Businesses can learn a great deal about how to be sustainable from nature.

Anderson vowed in 1994 that Interface Carpet would become the world’s first sustainable business. But exactly what does that mean? By definition, sustainable development meets present needs without preventing future generations from meeting their needs. It enhances quality of life without damaging the environment that helps meet those needs. In short, Anderson says, sustainability means “Take nothing. Do no harm.” Some people have said that the term sustainable development is an oxymoron because development implies constant upward progress and, at some point, resource restriction will prevent further development. However, this would be true if development could only be considered a physical process, dependent on resource extraction. In reality, development can also be abstract: Some, for instance, consider improved quality of life and happiness to be development, even if it is not tied to physical resource use.

sustainable development

Economic and social development that meets present needs without preventing future generations from meeting their needs.

To combat the erroneous assumptions of mainstream economics, ecological economists support actions such as improving technology to increase production efficiency and reduce waste; valuing resources as realistically as possible; moving away from dependence on nonrenewable resources; and shifting away from a product-oriented economy. They look to natural ecosystems as models for how to efficiently use resources and live within the limits of nature. But ecological economists feel that our ingenuity will take us only so far and that economic growth has limits; therefore, we must significantly change the way we do things in order to become sustainable as a society.

KEY CONCEPT 6.7

We can become more sustainable by using nature as a model — reducing waste with increased efficiency, making choices that allow waste to be used as a resource, and relying on sustainable energy sources.

When he first vowed to make Interface sustainable, Anderson did not know whether his business would thrive or suffer as a result. “I was very apprehensive about it,” he recalls. But he, along with other entrepreneurs who have followed suit, are finding that green business—doing business in a way that is good for people and the environment—is also profitable. It can provide a competitive advantage either because the consumer is willing to support the company’s efforts or because green actions end up saving money.

green business

Doing business in a way that is good for people and the environment.

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Between 1996 and 2013 Interface Carpet has reduced greenhouse gas emissions per unit of production from its manufacturing facilities by 71%, slashed total energy use by 39%, and now relies on recycled or bio-based ingredients for 49% of its raw materials. During this same time, the company has increased sales by two-thirds and doubled its earnings. Some of this extra money directly resulted from its efforts; by reducing the amount of waste it produces, for instance, the company has saved $438 million in waste elimination costs since 1994. But Interface has also won many new customer contracts as a result of the changes it has made. At one point, for instance, Interface was in competition with two other carpet companies over a $20 million contract at the University of California. After Interface filled out a 200-page questionnaire about how the company was addressing various environmental issues, one of the university’s representatives turned to a colleague of Anderson’s and exclaimed, “This is real.”

How does a company find inspiration to become sustainable? One way is to look to natural ecosystems—a perfect example of sustainable resource use and waste minimization (biomimicry; see Chapter 1).

At Interface, Anderson was strongly inspired by biomimicry. For instance, the TacTiles technology that the company developed to replace glue was based on the physics that explains how a gecko lizard clings to walls and ceilings. The microscopic hairs on a gecko’s foot bond to the molecular layer of water that’s present on nearly every surface, allowing its feet to cling. Interface used this information to develop tiles that bond to one another rather than to the floor, making a kind of “floating” carpet that stays in place due to gravity rather than being glued to the floor. This makes carpet installation and removal much faster and easier.

Interface also revolutionized its operations by considering itself part of a service economy; it focuses on selling a service rather than a product. The idea is simple: A customer pays for the service, and the vendor makes sure that the service is always available. The service might be the ability to photocopy pages, walk on comfortable carpet, or keep refrigerated food cold. Interface, for instance, sells the service of carpet—its color, texture, durability, and comfort—rather than the product itself. The customer pays a monthly fee to “lease” the carpet, and Interface maintains it and replaces it as needed. This encourages Interface to produce carpet that is durable and recyclable and also easily replaceable. INFOGRAPHIC 6.8

PRODUCT VERSUS SERVICE ECONOMY

A service economy that focuses on providing the consumer the service desired, rather than a product, decreases resource drain and lessens waste while still potentially providing a profit for the seller.

Why does Interface invest in making such a durable, easy-to-recycle product for its lease program?

Since Interface retains ownership of the carpet, it pays to produce a durable product that will last a long time and does not need to be replaced as often. Since they re-use the carpet or fiber, it pays to produce fiber that is easily recycled into new product.

service economy

A business model whose focus is on leasing and caring for a product in the customer’s possession rather than on selling the product itself (that is, selling the service that the product provides).

Another sustainable business practice involves take-back programs, particularly for products with a defined life span, such as electronics: Customers return the product to the producer when they are finished with it or when they need an upgrade. This provides an incentive to the producer to make a durable, high-quality product that can be reused or recycled.