Sustainable Production

Motivation for Sustainable Production

Environmental, economic, and social concerns have catalyzed the development of methods, tools, and techniques for sustainable production. Industry-related environmental disasters, such as the deaths from the release of methyl isocyanate gas in Bhopal, India (1984), and the widespread publicity of the hole in the stratospheric ozone layer in the 1980s caused by ozone-depleting chemicals (e.g., chlorofluorocarbons, or CFCs) have spurred public outcry for better regulation of production practices and emissions. In response, international, regional, and national legislation has been enacted. The Montreal Protocol on Substances That Deplete the Ozone Layer (1987), adopted by many nations, bans the production and use of ozone-depleting chemicals. The 2002 European Union Waste Electrical and Electronic Equipment (WEEE) and the 2003 Restriction of Hazardous Substances (RoHS) directives place responsibility on producers to take actions that reduce environmental impacts. The 1990 U.S. Clean Air Act requires the U.S. Environmental Protection Agency to enforce limits on emissions from production facilities.

Additionally, the economic and social consequences of globalization have created a need for sustainable production. Increases in global competition have prompted the production of goods to move from industrialized to developing nations to avail of the benefits of lower labor costs and less regulation. This shift in industrial activities has changed global patterns of employment and production, with concerns raised about environmental impacts, labor practices, and worker health and safety. These concerns have inspired the development of economies and societies to improve quality of life. This inspiration evolved into the holistic concept of sustainable development.

Toward this aim, sustainability-oriented approaches have been adopted to reduce costs and improve manufacturing productivity and efficiency. The goal is to maintain manufacturing competitiveness while reducing the environmental impacts of production. Such approaches include cleaner production, pollution prevention, and just-in-time, lean, and environmentally responsible manufacturing. Adoption of these approaches by companies starts the institutionalization of sustainable production goals and practices.

Industry has sought to expand transparency and accountability for financial, social, and environmental policies and practices through the [Page 2764]adoption of standards and through communication about performance to stakeholders via sustainability reporting and product labeling. The International Organization for Standardization (ISO) established environmental standards in 1996 (ISO 14000) to complement the existent quality standards of ISO 9000 (1987). The Global Reporting Initiative guidelines (1997) established a systematic way for companies to report sustainability performance that is audited and scored for transparency and credibility. The Social Accountability International (SAI) SA8000 standard (1997) measures corporate performance in protecting workers’ rights. AccountAbility's A1000 standards (1999) report on corporate social and ethical performance. Many companies communicate environmental and social responsibility through product labeling about environmental, fair trade, and child labor-free practices.

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