Case study: Sustainability at Millipore

Résumé du document

The sustainability initiative that Millipore wanted to implement is based on sustainable development, i.e. "development that meets the needs of the present without compromising the ability of future generations to meet their own needs" ( United Nations World Commission on Environment and Development, 1987), by balancing three aspects: the economic, social and environmental. That is by using the Triple Bottom Line framework. The biggest challenge for Millipore is to get a better reputation in terms of sustainability and respect of the environment, that's why it has to focus on the social aspect.

To do so, Martin Madaus, Millipore's Chairman, CEO and President, outlined three objectives to focus on: reduction of the company's contribution to global climate change, reduction of Millipore's dependence on products based on petroleum, and reduction of waste associated with the company's operations and products. To reduce contribution to global climate change, the first decision is to lower its greenhouse gas emissions. The 2009 company's sustainability report states that its global greenhouse gas emissions decreased from 15% compared to its 2006 level.

Besides, its global waste generation reduced: 10% less for its global waste generation, -22% for its hazardous waste generation, and -5% for its non-hazardous waste generation. As shown by these figures, Millipore's global environmental elements are decreasing, whereas its revenues increase: 32 per cent more than in 2006 (from $1,255.4 to $1,654.0 millions).

Extraits

[...] (2009) Sustainability at Millipore Harvard Business School (copyright purchased in March 2010 from HBS online) United Nations World Commission on Environment and Development. (1987). Report of the World Commission on Environment and Development: Our Common Future. Retrieved May from UN Documents: http://www.un- documents.net/ocf-02.htm#I World Resources Institute and the World Business Council on Sustainable Development. (2004). The Greenhouse Has Protocol: A Corporate Accounting and Reporting Standard, Revised Edition. [...]

[...] First of all, Millipore needs to decide if it will be an absolute or relative reduction. For an absolute reduction target, the economic growth of the company or the changes in its business activities are not taken in account (i.e. the reduction will be effective from a certain date at a certain level), whereas for a relative reduction target, indicators are studied in order to determine the right level for the company. So, Millipore, as a company which is still growing, and that the context in the industry can change quickly, needs to opt for a relative reduction target. [...]

[...] the nature of greenhouse gas emissions in a company. For Millipore, two scopes are concerned: (World Resources Institute and the World Business Council on Sustainable Development, 2004) Scope they are the “direct GHG emissions [that] occur from sources that are owned or controlled by the company,” which included its industrial activities and any on-site energy production. For Millipore, these are GHG emissions coming from processes, air conditioning/air abatement equipments, fleet vehicles and boilers/generators. Scope they are GHG emissions “from the generation of purchased electricity consumed by the company”, so the electricity. [...]

[...] If these objectives are achieved, then the company will succeed in resolving its social issues, in fact addressed to all companies nowadays. To measure if the Sustainability Initiative achieved success, on the one hand David Newman, Millipore's director of sustainability, first should direct his attention to the product, i.e. if the products' performance are the same if not made of petroleum, and so if they are as much saleable. Besides, the end-of-life stage of the product is important: are they more often returned and so recycled. Finally, are the manufacturing processes respecting environmental requirements; to verify that aspect, Mr. [...]

[...] To achieve a successful Sustainability Initiative, Millipore needs to put projects in the foreground. The company omitted an important issue, which are the demands of the stakeholders. These projects must be prioritized by the following way. Firstly, the firm needs to evaluate the importance of stakeholders' demands in relation with their capability to support the Sustainability Initiative. In fact, if the stakeholders, who are the employees, suppliers, shareholders and customers, have low requirements in term of sustainability and that their capability to accept it is low, there will be no change concerning the company development. [...]