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Case study of ILVA, Italy

The impact of failing to consider sustainability as a driver of business model evolution

Tonelli, Flavio; Short, Samuel; Taticchi, Paolo

The case of ILVA steel works in Taranto, Italy demonstrates the potential impacts associated with failing toadequately consider environmental and social sustainability issues within the business model of the firm. This paper provides a review of the situation at ILVA today; the decisions and actions that contributed to the current situation since privatisation of the firm in 1995; and the choices now facing government, the local community, and the firm’s owners going forward including a review of Best Available Techniques (BATs). The review is supported with relevant sustainability literature and explores how a more comprehensive assessment of sustainability considerations might be better integrated into business model evolution. The paper demonstrates that an inappropriate technology investment strategy that fails to consider broader concepts of value for the society and environment does not pay in the long-term, and that expectations of government support to mitigate negative impacts of business are becoming increasingly untenable.
Published in: Innovative solutions : proceedings / 11th Global Conference on Sustainable Manufacturing, Berlin, Germany, 23rd - 25th September, 2013, Universitätsverlag der TU Berlin
  • Part of: Seliger, Günther (Ed.): Innovative solutions : proceedings / 11th Global Conference on Sustainable Manufacturing, Berlin, Germany, 23rd - 25th September, 2013. - Berlin: Universitätsverlag der TU Berlin, 2013. - ISBN 978-3-7983-2609-5 (online). - http://nbn-resolving.de/urn:nbn:de:kobv:83-opus4-40276. - pp. 25–30.