Ecoefficiency (measures to minimize environmental
impact through the reduction or elimination of waste
from the production processes) has become a goal for
companies worldwide, with many realizing significant
cost savings from such innovations. Peter Senge and
Goran Carstedt see this development as laudable but
Suggest that simply adopting ecoefficiency
Innovations could actually worsen environmental
stresses in the future. Such innovations reduce
production waste but do not alter the number of
products manufactured nor the waste generated
form their use and discard; indeed, most companies
invest in ecoefficiency improvements in order to
increase profits and growth. Moreover, there is no
guarantee that increased economic growth from
ecoefficiency will come in similarly ecoefficient ways,
since in today’s global markets, greater profits may
be turned into investment capital that could easily be
reinvested in old-style eco-inefficient industries. Even
a vastly more ecoefficient industrial system could,
were it to grow much larger, generate more total
waste and destroy more habitat and species than
would a smaller, less ecoefficient economy. Senge
and Carstedt argue that to preserve the global
environment and sustain economic growth,
businesses must develop a new systemic approach
that reduces total material use and total accumulated
waste. Focusing exclusively on ecoefficiency, which
offers a compelling business case according to
established thinking, may distract companies from
pursuing radically different products and business
models.