Global environmental trends: Production and consumption

Overview

The material requirements of modern industrial economies are enormous, as are the environmental impacts of such consumption. In industrialized societies, an average person consumes many tons of raw materials each year, which must be extracted, processed, and ultimately disposed of as wastes. This section examines some of the repercussions of current production and consumption patterns and explores how companies and governments are beginning to adopt practices to reduce consumption’s environmental toll.

One way to measure the "environmental footprint" of industrial societies is to track the volume and kind of materials flowing through their economies. A recent effort to make just such an accounting, reported here, reveals that the environmental footprint of the most highly industrialized economies is surprisingly large, extending well beyond the industrial processes themselves and well past the point of consumption. The continued trend toward greater consumption and wider environmental impacts is apparent in developed and developing countries alike. An analysis of global paper consumption, for instance, shows that use of paper products has tripled over the past three decades and is expected to grow by half again before 2010.

Consumption’s environmental profile is affected not just by rising demand, but also by changes in markets and production methods. Coffee is an example. For years, this crop was grown in a mixed forest setting that provided habitat for migratory birds. However, new intensive methods of cultivation are greatly reducing the forest canopy.

Driven by pollution regulations, public pressure, and a growing awareness that better environmental performance can be profitable, efforts to reduce the impacts of industry and agriculture are on the rise. New technologies, redesigned products, and reconfigured processes are increasing the efficiency of resource use and driving down process wastes. New management practices are extending the range of business responsibilities to include the environmental and social impacts of goods and services, even on distant communities or ecosystems.

Yet more remains to be done. Achieving industrial growth that is sustainable -- both ecologically and economically viable over the long term -- will require more than just cleaner, more efficient industrial processes. Business leaders and analysts acknowledge that it will demand a reorientation of business so that companies can derive traditional business success -- higher cash flow, shareholder value, and return on assets -- while still contributing to public goods like clean water and air, robust food, and healthy ecosystems. The subset of companies that are actively trying to restructure their businesses along these lines is still quite small.