The Return on Investment of Sustainability - Research Paper Example

Due to the issue of water scarcity in Chile, the need to evaluate the environmental sustainability of the mining industry became part of the business challenge.

The government of Chile has made the necessary changes in order to support sustainability and other mining companies have also recognized the importance of reducing the impact of their actions on the environment. With these elements in place, investments and technological improvements in the mining industry are to be expected. The major pathway through which Veolia can validate its entry into the Chilean market is that of water scarcity. This challenge has the potential to harm the growth and productivity of Chile’s mining sector.

It is important for Veolia to generate integrated solutions that can minimize water use, increase water reuse and improve water quality. There are two avenues through which Veolia can pursue its selling proposition. The first suggests that Veolia promotes rigorous environmental standards to leverage a conversation with clients. The second avenue suggests that Veolia develops and uses a multi-stakeholder engagement strategy both at the project and market level. Rigorous implementation of this two-pronged strategy will assist in building a strong source of competitive advantage and will help it to maximize the value of its services.

This paper is underpinned by a three-pronged research objective which called for an examination of the way in which mining is regulated in Chile; the possibility for Veolia to use high environmental standards to leverage a conversation with clients; and the importance of a stakeholder engagement strategy to Veolia.  

Methodology

This research paper is intended to build the business case for investment in sustainable technology in the Chilean gold and copper mining sector, and to test the viability of leveraging Veolia’s selling proposition in this market.   The utility of the research is that it provides both practical and academic analysis of Veolia’s new strategy. The Chilean mining sector was selected on an empirical basis by Veolia. The decision to adopt this case study was supported by Veolia’s analysis of potential business expansion and corresponding water needs.  The relevance of Chile as a case study is articulated in Veolia’s report: ‘Industrial Markets: A new Business Development Model for Veolia, a Key Account Management Approach’ (Industrial Markets Report) by Elliot et al. (2013) as follows:

• The water needs of the mining industry contradict environmental limits, implying how mining companies have to secure policies of reuse for their water use (Global Water Intelligence, 2011).