America’s Green Competitiveness

Tomorrow I will be participating in a discussion at the Atlantic Monthly’s Green Intelligence Forum on Environmental Competitiveness. My co-panelists are Jeffrey Leonard, President and Chief Executive Officer, Global Environment Fund, Jerry Taylor, Senior Fellow, Cato Institute and Katherine Sierra, Senior Fellow, Global Economy and Development, The Brookings Institution. Among the questions discussed will be the following: Is sustainability key to future competitiveness in a globalized economy? Have business leaders demonstrated real return on investment when adopting sustainable practices? Is the market sophisticated enough to demand sustainable practices and hold corporations accountable for applying them?

Given the make-up of the panel, I expect a wide-ranging and provocative exchange, but here are some of my thoughts in advance.

Sustainability is not only critical to businesses competing in a globalized marketplace, but it is central to the survival of the planet. All of our regional ecosystems are stressed and when planetary phenomena such as climate change are added to the mix, the earth’s carrying capacity becomes a genuine issue. The sustainability overlay is accommodating growth, both substantial population increases (forecast as much as 2 billion people by mid-century), and growth in consumption as various economies develop and businesses flourish. If we do not place the appropriate values on “ecosystem services” (e.g. water, carbon sequestration, biodiversity), economic development may prove impossible or more likely it may irreparably damage the environment with all of kinds of consequences for people.

On a somewhat more mundane level, I believe it is settled that many business leaders have embraced sustainability and achieved attractive returns on investments of all kinds, including top line growth in revenue and enhancement of bottom line profitability. There is a veritable bookshelf of case studies and countless examples of sustainability success stories. The question I hope to address at the Forum is how businesses can continue to grow while contributing to a sustainable future at the same time. An obvious answer is that alternative energy and environmental solutions will have to be massively scaled in order to make a meaningful contribution to the world’s needs, e.g. solar PV is presently just a fraction of a percent of electricity supplies. Bringing this full circle, that is where Applied Materials and competitiveness reenter the conversation: Applied is in the business of helping industries manufacture products at affordable scale and manufacturing capacity is one of the elements of U.S. competitiveness that is lacking at the moment. More to follow from the Forum, but in the mean time you can follow my comments on Twitter at @chicagobk or via Applied at @Applied_Blog. Additionally, comments or questions are welcomed via this post.