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Business Case
Doing good for the environment is not just driven by moral considerations. It simply makes good business sense as well. The ability to integrate the principles of Sustainable Development might very well become a determining factor in the long-term survival of companies.
In 2002, we revisited the business case for meeting the EH&S 2005 goals that we had established, based on recent performance and expectations for future performance, costs and benefits.
For our Resource Productivity Improvement goals (Energy, Waste, Wastewater, Overall Chemical Emissions, Priority Compounds, and Dioxins), we estimate that we will ultimately spend close to $1 billion and achieve overall value of $3-5 billion, largely dependent on the volatile price of energy and feedstocks.
Achieving significant improvements in overall energy use is especially important in the current environment of rapidly increasing feedstock and energy costs.
We also assessed the cost/benefit of achieving our EH&S 2005 Incidents goals (Process Safety, Personal Safety, Loss of Primary Containment, and Transportation). We estimate a total cost of $95 million, and an overall value of $130 million. The value was determined using a methodology adapted from the Total Cost Assessment methodology developed by the Center for Waste Reduction Technologies, a working group of the American Institute of Chemical Engineers.
The world is rapidly changing. Scarcity of resources, continuing population growth, and the influence of human activity on the future of the world are causes for concern. Society, which ultimately holds our license to operate and grow, expects industry to play its part in the resolution of these issues. In return, companies that take on this challenge can look forward to a better relationship with community neighbors, a boost in employee motivation, increased customer loyalty, reduced costs and liabilities, and a better corporate reputation – all of which have a direct or indirect influence on a company’s financial results.
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