| Adapted from
an article first published in Corporate
Environmental Strategy: International Journal of Corporate
Sustainability, August 2002.
The triple bottom line has been, and remains, a useful
tool for integrating sustainability into the business agenda.
Balancing traditional economic goals with social and environmental
concerns, it has created a new measure of corporate performance.
A business strategy focused solely on the bottom line, however,
can obscure opportunities to pursue innovation and create
value in the design process. New tools for sustainable design
can refocus product development from a process aimed at
limiting end of pipe liabilities to one geared to creating
safe, quality products right from the start.
This new design perspective creates triple top line growth:
products that enhance the well being of nature and culture
while generating economic value. Design for the triple top
line follows the laws of nature to give industry the tools
to develop systems that safely generate prosperity. In these
new human systems, materials become food for the soil or
flow back to industry forever. Value and quality are embodied
in products, processes and facilities so intelligently designed,
they leave footprints to delight in rather than lament.
When the principles of ecologically intelligent design are
widely applied, both nature and commerce can thrive and
grow.
As the concept of sustainability takes root in corporate
culture, many business leaders today are discovering what
it means to measure performance against the triple bottom
line. This triad of concerns-economic growth, environmental
protection and social equity-was once considered an impractical,
blue-sky ethic. Yet today it has begun to define both long-term
strategy and everyday practice for leading manufacturing
corporations all over the world.
Business people typically begin their commitment to sustainability
with a clear understanding of their economic goals-a sense
of purpose that comes from having built an enterprise that
creates wealth and provides jobs-and a belief that they
would like to "do better by the environment."
Often, sustainable business practices generated from this
perspective tend to be resource efficiency measures or "end-of-pipe"
initiatives that meet the triple bottom line by minimizing
the impacts of industry. These are important first steps
toward identifying problems, but ultimately they are strategies
for managing negative effects-an agenda built on trying
to be "less bad."
But is being less bad being good?
We don't think so. Minimizing the impact of industry might
slow down ecological destruction; an efficient use of resources
might keep the engines of commerce running a few more years.
But waste reduction and other palliatives aim for mere sustainability,
which is, after all, a minimum condition for survival-hardly
an inspiring prospect.
We are pursuing something entirely different. It's a strategy
of change that sees today's innovations as the first steps
in a transition from the maintenance of an aging system
to the creation of a new one. Rather than trying to limit
economic growth or reduce the impact of industry, we are
creating the foundation of a system in which products and
industrial processes are so intelligently designed they
don't need to be regulated. Instead, they create wholly
positive effects, a large and beneficial ecological footprint.
We might call this new world of commerce sustaining rather
than sustainable, which suggests to us a more fulfilling
agenda than the maintenance of a damaging system. Why choose
a meager, limiting diet when we can create real sustenance
with designs as safe, nutritious and productive as those
nature gives us?
Creating a sustaining industrial system calls for a new
definition of quality in product, process and facility design.
From our perspective, quality is embodied in designs that
allow industry to enhance the well being of nature and culture
while generating economic value. Pursuing these positive
aspirations at every level of commerce anchors intelligent,
sustaining design deep within corporate business strategy.
And when good design drives the business agenda, the path
toward sustainability turns from trying to be "less
bad" to identifying new opportunities to generate a
wide spectrum of value. If one approaches the design process
asking, "How can I grow prosperity, celebrate my community,
and enhance the health of all species?" the results
are likely to be far more positive and enriching than those
gained by using less material to make an existing product
or measuring its performance against a bottom line standard.
We could call this change of perspective a shift from the
triple bottom line to the triple top line. The triple bottom
line, a concept developed by John Elkington, has been, and
remains, a useful tool for integrating sustainability into
the business agenda. Balancing traditional economic goals
with social and environmental concerns, in language that
works in the boardroom, it has created a new measure of
corporate performance. Unfortunately, in ways Elkington
did not intend, the triple bottom line often becomes a measure
of the degree to which a company has minimized a liability.
The concept of the triple top line moves accountability
to the beginning of the design process, assigning value
to a multiplicity of economic, ecological and social questions
that enhance product value. When asked upfront, these questions
can drive intelligent product development and lead to design
decisions that yield positive effects rather than limited
liabilities.
When designing a new textile line, for example, we asked
how an upholstery fabric could replenish nature, totally
eliminate waste, and provide a safe working environment
for the employees of a textile mill. The result was a beautiful
fabric created with ingredients so safe it filtered the
water running through the mill during production, making
regulations and health concerns obsolete. After its useful
commercial life as an upholstery fabric, the material can
be composted and used to restore soil-the trimmings from
the mill, in fact, become mulch for the local garden club.
Distributed by an international textile design firm, the
fabric has been a splendid success. No waste. No liabilities.
Lower costs. Higher margins. In short, only assets and positive
effects.
The triple top line doesn't obviate the need for triple
bottom line accounting. Keeping close track of the bottom
line is indispensable: You won't achieve sustainability
unless you stay in business. In practice, however, triple
bottom line accounting tends to focus on economic concerns,
with ecological or social benefits sometimes considered
as an afterthought. Lost in this scenario are rich opportunities
to transform triple bottom line analysis into a strategic
design tool generating new business opportunities and triple
top line growth.
Understanding Values with the Fractal
Triangle
In our work with corporate clients such as Ford
Motor Company, Nike,
Herman
Miller and BASF we have found that a visual tool, a
fractal triangle, helps us apply triple top line thinking
throughout the design process. Typically, meeting the triple
bottom line is seen as a balancing act, a series of compromises
between competing interests played out in product and process
design. The key insights offered by the fractal triangle
turn this notion on its head: Intelligent design, rather
than balancing economy, ecology and equity can employ their
dynamic interplay to generate value.
Figure 1 [Fractal jpg]
The fractal triangle, first of all, reminds us that every
product, whether or not it is designed with environmental
health in mind, is produced and used in an interconnected
world. This is the fundamental insight of ecology and the
reason why the famous triad of sustainable development is
on the table in the first place. But our value systems often
obscure that fact; most of us still in some way identify
with one of the prevailing ideologies of the 20th century.
Capitalism, even in a social market economy, identifies
value almost exclusively in the economic realm. Yet products
designed for economic gain have an enormous impact on the
social and ecological world as well. The environmental groups
and regulatory agencies that have emerged in response to
the unintended consequences of industry tend to identify
value primarily in preserving environmental health. Social
movements that see economic aims as threatening are inclined
to value the pursuit of equity most highly.
Each of these schools of thought-capitalism, socialism,
ecologism-was inspired by a genuine desire to improve the
human condition. But taken to extremes-reduced to isms-the
stances they inspired can neglect factors crucial to long-term
success. Even ecological concern, stretched to an ism, can
neglect social, cultural, and economic interests to the
detriment of the whole system. In short, holding one of
these concerns as the ultimate goal often puts economy,
ecology and equity at cross-purposes. So does measuring
your performance by how well you are managing the bottom
line liabilities that arise from these seemingly conflicting
interests.
Triple top line thinkers, rather than trying to limit the
influence of one or the other of these value systems, discover
opportunities in honoring the needs of all three. In an
infinitely interconnected world, they see rich relationships
rather than inherent conflicts, much the way an ecologist
sees infinitely complex and productive natural communities
where others see "nature, tooth and claw."
This concept is embodied in the fractal triangle. Representing
the ecology of human concerns, it shows how ecology, economy
and equity anchor a spectrum of value, and how, at any level
of scrutiny, each design decision has an impact on all three.
As we plan a product or system, we move around the fractal
inquiring how a new design can generate value in each category.
Again, the goal is not to balance competing perspectives
but to optimize and maximize value in all areas of the triangle
through intelligent design. Often, we discover our most
fruitful insights where design decisions create a kind of
friction in the zones where values overlap. Returning to
the ecological metaphor, we might call these areas ecotones,
the boundaries between natural communities notable for their
rich diversity of species. In the fractal, the ecotones
are ripe with business opportunities.
Figure 2 [Fractal callouts]
When applying the fractal triangle to our own projects,
we begin asking questions in the extreme, lower-right corner,
which represents the Economy/Economy sector. Here we are
in the realm of extremely pure capitalism and the questions
we ask would certainly include, Can I make my product or
provide my service at a profit? We tell our commercial clients
that if the answer is no, don't do it. As we see it, the
goal of an effective company is to stay in business as it
transforms, providing shareholder value as it discovers
ways to generate positive social and environmental effects.
Moving to the Economy/Equity sector, we consider questions
of profitability and fairness. Are the employees producing
a promising product earning a living wage? As we continue
on to Equity/Economy, our focus shifts more towards fairness-we
begin to see Economy through the lens of Equity. Here we
might ask, Are men and women being paid the same for the
same work? Are we finding new ways to honor everyone involved,
regardless of race, sex, nationality or religion? In the
extreme Equity corner, the questions are purely social:
Will the new factory improve the quality of life of all
stakeholders?
In the Ecology corner of the Equity sector, the emphasis
shifts again; Equity is still in the foreground, but Ecology
has entered the picture. The questions arising at this intersection
of values might explore the ways in which a product, such
as the ecologically sound upholstery fabric, could enhance
the health of employees and customers. Continuing to Ecology/Equity,
we consider questions of safety or fairness in relation
to the entire ecosystem: Will our product contribute to
the health of the watershed?
In the pure Ecology sector: Are we obeying nature's laws?
Creating habitat? In this realm we try to imagine how humans
can be "tools for nature." Shifting to Ecology/Economy,
commerce reenters the picture: Is our ecological strategy
economically viable? Will it enable us to use resources
effectively? Finally, we come to Economy/Ecology, where
we encounter many questions that relate to the triple bottom
line. Here the inquiry tends to focus on efficiency: Will
our production process use resources efficiently? Will it
reduce waste?
Each of these questions presents an opportunity for creating
value. Together, they signal the possibility of acting with
positive intentions across a wide spectrum of human concerns.
Such intentions introduce a new standard of product quality,
performance and success.
A New Design Standard
One of the most refreshing benefits of using the fractal
triangle is the way in which it shifts the focus of the
design process from negative value judgments to questions
of quality. It draws attention to the fundamental question
of design: What is my intention?
As we survey the landscape of 21st century industry, we
see a system that generates a host of unintended consequences-the
pollution, waste, and ecological destruction we are all
too familiar with. Most of these conditions are not the
result of a grand, carefully conceived plan; they are the
signals of flawed design. And they are everywhere. The systems
we inherited from the Industrial Revolution are built on
a ubiquitous, cradle-to-grave manufacturing model that generates
products designed for a one-way trip the landfill. In fact,
as much as 90 percent of the materials used to create today's
products are cast off as waste, much of it toxic.
Environmentalists and business leaders sensitive to this
legacy have tried to limit the consequences of industrial
production by retrofitting the systems of industry to reduce
their harm. The sustainable development agenda, for example,
typically aims to reduce, re-use and recycle, creating "more
goods and services while using ever-less resources and producing
less waste and pollution."
As well-meaning as these goals may be, they don't change
the fundamental design of industrial production. They fine-tune
the engines of industry, diluting pollution and slowing
the loss of natural resources without examining the design
flaws at their source. The system remains based on a cradle-to-grave
model. In fact, these reforms take for granted-institutionalize,
even-the antagonism between nature and industry. The result:
business strategies built on restricting industry and curtailing
growth, an unappealing compromise based on the limitations
of a century-old industrial model. This is a commercial
cul de sac, the dead end created by an intention to be less
bad.
An entirely different intention, embodied by a strategy
we call Cradle to Cradle Design, offers a compelling alternative.
Cradle to Cradle Design rejects the assumption that the
natural world is inevitably destroyed by human industry,
or that excessive demand for goods and services is the ultimate
and inevitable cause of environmental ills.
Industrial design is flawed because its foundations developed
in a world in which few understood or appreciated the interconnectedness
of people and nature, the relationship between economy and
ecology, or the principles of the earth's natural systems.
Today, with our ever-growing knowledge of the living earth-with
ecological intelligence-design can reflect a new spirit.
Cradle to Cradle Design incorporates this new awareness
at every level of human endeavor. Its principles are modeled
on natural systems, the perpetual flows of energy and nutrients
that support the earth's biodiversity. Its intention: to
apply the intelligence and effectiveness of these systems
to product and process design, so that commerce can grow
prosperity, celebrate cultural diversity and enhance the
health of all species.
From an industrial design perspective this means developing
materials, products, supply chains, and manufacturing processes
that replace industry's cradle-to-grave manufacturing model.
In its place: systems modeled on nature's cradle-to-cradle
cycles, in which one organism's waste becomes food for another.
When designers apply this principle-waste equals food-to
product conception and material flows management, they can
to begin to create goods and services that flow effectively
within closed-loop systems, providing after each useful
life either nourishment for nature or high quality materials
for new products. Ultimately, we think Cradle to Cradle
Design can lay the foundation for a transition from products
designed for a one-way trip to the landfill to industrial
systems that restore nature, eliminate the concept of waste,
and create enduring wealth and social value-human industry
as a regenerative force.
The Fractal at Work: Designing New Facilities
This is not just wishful thinking. The Fractal Triangle
moves these concerns to the top line in the minds of designers.
In projects underway today we have been using the fractal
in the design process, looking in each sector for ways to
generate positive effects. Inquiries such as these inherently
spark an explosion of creativity, yielding projects that
produce new value in ways that would never have been imagined
when approached from a purely economic perspective.
Consider, for example, the restoration of Ford Motor Company's
Rouge River plant in Dearborn, Michigan. Built between 1917
and 1925, the Rouge is one of the world's largest industrial
sites. Once an enormously productive complex of blast furnaces,
stamping mills, warehouses and assembly buildings capable
of producing automobiles from raw materials, the plant fell
into disrepair late in the 20th century. The aging facilities
were rusting and out of date and decades of manufacturing
had taken a toll on the soil and water.
In May 1999, Ford decided to invest $2 billion over 20
years to transform the Rouge into an icon of 21st century
industry. Led by then chairman William Clay Ford, Jr., the
company committed to not only rebuilding the complex but
to restoring it to a healthy, life-supporting place. Here
was a blue chip company with a sharp focus on the bottom
line taking a step toward something truly new and inspiring.
Could inspired innovation and profits co-exist?
Well, yes. Using the Fractal Triangle as a design tool,
we worked with Ford's executives, engineers, and designers
to begin to explore innovative ways of creating shareholder
value. Rather than using economic metrics to try to reconcile
apparent conflicts between environmental concerns and the
bottom line, the company began to ask triple top line questions.
Innovations would still need to be good for profits, but
Ford's leaders began to explore how profits could be maximized
by design decisions that also maximized social and ecological
value.
Triple top line thinking energized the company's decision-making
process. Ford began to ask revolutionary questions: How
can we make the Rouge a place we would allow our children
to play? How do we design a manufacturing facility that
creates prosperity and health for employees? What innovations
will create habitat for native species? How do we create
healthy soil? These are all positive, pro-active questions.
They ask not how to "clean up" but how to create
life-support systems.
The systems for storm water management on the site illustrate
how designs that support life can create tremendous economic
value. Expensive technical controls are a typical response
to storm water regulations. Ford estimated that new pipes
and treatment plants would cost up to $48 million. If we
had approached the flow of water on the Rouge site from
a triple bottom line perspective, we might have tried to
cut costs by using pipes made with less material, or by
finding ways to treat water with fewer harmful chemicals.
If we followed this path, we would be trying to meet an
environmental responsibility as efficiently as possible.
Instead, we tried to design a manufacturing facility that
would create habitat, make oxygen, connect employees to
their surroundings and invite the return of native species.
The result is a daylit factory with 450,000 square-feet
of roof covered with healthy topsoil and growing plants-a
living roof. In concert with porous paving and a series
of constructed wetlands and swales, the living roof will
slow and filter stormwater run-off, obviating the need for
expensive technical controls, and even regulations. All
this with first cost savings of up to $35 million, with
the landscape thrown in for free.
This is the power of intelligent design.
The Fractal at Work: Conceiving New Products
Designers can also apply the fractal triangle and triple
top line thinking to the design of a single product-or even
product packaging. Imagine that you are the CEO of an ice
cream company. You sell an all-natural product you are very
proud of. It brings pleasure to your customers while supporting
the dairy farmers of your region, and it generates great
profits, too. But you have a problem: after a recent outdoor
event downtown, hundreds of wrappers from your popular ice
cream sandwich littered the city parks. You did the right
thing when you sent out a crew to clean up the mess, but
clearly, that's not something you want to do for the long-term.
You also realize, when forced to face this problem, that
your packaging is also dyed with chemicals you'd never put
in your ice cream. What to do?
If we were advising you, we'd suggest some triple top line
thinking with the fractal triangle to try to generate an
innovative solution. We would not ask how to reduce the
chemicals in your packaging or how to work with the city
on litter control. Instead, we'd wonder what kind of positive
effects you hoped to create. Maybe you're interested in
continuing to provide the pleasure of a delicious sweet
while offering a healthful package that creates new value
for your community.
Working with the fractal, we might begin to see that ice
cream packaging could be designed for biodegradability with
new bio-polymers and safe dyes. This light, healthful packaging
could be economically produced. You might decide to provide
added value by embedding the seeds of a native wildflower
packaging designed to dissolve in a day after use-when children
toss it on the ground they'd be planting seeds rather than
discarding trash. Suddenly, your problem starts to become
an asset: You're supporting the population of native plants;
your customers are excited to be young "Johnny Appleseeds;"
the city parks are blooming with colorful flowers; and your
sales are through the roof. Not bad for packaging. Who knows,
such a product could someday make "Adopt-a-Highway"
programs obsolete.
Seeing the Future, Today
These examples begin to suggest some of the ways in which
triple top line thinking and the fractal triangle create
business opportunities. Applied throughout the design process,
they introduce a new standard of quality, adding ecological
intelligence, social justice, and the celebration of creativity
to the typical design criteria of cost, performance, and
aesthetics. Design driven by these positive aspirations
could lay the foundation for a truly inspiring era in which
we transform industry by remaking the way we make things.
We will do so, we believe, by engaging in a true partnership
with nature. Expressed in designs that resonate with natural
systems, this new partnership can take us beyond sustainability-a
minimum condition for survival-toward commerce that celebrates
our relationship with the living earth. We can build factories
that inspire their inhabitants with sunlit spaces, fresh
air, copious views of the outdoors, and cultural delights.
We can create fabrics that feed the soil, giving us pleasure
as garments and as sources of nourishment for our gardens.
We can tap into the flows of energy and nutrients in the
natural world, designing astonishingly productive systems
that create oxygen, accrue energy, filter water, and provide
healthy habitats for people and nature.
As we have seen, designs such as these are generators of
economic value too. When the principles that guide them
are widely applied, at every level of industry, productivity
and profits will no longer be at odds with the concerns
of the commons. Instead, we will be living in a world of
sustaining prosperity, a world in which both nature and
commerce can thrive and grow.
William McDonough is an architect, industrial designer,
and educator. He is the founding principal of William
McDonough + Partners, Architecture and Community Design.
Michael Braungart is a chemist, university professor, and
the founder of EPEA Internationale Umweltforschung GmbH,
a scientific consultancy based in Hamburg, Germany. In 1995
they co-founded McDonough
Braungart Design Chemistry, a product and process development
firm assisting companies with material assessment, material
flows management, and life-cycle design. Their new book,
Cradle to Cradle: Remaking the Way We Make Things,
was published in 2002 by North Point Press.
|