Strategies for Sustainable Development

Abstract As the concept of sustainable development gains acceptance, the petroleum industry is increasingly challenged to find its place in this movement. Environmental and social demands are becoming more stringent, and new competition is presenting itself. DuPont CEO Jack Krol recently pointed out, "environmental conservation is the major business opportunity of the next century." One of the easiest ways to participate in sustainable development is by investing in it. Investments can take place globally, in industries that range from new product development to fish farming. For example, the replacement of petrochemicals by plant-based alternatives presents a niche that could benefit from the experience of the petroleum industry. The same is true for the solar industry. What the petroleum industry has to gain from this activity is exposure to markets that will be identified as the drivers of sustainable development. This is not the traditional "checkbook" approach to bankrolling a local social services infrastructure or community program. Rather, these are integrated mechanisms which deploy modest capital to generate financial, environmental and social returns for the investor and investee. Some of the negative impacts of the petroleum industry, such as natural resource extractions, community dislocation, habitat disruption, and accidental environmental emergencies can also be counter-balanced with quantifiable benefits achieved through sustainable development instruments. Environmental Enterprises Assistance Fund has developed proven mechanisms to support the growth of indigenous private sector enterprises by creating venture capital funds. These funds invest only in businesses that meet strict environmental and economic goals -- such as selective forestry and organic agriculture -- and are leveraged by the capital of other investors, such as the World Bank. These funds allow investors to reposition themselves in anticipation of market changes that call for greater environmental and social sensitivity.