An Integrated Approach Towards Sustainable Development

Abstract

Abstract Traditionally, industry has approached economics and resources from an esoteric, pragmatic point of view, defining "economics" in terms of profit, and "resources" as the elements required to produce that profit. Environmental regulation was once considered to be a bureaucratic fiscal annoyance, and some companies avoided expenditure on environmental issues to protect their "bottom line." Currently, the scope of environmental planning of most companies is limited to minimal compliance with environmental protection regulations. In the future, energy producers that successfully integrate economic, social, and environmental factors into their planning and management will probably dominate their business sector. World socio-economic factors, public opinion, and wellresearched predictions of future human welfare have made resolution of environmental issues an integral part of corporate decisionmaking. The recent Kyoto agreement, although viewed by many as unrealistic, is indicative of the future challenges and opportunities for which the energy sector must prepare. Industry associations and progressive companies have realized that a proactive, and even an interactive, approach to environmental decision making can translate into a competitive edge in the market place. The economy and the environment are like twins conjoined at the heart. Corporate economic and public policies, and the development of new petroleum technologies, must therefore not only address, but embrace environmental conservation and protection issues. While a comprehensive analysis of these issues is not practical within the space of a single article, a few concepts are presented herein outlining how a more holistic and integrated view of industry, profit-making, society and the environment can contribute to sustainable development. The Brundtland Commission defined sustainability as "meeting the needs of the present without compromising the ability of future generations to meet their own needs." They concluded unanimously that our common future depends on more sustainable forms of development. To this end, prudent and well-informed energy producers are increasingly devoting effort and budget to going beyond mere regulatory compliance and investing in comprehensive environmental impact assessments and risk management. Some companies have been concerned that working towards sustainability might prevent them from being competitive in the present world market. While government subsidies may help offset some of the costs involved in developing sustainability, it represents a short-term answer, based on false economics. In general, however, cost-benefit analyses of sustainable developments improve when the long-term perspective, involving perhaps decades, is considered. Exploitation of Renewable Resources The exploitation of renewable resources and its incorporation into the business plan of a company is an investment in sustainability. In a 1997 news release, the World Resources Institute(1) shared the findings of a joint American, German, Dutch and Japanese investigation into all four economies and their use of natural resources. The study noted that we tend to measure consumption in dollars, rather than in natural resources. It concluded that world industry has depended on dwindling non-renewable energy sources for so long, that they may be exhausted within our children's lifetime. While this statement may be somewhat alarmist and debatable, the urgency of developing renewable sources of energy is nevertheless evident.