Case study 1

Can Resource Management Boards Help Co-Manage Watersheds in Northern Manitoba More
Effectively?

Watershed ecosystems are crucial to human well-being, animals and the environment, as

they provide environmental benefits such as clean water, aquatic habitat and regulating
temperatures, as well as cultural and spiritual benefits.

When it comes to watershed ecosystems in northern Manitoba, IISD has identified the need for
coordinated strategic large-area planning to ensure that the benefits derived from these
ecosystems are maintained.

In this blog, Amanda Appasamy, a first-year master’s student at the University of Winnipeg and
a summer intern here at IISD, explores the potential role of Resource Management Boards
(RMBs) in the co-management of watershed ecosystems in northern Manitoba. She also looks
more broadly at the use of Indigenous traditional knowledge in planning and decision making
with the goal of maintaining long-term sustainability.

WHAT ARE RESOURCE MANAGEMENT BOARDS?

RMBs were established to co-manage natural resources in Resource Management Areas

(RMAs), which refers to an area of traditional use. There are 10 existing RMBs and two
proposed ones in northern Manitoba. Each RMA has a board that is represented by about 8–10
people, with half of the members appointed by the province and the other half by the Indigenous
community. Indigenous and Municipal Relations (IMR) serves as the provincial lead in the
management and implementation of the RMBs.

WHAT DO RMBS DO?

Each RMB is mandated to develop and implement land use and resource management plans. The
focus and priorities of each RMB are unique and vary depending on the area, economy and
geographic location. Some of the RMB priorities in 2015 included co-management of:

 Resource and land use planning

 Water management
 Commercial and domestic harvesting activities
 Mineral development activities
 Wildlife and forestry management
HOW COULD RMBS HELP US CO-MANAGE LARGE AREA PLANNING IN
NORTHERN MANITOBA?

The RMBs could play an important role in large area planning, based on their structure and
mandate. While IMR is focusing on relationship building by respecting community leadership,
consultation and communication, there are however, a myriad of factors that contribute to the
challenges that RMBs face in resource management planning. For instance, some communities
tend to have more pressing issues than planning, such as housing, forest fires and floods,
among others. Moreover, leadership change is another issue, as elections every two years result
in new board members, which poses problems for long-term planning.

According to David Hicks, the director at IMR, the organization is playing an important role in
recognizing and incorporating Indigenous traditional knowledge in planning. However, this
information is not available to the public at this time. Each community is unique in terms of their
customs, traditions, rights, language and lifestyle. Hence, issues such as language barriers, trans-
jurisdictional components, settlement agreements, sovereignty and land title claims often arise.

Some recommendations for improving resource use planning proposed by the IMR would be to
first focus on relationship building and effective communication, and to involve, accommodate
and ensure that there is mutual understanding of the planning process by each community.
Having a full commitment from the Government of Canada to the agreements could help in
terms of funding. Finally, more efforts will be required to establish a stronger link between
regional planning and the specific priorities of the communities.

WHAT DOES THE FUTURE HOLD?

Exploring the role of RMBs helps us understand trans-jurisdictional challenges and

socioeconomic issues faced by northern Indigenous communities and their lack of trust in the
government due to the legacy of colonization. Even so, it is encouraging to learn that the IMR is
actively working on a path towards reconciliation by building relationships and valuing
community leaderships.
Amanda Appasamy is a first-year student in the Masters of Development Practice program
(MDP) – Indigenous Development at the University of Winnipeg. The program aims to create
learning experiences from the crucial contributions and innovations of Indigenous peoples in the
practice of sustainable development since time immemorial, providing students with hands-on
skills to promote reconciliation and to create just and inclusive societies. There are 28 MDP
programs in the world and the MDP at the University of Winnipeg is the only one guided by
Indigenous principles, rights, knowledge and experience as well as disciplines in economic,
environmental, social sciences, health and management. 

Case study 2

Kingfisher

Kingfisher is Europe's largest home improvement retailer, with 1,300 stores and 9,000
employees in 16 countries. Its operating companies include BCC (The Netherlands), Promarkt
(Germany), Vanden Borre (Belgium), Darty (France), Comet (UK), B&Q (UK), Koçtas (Turkey)
and Réno-Dépôt (Canada).

In 2001 the group achieved a turnover of £12.1 billion ($17.5 billion) and a pre-tax profit of
£606 million ($878 million).

At the end of 2001, Kingfisher unveiled a group-wide initiative to monitor, improve and report
on corporate social responsibility issues at the level of individual companies.

The group has identified six ways in which it believes CSR can help its business:
1. Being ready for the future: identifying and managing issues which have the potential to
affect the bottom line, either positively or negatively;
2. Respect for people: making Kingfisher companies attractive places to work, and thereby
retaining skilled staff;
3. Stores that communities welcome: maximizing customer loyalty and improving morale
among the workforce;
4. Product innovation: identifying 'green' products that consumers will want to buy;
5. Saving costs: recognizing that many CSR initiatives are largely good housekeeping, such
as reducing waste and retaining staff more effectively;
6. Brand: using innovation and excellence within individual operating companies to
enhance the reputation of the group as a whole.

Kingfisher has devised a 'ladder' model to simplify the assessment of CSR within operating
companies. The ladder has four rungs. The bottom rung is 'Managing the risk', and the next rung
up is 'Managing the issues', followed by 'Creating an opportunity' and finally 'Leadership' at the
top. Company managers will have to decide where their businesses currently stand on each of 12
separate 'ladders', each representing a key issue such as waste, climate change or community
relations (see below). They are also asked to identify where they would like eventually to be on
the ladder, and to propose a realistic timescale.
These action plans are due for completion by the end of April 2002, and a group-wide CSR
report will be published in the spring of 2003.

The CSR initiative will be co-ordinated by a nine-person 'social responsibility committee', which
now includes include six members of the main board of directors as well as Kingfisher's head of
social responsibility, Dr Alan Knight. A' social responsibility team', working closely with the
committee, will provide coaching and advice to managers within individual operating
companies, and will also be responsible for reporting progress both internally and to the outside
world.

One of the challenges for Kingfisher is to develop a strategy that is flexible enough to
accommodate the differences between individual businesses yet strong enough to reflect a
common vision.

Kingfisher's definition of social responsibility entails 'making sure that in helping our customers
improve their quality of life we do not destroy someone else's'. It adds: 'That might mean
improving the working conditions in the factories that make the products we sell, using
renewable energy sources, or making sure our equal opportunities policies are robust.'

Group chief executive Sir Geoff Mulcahy says several of Kingfisher's subsidiaries have been
active in CSR for some years already, particularly in terms of environmental stewardship. 'We
believe it is now time to co-ordinate these activities more rigorously, at group level.'

The 12 key issues identified by Kingfisher

 The way we treat all our people is becoming more important than ever
 Every product will soon be telling a story - and they will all need to be good
 Communities will reject businesses who are not good neighoburs
 Our suppliers need to be cleaner and greener too
 We are selling more wood, but it is becoming harder to find
 Chemicals are causing increasing concern and controversy
 We need to plan what happens when our customers want to dispose of the products they
bought from us
 Packaging waste will become a bigger financial waste
 We will be judged by the way the people who make our products are treated
 Moving more stock is good - more traffic congestion is bad
 Climate change equals changes to homes - appliances will change too
 When we throw rubbish away it takes our profits with it

Case study 3

BOVINCE

Since it became established in the early 1990s, environmental reporting has tended to be the
preserve of large corporations and multinationals. In this respect Bovince Limited is unusual.
The screen process and digital printing company, based in the UK, is a family-owned business
which employs no more than around 60 people.
Bovince specializes in the printing of large-format advertising posters, as well as advertising
panels for buses and bus shelters. The company's site in London is regulated by the local
borough council under the terms of the Environmental Protection Act 1990.

By the company's own admission, its activities have a potentially heavy impact on the
environment, and more so than other types of printing process. The operation uses large amounts
of energy, materials and solvents, and as a by-product it creates both solid wastes and discharges
to water.

Environmental reporting at Bovince began in 1995, the same year that the company gained the
BS 7750 environmental standard. In the following year it was accredited under the European
Eco-Management and Auditing System (EMAS), and in January 1997 Bovince was awarded ISO
14001 certification.

In both 2000 and 2001, Bovince was named winner of the Association of Chartered Certified
Accountants (ACCA) environmental reporting award in the small and medium-sized enterprises
(SMEs) category. In common with many other corporate reporters, Bovince had by then
broadened the scope of its corporate reports to cover social aspects as well as environmental.

A central theme in Bovince's reports is what the company terms the 'Bovince Tree of
Sustainability'. This has nine 'branches', each representing a particular aspect of the company's
commitment to sustainable development. They are waste production, airborne emissions,
effluent, energy consumption, 'cyclic processes', transport impacts, 'people and learning',
'business and society', and 'sustainable growth'.

These nine categories provide the basis for measuring sustainability within the company.
According to Derek Hall, Bovince's works, quality and environmental manager, they will
continue to be used in future annual reports, albeit in a format that more closely mirrors the
guidelines set out by the Global Reporting Initiative.

Bovince is firmly wedded to the notion that sustainability can go hand-in-hand with improved
commercial performance - the well known 'triple bottom line' of environmental protection, social
responsibility and financial prosperity.

'All of these things cross over,' argues Hall. 'Environmental and social considerations are an
integral part of our business; we don't just latch them on. Once you get that idea into your head,
it works well.'

Corporate reporting gives Bovince 'a standard to work to', he says.

Within the framework of Bovince's Tree of Sustainability, a number of specific actions have
been taken in recent years to reduce the company's environmental impact. Efforts to minimize
the use of solvents have included investing in an automatic screen washer which uses solvent
more efficiently than the manual process it replaced. Similarly, the introduction of distillation
equipment means that more efficient use can now be made of solvents.
A new cyclic process has meanwhile been introduced for developing and fixing images onto the
printing stencils - allowing the developer and fixer to be re-used.

The introduction of 'direct to screen' projection has enabled Bovince to eliminate several stages
from its production process, reducing both the amount of photographic material used and the
discharge of waste chemicals such as silver nitrate.

In 1999, Bovince took a further step to reduce its emissions of volatile organic compounds
(VOCs) by introducing water-based ink. Another, more straightforward measure has been to
encourage staff to replace lids on ink tins after use. This has obvious health and safety benefits,
too.

On the back of these and other initiatives, Bovince has been recognized as a 'best practice site'
for solvent control under the British government's Environmental Technology Best Practice
Programme.

To reduce its waste levels, Bovince sends as much of its waste paper as possible for re-use in
school art and craft projects. Empty tins are sent for granulation, while used films are sent for
solvent recovery.

Environmental and social standards are extended to the 250 or so companies that supply Bovince
with resources and services. Compliance with a set of standards is continually checked. In 1999,
Bovince set up an annual 'Award for Excellence' to reward outstanding performance among its
suppliers.

The Bovince sustainability report pays more than lip service to social responsibility. It sets out
staff training policies under the heading 'educational sustainability', and puts on record that the
company recently secured 'Investor in People' status for its commitment to staff development.

Outside the organization, the report lists several community projects to which Bovince donates
time and resources. For example, the company is located in an area of high unemployment, and
offers work experience to local school pupils. In addition, in 1999 the company signed up to the
East London Partnership - a privately-funded institute promoting regeneration in some of
London's most deprived boroughs.

A key section of the Bovince report, as with any corporate responsibility report, is the table of
future goals, to be achieved by December 2002. These include the installation of a water
distillation plant to reduce wastewater arisings, a 60% cut in solvent use compared with 1996,
and a feasibility study into developing combined heat and power (CHP) at the site.

Case study 4

Placer Dome

As a mining company, Placer Dome is in the business of non-renewable resources. This industry

sector has received less emphasis than, say, manufacturing, transportation, power generation,
urban development and the use of renewable resources. However, the challenge of maintaining
both human and ecosystem well-being, which lies at the heart of the sustainability concept, is
just as urgent for Placer Dome as for these others.

The Placer Dome Group is one of the world's largest gold producers, with reserves of 32.4
million oz of gold. Fourteen mines are in operation in five countries - Australia (three), Papua
New Guinea (two), Canada (four), the USA (three), and Chile (two). Exploration is ongoing in
half dozen other countries.

Placer Dome Inc. (PDI) is a publicly owned company with common shares traded on the New
York, Toronto, Montreal, Sydney, Paris and Swiss stock exchanges. The company's principal
goal is to be consistently among the top companies in the world's gold industry, in terms of total
shareholder return.

The concept of sustainability has much in common with existing corporate values, such as:

 People - developing skills and rewarding achievement;

 Community - living the principles of environmental responsibility;
 Culture - creating an action-oriented, entrepreneurial outlook;
 Principles - acting with integrity, honesty, fairness and respect.

Recent years have brought major changes for PDI. Production of gold has increased by 65%,
while costs have been driven down by 20%. Meanwhile the management structure has evolved
from a centralized to a decentralized organization. Mines are now considered business units,
while mine managers are empowered as 'franchise owners' and the head office plays a cohesive
supporting role.

Development and acquisitions during 1999 saw the number of employees double to 15,000. In
this climate of major change, continuous improvement has become a cornerstone of corporate
policy.

In February 1998, the board of directors approved a new 'sustainability policy'. This, along with
the 'corporate strategic performance objectives' and a human resource policy aimed at re-
vitalizing corporate culture, is the main policy instrument now driving the corporation.

A key component of the sustainability policy is a commitment to establish performance measures

and credible verification of the company's performance. In April 1999, just over a year after the
release of the sustainability policy, Placer Dome's first sustainability report, 'It's About Our
Future', was published. This case study reviews the development of this report, and draws out the
lessons learned.

A key lesson from the development of the sustainability policy and the compilation of It's About
our Future is that in the end, all the clever ideas for problem solving, data management and
indicators will come to nothing if individuals are not personally engaged in the process.

Assessing progress towards sustainability

There are four objectives underpinning It's About our Future:

1. To advance Placer Dome's own understanding of the concept of sustainability;

2. To inspire improvements in the performance of Placer Dome employees;

3. To provide a baseline for tracking future improvements;

4. To provide information for communities surrounding Placer Dome operations, whose

concerns are a major focus of sustainability strategies.

The report is aimed at Placer Dome employees, local communities, government departments, and
non-governmental organizations. Though it has not been independently verified, third-party
verification is planned for future reports.

Annual reports outlining progress towards sustainability are planned.

The process of developing the report began with a workshop involving representatives from
corporate head office and all the regional offices, as well as external advisors. An outcome of the
workshop was a draft report structure, including a draft list of 'desirable' indicators.

Contributions were then solicited from dozens of individuals located at all PDI's mines, regional
offices and exploration projects, as well as from the corporate head office. A writing team
compiled an initial draft, which subsequently underwent three cycles of review and revision.

The table below sets out the report structure and the major topics addressed.

Report section Major topics addressed Indicator sets

1. Sustainability and Our Future
2. Economics
 Policy framework:
sustainability policy,
strategic performance
objectives, code of business
conduct, programme to
rejuvenate corporate culture
 Accountability:
sustainability corporate
governance
 Global sustainability
challenges
 Future directions:
commitments on priority
issues
 Profitability and strategic  Financial highlights
business plan, lowering  Operating costs
costs, research, growth,  Gold reserves
exploration and acquisitions  Contribution to the local,
to ensure 10 years of regional, national and
reserves international economies

3. We are Placer Dome: Employees
4. Vibrant Communities
5. Placer Dome in Nature
 Economic benefits: wages,
local hire, training,
infrastructure, local
purchase, taxes and royalties
 Core values: ethics,  Number of employees and
learning, trust, teamwork contractors
 Openness, recruitment,  Safety statistics: injuries
recognizing exceptional  Safety awards
employees, employee
development and training,
tenure, youth employment,
working safely
 Traditional community
benefits, changing
expectations
 Communication and
consultation
 Respecting cultures
 Building relationships with
communities
 Case studies: native
employment at Donlin
Creek (Alaska), community
relations at Las Cristinas
(Venezuela), public health
at Misima (Papua New
Guinea), exploration exit at
Tiawa (Niger), mine
closures (various)
 Tailings spill at Marcopper
(Philippines): river system
rehabilitation, compensation
payments, sustainable
development projects,
lessons learned
 Variations in conditions  Temperature range and
faced across the Placer precipitation by mine
Dome system, uniqueness of  Issues by mine
each site  Water use by mine
 Broadening the Placer  Acid rock drainage and
Dome perspective: taking a metal leaching potential by
longer view, factoring property
implications for people and  Cyanide use by mine
ecosystems throughout the  Cyanide discharge by mine
full mining life cycle  Land reclaimed by mine
 Issue identification and  Recycling programs by
management mine
 Sustainability priority:  Audits and reviews, 1996-
surface and groundwater 98
quality  Environmental incidents by
 1998 water use, water mine
conservation at Osborne  Placer Dome Group
Mine

6. Property profiles
Lessons learnt from report sections
1. Sustainability and Our Future
Developing It's About Our Future sparked an internal discussion about the best choice of
objectives, targets and timescales. Many issues were identified for which no objectives and
targets had been defined. Reaching company-wide consensus was not possible within the time
available.
 Sustainability priority: acid environmental costs and by
rock drainage and metal mine
leaching  Environmental awards
 Sustainability priority:
tailing management
 Sustainability priority:
cyanide management
 Improving cyanide
management at Golden
Sunlight
 Submarine and riverine
discharge: Misima and
Porgera
 Sustainability priority:
closure, the Equity Silver
Model, planning for closure,
costs of closure
 Recycling
 Environmental
Management, Risk
Assessment and
Management
 Performance measurement:
continuous improvement
through audits and reviews,
data management,
laboratory quality assurance
and control
 Reaching for efficiencies
 Incidents, learning from
accidents and non-
compliance
 Environmental costs and
awards
 Site overview
 Sustainability objectives
 People (employees),
community, economy,
nature
Nevertheless, there is increasing demand for measurable objectives and targets from outside the
corporation, and they are a key element of formal environmental management systems. Those
that were finally chosen represent a balance between:

 Responding to commitments in the sustainability policy;

 Addressing priority issues;
 Having adequate resources and capacity to deliver;
 Managing expectations both inside and outside the company;
 Creating a foundation upon which to build through the next reporting cycle.

Striking the right balance between saying enough and saying too much - going beyond what the
company was justified in saying - was a difficult challenge.

The relationship between the company's strategic objectives, the sustainability policy, the
business code of conduct, and the various human resource development programmes is not
rigorously defined but began to take shape during this report writing process as a side benefit.
Much more needs to be done to link these policies and initiatives

Senior management support has been strong, and will remain essential for successful
implementation of the company's sustainability policy.

2. Economics

While the internal strategic objectives (covering exploration costs, capital spending in existing
and new mines, administrative costs and operating costs) are crystal clear, the economic
implications of the environmental and human side are more obscure. Work is required to clarify
these links, because economic implications remain a driving force behind implementation of the
sustainability policy.

The economic implications of company activities in the community are understood in gross
terms (typically calculated as direct and indirect benefits or costs), but many 'softer' implications
further downstream are hard to quantify.

3. We are Placer Dome: Employees

Obtaining a clear picture of personnel practices across the Placer Dome system for It's About
Our Future was a significant challenge, Significant variations in human resource policies exist
across the group. Mine operations have been given responsibility for these policies, and the
corporate head office does not dictate what they should do.

Work on the sustainability report highlighted the need for a centralized information system that
compiles all the operation-by-operation human resource policies and actions in an accessible
format.

Engaging all employees personally in discharging the many commitments contained in the
sustainability policy is a major challenge. There is a direct link here not only to education and
training programmes, but more importantly to the system of personal goals and objectives,
performance evaluation, recognition, and reward. This critical topic area is in an early stage of
review and development.

4. Vibrant Communities

There are few resources available within the company to address community issues, relative to
the technical, financial, and environmental side. Implementation of a centralized information
system (like the well-developed financial reporting system and the just emerging environmental
information system), charged with compiling community-related data, is only just beginning.

Placer Dome is early on the learning curve in developing new ways of engaging with
communities. The company commitment to open, collaborative, and consensus-seeking
processes is new, and skills are still being developed.

The experience of the Marcopper spill has had an enormous impact on the company. It stands as
an example of how not to do something. However, follow-up and open reporting have turned a
negative experience into a positive learning experience for company and community alike.

5. Placer Dome in Nature

Because individual mines hold responsibility for monitoring environmental issues, data are not
held in a consistent format across the group. This makes compilation of system-wide indicators
extremely difficult. Placer Dome's environmental information system using EQWin
(Environmental Quality for Windows) is still at an early stage of development.

At some locations for some issues, time-series data are available. However, compilation of
system-wide aggregations proved to be a significant due to data deficiencies, differences in the
level of detail, quality assurance concerns, and variations in context from one site to the next.

Lessons learned: generic issues

The idea of bringing together the wide range of topics contained in the first sustainability report
is without precedent for Placer Dome. There are wide variations in (i) how these topics are
treated; (ii) the cultures of the people working in these different areas of company activity; and
(iii) the nature of the available data across the company.

With these differences, it is difficult at this stage to produce a balanced assessment of progress
toward sustainability. At the same time, the exercise has proven powerful in bringing ideas and
people together

In dealing with performance measurement in a system as complex as Placer Dome's, capturing

variations in local conditions without getting bogged down in detail is a real challenge. Yet at the
same time, it is the local picture that many readers will be interested in, and that is why the
location-specific overviews have been included.
The process of choosing key indicators began with a workshop involving personnel from all
regions, as well as outside advisers. There was little controversy about most of the key
indicators. The main challenge continues to be developing a database that can provide high-
quality data from all operations in a compatible format.

Because of data deficiencies, the indicators in the report are a shorter list than those originally
proposed. Either the desired information did not exist, or there were quality problems.

There are significant data limitations within the company. It is costly to develop databases, so the
issue will need to be addressed incrementally with the most important dealt with first.

For this report, priorities were based on an assessment of what data was available together with
the importance of the issue. It was recognized that the system was evolving, and that more would
be possible next time.\

Some thought was also given to the need to phase the reporting process.

There is some debate about the best units to use in reporting sustainability performance. For
example, should indicators be expressed relative to each ounce of gold produced (which puts
emphasis on high-grading), or per tonne of ore processed (which puts the emphasis on
throughput)? There may not be a simple answer to this question.

Internal company information systems are at varying stages of design and implementation.

Economic information systems internal to the company are well developed. Economic
information external to the company is well known in terms of direct implications, but more
patchy in terms of some of the more indirect aspects not currently addressed.

Staffing information is well documented, particularly in terms of health and safety records.
However, other aspects of employee wellbeing are not so well tracked.

In terms of community relations, there is little systematic treatment of data and information yet.
On environmental issues, formal information systems are beginning to be implemented.

The possibility of aggregating many indicators into an overall index of progress was not
considered a viable proposition. Similarly, the issue of attribution - that is, how to untangle
Placer Dome's contribution to social and environmental conditions when many others are
contributing simultaneously - was not a significant concern.

Lessons learnt: process issues

1. Process issues internal to Placer Dome

The link between the company's sustainability policy and the the sustainability review captured
in It's About Our Future proved to be challenging. The project team recognized that it was
important, and yet difficult, to capture the local context of the company's relationship with
employees and the community.

The individual operations have tended to follow their own common sense, and developed their
own systems to address technical, environmental and social concerns. The language used to
describe these systems varies across the company, and often does not match the 'academic'
literature.

Furthermore, there is sensitivity on the part of local managers about their control over decision-
making, and about how that is captured in a company-wide report.

The development of the report served as a mechanism to introduce a number of new ideas across
the company. The report itself has been widely distributed, and it remains to be seen what
reaction it will generate.

The experience served to highlight the difficulty of introducing new ideas, particularly at a time
when resource limitations are increasing and commodity prices are depressed. Nevertheless,
addressing many of the environmental and human issues contained in the report has the potential
to contribute significant dollar savings.

2. Process issues external to Placer Dome

The report tried to recognize success whenever it was identified. However, this approach runs the
risk of making the company look as though it is 'blowing its own horn'.

It remains to be seen how the report can be used to facilitate closer relationships with
stakeholders, namely shareholders and investors, employees and their families, subcontractors,
suppliers and the local community.

Case study 5

TransAlta Corporation

TransAlta is Canada's largest non-regulated power generator, with operations in Canada, the
USA, Australia and Mexico. Based in Alberta, its core business is burning coal to generate
electricity. Not surprisingly, this makes it Canada's second-largest single producer of carbon
dioxide (CO2) emissions. It contributes around six percent of Canada's total greenhouse gas
emissions.

In 2001, TransAlta owned 9,000 megawatts of generating capacity, and $7 billion worth of
assets. The group recorded annual earnings of $170 million.

In March 2000, TransAlta announced an ambitious plan to cut CO2 emissions from its Canadian
plants - which represent the largest slice of its operations - to zero. However, the route it will
take to achieve this impressive target owes as much to accounting as it does to technological
innovation.
'We can reduce our net emissions to zero by using the flexibility mechanisms of the Kyoto
Protocol,' explains Dr Bob Page, TransAlta's vice president of sustainable development. 'This is a
groundbreaking proposal.'

Part of the company's plan, which has a target year of 2024, envisages a shift to renewable
energy. This will displace some of the older coal-burning capacity currently in place. In addition,
clean-burn techniques - such as burning coal in oxygen instead of air - could help to lower the
CO2 output per unit of electricity generated.

But the majority of the reduction will be associated not with reduced emissions from TransAlta
plant themselves, but will instead be the result of  'offsets' and emissions trading.

Offsets are actions taken outside the company's normal operation which reduce or absorb
CO2 emissions. An example is tree-planting, to increase the rate of absorption of CO2 from the
atmosphere.

Emissions trading, as its name suggests, is the buying and selling of CO2 emission 'rights'
between organizations. A heavily-polluting company which was reluctant to invest in cleaner
technology might instead opt to buy emission rights from a 'cleaner' organization.

In the case of TransAlta, a major offset project that was announced in 2000 was the 'Uganda
cattle feed project', which is using a feed supplement to reduce methane emissions from cattle.
Methane is around 20 times more potent than CO2 as a greenhouse gas, and is measured in terms
of 'CO2 equivalent' when calculating offsets.

TransAlta is also involved in a Canadian offset programme known as the Saskatchewan Soil
Enhancement Project. This is encouraging farmers to reduce tillage and hence to lower
CO2 emissions from the soil. The scheme is expected to store more than 200,000 tonnes of
carbon a year in the soil.

The company has also been at the forefront of emissions trading. In 2000 it completed the first
trans-
Atlantic emissions trade with a German power firm, Hamburg Electric, which has invested in
wind turbine capacity. In a subsequent deal, it bought 210,000 tonnes worth of emission rights
from the US oil company Murphy Oil.

(Under the Kyoto rules, a company's entitlement to purchase emission rights is related to its
historical level of emissions - a principle known as 'grandfathering'.)

The difference between 'gross' and 'net' CO2 emissions can be dramatic. For example,
TransAlta'ssustainable development annual report for 2000 indicates that its Canadian
greenhouse gas emissions , measured in terms of CO2 equivalent, fell by 18% during the period
1990-2000. However, 'gross' emissions - before offsets and trades were taken into account - were
actually 7% higher.
TransAlta's 'zero emissions' strategy up to the year 2024 involves using offsets to reduce
emissions from its coal-fired plant. Any new power stations it commissions will be fully offset
by CO2 mitigation measures elsewhere.

Alongside these balance-sheet exercises, TransAlta is also moving into the field of renewable
energy, albeit on a modest scale. In August 2000 it announced a $5 million investment in Vision
Quest Windelectric of Calgary, followed in February 2001 by a second $5m investment. The
money has been used to help finance the purchase and installation of 60 wind turbines, with a
combined capacity of 40 megawatts.

However, TransAlta makes no apology for continuing to develop coal-burning capacity. In 2000,
the company was a co-founder of the Canadian Clean Power Coalition, an industry group formed
to research and develop less polluting ways of burning coal for electricity.

The company's endorsement of sustainable development principles has earned it a place in

the Dow Jones Sustainability Indexes. TransAlta is also a participant in the Canadian
'Voluntary Challenge and Registry'(VCR) programme, in which businesses commit themselves
to a greenhouse gas reduction plan.

In addition, it was one of the founder members of the World Business Council for Sustainable
Development.

Case study 6

The BBC

Conducting an environmental assessment of an organization as vast and diverse as the BBC

(British Broadcasting Corporation) was always going to be a daunting task. Yet the potential for
environmental gains is equally great, as the following statistics illustrate:

 The BBC spends £700 million (nearly $1 billion) a year on goods and services, with no
fewer than 20,000 suppliers.
 It employs 24,000 people, who collectively travel 17 million kilometres a year by road
and 38 million by air.
 The BBC occupies more than 500 buildings in the UK.
 In London alone, it produced 4,600 tonnes of waste yearly, 85% of which was landfilled.

'The environment stretches beyond the recycling bin and into the heart of the organization's core
activities,' stresses the report. For example, before programme-makers in the natural history unit
travel to protected sites around the world, an impact assessment is carried out. Steps are then
taken to minimize the disruption arising from the presence of a film crew.

At the end of 2001, the BBC issued its first attempt at an environmental report, which it posted
on its corporate website. This, by the corporation's own admission, provided an incomplete
picture of the full ecological footprint of the organization. Nevertheless, it established a broad
framework within which the BBC's activities could be assessed for their environmental impact,
and which could be used to formulate an action plan.

In the first stage of the review, the BBC's environmental team identified five principal groups
into which the corporation's environmental impacts could be broken down, namely:

 Waste
 Utilities (energy & water)
 Transport
 Supply chain and procurement
 Property

Five working groups, corresponding to each of these areas, were set up to undertake more
detailed monitoring.

The approach followed by the corporation has been endorsed by Dr Tom Woollard, a director of
environmental consultants ERM. 'The BBC has adopted a robust approach to implementing
environmental management across the organization,' he said. 'The next challenge is to bring it to
life through widespread ownership and action.'

One of the current environmental challenges facing the BBC is the ongoing transition from
analogue to digital broadcasting. The latter has a higher electricity demand, which makes it
difficult to achieve a reduction in overall greenhouse gas emissions. To make matter worse, both
systems are being run simultaneously until the changeover to digital is complete.

As a consequence, the corporation's target for reducing carbon dioxide emissions has been
limited to 1%.

 Actions identified by the review

Waste

 Complete a comprehensive audit of waste throughout the BBC, concentrating on paper,

tapes and toner cartridges;
 Recycle at least 25% of office waste, rising eventually to 55%.

Utilities

 Each building manager to select an energy efficiency initiative, to be run as a pilot

programme;
 Reduce carbon dioxide emissions by 1%

Transport and travel

  Reduce car travel at the London White City site by 20% over four years, by encouraging
public transport use, cycling, teleworking and walking;
 Target the business units which require the most intensive transport use.

Supply chain and procurement

 Conduct an environmental risk analysis on suppliers and products;

 Identify what the BBC spends most money on, and prioritise those areas for assessment;
 Set up partnerships with suppliers to improve environmental performance;
 Develop an assessment scheme that enables the BBC to identify environmentally active
suppliers;
 Update the BBC's purchasing policy to incorporate environmental objectives;
 Introduce awareness training for all staff who procure goods and services.

Property

 Run a site compliance programme to set a baseline for future improvements;

 Develop an environmental brief for building 'churn', the process of teams coming
together in a space over a fixed time period;
 Improve specification and tendering documentation;
 Include environmental considerations at financial approval stage;
 Implement the 'Considerate Constructors Scheme' on BBC contracts;
 Develop guidance notes for projects, construction and facilities management staff;
 Build all new buildings to BREEAM (Building Research Establishment Environmental
Assessment Method) 'Excellent' standards

Case study 7: VanCity

The Vancouver City Savings Credit Union, or VanCity, is Canada's largest credit union, with $7.3
billion in assets, over 271,000 members, and 39 branches in British Columbia. VanCity owns Citizens
Bank of Canada, serving members across the country by telephone, ATM, and the Internet.

Founded in 1945, VanCity prides itself on innovation of new products and technology. Its stated
mission is "to be a democratic, ethical, and innovative provider of financial services to our members".
It is one of the 50 or so companies that have signed up to the CERES Principles of sustainable
business

VanCity says it is driven by a triple bottom line - social, environmental, and financial - and it has a
long history of community investing.

'In a thriving organization such as ours, there's more than one bottom line to be achieved,' says Dave
Mowat, CEO.

'Every healthy and evolving organization must constantly adapt,' says Mowat. 'That's the nature of the
business environment.'

Greg McDade, chairman of the board of directors, says the VanCity competitive advantage 'results
from a clear understanding of its values, the ability to think creatively, and the skills to manage
flexibly'. He adds: 'We want to be innovative yet efficient, high-tech and high-touch.'
VanCity believes corporate social responsibility gives it an advantage over its competition.  'We believe
that our commitment to outstanding service and corporate social responsibility sets us apart from
other financial institutions,' says Mowat. In order to continuously improve amid rapid change to the
financial services industry, 'VanCity must continue to chart its course based on a long-standing
commitment to social and environmental performance'.

To keep itself on track during the turbulent times ahead, VanCity has produced a Statement of Values
and Commitments, and submits itself to an independent social audit so that its actions and decisions
are accountable to its members, employees, colleagues, and communities. The social audit process is
based on an international process standard (AccountAbility 1000) developed in the UK.

VanCity says it wants to "serve as a catalyst for self-reliance and economic well-being" as well as
delivering a strong financial return.

One way VanCity provides services to the community is by providing low-income members with access
to products and services. In 2000, $25 million worth of loans was provided for business. Unlike
traditional loans, they are not based solely on businesses' collateral, but on the owner's character,
credit history, and ability to pay. This service gives entrepreneurs who have few assets the resources
they need, which would not be available using mainstream lending procedures.

VanCity has also formed a partnership with Western Economic Diversification to fund loans to business
entrepreneurs who have disabilities. This start-up capital is designed to promote economic self-
reliance.

In 2001, VanCity acquired a majority stake in Real Assets, the first full-service portfolio management
company that focuses entirely on socially responsible investments. Real Assets evaluates companies
based on their track record in areas such as business practices, community care, diversity, employee
relations, environment, and human rights.

VanCity prides itself on its ability to respond to its customers. Members are given regular opportunities
to express their opinions, and have repeatedly requested that they want VanCity to be more than just
a financial institution. 'They want it to make a difference in terms of the social, economic, and
environmental well-being of our communities,' says the company's annual report for 2000.

In response, VanCity has created the $1 million VanCity Award - a grant to support bold and
innovative projects in the community. The award builds on other schemes and funding programmes
which recognize and support individuals and organizations who are making a difference.

In 2000, $2.1 million went back to the community through a number of programmes, including a wide
variety of grants supporting non-profit organizations in the areas of environmental sustainability,
economic self-reliance and social justice.

In March 2001, 13 non-profit organizations submitted proposals for the award, and seven were
shortlisted. The final four nominations, decided by a ballot of members, were:

 'Better Environmentally Sound Transportation' (BEST);

 Green Thumb Theatre for Young People;
 United Community Services Co-operative, a network of community organizations, for the
construction or renovation of a leadership centre;
 West Coast Environmental Law, an environmental policymaking organization that plans to
transform a historic Vancouver building into a state-of-the-art 'green building'.
The award went to BEST for its 25-kilometre leisure path connecting communities throughout the
Lower Mainland. The scheme offers benefits for commuters, the environment, disadvantaged youth,
businesses and conservationists.

VanCity has also set up the 'VanCity Community Foundation', which provides funding and technical
assistance to community partners. There are now more than 30 such funds.  Additionally, the
Foundation plays a leading role in a new programme designed to help low-income people help
themselves.

VanCity Enterprises is the credit union's socially responsible real estate arm, which currently has
several housing projects under way in the Lower Mainland. One such scheme is working with the Dr
Peter AIDS Foundation to develop 24 housing units for residents living with HIV and AIDS. Three more
projects are planned, delivering a total of 172 new homes.

VanCity is also working with Ecotrust Canada to finance conservation projects. Its Conservation
Financing programme provides credit for enterprises promoting conservation or implementing
environmental solutions.

VanCity believes its commitment to sustainability explains why the Globe & Mail Report on
Business magazine has voted it one of the 35 best companies to work for in Canada.

Case study 8: FleetBoston Financial 

FleetBoston Financial is the seventh-largest financial holding company in the USA. Based in Boston, it
has 20 million customers in more than 20 countries and territories, and its services include retail
banking, corporate banking and investment services.

In December 2001, FleetBoston announced that it was the first bank anywhere in the world to endorse
both the CERES principles and the United Nations Environment Programme Statement by Financial
Institutions (UNEP FI), as part of its environmental management programme.

The group also claims to have incorporated environmental considerations into its lending policies.

The twin-track endorsement commits FleetBoston to use resources responsibly, to audit its
performance, and to communicate the results to the public. Already the company has put in place a
global procurement programme, heating and energy schemes, and employee health and safety
programmes. Taken together, it reports that these initiatives have resulted in 'significant cost
savings'.

Many of the initiatives taken within the company amount to good housekeeping. 'Energy reduction
programmes have concentrated on those that would save the company the most money,' explains Kaj
Jensen, one of 12 environmental specialists employed by FleetBoston. Replacing old and inefficient
heating and air conditioning units has generated substantial savings, and 60 retail branches in the
state of New Jersey are having their lighting upgraded.

Meanwhile the organisation is exploring the options for 'green' building design in the planning of new
facilities.
In the area of procurement, the emphasis is on greener products such as recycled paper and re-used
toner cartridges. For example, a contract for the supply of toner for laser printers specifies a goal of
up to 50% recycled cartridge use, compared with a figure of less than 10% for the year 2001.

Chad Gifford, president and CEO of FleetBoston, explained: 'By endorsing the CERES principles and
the UNEP Statement by Financial Institutions, as well as expanding upon our current environmental
management efforts, products and services, we improve our ability to pro-actively manage
environmental risk and generate significant cost savings for the corporation - benefiting both the
community and our shareholders.'

Robert Varney, regional administrator of the US Environmental Protection Agency's New England
office, commented: 'Fleet should also be congratulated for its efforts to implement these principles,
ranging from the clean-up and re-use of hundreds of previously contaminated brownfield sites to the
installation of energy-efficient lighting and other conservation efforts in their buildings.'

Robert Massie, the director of CERES, welcomed FleetBoston into the ranks of CERES-endorsing
organizations. 'We expect that Fleet's long-standing commitment to the community and leadership
position in financial services will stimulate progress and innovation throughout the industry,' he added.

The company's first environmental report for public consumption is planned for the second half of
2002. In the meantime, the principal challenge is to create a unified strategy across the group. 'One of
the most significant tasks is to reach out to the numerous internal groups and get these business lines
to work together with the environment department to incorporate the principles that CERES and UNEP
FI represent,' says Jensen. 'Ultimately we would like to have a close connection with our
finance/investment units to hopefully be able to offer environmentally and socially oriented investment
options.'

Case study 8: Chaparral Steel

Chaparral Steel located in Texas, owns and operates a technologically advanced steel mill that
produces bar and structural steel products by recycling scrap steel. Chaparral's facilities and its
operating philosophy reflect the latest advances in electric arc steelmaking.

Chaparral is a wholly owned subsidiary of TXI, a large cement producer. It operates under stringent
environmental controls, and seeks to be at the leading edge of environmental technology.

Chaparral Steel's initial production of 228,000 tonnes in 1976 grew to 1.6 million tonnes in 1995. In
1992, a large beam mill was completed, further expanding the company's capacity and product range.

The site now has two electric arc furnaces with continuous casters, a bar mill, a structural mill, and a
large beam mill that enables the company to produce a broader array of steel products than
traditional mini mills. Chaparral's products include beams, reinforcing bars, special bar quality rounds,
channels, and merchant quality rounds. These products are sold primarily to the construction industry
and to the railway, defense, automotive, mobile home, and energy industries.

Its principal customers are steel service centres, steel fabricators, cold finishers, forgers, and
equipment manufacturers in North America, Europe, and Asia.

Chaparral's primary source of scrap steel is life-expired automobiles. To recycle this material, an
automobile shredder facility - the largest and most productive in the world - is situated next to the
mill. The shredder gives Chaparral a competitive advantage in the acquisition of raw material. In
1996, it transformed over 700,000 tonnes of cars and other scrap into raw material. This represents
about 40% of Chaparral's scrap metal requirement. The company intends to increase the volume of
material it processes through the shredder in order to extend its commercial advantage.

Wastes and by-products from Chaparral's steel-making process include three significant ferrous
streams: EAF slag, mill scale, and baghouse dust. In addition, automobile shredder residue (ASR),
non-ferrous particulates, and spent refractories are produced.

For years, 'mill scale' has been recognized as an unwanted by-product that can be sold as a source of
iron oxide to cement producers. In the early 1990s, Chaparral's experience with mill scale led it to
investigate whether there were opportunities for other wastes or byproducts to be used as raw
materials in the cement industry - or in any other industry.

When Chaparral recognized that these wastes and by-products were candidates for by-product
synergy, its 'Systems and Technology for Advanced Recycling' (STAR) project was born. Initiated
jointly with TXI, the STAR project was set up to process wastes, conserve natural resources and
prevent pollution, through the recycling of waste materials generated by steel and cement
manufacturing.

The mission of the STAR project is to develop synergies between the two manufacturing processes and
the automobile shredding facility.

As part of the STAR project, Chaparral has successfully applied the principles of by-product synergy to
its furnace slag by-product. It is also exploring technologies to deliver by-product synergy for its
automobile shredder residue.

Some specific initiatives that have been put in place as part of the STAR initiative are outlined below.

Furnace slag as a resource for cement production

In 1993, Gordon Forward, at that time Chaparral Steel's president and CEO, looked over his
neighbour's fence and discovered a partner for electric arc furnace (EAF) slag in TXI's adjacent cement
plant. A joint team of operating, technical, and management personnel worked together to find a use
for the slag in TXI's cement-making operations.

The result of this collaboration was 'CemStar', a patented process that adds slag to the raw material
mix, yielding larger batches of high-quality Portland cement without compromising its characteristics.

Before this innovation, slag had been cooled, crushed, and sold, usually to the road construction
industry.

This by-product-to-resource conversion conserves natural resources while reducing energy

requirements by at least 10%. Furthermore, the value of the slag has risen by a factor of 20 times
relative to its value as a road construction material.

CemStar has proven profitable as well. It has produced several million dollars' worth of pre-tax income
for TXI's two cement plants, on an investment of less than $1 million.

TXI believes most cement kilns can increase their capacity by 5 to 15% with a very small capital
investment and low incremental costs. New plants are prohibitively expensive and time-consuming to
build, and TXI now plans to license the process to other cement producers for a royalty, with TXI
providing equipment and technical assistance, and in some cases the raw material.

The financial aspects of this project have also been well received on Wall Street. According to the
September 18, 1996 issue of the Wall Street Journal:

A significant environmental benefit of the CemStar process is that it reduces overall carbon dioxide
emissions. The company believes there are business opportunities for this technology in emission
credit trading.

By-product synergy for automobile shredder residue (ASR)

Automobile shredding is an integral part of Chaparral's operations. About 800,000 obsolete cars are
shredded every year, leaving behind more than 180,000 tons of residue that is currently landfilled.
The residue stream includes aluminum, magnesium, glass, PVC and rubber, as well as non-chlorinated
plastics and other non-ferrous metals.

In this residue, Chaparral recognized another opportunity for by-product synergy. In 1990, it installed
a sophisticated automobile shredder residue (ASR) cleaning system, based on eddy current
technology, to reduce the amount of ASR sent to landfill.

Six years later, the company purchased exclusive rights to an innovative flotation separation
technology, after tests indicated that Chaparral's ASR could be economically separated into pure
components. Unlike conventional flotation techniques, the technology allows for high throughputs
while using an inexpensive flotation medium.

This means that non-chlorinated plastics, rather than being sent to landfill, can now be used as a
clean, efficient fuel source. (This technology opens up the possibility of 'mining' plastics from
municipal landfills in the future.)
The separation process, which came into operation in 1998, also recovers aluminum, magnesium, and
other materials. On the basis of this new resource, Chaparral hopes to attract other industries to its
Midlothian site.

The economic benefits are substantial. The sale of clean plastics alone generates up to $500,000 a
year.

This separation technology can be applied not only to ASR, but to a variety of waste streams from
many different processes. Chaparral hopes to market this capability throughout North and South
America. As a result of its commitment to by-product synergy, Chaparral has identified a new business
venture that promises to be profitable while reducing the environmental impact of a variety of
industries.

Source: This case study is featured in the 'By-Product Synergy Primer' (1997) produced by
the Business Council for Sustainable Development - Gulf of Mexico.

Case Study 9: Florida Power&Light

Florida Power&Light a subsidiary of PL Group, is one of the largest investor-owned electric utilities in
the US. It serves seven million people, or about half the population of Florida, in an area covering
almost the entire eastern seaboard and southern third of the state. This region continues to
experience strong growth, driven by Florida's tropical climate, beauty and quality of life.

FPL Group's other operations include ESI Energy, a participant in the growing independent power
business, and Turner Foods Corporation, one of the largest citrus producers in Florida.

For FPL, environmental stewardship means implementing sustainable development policies at

corporate, regional and national levels. Its commitment at the corporate level includes activities such
as by-product synergy, pollution prevention, waste minimization and recycling, and energy
conservation programmes. By-product synergy and pollution prevention programmes, including waste
minimization and recycling initiatives, have been in place for several years at various FPL sites.

Through these activities, and those of FPL's chemical standards and review board, FPL's fossil-fueled
plants reduced their output of hazardous waste from 145 tons in 1986 to just 41 tons in 1991. This
was accomplished through product substitution and by segregating waste streams to avoid mixing
non-hazardous and hazardous wastes.

Recycling is also a priority at FPL. In 1981,

FPL's central reclamation and salvage (CRS)
department was created to process scrap
wire and cable. This has since grown from a
five-person scrap operation to a 50-person
recycling centre. Each day, 17 trucks drive
across the state, collecting scrap materials
such as cable and wire, wood, plastics,
porcelain, concrete, paper, cardboard, toner
cartridges, light bulbs, lead-acid batteries,
transformers and aerosol cans. Every FPL
facility participates in the recycling
programme, and each employee has an
opportunity to recycle materials in his or her
workplace.
In 1994, FPL recycled 5,000 tonnes of metal, 2,000 tonnes of wood, 1,000 tonnes of paper and
cardboard, 300 tonnes of porcelain and concrete, 100 tonnes of PVC, and ten tonnes of plastic stretch
wrap. FPL's recycling activities are also estimated to save more than 100,000 tonnes a year of carbon
dioxide emissions.

The company managed to reduce the cost of disposing of this scrap material from $1.2 million in 1991
to just $281,000 in 1995. Even more impressive is the revenue generated from these activities - $2.8
million in 1994.

Some of the specific projects are outlined below.

Scrap porcelain and concrete as road fill

Large quantities of porcelain, a waste material virtually unique to the utility industry, are generated
from scrapped insulators and electric equipment with porcelain bushings. FPL had been sending this
waste, together with scrap concrete, to landfill at a rate of more than 1,000 tonnes a year.

Then FPL's recycling co-ordinator recognized that the material might be useful in road construction. He
contacted Eakins Construction, which expressed an interest but insisted that it did not want metal in
the waste stream. To address this concern, FPL reached an agreement with a scrap dealer to pay
Eakins for the scrap metal.

This initiative reduced FPL's landfill costs by hundreds of thousands of dollars a year. Because the
material is donated by FPL, it has reduced Eakins's raw material costs and provided a source of
revenue through the sale of both the crushed porcelain and concrete and the scrap metal.

Scrap wood as fuel for sugar mills

FPL had been sending more than 500 tonnes a year of untreated wood products such as damaged
pallets, dunnage, and old spools to landfill. Recognizing the potential fuel value of this wood, the
company approached a local sugar mill, Okeelanta Sugar Corporation, with the idea of burning the
wood in boilers to provide process steam.

After testing the wood, which FPL mulched, Okeelanta agreed to FPL's price, and another successful
by-product synergy was born. FPL has not only eliminated its landfill costs for the scrap wood, but has
converted this waste stream into a revenue source. In addition, significant amounts of landfill space
have been conserved.

Other by-product synergy and pollution prevention projects

Other synergies that have been successfully exploited by FPL include:

 Conversion of scrap wire insulation to fuel for the solid waste authority;
 Conversion of used stretch wrap to raw material for a plastic lumber product made by Mobil
Chemical;
 Return of wire reels to manufacturers for reuse;
 Refurbishment of equipment in lieu of scrapping;
 Testing and resale to developing countries of old street lights and sodium bulbs that still have
additional life but which no longer meet US specifications;
 Cleaning, granulizing, and sale of scrap PVC, polyethylene, and polycarbonate for reuse;
 Consolidation and use of surplus paints, solvents, and degreasers;
  Collection and sale of aluminum and copper wiring from surplus transformers;
 Donation of unwanted poles to local farmers for fencing.

recycling totals:

Reclaimed metals 10,574,653 lbs

Paper 1,019,842 lbs
Cardboard 737,564 lbs
Scrap wood 5,114,947 lbs
Scrap PVC 49,930 lbs
Stretch wrap 21,540 lbs
Scrap porcelain & concrete 1,140,000 lbs
Refurbished pole line hardware $218,492
Toner cartridges 1,818
Poles back-hauled 485
Used oil burned at fuel terminals 234,609 gallons

Source: This case study is featured in the 'By-Product Synergy Primer' (1997) produced by
the Business Council for Sustainable Development - Gulf of Mexico.

Case Study 10: Bison Transport

One of the biggest challenges in tackling carbon dioxide emissions and reducing energy use is being
faced by the transportation industry. According to Natural Resources Canada, the transportation sector
is responsible for nearly a third of Canadian greenhouse gas emissions.

Bison Transport is attempting to tackle the challenges of emissions reduction head-on. When the
transportation industry was deregulated in the late 1980s, Bison began to expand its operations
substantially. In 1992 it had 18 power units on the road, and in 2001 it had more than 500. In the
mid-1990s, the company directors examined their operations from social and environmental
perspectives. When the number-crunching was finished, the results made an impact.

Instead of ignoring the figures and waiting for government to regulate, Bison has taken a more pro-
active approach. The first step was to identify and establish the tools needed to reduce greenhouse
gas emissions. This gave Bison a baseline against which to begin its calculations.

Bison Transport is a signatory to the Voluntary Challenge and Registry, a key element in Canada's
national plan on climate change. Currently there are more than 850 companies registered which have
agreed to voluntarily limit their greenhouse gas emissions. Participants represent 70% of business and
industrial greenhouse gas emissions in Canada.

While the quick and easy solutions to reducing greenhouse gas emissions in the transport industry -
such as reduced engine horsepower and lower speeds - may seem straightforward, the reality is more
complicated. In order to attract and retain experienced drivers, operators of trucking fleets have to
meet the drivers' needs as well
Itamar Levine, director of maintenance at Bison, explains: 'Things that really attract drivers are fleets
that allow their drivers to drive at posted highway speeds, which in the US means 75 to 80 miles per
hour. Trucks with 500 and 600 horsepower engines tend to attract drivers. If there were two fleets,
one of which can give the guy a truck with 500 horsepower that can travel 80mph and the other which
will give him a truck with 300 horsepower that can make 60mph, then 90% cent of drivers are going
to drift to those bigger trucks.'

If you are trying to run a growing trucking business and to attract experienced drivers, while at the
same time ensure responsible corporate citizenship, what do you do?

Bison has been recognized as one of Canada's 50 Best Managed Private Companies, because of its
exceptional customer loyalty and its continual recruitment of skilled drivers. Levine explains that Bison
is meeting its emissions reduction targets using a combination of new equipment, driver training and
driver performance feedback.

'I am ashamed to admit this, but we have increased our road speeds and increased our engine
horsepower, just for the purpose of attracting and maintaining drivers,' Levine says. 'But we have
made some huge gains on the fuel consumption side through training programs, and through
improvements in equipment.'

Bison has invested in fleet improvement in several different ways. It has ordered 160 new Volvo
tractor units, which are aerodynamic, safe and comfortable. Their fuel-efficient engines produce 425
horsepower with a displacement of 12 litres, compared with the industry average of 14 or 15 litres for
comparable horsepower.

The exterior design of the trucks is aerodynamic, with lightweight fibreglass skirting fitted to reduce
the drag co-efficient as much as possible.

Special lightweight trailers have also been ordered. These help reduce the fuel demands on the engine
while hauling. Both the truck and the trailer feature aluminium rims for further weight reduction, and
tires that have a low rolling resistance.

Inside the truck are two more pieces of technology that help curb fuel consumption. The first is a
small diesel cab heater for use in the winter, allowing the truck's engine to be switched off. These
consume four litres of diesel every 20 hours. (In a single eight-hour rest period, an idling 425
horsepower engine will use 32 litres of fuel.)

This opportunity to reduce fuel consumption is exceptional. 'Realistically, 40 per cent of engine
running time is going to be idling, and that's a tremendous amount of fuel wasted,' says Levine. 'We
have decided to install this device in every truck we purchase, and to retrofit the existing fleet.'

The second device is a computerized information centre which gives the driver real-time data on fuel
consumption, driving habits and performance on individual trip legs. All new trucks delivered to Bison
come with a digital display installed in the dashboard.

The drivers are using this information to modify their driving habits. Levine explains: 'They are
genuinely concerned, and want to produce good numbers. If you had asked me six months ago, I
would have thought drivers would have had very little interest in this kind of information.'

Every month the trucks are ranked from 1 to 350 by their fuel economy performance. This information
is posted in the drivers' lounge, and provides a clear indication of driver performance. It used to be
that only company managers had access to this information. However, since the figures have been
posted, the drivers have taken a special interest in improving their driving habits.

Levine believes that much of the improvement in fuel efficiency is the direct result of feeding this
information back to the drivers. Being more fuel-efficient also makes Bison Transport more
competitive. 'Fuel is a major part of our operating expenses,' he points out. 'If we are fuel-efficient,
we are directly impacting our bottom line.'

As a result of these initiatives, Bison has achgieved a reduction of almost 20 per cent in its fuel
consumption and greenhouse gas emissions. While this improvement is due partly to new equipment,
the participation of the drivers was also an important factor.

Case Study 11: Wharington International

The 'Re-Define' sofa and armchair, launched in Australia at the end of 2000, are the result of a
demonstration project whose aim was to develop high-quality, 'sustainable' furniture. Though not yet
available commercially, the manufacturer expects the entire cost of the project could be recouped
from two years' worth of sales.

The project, supported by a research grant from EcoRecycle Victoria in 1999, is a collaboration
between three partners:

 Wharington International, an Australian company specializing in the manufacture of

furniture frames and components;
 The Centre for Design at Royal Melbourne Institute of Technology (RMIT), a research group
that specializes in business eco-efficiency as a source of innovation and responsible practice;
 MID Commercial Furniture, an Australian design practice headed by Danish architect Torben
Wahl, which specializes in sustainable furniture design.

The aim of the Re-Define project was to develop a range of furniture whose environmental impacts
were minimized across the entire life-cycle, including materials selection, manufacturing, distribution,
use, re-use, recycling, and disposal.

Seven distinct areas (see below) were identified in which traditional furniture can cause damage to the
environment. In the case of furniture, these impacts are almost exclusively related to the manufacture
and disposal phases, rather than to the use of the product.

1. The release of toxic chemicals from glues, dyes, paints, and so on, during both the
manufacture and the use of the product;
2. The production of timber waste during manufacture;
3. Greenhouse gas emissions arising from steel and aluminum production;
4. The consumption of rainforest timber and scarce hardwoods;
5. The use of timber from poorly-managed plantations, resulting in soil erosion, water pollution
and habitat damage;
6. The creation of solid waste when the product is discarded;
7. The use of synthetic materials that constitute toxic or hazardous waste once discarded.

The design brief for Re-Define was drawn up by RMIT, including details of materials, manufacturing
processes and resource recovery. The requirements set out in the brief included:

 Minimize the quantity of material used;

  Avoid toxic or hazardous substances;
 Use metals with low 'embodied energy';
 Minimize the number of components and assemblies;
 Replace glue and screws with simple 'push, hook, and clip' assembly;
 Avoid solvent-based adhesives;
 Enable minor repairs to be carried out;
 Avoid colours or designs that will go out of fashion quickly.

The final product incorporates plastic internal shells made from 'Recopol' recycled resin, a material
developed by Wharington International from the recycled casings of household appliances such as
vacuum cleaners, telephones, computers, washing machines and refrigerators. Recopol replaces more
traditional internal components that are manufactured from plywoods, hardwoods, plantation timber,
and virgin plastic.

Each Recopol resin shell contains the equivalent of 45 recycled printer cases, or 39 kilogrammes of
material that would otherwise have been incinerated or landfilled. At the end of its life, Wharington
can even take back the shell for recycling.

Other features of the Re-Define range include:

 Foam cushions are shaped so as to minimize scrap cuttings, and waste foam is sent for use in
carpet underlay material;
 Stainless steel legs and mild steel bearers are 100% recyclable, and scrap from the
manufacturing process is recycled;
 Metal components do not require any toxic coatings or finishings;
 Fabrics are made from recycled PET or natural wool;
 The nylon feet are designed to be recyclable;
 Fastenings are designed for easy removal and washing of the upholstery.

Forest products have been avoided, and Wharington claims that no toxic or hazardous materials are
used at any stage of the manufacturing process. The product is designed to be easily maintained and
repaired, in order to prolong its useful life.

According to Wharington, manufacturing the Re-Define range carries no cost premium compared with
conventional furniture. Only the design phase incurred extra expenditure.

Although a Recopol shell is a US$30-40 more expensive to produce than a plywood frame, it is
substantially less labour-intensive. In addition, says Wharington, a resin shell is cheaper to pad and
upholster than a plywood frame.

According to the company, 'Re-Define highlights that eco-design can produce sophisticated
commercial furniture that meets the rigorous standards required in the corporate and government
sectors.'

A detailed account of the project will be available soon in a project report compiled by the RMIT.
Based on this document, EcoRecycle Victoria, the project's sponsor, will publish an environmental
design guide for the furniture industry as a whole.

Case Study 12: DuPont

DuPont, a US manufacturer of food, healthcare products, clothing, hardware and electronics, is ranked
among the 50 largest US industrial/service corporations by Fortune 500 magazine. In its 200-year
history it has built up a staff of more than 85,000 people in 70 countries. DuPont owns more than 135
manufacturing and processing facilities, as well as 75 laboratories, and in 2001 it earned $24 billion in
revenue.

Dupont's mission is to achieve "sustainable growth", a goal which is defined as "increasing shareholder
and societal value while decreasing the company’s environmental footprint along the value chain in
which we operate". DuPont's own perception of sustainable business borrows from the Bruntland
definition, and commits the company to "implement those strategies that build successful businesses
and achieve the greatest benefit for all stakeholders without compromising the ability of future
generations to meet their needs".

To achieve sustainable growth, Dupont focuses on improved productivity to drive down costs, waste
production, and energy demand. It has three core strategies:

 Using its knowledge to reduce consumption of raw materials and energy;

 Integrating chemistry, biology and technology to create products with greater societal value
and lower environmental impact;
 Engaging stakeholders.

DuPont says its values and principles are non-negotiable. They embrace safety, health, and
environmental excellence; high standards of ethics and integrity in all business practices; and fair
treatment of all the people associated with the company.

As part of its 'Responsible Care' strategy (a code of conduct developed by the Canadian Chemical
Manufacturers' Association) Dupont aims to increase transparency and communications between the
plants and the communities in which they operate.

DuPont has a policy of consulting with external groups on global issues that affect its work. So far it
has formed partnerships with the World Resources Institute, the Environmental Defense Fund, the Pew
Center for Global Climate Change and the Keystone Center. It is also a member of several advisory
panels that seek to influence the development of responsible public policy and a market-driven
emissions trading system, as well as identify economically viable renewable energy sources.

Apart from working on climate and energy, DuPont's sustainable growth strategy also focuses on food
and nutrition, and safety and security. It has invested in agricultural businesses that provide seed, soy
protein, and crop protection products. DuPont conducted research in West Africa to develop a new,
safer cotton insecticide.

The 'Dupont Commitment' outlines several specific targets:

 Zero injuries, illnesses and incidents;

 Zero waste and emissions;
 Conservation of energy and natural resources, and habitat enhancement;
 Continuously improving processes, practices and products;
 Open and public discussion, and influence on public policy;
 Management and employee commitment, accountability

During 1999, DuPont commissioned consultants from Environmental Resources Management (ERM), to
conduct an environmental audit of its safety, health, and environment (SHE) program. The
assessment measured progress against three criteria: (i) external expectations set by organizations
with standing in the SHE audit community (such as the US Environmental Protection Agency and the
International Standards Organisation); (ii) DuPont’s internal SHE auditing standard; and (iii) generally
accepted audit practices in comparable companies. The study concluded that the program was
consistent with, and in some cases exceeded, the criteria.

In a recent assessment of 128 projects, some significant progress was identified, including::

 Energy consumption was down by two percent

 Greenhouse gas emissions were reduced by one percent
 Non-hazardous landfilled waste was cut by six percent

Progress was also made on water consumption and hazardous waste shipments.

In partnership with its own customers, DuPont has achieved some notable successes in eco-efficiency.
DuPont Canada's performance coatings business initiated a partnership with Ford at its car assembly
plant in Oakville, Ontario. Using a new contract based on the number of cars painted, rather than the
quantity of paint consumed, DuPont helped Ford achieve significant savings. As a result, hydrocarbon
emissions from the plant have dropped by 50 percent, and costs are down by a third.

Since 1991, the DuPont Carpet Reclamation Program has reclaimed more than 60 million pounds of
carpet. According to DuPont, it is the only viable carpet reclamation program that reclaims and
recycles all types of used commercial carpet. Recycled content is used to manufacture carpet fibre,
floor tiles, carpet cushion, sod reinforcement and automobile parts.

An expansion of DuPont's nylon carpet reclamation center in Calhoun, Georgia means that the
company can now recycle larger volumes of discarded floor coverings. Its peak capacity is now 1,000
pounds of recovered nylon per hour. The process involves recovering a clean nylon 6,6 resin from
used nylon carpet recovered in the DuPont Carpet Reclamation program. The facility is capable of
sorting up to 50,000,000 pounds of used carpet per year.

"Combining the sorting and recycling processes in one location vastly reduces the energy, time and
costs it takes to complete the recycling process," comments Dave Bouton, business director with
DuPont Commercial Fiber.

DuPont envisages further reductions in the size of its ecological footprint. Its goals for 2010 include
sourcing 10 percent of its energy from renewable sources; and to achieve 25 percent revenues from
non-depletable resources.

Case Study 13: Burgess Salmon

Waste is a major problem in the service sector, and not just in manufacturing industry. This case
study, based on a paper that appeared in the journal Eco-Management and Auditing, explains how a
legal services company in the UK explored the potential for putting the 4Rs into practice.

Burgess Salmon is a firm of lawyers based in the city of Bristol, which employs around 430 people. It
was actively involved in the development of the 'Bristol Greener Office Project' (BGOP), which was
launched in 1997 to demonstrate environmental good practice among companies of all sizes.

Throughout the exercise, the firm has tried to foster a sense of collective responsibility for
environmental stewardship among its employees, rather than simply  issuing instructions from above.
An environmental co-ordinator organizes lunchtime meetings once a month, at which staff are given
information and advice on environmental good practice. Waste is a high priority, but other areas
targeted for action include transport and energy use.

Since embarking on the BGOP, Burges Salmon has demonstrated substantial improvements in the way
it uses, and disposes of, resources. The first area identified for action by the firm was the highly
visible issue of paper consumption. A number of simple housekeeping practices were introduced,
including:

 Double-sided photocopying;
 Replacing memos with e-mails;
 Relying on electronic rather than print versions of large documents;
 Re-using envelopes for internal mail.

These simple steps collectively led to substantial cost savings. According to the firm's facilities
manager, paper consumption per person fell from 60 reams in 1997 to just 46 in 1998. Over the same
period, the company's per capita paper costs fell from £70 to £54. Only part of this improvement
could be attributed to economies of scale resulting from a growth in the number of staff.

On the disposal side, the company has achieved a paper recycling rate of almost 100%, through the
introduction of recycling bins. In the first two years of the project, the company estimates that it
recycled nearly 25 tonnes of paper, equivalent to 10 cubic metres of landfill.

Besides paper, Burges Salmon also recycles cardboard, newspapers, magazines, toner cartridges,
drink cans and bottles. However, it has come up against practical difficulties with some of these
materials, including the need for space in which to store separated waste until the volume is large
enough for a collection to be made.

The company's recycling policy also extends to procurement practices. Preference is given to suppliers
whose goods are recycled, or at least recyclable.

The challenge now, according to the company's environmental co-ordinator, is to maintain staff
enthusiasm for the various green initiatives that have been put in place. Among the possibilities being
considered is the inclusion of 'green' practices into staff job descriptions, rather than relying on
voluntary participation alone.

Case Study 14: Chemical Lime Company

Chemical Lime Company of Canada is located on the Fraser River in British Columbia. Its key products
include lime, hydrated lime and crushed limestone.

New emission limits enforced by the Greater Vancouver Regional District (GVRD) prompted a review of
the company's operations, with the intention of reducing costs while improving efficiency. The
following goals were identified:

 Improve operational efficiency and operate equipment at optimum capacity;

 Reduce material wastage and waste disposal costs;
 Use heat released from lime cooling operations to improve fuel efficiency;
 Reduce fugitive dust emissions;
 Reduce labour costs;
 Reduce operating hours.
The plant underwent a major upgrading, including the installation of lime kiln exhaust baghouses, a
new sewer and water system, pneumatic conveyor systems, utilization of waste heat from lime cooling
air, and electrical load monitoring. The modifications have enabled Chemical Lime to exceed the GVRD
particulate emission standards and to achieve substantial environmental and economic benefits.

Estimated savings achieved through reduced energy, water, waste disposal, material loss and labour
are estimated at $358,000 annually.

Summary of environmental results

Improvement Environmental result

Kiln baghouse improvement
Hydrate plant upgrade
Sewer system modification
Limestone and agricultural
plant upgrades
Pneumatic conveyor system
Fines discharge reduced by 50-70%; some 20 tonnes of fines are
recovered daily and incorporated as marketable product
Spillage of quicklime reduced by around 2 tonnes per shift
Process water recycling and runoff water utilization reduces sewer
system overloading
Fines emissions reduced by 50-70%. Materials recovered as
marketable product
Considerable reductions in fugitive dust losses

Summary of financial results

Improvement Project cost Estimated savings Estimated payback

(approx) (approx) period
Kiln baghouse Improvement $126,000 $30-40,000/yr 2-3 years
Hydrate plant upgrade $143,000 $48,000/yr 2-3 years
Sewer system modification $38,000 $45,000/yr less than 1 year.
Limestone and agricultural $680,000 $225,000/yr 2-3 years
plant
Pneumatic conveyor system $200,000 unknown unknown
TOTAL $1,187,000 $358,000/yr 3 years

Case Study 15: Nexen Chemicals

Canadian Occidental Petroleum is a diversified energy and chemicals company based in Calgary,
Alberta.Nexen Chemicals is a fully owned subsidiary, engaged in the manufacturing, marketing and
distribution of industrial chemicals. Nexen Chemicals used to be called CXY Chemicals.

The Nexen Chemicals facility in Brandon, Manitoba manufactures 100,000 tonnes of sodium chlorate a
year, with 45 employees.

When CanadianOxy took over management in 1978, chlorate production was only 12,500 tonnes, the
technology was outdated and there was an outstanding government order to reduce chlorine
emissions. The waste generated from the cell regeneration, water softening and brine purification
processes were transferred to one of five lagoons on the site. All effluent was pumped to an averaging
pond before being discharged to the Assinaboine River. The CanadianOxy mandate was to bring the
plant into a state of compliance and to make it profitable.

The company phased out all other chemical production except sodium chlorate, and began purchasing
purified salt from the potash industry. As a result of these changes, discharges to the sludge lagoons
were eliminated, and the volume and contamination level of effluents discharged to the Assinaboine
River were reduced.

A waste-gas scrubbing system was installed, to bring chlorine emissions down to acceptable levels. As
a result, permit violations were reduced to just two or three minor incidents a year.

By 1982 the effluent system was closed-looped, and the effluents were being recycled into the brine
system. As a result, discharges to the Assinaboine River were eliminated altogether. Problems
associated with impurities with in the system were tackled by eliminating impurities from the incoming
raw materials. This expertise placed CanadianOxy years ahead of the competition.

In 1986 the plant underwent a 40% expansion at a cost of $11 million, and the manufacturing process
was updated from the obsolete graphite technology to the modern metal technology. This offered
several environmental advantages. Waste gases were recovered and purified so that chlorine levels
were undetectable. The hydrogen was used as a fuel for the boiler rather than being discharged to the
atmosphere. Graphite was no longer consumed during the production process, eliminating a significant
waste problem.

Environmental and economic benefits arising from the upgrade included:

 The new process was 25% more energy-efficient;

 Graphite waste production of 62 tonnes a year eliminated;
 Chlorine emissions of 6.8 tonnes were virtually eliminated;
 Discharges to the Assinaboine River ceased;
 Burning hydrogen as a fuel reduced the consumption of natural gas by 95%;
 Approximately $2,000 a month of reusable chemicals previously discharged are recovered.

The Brandon facility is now ranked as one the most cost-effective sodium chlorate manufacturing
facilities in North America.

Case Study 16: Loup Valley Dairy

The Loup Valley Dairy uses the principles of life-cycle assessment to identify sustainable farming
practices. The plant, located in central Nebraska, covers 370 acres with 140 milking cows.

The land is owned by two farmers, Monty Birnie and Jim Jenkins, and has belonged to their family for
five generations. It has been used for various purposes including growing corn and providing range
land for beef.

A few years ago the two farmers realized that the conventional farming techniques they were
practicing were having a detrimental effect on the land. Erosion was on the increase, and the high
inputs of chemicals were affecting wildlife.

Their concern over these impacts led them to consider alternative practices, in the belief that it would
be possible to make a living working with nature rather than against it, and that 'ecological farming
principles could lead to higher profits in spite of lower yields'.
A switch from artificial hormones and antibiotic feeding were phased out in favour of a completely
grass-fed approach, which provides its own winter grazing. Milk production is comparable to that of
conventional dairies, the owners claim, and the lower inputs of chemicals help to keep down costs.

In 1999 they adopted an intensively managed, rotational grazing approach, moving the animals
frequently between fields. Life-cycle assessment was used for the first time to evaluate the
environmental impacts of the dairy, as part of a comprehensive farm management plan.

Loup Valley Dairy is a member of the Institute for Environmental Research and Education (IERE)
Community Environmental Management System. This programme is based on the ISO 14000
environmental management system standards, plus a commitment to public disclosure, and provides
eco-labels to farms based on their products' environmental performance.

The dairy's environmental policy follows the ISO 14000 framework even though it is not officially
certified. The farm plan includes an annual evaluation of all the environmental impacts on and off-
farm, using a life cycle assessment. The LCA method 'helps us to see the full picture of our
environmental impacts', explains Birnie.

Based on its initial LCA, Loup Valley Dairy set the following environmental goals for the year 2000:

 Eliminate confined feeding;

 Eliminate the use of 'sub-clinical' antibiotics;
 Eliminate the use of artificial hormones;
 Minimize the use of grains in feeds;
 Return pasture to native grass species;
 Protect waterways from cattle access;
 Greatly reduce the use of fossil fuels;
 Minimize the use of irrigation;
 Minimize external inputs;
 Repair and regenerate the soil through intensive management grazing.

The dairy produces an annual report each year summarizing its environmental goals and objectives,
and to record its achievements. In particular, the report sets out:

 The environmental aspects of the farm;

 Related environmental impacts;
 Whether they are significant;
 What activities underlie these environmental impacts.

The farmers identified the following environmental impacts: air pollution from burning fossil fuels; use
of electricity, water, pesticides, antibiotics and fertilizers; solid waste; the purchase of feed; manure
spreading; cultivating; movements of cattle; and fencing.

The managers initially focused on impacts related to on-farm activities. The collection of data is
ongoing.  They expect that the greater detail this provides will enable them to draw up off-farm
management plans.

So far the results are good, says Birnie. Achievements to date include:

 The use of artificial hormones and sub-clinical antibiotic feeding has been eliminated;
 More land area is covered with native grasses;
  Fallow periods of at least two years have been established, during which the land can be
recolonised by native species;
 A reduction in the amount of winter feed purchased;
 Progress towards a completely grass-fed approach;
 A reduction in the amount of herbicide used to control weeds.

The dairy is fully compliant with the relevant environmental regulations, and practises pollution
prevention, particularly in relation to pest management and nutrient management. The farmers
consider compliance as a baseline requirement for environmental sustainability, and are using ISO
14000 environmental management as one tool to help move in that direction.

Case Study 17: Kraus Group

Founded in 1962, Kraus Group is recognized as a worldwide leader in the design and manufacture of
alternative fuel dispensing technology. More specifically, it manufactures refuelling equipment for
compressed natural gas (CNG), liquefied petroleum gas (LPG) and compressed hydrogen. Kraus also
manufactures electronics and high-pressure components.

David Gamble, a marketing associate with Kraus, explains that the development of alternative fuelling
systems began in late 1980 and evolved from the company's work with petroleum industry equipment
and dispensing systems.

Three factors motivated Kraus Group to develop LPG and CNG fuelling systems: first, the foresight of
former company president, Hans Kraus; second, previous experience developing petroleum industry
equipment and dispensing systems; and third, customer interest in alternative fuel technology. 

'Over time, the company expanded into different technologies and equipment, and it led to the point
where there was a tremendous opportunity with LPG and later CNG,' recalls Gamble.

Expansion into new technology areas has paid off for Kraus Group. Alternative fuels are increasingly
widely used in the transportation sector, and Kraus has secured contracts to construct fuel-dispensing
outlets around the world. Demand for 'clean' fuels continues to grow, spurred on by mounting
concerns about the health effects of vehicle emissions.

Kraus Group has capitalized on this demand, by building the world's two largest CNG refuelling outlets
in Mexico City. Each has the capacity to service 1,600 vehicles a day. Currently, the outlets are
fuelling a fleet of police cars and buses.

Future plans in Mexico City involve the construction of another 100 CNG outlets over five years. The
Kraus Group is principal partner in this project, and its participation will help Mexico City address its
severe air pollution problem.

Kraus completed its first CNG refuelling station in December 1998 on behalf of Egyptian International
Gas Technology, one of two organizations mandated by the Egyptian government to develop CNG
fuelling infrastructure.

RealMedia question: What makes the Kraus Group a world leader in this technology?

Since January 1999, Kraus has signed more than $18 million worth of fuel equipment contracts with
China. As part of a continuing commitment to the Chinese marketplace, Kraus has recently opened a
Beijing sales office. The Kraus Group recognizes that the alternative fuels market in China could, and
probably will, eclipse all other markets in the rest of the world. With China actively seeking solutions
to the air pollution problems its cities suffer from, alternative fuels are likely to play a major role in
any strategy created by the Chinese government.

The most recent contract there is with the China National Petroleum Company, headquartered in
Beijing. Worth $4.3 million, the contract calls for the manufacture and supply of three complete CNG
refueling stations. Each station consists of two compressor packages, dispensers, storage systems and
control equipment. The stations will provide fuel for the buses of the Beijing public transit system, and
supply compressed gas for trucking to remote stations.

The Kraus Group also recently designed and built the world's first service station-style hydrogen
dispenser. It is being used to refuel vehicles at Munich airport in Germany. As the development of
hydrogen fuel cells for vehicles advances, Kraus is poised to supply the demand.

Another alternative to gasoline is LPG and here, too, Kraus is supplying leading-edge dispensing
equipment. As Mr. Gamble proudly points out, Queen Elizabeth II has had her Rolls-Royce converted
to run on propane, and it is fuelled using Kraus equipment.

Kraus Group identifies its main markets as regions in the world that have serious air pollution
problems, or where governments are hoping to exploit natural gas reserves in order to ease  their
dependence on foreign oil.

The issue of global warming has prompted many governments and organizations to examine the
benefits of alternative fuels. But Gamble doubts whether the Kyoto Protocol will have a significant
impact on business for some time.

RealMedia question: What are some of the benefits of alternative fuels?

Kraus's leadership in the alternative fuels field owes a lot to its large research and development
budget. This commitment to R&D has ensured that the Kraus line of CNG and LPG dispensers are
considered to be the industry standard worldwide. The production line occupies 465 square metres,
and is capable of manufacturing 500 dispensers annually.

Being able to manufacture high-quality, reliable components and equipment is crucial for success in
this highly competitive market, stresses Gamble. 'We are one of the few companies in the world that
is operating in several markets worldwide,' he says. 'But you also have markets where there are some
local suppliers already, and where there is less focus on quality and more on price. Certainly there is a
lot of competition like this, but what we find is people want to have safe, reliable products. That is
what we provide.'

RealMedia question: What challenges face Kraus Group in the future?

In delivering safe, reliable products to its customers, Kraus Group believes it has an advantage over
its competitors. As a member of the RNG group of companies, its LPG refueling equipment is
complemented by the propane tanks manufactured by sister company Pro-Tech. By combining the
product lines of both companies, Kraus can deliver a complete LPG transfer, storage and dispensing
package to its customers.

Case Study 18: Humboldt's Legacy

While big-box retailers in the Canadian city of Winnipeg leave large, unsustainable footprints,
'Humboldt's Legacy' treads much more lightly. Located on a quiet, elm-lined street with an organic
food co-operative and a wholegrain bakery for neighbours; Humboldt's is a sanctuary for green
consumers.
Humboldt's Legacy was founded on the belief that consumers can influence the shift to a more
sustainable society by changing their purchasing habits. It gives consumers access to products that
support the shift towards an alternative, sustainable economy.

The Canadian Oxford Dictionary defines the term 'purchasing power' as: '1. A person's financial ability
to make a purchase. 2. The amount that a sum of money etc. can purchase.' At Humboldt's Legacy,
the term could be defined more broadly as 'a consumer's power to effect change when purchase
decisions are based on environmentally, economically and socially responsible criteria'.

'This is a very democratic enterprise,' says Willi Kurtz, Humboldt's co-owner. 'Our whole concept of
this store is that the consumer sets the tone for the economy. For instance, we constantly hear people
demanding certain products, or an end to child labour and so forth. That's a very simple thing that
would happen tomorrow if our shopping patterns would change. And that's what we've seen here
every day for ten years.'

RealMedia Clip 1: Do consumers recognize the power they have?

The belief that our current economic system and patterns of consumption are impeding a shift to a
more sustainable and just society is what led Willi Kurtz and his wife, Chris, to look for an alternative.

'Our goal when we started was to take this concept as far as we could,' he recalls. 'Not just to run a
small family business, which is what we still do, but, naïve as it sounds, to change the world.'

For over decade, Humboldt's Legacy has been providing environmentally friendly household products
to Winnipeg consumers. According to Kurtz, the economy as it exists today seems to be intent on
fostering social inequality and environmental degradation.

In striving to promote sustainable living, Humboldt's Legacy supports a wide range of community
events. In addition, Willi and Chris have constructed a super-energy-efficient home.

'It's the only house like it in Canada,' he claims.

For the past eight years Humboldt's Legacy has been based in a brick building on Westminster Avenue
in Winnipeg. Its shelves and display space are filled with products that are environmentally and
socially responsible alternatives to the items consumers purchase every day.

'Most of our customers have a pretty good grounding in all of this,' says Kurtz. 'We have a newsletter
that goes out a couple of times a year which discusses various issues.

'In terms of education, we are very careful about how we discuss things with our customers. Everyone
comes from different vantage points. Everyone brings their own beliefs to this, and we want to make it
open to everyone. So we stay away from a heavy-handed way of doing things. This is entirely a free-
will store. We just want to make people feel welcome.'

Humboldt's Legacy is an unconventional name for a retail store. However, the name symbolizes the
core values of the operation. In the 140 years since Baron Alexander von Humboldt's death, most of
the world has forgotten about, or never heard of, his name. Alexander von Humboldt is the man many
consider the founding father of the scientific disciplines of physical geography, climatology, ecology
and oceanography. He was one of the first true naturalists, an explorer and, according to Kurtz, a
Renaissance man. His scientific papers attempted to provide a comprehensive physical picture of the
universe. Among other things, he believed in the interconnectedness and complexity of natural
systems.
'He was born into quite a bit of wealth but by the end of his life he died penniless,' says Kurtz. 'He had
given it all away in his travels. If he showed up somewhere and people were suffering from a medical
ailment, he would build a medical treatment centre and staff it. It was a very localised way to help
people.'

Humboldt's Legacy opens its doors each day believing that the humanistic and natural principles
promoted by Baron von Humboldt should not be forgotten.

RealMedia Clip 2: Does supporting community in a localized way, like you're doing, tie into
fostering and supporting activism?

There are major challenges involved in operating a business like Humboldt's Legacy. When consumers
are faced with a trade-off among product attributes, the environment almost always loses.
Additionally, green consumers (i) are usually reluctant to pay extra for environmentally sound
products, (ii) typically assume these products are less effective than non-green brands, (iii) will
tolerate only minimal inconvenience associated with green products, and (iv) will not go out of their
way to find sources for green products.

Although Kurtz had no previous experience of running a business, he attributes his determination to
succeed in part to his parents having been entrepreneurs.

'You have to be able to settle your stomach when things go wrong - and things go wrong all the time,'
he says.

RealMedia Clip 3: How is the store doing?

Humboldt's Legacy opened in the late 1980s at a time when concern for the environment was growing
rapidly. During that time, Kurtz reckons there were probably 300 stores similar to his open in North
America. Within five years, 90 percent of them had closed, succumbing for the most part to the fickle
tastes of the consumer.

The first five years were a struggle for Humboldt's, too, and even now unexpected problems arise. But
Kurtz is quick to identify the trait that keeps their business on track.

'It's almost entirely stubbornness,' he explains. 'When I said that those 300 stores opened and 280
closed I know that Chris and I could have salvaged 95 percent of those bankruptcies just by grit, just
through hanging on. In the last couple of weeks one supplier refused to honour its contract, and we
took a very significant financial hit. But the next day we showed up and opened the door.'

Another problem frequently encountered is inconsistent supplies.

RealMedia Clip 4: What are some examples of products you carry?

The Humboldt's Legacy product range is diverse, but designed for anyone wanting to live in a
sustainable society. Customers can find recycled paper; soaps, shampoos and detergents in refillable
containers; clothing and bedding made from organic cotton; seeds that support biodiversity and
organic agriculture; books and magazines providing information on a plethora of green subjects; and
many other items.
When asked if they have any competition, Kurtz is in no doubt. 'Our competition is the majors,' he
says. 'That's what we've always said. We are trying to draw consumers from major supermarkets and
that's always been our goal. So the city's full of competition.

How does Kurtz reconcile the ethics of the store with the far less sustainable business practices that
consumers accept so readily today?

'The trick is balancing all those things,' he says. The question is how much you compromise in
achieving your daily goals while still staying true to your original vision. For me it's not a trick because
I'm stubborn and, in some ways, just plain stupid. We could make the compromise and carry a lot of
items manufactured in the Third World, for instance; that would be a lot cheaper. We'd hear the odd
complaint, but our business would soar. We could carry soaps that would be an animal fat-based soap
and it would be 30 or 40 percent cheaper and we'd sell ten times as much soap. For me to say 'I won't
do that', is it noble or just stupid? It depends on how you look at it.'

RealMedia Clip 5: Why aren't the products you carry distributed more widely, aren't more
mainstream?

With a growing number of businesses recognizing the economic benefits of adopting sustainable
business strategies, does Kurtz envision a time when Humboldt's Legacy will become obsolete?

'I guess that was my initial hope when we started,' he admits. 'But I think that even if our society
evolves to the point where we really do find a sustainable situation, I think we will still see significant
pollution. We will know how low the pH in a lake can go and still keep the fish alive. So it's really a
question of what we can get away with. We still justify in our own minds a global economy that has
cut out the poorest half of the population. It would take an evolutionary step, I think almost as great
as moving from the apes to where we are now, for everyone to be included and to have a decent
standard of living.'

Case Study 19: