my point of view…

Sustainable Development

A Journey Toward Future Success for the Industry

Sustainable development. Smart growth. Renewable resources. These terms are ones likely to elicit rolled eyes, gritted teeth and elevated blood pressure among many of us in the aggregate industry. While these concepts may have been met with a cool reception in the past, it’s time we started looking for opportunities in concepts that have previously been viewed as obstacles.

Why should we change our thinking? For any of a number of reasons, such as:

It may be the key to obtaining our next permit.
If we do not participate in land-use planning and set aside reserves for future development, they may soon be developed over.
Experts predict that the next wave of environmental legislation will limit consumption of natural resources.
It’s the responsible thing to do.
It may actually enhance your bottom line.

No, that isn’t a mistake. Sustainability isn’t about what you have to expend, but rather what you can save—in more ways than one. That was a lesson Blue Circle Aggregates (BCAg) learned over the last five years (see “Environmental Management Systems, Part 1: Blue Circle/Lafarge’s Innovative Program ROCKs,”). For nearly nine years, BCAg, now part of Lafarge, has been on a path toward improving its environmental record.

Moving step-by-step from compliance to environmental management toward a goal of sustainability, BCAg employees found that there were a number of economic benefits from its environmental initiatives. In hard costs, the company achieved reductions in three of its four performance indicators (waste, recycled waste and electricity) while increasing production by nearly 20 percent. In soft costs, the company also found that its environmental management system fostered job satisfaction that aided in the recruitment and retention of its personnel.

In 2000, BCAg became the first company in the mining industry to use total cost accounting (TCA) in conjunction with its environmental management system. TCA evaluates five areas—natural capital, human capital, social capital, manufactured capital and financial capital—to measure performance. According to John Gray, director of environmental services for Blue Circle Cement, TCA allows the company to measure performance in dollars and cents and inputs and outputs.

Like BCAg, the industry is beginning to gauge the opportunities afforded it through proactive environmental strategies. The National Stone, Sand and Gravel Association worked with BCAg and other producers to develop its Environmental Management System, which will be rolled out shortly. On the state and local front, producers and associations are partnering with environmental and land-use planning departments to set aside aggregate reserves for future development. On a plant-by-plant basis, producers are using activities such as spray trucks and increased berm size to reduce dust emissions and improve neighbor relations.

Embracing environmental strategies isn’t an all-or-nothing proposition. Rather, as Gray likes to say, it’s a journey based on choices made along the way. Maybe you should give some thought to where your journey is taking you.