Investor Presentaiton

• Environmental Regulation and Competitiveness Competing based on weak environmental standards perpetuates low incomes Corporate pollution is a sign of inefficient and unproductive use of resources Firm • Inefficient extraction of resources • Incomplete material utilization • Unnecessary waste products • Unnecessary energy use • Unproductive land use Customer • Usable materials in products that are discarded • • Products that use energy inefficiently ⚫Discarded or unnecessary packaging The need to control or treat pollution causes companies to perform activities that add cost but create no customer value - e.g., handling, storage, processing, disposal Pollution is a reflection of unsophisticated technology and weak management Strict environmental regulation stimulates the upgrading necessary to achieve advanced economic development CAON New Zealand Presentation 08-04-01 CK 40 Copyright 2001 Professor Michael E. Porter

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