Case: Amanco

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REV: JANUARY 29, 2008

ROBERT RICARDO

S, KA PLAN REISEN DE PINHO

Amanco: Developing

the Sustainability

Scorecard

A modern company must have a much broader and more sophisticated relationship with society, and must respond to issues ihai didn'i exisi previously ... Our strategy is the bestfor the sustainable creation of uaiue. -Stephan Schmidheiny, Grupo Nueva and Amenco's founder-

On January 9, 2006, CEO Roberto Salas arrived at the new Amanco after a long and strenuous tour through the company's key units in conducted intense and productive discussions about how to strengthen Sustainability Scorecard system (SSC), for use in executing Amanco's new

headquarters in Silo Paulo Latin America. Salas had and standardize Amanco's strategy.

Amanco was Latin America's biggest producer and marketer of plastic pipes and fittings for transporting fluid. It had dominant positions in Colombia and Ecuador, and was a major competitor in Brazil and Mexico. Amanco had become a top brand while establishing a reputation as a leading company in corporate social responsibility. [ulio Moura, Amanco's chairman, explained, "Customers want products that improve the society in which they exist and that protect the environment.r? Salas reflected on the company's recent financial performance (surnrnarized in Exhibit 1): Amanco has lived by its triple bottom line values and become one of the Latin American's most admired socially responsible companies, It has received several awards for being a "best" place to work. Concurrently, our revenues went from $520 million in 2001 to $688 million in 2005, with EBITDA jumping from $52 million to $84 million. For 2006, we expect revenues of $770 million and an EBITDA of $102 million.

Living on a Thirsty Planets
Water was critical for long-term economie development, human health, social welfare and environmental sustainability. Although three-quarters of the planet's surface was covered by water and it was by far the most abundant natural resource, 97.4% of it was salt water. Most of the 2.6% non-saline water was either inaccessible in glaciers, polar ice caps, and deep underground, or it fell at the wrong time in the wrong place during floods and monsoons.' The only water readily available for

Professor Robert S. Kaplan and Senior Researcher Ricardo Reisen de Pinho of the Latin Araerica Research Center.prepared this case. HBS cases are developed solely as the basis for class discussion. Cases are not intended to serve as endorsernents, sourees of prirnary data, or illustrations of effective or ineffective management , Copyright © 2007, 2008 President and Fellows of Harvard College. To order copies or request permission to reproduce materials, call1-800-5457685, write Harvard Business School Publishing, Boston, MA 02163, or go to http://www,hbsp.harvard.edu. No part of this publication may be reproduced, stored in a retrieval system, used in a spreadsheet, or transmitted in any farm or by any means-electronic, mechanical, recording, or otherwise-without the permission of Harvard Business School. photocopying,

107-038

Amanco: Developing

the Sustainability

Scorecard

human use lay in lakes, rivers, and aquifers. Of this, 66% was used for agriculture, 20% for industry, and 10% for domestic households, including drinking water and sanitation. The remaining 4% evaporated from reservoirs.f Global consumption of water had outpaced the rate of human population growth by a factor of two in the previous 20 years. Dense urban and massive industrial growth, pollution, land degradation, leakage, and over-extraction had reduced many regions' ability to meet their citizens' growing water demands. For example, leaky pipes in Mexico City lost an estimated 40% of the city's waterf Approximately 1.1 billion people lacked access to safe drinking water and 2.6 billion people did not have adequate sanitation. Contaminated...
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