Pulp Non-Fiction
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by Richard Maltzman,
Dave Shirley
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Date
One of the PMI Project of the Year Finalists was the CMPC Celulose Riograndense Pulp Mill in Brazil. Its $2.4 billion expansion project was built in the Brazilian state of Rio Grande do Sul, in a suburb of Porto Allegre called Guaíba. When reading the story about this in the December 2016 PM Network magazine, I was immediately impressed with the holistic views that the project sponsors and the project managers took in order to assure that the project was truly a success in the way that we’ve been discussing here on this blog.
For starters, the mill expansion project proactively considered the stakeholders’ concerns of noise, traffic, debris, pollution, and the effect on the local water supply. The organization CMPC, as the article says, “started the conversation early, working with the community to ensure project goals went beyond boosting company profits.” Later in the article we learn that although these non-monetary concerns were important, this did not mean the organization was un-focused on the economic element of the triple bottom line. Indeed, they kept economics front and center, as they should. It’s just obvious that they had their vision not ONLY on the economics.
The project team was willing to make the investments up front in innovative and efficient technology paid off in terms of allowing them to meet ecological goals but also enabled the mill to be more productive when it was turned over to steady-state operation.
“If you don’t have a sustainable vision, probably in the future, the society will close your mill or your business”, said Mr. Lidio Nunes of the organization.
The story is loaded with examples in which the considerations of the project team go beyond the scope of usual projects, and the vision for what the project’s PRODUCT – the mill – would deliver in the long term, was broader and deeper than most.
We have been told many times that the ideas we espouse about thinking sustainably in projects are limited to wind farms or to very small projects. This example proves that a project can integrate these ideas even when it’s large and ‘distant’ from energy or other ‘purely green’ categories of projects on what we call the spectrum of green. (see our books).
This is a large project, not a trivial one. In and of itself, the new mill is 1.5 percent of the state’s GDP. It created 28,000 jobs. This proves that even a large project can succeed – in the broader sense of the term.
Even more importantly, the project team buys into their role as a change agent. The story ends with the idea that “they will leave a legacy within the industry, showing other companies that they can protect the environment while turning a profit”.
I did a bit further research on this project and found a very interesting source of info in this newsletter, which includes an interview with the Chairman of CMPC, Eliodoro Matte. In it, the Chairman responds to questions about social responsibility:
What does social responsibility mean for CMPC?
We believe that, in its widest sense, the main social responsibility of companies is to remain active and profitable, producing and competing in the market. When this happens, not only does it create a return
for the shareholders, but it also has very favourable social consequences, like new employment opportunities through expansion and investment, and the creation of wealth and valuable services for society.
How has the company taken on this responsibility?
Since its establishment 90 years ago, the company has shown real concern for what used to be called ‘social issues’. Already at the start of last century, it carried out various initiatives to collaborate with
neighbours and workers. This feeling of social responsibility towards the community has continued throughout the years, determining an administration style and a company tradition. It is an attitude that has adapted to different eras and needs.
In what way?
During recent years we have increased our capacity to understand our environment, and the challenges, desires and concerns of those around us. In today’s world it is not possible to do business without looking outwards. We have to be concerned with these local factors that will be key to determining the long term viability of our ventures.
Posted
by
Richard Maltzman
on: November 26, 2016 12:18 AM |
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