Environmental awakening in the Swedish pulp and paper industry: pollution resistance and firm responses in the Early 20th century

Kristina Söderholm

Business Strategy and the Environment, 2009, vol. 18, issue 1, 32-42

Abstract: The purpose of this article is to analyse in what way a conflict in the early 20th century (1904–1911) over a Swedish pulp mill's emissions into air and water impacted on the technology choices and strategies of the mill. The article also analyses what characterized the company's other responses to the complaints, in the form of counter‐arguments, as well as engagement of experts. The access to information about the deliberations at the mill's board meetings is very rare in historical studies of company behaviour in relation to the environment, and provides us with a unique opportunity to comprehend in what way business strategies were developed during the course of the conflict. Technology choices are often characterized by the search for knowledge that enables a company to employ existing but not yet developed technical potentials, rather than choices between known technical solutions. We emphasize that this is particularly evident in a case where a company is forced to alter its technology in order to solve previously unknown environmental problems. In spite of a persistent search, the mill did not find any ready‐made technological solutions to the environmental problems faced and was therefore forced to engage scientific expertise and even initiate basic scientific research. In 1911, the Swedish Supreme Administrative Court ordered the mill to undertake a number of pollution abatement investments. Interestingly – and partly in line with the so‐called Porter hypothesis – the long‐run economics of these investments turned out to be more favourable than anticipated prior to the verdict. Copyright © 2006 John Wiley & Sons, Ltd and ERP Environment.

Date: 2009
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