Eco-Growth: A Framework for Sustainable Growth

Abstract

Growth is imperative for corporate success and yet the environmental impact of this growth is not sustainable. In this paper we offer a framework for thinking about the stages of tackling the environmental sustainability challenge. It ranges from eco-efficiency, which includes initiatives that reduce costs while reducing environmental footprint; eco-alignment, including initiatives requiring cooperation with suppliers and customers; eco-innovation, which includes initiatives based on innovative products and processes; and eco-growth which includes initiatives contributing to the company’s growth, combining all the others. The second part of the paper offers a framework for analyzing the trade-off between shareholders objectives and sustainability objectives. The framework is based on the concept of the efficiency frontier and is used to tie to the four proposed stages of tackling environmental sustainable growth.