Strategies for Sustainability at Navistar

Paper # PS2009-104

Thomas W. Hesterberg and William B. Bunn

Navistar, Inc., Warrenville, IL60555

INTRODUCTION

Sustainability is the ability to meet the needs of today’s people and environment without compromising that of subsequent generations. For business, sustainability means ensuring success in the present without compromising the future. A sustainable program rests upon the three pillars of sustainability: environment, economic, and social. In a business context, pursuit of sustainable strategies should reduce product and facility environmental impacts, improve employees’ health and safety, and invest in the well-being of plant communities throughout the world. A sustainable business strives to make products that actively reduce aggregate environmental impacts and promote sustainable development. Therefore, a successful strategy for sustainability will demonstrate a commitment that drives economic growth while preserving the environment, protecting employees, and fostering communities’ well-being.

Sustainability strategies in business

Sustainability strategies in business include environmental, economic and social components.

Environment

A sustainable business has facilities and products that actively reduce aggregate environmental impacts and promote sustainable development. A sustainable business works hard to assure that all facilities meet consistent standards for stationary emissions, reduction in energy use, and reduced production of waste materials. In addition, a sustainable business is committed to the pursuit of technologies that address the issue of global climate change. Sustainable facilities strive to reduce emissions of toxics and greenhouse gases and increase energy savings. Facilities can increase energy savings by energy conservation efforts and undertaking energy efficiency enhancements, including lighting upgrades, building insulation improvements, and the use of energy-efficient equipment. In the transportation industry, sustainable products have reduced emissions and increased fuel efficiency. For example, Navistar led the way in developing low-emitting diesels which have near zero emissions of carbon monoxide, hydrocarbons, and particulate matter [1]. Nitrogen oxides have also been reduced 99% during the last two decades. Diesels have a smaller carbon footprint (lower carbon dioxide emissions) than gasoline fueled vehicles. With improved aerodynamic designs and hybrid diesel technology, diesels have improved fuel efficiency and significantly reduced emissions of carbon dioxide. In fact diesels are more fuel efficient than vehicles fueled with compressed natural gas. Finally, diesel engine technology can utilize biodiesel, a renewable fuel, which helps to reduce use of fossil fuels and leads to a net decrease in carbon dioxide emissions over the fuel life cycle.

A strong product stewardship program can play a critical role in business’s sustainability efforts. Product stewardship takes a systematic approach to product development – one that reflects both the health and safety of customers and the products' potential impact on the environment, today and in the future. This philosophy of product stewardship is the foundation for some of the most progressive business practices and processes in our industry. One of the most critical elements of a product stewardship program is an ongoing commitment to support scientific research. For example, Navistar supports research on diesel emissions and their potential health and environmental effects [2-4]. Business can work through international scientific organizations such as Air and Waste Management Association, Health Effects Institute, and the International Commission on Occupational Health to develop the sound science needed to make effective policy decisions. Another aspect of sustainable product development is the importance of identifying and relying upon the supplier partners who will collaborate to develop environmentally friendly solutions. Finally, sustainability requires close collaboration with government agencies. In the United States, for example,these agencies might include theEnvironmental Protection Agency (EPA), the California Air Resources Board (CARB) and the Department of Energy (DOE). Collaboration with agencies such as these will assure that future societies will have a strong foundation for managing health and environmental issues.

Economic

Profitable growth is achieved more readily when the company’s energy use is reduced, facilities’ waste and environmental impacts are minimized, and the company has a positive impact on the community. A sustainable business pursues an economic model that gives equal weight to sustainability and profitability. In many cases a sustainable business approach will reduce operating costs and improve profitability. For example, Navistar has an aggressive recycling program which has both reduced wastes and costs. Because sustainability covers a wide breadth of activities, cross functional teams including environment, health, safety, product stewardship, security, product managers and finance are one way to successfully integrate sustainability into business decisions.

Social

A sustainable business strives for a competitive cost structure that achieves maximum productivity by improving employees’ health, safety and security and encourages community involvement. A sustainable business takes a comprehensive approach to health, safety and security embracing everything from employee wellness programs to preparedness for terrorism and pandemic diseases.

Health

Recognizing that the health and well-being of employees directly impacts the bottom line, a sustainable business encourages employees to maintain a healthy lifestyle, helps to minimize absenteeism and keeps health care costs manageable. It also improves productivity and keeps employees focused on producing high-quality sustainable products. For all these reasons, a sustainable business works assiduously to drive the “1, 2, 3s” of health management and disease prevention, including 1) primary prevention that seeks to eliminate smoking, obesity or other risk factors; 2) secondary prevention, which manages or reduces the risk factors in order to prevent disease; and 3) tertiary prevention that aims to manage disease in order to prevent catastrophic consequences.

Safety

For a sustainable business, safety in the workplace is paramount. At Navistar, a strong emphasis on safety placed at a local level, with local committees working to foster a culture of safety [5].

Security

A sustainable business works to assure the security of its operations and employees. In today’s world with more international travel, keeping traveling employees safe and secure is a challenge. One new approach used at Navistar employs a web-based management system, which automatically links corporate travel booking, travel health, and travel security systems with employees who purchase international tickets. With this system, employees receive, via email, timely, location-specific information on security and health risks, vaccination recommendations, and international travel policy and procedures.

Community

A sustainable business and its employees are committed to the well-being of the communities in which they do business. A sustainable business will frequently demonstrate its concern for those with special and urgent needs. For example Navistar assists students in under-served public school systems by providing state-of-the-art training programs from industry leaders that give students a head start toward a meaningful, stable career path.

Supporting community diversity, including supplier diversity, is a key strategy for growth. It brings a number of very tangible benefits, including innovation, high-quality products and services, and improved customer relationships. Navistar uses local Diversity Councils, comprised of employees at most of our facilities, to promote diversity in the community, including its educational dimensions.

Conclusion

Sustainability strategies are an important part of good business practices. These strategies for sustainability reduce product and facility environmental impacts, improve employees’ health and safety, and invest in the well-being of plant communities. Programs for product stewardship, employees’ health, safety and security, energy use and facility environmental impacts reduction, and community involvement are key elements of a sustainability strategy for business.

References

  1. Bunn, W.B., Slodowske, W., Hesterberg, T., Lapin, C. (2004) Reducing diesel engine emissions using catalyzed diesel particulate filter technology. EM, May 2004, 29-32.
  2. Liu, L.-J. S., Webber, W., Davey, M., et al. (2009). Quantification of self pollution from two diesel school buses using three independent methods. Env Sci Technol in press.
  3. Mauderly, J. et al. ACES Phase 3. Chronic Inhalation Bioassay. Health Effects Institute, Annual Meeting, April 2007.
  4. Bailey, B., D. Greenbaum, C. Tennant, J. Warren. Advanced Collaborative Emission Study (ACES). Status. Health Effects Institute, Annual Meeting, April 2007.
  5. Bunn, W.B., Baver, R.S., Ehni, T.K., et al. (2006). Impact of a musculoskeletal disability management program on medical costs and productivity in a large manufacturing company. Am J Manag Care12:SP27-SP32.