Ecoefficiency (measures to minimize environmental impact through the reduction or elimination of waste from production processes) has become a goal for companies worldwide, with many realizing significant cost savings from such innovations. Peter Senge and Goran Carstedt see this development as laudable but suggest that simply adopting ecoefficiency innovations could actually worsen environmental stresses in the future. Such innovations reduce production waste but do not alter the number of products manufactured nor the waste generated from their use and discard; indeed, most companies invest in ecoefficiency improvements in order to increase profits and growth. Moreover, there is no guarantee that increased economic growth from ecoefficiency will come in similarly ecoefficient ways, since in today’s global markets, greater profits may be turned into investment capital that could easily be reinvested in old-style eco-inefficient industries. Even a vastly more ecoefficient industrial system could, were it to grow much larger, generate more total waste and destroy more habitat and species than would a smaller, less ecoefficient economy. Senge and Carstedt argue that to preserve the global environment and sustain economic growth, businesses must develop a new systemic approach that reduces total material use and total accumulated waste. Focusing exclusively on ecoefficiency, which offers a compelling business case according to established thinking, may distract companies from pursuing radically different products and business models. 1 1. The primary purpose of the passage is to (A) explain why a particular business strategy has been less successful than was once anticipated (B) propose an alternative to a particular business strategy that has inadvertently caused ecological damage (C) present a concern about the possible consequences of pursuing a particular business strategy (D) make a case for applying a particular business strategy on a larger scale than is currently practiced (E) suggest several possible outcomes of companies’ failure to understand the economic impact of a particular business strategy 2 2. The passage mentions which of the following as a possible consequence of companies’ realization of greater profits through ecoefficiency? (A) The companies may be able to sell a greater number of products by lowering prices. (B) The companies may be better able to attract investment capital in the global market. (C) The profits may be reinvested to increase economic growth through ecoefficiency. (D) The profits may be used as investment capital for industries that are not ecoefficient. (E) The profits may encourage companies to make further innovations in reducing production waste. 3 3. The passage implies that which of the following is a possible consequence of a company’s adoption of innovations that increase its ecoefficiency? (A) Company profits resulting from such innovations may be reinvested in that company with no guarantee that the company will continue to make further improvements in ecoefficiency. (B) Company growth fostered by cost savings from such innovations may allow that company to manufacture a greater number of products that will be used and discarded, thus worsening environmental stress. (C) A company that fails to realize significant cost savings from such innovations may have little incentive to continue to minimize the environmental impact of its production processes. (D) A company that comes to depend on such innovations to increase its profits and growth may be vulnerable in the global market to competition from old-style eco-inefficient industries. (E) A company that meets its ecoefficiency goals is unlikely to invest its increased profits in the development of new and innovative ecoefficiency measures.

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Ecoefficiency (measures to minimize environmental impact through the

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debitisarchitecto

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But, where in the passage "Cost savings" mentioned?

BukrsGmat

Ecoefficiency (measures to minimize environmental impact through the reduction or elimination of waste from production processes) has become a goal for companies worldwide, with many realizing significant cost savings from such innovations. Peter Senge and Goran Carstedt see this development as laudable but suggest that simply adopting ecoefficiency innovations could actually worsen environmental stresses in the future. Such innovations reduce production waste but do not alter the number of products manufactured nor the waste generated from their use and discard; indeed, most companies invest in ecoefficiency improvements in order to increase profits and growth. Moreover, there is no guarantee that increased economic growth from ecoefficiency will come in similarly ecoefficient ways, since in today's global markets, greater profits may be turned into investment capital that could easily be reinvested in old-style eco-inefficient industries. Even a vastly more ecoefficient industrial system could, were it to grow much larger, generate more total waste and destroy more habitat and species than would a smaller, less ecoefficient economy. Senge and Carstedt argue that to preserve the global environment and sustain economic growth, businesses must develop a new systemic approach that reduces total material use and total accumulated waste. Focusing exclusively on ecoefficiency, which offers a compelling business case according to established thinking, may distract companies from pursuing radically different products and business models.

The passage implies that which of the following is a possible consequence of a company's adoption of innovations that increase its ecoefficiency?

A) Company profits resulting from such innovations may be reinvested in that company with no guarantee that the company will continue to make further improvements in ecoefficiency. Wrong: author does not tell if they r going to improve further or not ..but he tells they might invest in eco in-efficient industries

B) Company growth fostered by cost savings from such innovations may allow that company to manufacture a greater number of products that will be used and discarded, thus worsening environmental stress.
Correct : Clearly mentioned in the passage

C) A company that fails to realize significant cost savings from such innovations may have little incentive to continue to minimize the environmental impact of its production processes.
Wrong: we are not discussing about losses the company will bear if not adopting these innvoations

D) A company that comes to depend on such innovations to increase its profits and growth may be vulnerable in the global market to competition from old-style eco-inefficient industries.
Wrong: Shell game ...few words make the whole sentence wrong...no where written they will be vulnerable to old style industries

E) A company that meets its ecoefficiency goals is unlikely to invest its increased profits in the development of new and innovative ecoefficiency measures.
Nothing is said about further development, only written they are likely to invest in in-efficient indutsies

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debitisarchitecto

But, where in the passage "Cost savings" mentioned?

It is mentioned in the first sentence:

“...with many realizing significant cost savings from such innovations.”

So B is using that exact idea: ecoefficiency innovations can reduce costs, and those savings can support company growth.

The passage then adds that growth can worsen environmental stress because ecoefficiency reduces production waste but does not reduce the number of products made or the waste from their use and discard.

So B is supported by this chain:

cost savings --> growth --> more products --> more use/discard waste --> greater environmental stress.

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Hi debitisarchitecto,

Good instinct to demand a textual anchor before you trust a word in an answer choice. The phrase "cost savings" is right there in the very first sentence of the passage:

"Ecoefficiency... has become a goal for companies worldwide, with many realizing significant cost savings from such innovations."

So the passage explicitly tells you that ecoefficiency innovations produce cost savings. Choice B simply picks that idea up and follows it forward.

How B chains the passage together

B says: "Company growth fostered by cost savings from such innovations may allow that company to manufacture a greater number of products that will be used and discarded, thus worsening environmental stress."

Trace it against the text:

- Cost savings - first sentence ("realizing significant cost savings").
- Those savings feed profits and growth - "most companies invest in ecoefficiency improvements in order to increase profits and growth."
- Growth doesn't reduce output - "such innovations... do not alter the number of products manufactured nor the waste generated from their use and discard."
- More products used and discarded - worsening environmental stress - "Even a vastly more ecoefficient industrial system could, were it to grow much larger, generate more total waste..."

Every link in B maps to a specific line. So "cost savings" isn't an invented term - it's lifted from the opening sentence, and it's the starting point of the exact cause-and-effect the passage builds.

The reason this matters: B never overreaches. It uses the soft word "may," matching the passage's own "could," so it stays a possible consequence - which is precisely what the question asks for.

Answer: B

debitisarchitecto

But, where in the passage "Cost savings" mentioned?