idea of the most promising areas to focus a more sense). Among other things we looked at total costs of specific assessment of possible prevention options on. It a project and the level of the companies’ involvement. also can lead to a number of specific options that were Moreover we looked at the number of participating com- relatively easy to identify during the quickscan. It is then panies. expected that companies will further explore prevention Table 2 summarizes some of the outcomes. options on the basis of the quickscan, while they can First of all we recognize the trend towards cheaper already implement the (obvious) options that are already quickscan projects. During the first years of the nineties generated during the quickscan. The number of days most projects used the Prisma method. Follow up pro- invested in these projects is considerably lower than for jects had to become more efficient. Quickscans served Prisma projects: the number of days varies from 0.5 to that need. around 3 [20: 22]. While in most cases the scan is Furthermore the number of generated options and focused on the material flows in companies, this is often implemented measures varies between projects and accompanied by a focus on installed equipment in order between companies. The provincial projects score to assess the technical state of the art in the company. slightly lower than the national projects. Within provin- This is mostly applied in branches of industry where pro- cial projects the group with companies spending less duction techniques are quite similar and homogeneous. than three days in the project scores significantly lower Improvements are then partly customized by prescribing for both the number of generated and implemented state of the art techniques and/or equipment. options. Summarizing, quickscans are relatively cheap to Only a small number of the generated options are implement, require little involvement of the company actually implemented by the companies. The most itself, and are focused on mapping the potential for pol- important factor influencing this decision is cost. Options lution prevention. are only implemented when they have a relatively short On the basis of evaluation of various pollution preven- payback period. It is remarkable however, that after tion projects it is noticed that project methods have implementation of options most of the companies can shifted from the (extensive) Prisma method to, less time- not give details on effects of those measures, both fin- consuming, quickscan methods. In the next sections we ancially and environmentally. The general picture is that try to answer the question of what the implications of investments have been paid back through cost reduction this shift are for (1) the results in terms of the generated in two to five years. Measures also lead to a reduction and implemented options and their level of profundity in environmental impact through reductions in energy and (2) the follow-up of pollution prevention in partici- use, material use and waste and wastewater production. pating companies. Remarkably, also in this respect, our respondents could hardly ever provide precise figures. 4. Results of pollution prevention projects An analysis of the profundity of the measures (implemented options) taken by the companies shows We divide the results of the projects in companies in that in Prisma projects measures are generally more pro- (1) direct effects through implementation of prevention found. They sometimes imply changes of the production 220 T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 Table 1 Characteristics of interviewed companies, for national and provincial projects National projects Provincial projects Number of projects 24 11 Number of companies interviewed 45 20 Size of companies (%) Less than 50 employees 26% 55% Between 50–250 employees 52% 45% More than 250 employees 23% 0% Branches involved (number of companies) Construction (4)/Chemical (3)/ Construction (2)/Chemical (2)/ Printing (2)/Metal (6)/Textiles (1)/ Printing (1)/Metal (2)/Textiles (1)/ Food (5)/Health care (15)/Other (9) Food (6)/Health care (4)/Other (2) Table 2 4.2. Long term effects of pollution prevention projects Characteristics and results of pollution prevention projects Criterion (as average) National projects Provincial projects We have investigated whether the pollution preven- 1995 1998 tion projects have had a sustained impact on the behavior of companies. In the first instance, we have asked four Costs per project (Euros) 210 000 111 000 questions: Number of companies per 27 33 project 앫 To what extent has the project led to increased knowl- Method of prevention PRISMA mostly quickscan Companies’ involvement 20 7 edge of the firm regarding material flows?; in number of days 앫 Has there been a follow up of the project?; Options per company 23 15 앫 To what degree does the company make use of the Measures per company 7 5 concept or method of pollution prevention?; Type/depth of measures also fundamental mostly good 앫 Did the company generate and implement options measures housekeeping independently after the project? Both in national and provincial projects most companies process and organization of production. In projects indicate that a positive relationship exists between their dominated by the quickscan method most taken meas- knowledge of material flows and the pollution preven- ures can be described as good housekeeping measures. tion project. However, two thirds of the companies that An analysis of both national and provincial projects have invested less than three days in the pollution pre- shows that the amount of time invested by the companies vention project indicate that their knowledge in material in the projects is positively associated with the pro- flows has not increased. fundity of the generated and implemented options [19: For the majority of all companies in the projects there 94] and [20: 42]. Environmental success does not come has been a follow up after the project. This follow up “at a bargain”. Good results require commitment, time takes different forms: from independently and period- and money. This is illustrated in Table 3. ically generating options until further research about Table 3 shows that in terms of average cost the quick- material flows and waste streams. Only companies that scan projects are interesting. As we have seen, the results have invested less than three days indicate that there has of the projects lag behind Prisma projects. It is especially been no follow up after the project. hard to get to fundamental measures without making the Although some companies generate options indepen- investments in time and money. dently after the project, most companies indicate that no further use is made of the method used in the pollution prevention project. Table 3 For the provincial projects we have analyzed the level Average costs of pollution prevention projects and form of environmental management in participating Average costs (in Euros) National projects Provincial projects firms both before and after the project, and have esti- 1995 1998 mated the impact of the pollution prevention project in the case of a change in level of environmental manage- Costs per project 210 000 111 000 ment. Costs per companies 7776 3359 Costs per option 338 224 At the beginning of the project most companies had Costs per measure 1111 672 a positive attitude regarding the environment and were in the initial stage of implementing some form of  T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 221 environmental management, see Table 4. Also a signifi- ourselves what the contribution is of those projects to cant number of companies were active with regard to industrial transformation.5 environmental issues and had a partial or fully func- First we look at the capacity of pollution prevention tioning environmental management system. None of the projects to contribute to the minimization of in- companies participating in the projects are regarded as efficiencies. Pollution prevention has proven to be a defensive with regard to environmental issues, and it can valuable concept, because of its prime focus on material be concluded that pollution prevention projects generally flows (where the causes for environmental problems can do not reach companies that are laggards with regard be found) and the emphasis on minimization of environ- to the environment. We have also assessed the level of mental effects. Pollution prevention therefore can lead environmental management after the project, see Table to improvements in efficiency and reductions in waste 4. For around one third of the companies in the pollution and emissions. Most pollution prevention projects suc- prevention there was a change in the level of environ- ceed in realizing this for the participating companies. mental management as estimated before and after the Our analysis has also shown, however, that pollution pollution prevention project according to our respon- prevention does not necessarily lead to profound changes dents. Although the project surely has not been decisive or improvements in production processes. More compre- in all cases, in some cases the project has played an hensive types of pollution prevention projects have how- important role. However, for none of the companies ever resulted in fundamental innovations. Another which invested less than three days in the project a aspect, in which pollution prevention projects have pro- change in the level of environmental management can ven its value, has been in involving companies. Through be witnessed, while for a majority of the companies the set up of project teams for pollution prevention in which spent more than three days in the project this is companies and the organization of brainstorm sessions the case. with employees to generate ideas, pollution prevention projects have the potential to bring about change in the participating companies. This is the type of change in 5. From pollution prevention projects towards the management and organization that can lead to the sustainable development? incorporation of the method of pollution prevention in a companies’ strategy. Our results show, however, that In Section 2 we identified several aspects that are con- often less comprehensive pollution prevention projects nected with industrial transformation. We stated that do not initiate these types of changes. transforming industries involves the minimization of Second, we look at the scope of the projects. Here our waste streams and the minimization of the use of results are less positive. The focus in current projects is materials including energy, both in an incremental way, mainly on the production process itself of participating but also by means of more fundamental innovations companies. The attention also seems to be more on waste along the value chain. Industrial transformation therefore and emissions than on de-materialization. The transfer is not limited to the level of individual companies. of material from a waste stream to a product component Broadening the scope from production processes would be seen in many pollution prevention projects as towards improvements in products is also, in full, part a success. The product orientation therefore is clearly of industrial transformation. Finally we pointed to the undervalued in pollution prevention. Pollution preven- necessity of starting up and continuing learning pro- tion in current practice is also aiming at individual com- cesses to increase the long-term capacity for change panies instead of provoking cooperation [1: 104]. Where within companies. After assessing the direct and long- the concept of pollution prevention can also easily be term results of pollution prevention projects, we now ask applied, for instance in optimizing the joint performance of companies on an industrial estate, current projects do not focus upon these options. Third, can pollution prevention projects be regarded Table 4 as a first step in an ongoing learning process? According Environmental management in companies, before and after the pol- to Hart’s model that we discussed in Section 2, pollution lution prevention project prevention can be an important step in a development Level of environmental management Percentage of companies path of companies towards a more sustainability-based strategy. A company needs to appropriate certain capa- Before project in 1998 5 Defensive – – It is important to notice that here, similar to the other sections of Beginner/positive 60 40 this article, we evaluate the performance of the setting in which the Active 35 40 concept of pollution prevention is implemented in the Netherlands and Pro-active 5 20 other countries. The focus therefore is on the evaluation of pollution prevention projects as described in Section 3. 222 T.J.N.M. de Bruijn, P.S. Hofman / Journal of Cleaner Production 8 (2000) 215–223 bilities in order to develop a successful and competitive invest more time in the pollution prevention project the sustainability strategy. This specific knowledge and generated options are more tailored to the specific com- capacity can be acquired through pollution prevention. pany and likely to be more profound. The number of In many of our cases the pollution prevention project implemented options in companies is also higher in these only leads to a limited kind of grounding of the continu- projects. Apart from generating options within the pro- ous process of pollution prevention. For the majority of ject, it is important to what extent the project has a fol- companies the pollution prevention project is a one time low up within and outside the company. With respect to experience directed to the generation and implemen- this, we have found a positive correlation between the tation of options, but only limited learning effects have amount of time invested in the pollution prevention pro- been created with regard to the concept of pollution pre- ject by the company and the degree of integration and vention. Therefore, not much has changed in most com- continuation of pollution prevention afterwards. panies with regard to environmental management and A comprehensive, Prisma-like approach may therefore organization. Companies may stay busy with the devel- seem favorable. But this is too easy a conclusion. Of opment and implementation of new options, but this does course, investing more time and money is likely to lead not imply changes within the organization. It is a limited to better results. But the downside is that it has proved process of change and not the start of an on-going learn- to be difficult to engage especially smaller companies in ing process. more comprehensive projects. After all, participation in In short, current pollution prevention practices can pollution prevention projects using quick-scans has also lead to both incremental and fundamental cuts in waste shifted from larger companies to SMEs. streams and emissions. More attention is needed for the Furthermore, we can make some more comments use of materials as such and for impacts along the pro- about the kind of participants in pollution prevention duct chain. And the fact that pollution prevention often projects. For both types of projects it appears that the is a one-time experience and companies’ witness limited participating companies are certainly not among strag- continuation of pollution prevention is a worry and limits glers with regard to environmental issues, and in some the contribution of pollution prevention projects to cases they are front-runners regarding environmental industrial transformation. issues in their specific branches. It proves to be difficult to engage those companies (stragglers) where the poten- tial for pollution prevention might be the highest. 6. Conclusions The main problem that we have identified exists in the continuation of pollution prevention after a project In this article we have taken a close look at the way (initiated from outside the company) ends. Our research in which pollution prevention has performed in the last indicates that in order to move beyond the one time decade. We have described the various formats in which impact of a pollution prevention project, and for compa- pollution prevention is promoted towards companies. nies to use pollution prevention as a concept for environ- We have also described the results of these formats at the mental management and organization, it is necessary to company level. This enables us to evaluate the different go through a learning process. Most projects, especially project formats. We weigh the different formats to deter- those using quickscans, do not sufficiently initiate this mine which form