Analysis

Nortel: Shared savings for chemicals and waste reduction

Conventional business relationships encourage suppliers to maximise sales to their customers. The environment and the customer are often the losers. A "shared savings" business model in which both supplier and customer have financial incentives to minimise resource consumption and waste has been applied successfully by the North American car industry - and telecommunications giant Nortel is now testing its application to waste minimisation in Britain and chemical use reduction in Canada.

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