GreenMarketReport.com November 21st, 2008

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DuPont Reduces Waste and Increases Value

by Avery Yale Kamila
Published in SOSUpdate

(SOS Update, June 2002) At DuPont's Electronics and Communications Technology facility, engineers find ways to make products smaller, faster and cheaper. This serves the dual purpose of increasing value and functionality for DuPont's customers and reducing costs and environmental impacts for DuPont.

One of the technologies the RTP facility develops is holographic material. These materials are useful on passports and in product identification systems because they are almost impossible to duplicate. Holographic materials are also used in filters, lens and reflectors. The greenish background of many cell phone and watch displays is created using a hologram.

"This saves energy because instead of using a backlit display, the hologram reflects the room light and focuses it back at the eye," explains John Lott, Ph.D., Chief Environmental Officer at the RTP facility.

DuPont's innovation has created a solar cell component for GlucoWatch (a monitoring device for diabetics) that allows manufacturers to use less expensive components. DuPont's RTP employees are also working on a new technology called polymer light emitting diode that is inexpensive and energy efficient alternative to neon lighting. The philosophy of the RTP facility reflects DuPont's company-wide focus on sustainable growth.

"One of our strategies as a company is to move towards light businesses," says Paul Tebo, Ph.D., who is DuPont's Corporate Vice President, Safety, Health and Environment.

Dr. Tebo explains that heavy businesses use lots of raw materials, energy and capital and are driven by volume. Light businesses, in contrast, are driven by value and use little of the rest.

The goal is to achieve sustainable growth. DuPont's website defines sustainable growth as "the creation of shareholder and societal value while decreasing our environmental footprint along the value chains in which we operate."

"We believe the thing you do as a company is to create value, not a product," continues Dr. Tebo. "This changes your mindset. How can you provide more value at a higher price to the consumer?"

The answer is to create products that use fewer materials while enabling the customer to achieve the desired function in a better way. The customer gets more value and the supplier gets a better price.

In a partnership with Ford Canada, DuPont previously charged by the gallon for automotive paint. When DuPont switched its focus from the product (paint) to the function (painted cars), they started charging for the number of cars painted. This shift in focus caused DuPont to find a less wasteful way to paint cars. Ford's costs went down 30 percent and DuPont received a better price for the function provided.

This focus on functionality, sustainable growth and customer value has reduced DuPont's expenses.

Since 1990, production has increased 35 percent. However, energy use has remained at 1990 levels. This translates into energy savings of $1.5 billion. DuPont's waste treatment costs have also declined from a high of $1 billion in 1993 to $550 million in 2000.

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