Novelis Inc. has found the perfect convergence of its business objectives with environmental sustainability in the avatar of ‘recycling’. The organization has given novel hues to this term by creating partnerships to procure used aluminum cans that form a principal raw material for its product. In addition to the huge cost savings for the company this strategy has also contributed to saving the environment by decreasing the carbon dioxide off-gassing and the consumption of electricity involved in manufacturing aluminum.
Innovation
Novelis is not only the global leader in aluminum rolling operating in 11 countries but also proudly claims to be the world’s largest aluminum recycler, a feat commendable in and of itself sans the business benefits. The story only gets better when the bottom line of the company prospers in parallel to its recycling endeavors.
Capitalizing on the fact that more than 50 billion aluminum cans are recycled every year in the US the organization chose to incorporate the idea of encouraging aluminum can recycling as a strategic business objective. Most of the company’s plants recycle post-consumer aluminum and scrap aluminum generated during the manufacturing process. This recycled material is utilized by the company’s rolling facilities to produce new can sheet. The beauty of the procedure lies in its incessant iteration as aluminum does not degrade during the recycling process.
The scale of the recycling efforts envisioned by Novelis would have been impossible without mobilizing the community, local leaders, and government to create incentives and opportunities for recycling at the individual and community level. The organization has launched the ‘Cans for Cash’ recycling challenge national contest that rewards cities for recycling aluminum beverage cans. The United States Conference of Mayors, Novelis Corporation, and Keep America Beautiful, Inc. partnership encourages and assists U.S. cities with their sustainable recycling efforts. The Challenge awards twelve $5,000 awards to participating municipalities and four $2,500 awards to KAB affiliates (totaling $70,000) for furthering recycling efforts. Moreover through its ‘Cans for Habitat’ program the company motivates recycling of aluminum cans to raise money to build decent, affordable Habitat housing for low-income families nationwide.
Understanding the power of knowledge, the company proactively encourages lthe local community to recycle aluminum cans by generating awareness like the ‘recycling calculator’ on their website that can calculate the positive impact and potential earnings by aluminum can recycling for a neighborhood. The company provides educational material for anyone willing to get the word out for recycling. They also lay down a step by step procedure encouraging school kids and others who wish to launch a recycling program for raising money. The company also has a host of games and activities for kids on the website that generates sensitivity toward aluminum can recycling.
In addition to the educators, community awareness, and kids, the company also encourages employees to act as ambassadors by initiating a recycling program in their neighborhood or simply by committing to the practice of recycling at an individual level. The employees are also encouraged to participate in community events as well as partnerships like the Habitat for Humanity Program to provide a boost to the act of recycling.
Their honesty and commitment to environmental stewardship is further evident in other actions like implementing an environmental management system at its facilities, investing in R&D to improve the environmental impact of Novelis products and processes, and generating dialogues amongst stakeholders and employees on creating profitability and positive impact through its business practices.
Impact
Novelis recycles more than 38 billion cans per year, enough to circle the earth 100 times if laid end to end! Annually, Novelis recycles about 45 percent of all used beverage cans collected in the United States and Canada through its recycling plants in Berea, Ky., Oswego, N.Y., and Greensboro, Ga. The Berea plant is the world's largest facility dedicated to recycling. Because the recycled cans serve as the major input for the company’s products, the advantages in terms of cost savings are as huge.
The benefit to the environment does not stop at re-directing used aluminum cans away from the landfills. Recycling consumes only 5 percent of the energy needed in producing aluminum from scratch, resulting in saving of more than 95 percent of energy and the related emissions like greenhouse gases. The process specifically helps in avoiding 10 tons of CO2 equivalents. Further, not producing aluminum from scratch eliminates the need for about 5 tons of Bauxite ore to be mined, 2 tons of red mud as by product and minimizes the overall impact on biodiversity.
In addition to the benefits accrued in the present, the organization has stellar goals for the future in terms of reducing land-fill waste generation by 25% by 2010, improving energy efficiency by 16% by 2012 and reducing specific greenhouse gas emissions by 16% by 2012. Considering the past record, these objectives sound very achievable leading the company to greater heights of sustainability.
Inspiration
By discovering the symbiotic link between environment and profits Novelis has created value not only for its shareholders but for the planet and the society as a whole. The inspiration of the company is echoed by various stakeholders that encourage the company’s efforts. In 2005, National Recycling Coalition honored Novelis as the leader in conservation of environment and captured the essence of the company’s strategy befittingly by stating that Novelis is a pioneer in making its environmental commitment to recycling a fundamental part of its business.
The World Inquiry editorial team edited this profile from the original submission of the interviewer or other source. The views expressed do not necessarily represent Case Western Reserve University, the Weatherhead School of Management or the Center for Business as an Agent of World Benefit. More >>
