LEARNING PROJECT

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Contemporary Management Techniques: Sustainability in the United States Navy

Accounting for Decision Making

Raven Edgeworth-Smith

Liberty University

BUSI 601

B-Term Summer 2025

6/08/2025

Dr. Mechelle Lafon

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Contemporary Management Techniques: Sustainability in the United States Navy

The United States Navy operates in an increasingly complex strategic environment

characterized by rising geopolitical tensions, rapidly evolving technologies, and intensifying

pressures to demonstrate environmental stewardship. As the maritime arm of national defense,

the Navy must sustain a high level of mission readiness while carefully managing lifecycle costs,

safeguarding personnel and assets, and complying with stringent international and domestic

environmental regulations. In recent years, factors such as volatile fuel markets, extreme weather

events linked to climate change, and growing societal expectations for organizational

responsibility have joined to create both challenges and opportunities. Against this backdrop,

sustainability emerges as a vital contemporary management technique, offering a comprehensive

framework for integrating environmental, social, and economic objectives into strategic decision-

making. outlined herein is a fully integrated sustainability program, drawing on the strategic

cost-management perspective of Blocher et al. (2024), alongside peer-reviewed studies spanning

environmental systems, circular economy principles, and defense-specific application. The

sustainability program is grounded in the Triple Bottom Line (TBL), ISO 14001–compliant

Environmental Management Systems (EMS), and circular economy strategies that can enhance

the Navy’s critical success factors (CSFs).

Rationale and Selection of the Technique

Sustainability, broadly defined as the capacity to meet present needs without

compromising the ability of future generations to meet their own, encompasses the balanced

pursuit of economic prosperity, environmental quality, and social equity (Blocher et al., 2024).

For the U.S. Navy, whose CSFs include maintaining a combat-ready fleet, optimizing lifecycle

value of multi-billion-dollar assets, ensuring the safety and welfare of personnel, and adhering to

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complex regulatory regimes, adopting sustainability as a management technique directly

addresses multiple strategic imperatives. First, the Navy’s annual fuel consumption represents

one of its largest variable cost components, and is subject to the volatility of global oil markets

and geopolitical supply constraints (Giachetti & Moore IV,2024). By implementing fuel-efficient

propulsion technologies, alternative energy integration such as hybrid electric drives, and

optimized voyage planning, the Navy can reduce operational expenditures and hedge against

future energy price shocks (Issa et al., 2022). Second, climate change–driven sea-level rise and

extreme weather events imperil coastal installations, such as critical shipyards, training centers,

and logistics hubs, consequentially straining disaster-response capabilities. A sustainability

framework enables the Navy to assess environmental risks systematically, prioritize

infrastructure hardening, and integrate resilience measures into facility planning (Mba, 2024).

Third, social sustainability considerations, particularly recruitment and retention of a

diverse, highly skilled workforce, have become more pronounced as younger generations

increasingly favor employers with strong environmental and social commitments. Perceived

organizational responsibility enhances job satisfaction and reduces turnover intentions (Di Fabio

& Cooper, 2024), a vital outcome as the Navy contends with shortages in specialized ratings

such as nuclear propulsion and cyber warfare. Finally, international agreements (e.g., MARPOL)

and domestic statutes such as the Clean Water Act and National Environmental Policy Act

impose stringent requirements on emissions, effluents, and habitat protection. Non-compliance

risks not only financial penalties but also reputational damage and operational restrictions in key

theaters. Incorporating sustainability at the strategic level ensures proactive compliance, turning

potential liabilities into performance differentiators.

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Alternative contemporary techniques, such as data-analytics, offer valuable capabilities

for performance optimization and rapid response. However, these approaches typically focus on

discrete project lifecycles or internal process efficiencies, without explicitly addressing the

externalities and long-term systemic impacts that define sustainability challenges. Sustainability

frameworks, by contrast, provide a holistic methodology—backed by standardized metrics,

globally recognized certifications, and well-documented implementation pathways—that aligns

directly with the Navy’s need to balance cost, capability, and compliance over multi-decadal

asset lifecycles (Morone, 2020). Given the Navy’s existing investments in energy-management

programs and pollution-prevention initiatives, the organization possesses foundational elements

upon which to build a comprehensive sustainability program. Thus, selecting sustainability as the

focal technique leverages both urgent strategic drivers and the Navy’s evolving institutional

context, promising synergistic gains across its CSFs.

Management Technique – Description of the Technique

Sustainability management integrates three interdependent components—strategic

framing through the Triple Bottom Line (TBL), process rigor via Environmental Management

Systems (EMS), and resource optimization through circular economy principles—to embed

environmental and social considerations into organizational governance, planning, and

operations. By synthesizing TBL’s strategic lens, EMS’s procedural discipline, and circular

economy’s resource efficiency, sustainability management transforms from a collection of

isolated initiatives into an integrated organizational capability. This approach ensures that

environmental and social considerations are embedded in budgeting, readiness assessments, and

personnel evaluations—key levers in the Navy’s command structure.

1. Triple Bottom Line (TBL)

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TBL extends the traditional financial performance measures to incorporate the social and

environmental dimensions. Within the context of TBL, an organization monitors profit and cost

metrics alongside indicators of community engagement, employee well-being, and greenhouse

gases (GHG) emissions. For example, in a naval context, TBL could include reporting GHG

emissions per sortie hour, percentage of waste diverted from landfill, and outreach hours with

local communities near bases. The TBL approach elevates non-financial metrics to parity with

financial ones, ensuring leadership attention and facilitating balanced decision-making when

trade-offs arise—for example, between fuel-saving measures and training tempo (Singh &

Srivastava, 2022).

In addition to acting as a measurement framework, TBL fundamentally changes the

organizational mindset by incorporating ‘people’ and ‘planet’ considerations into every strategic

discussion. This implies that, in a naval context, decision makers must consider human health

impacts (e.g., reduced particulate emissions improving crew respiratory conditions) and local

community effects (e.g., port area noise and light pollution) in addition to fuel cost savings when

considering a new hull design or fuel‐efficiency retrofit. Embedding TBL thus compels cross-

functional teams to convene during the earliest project scoping phases. This collaborative model

surfaces trade-offs that might otherwise go unnoticed, such as the potential for quieter

electric‐drive systems to enhance both stealth capabilities and onboard quality of life (Singh &

Srivastava, 2022). Over time, TBL becomes part of the Navy’s strategic DNA: funding proposals

and mission‐readiness reports routinely include environmental and social impact sections,

ensuring that sustainability is neither an afterthought nor confined to a single department.

2. Environmental Management System (EMS)

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An EMS—exemplified by the ISO 14001 standard—provides a structured, Plan-Do-

Check-Act (PDCA) cycle for environmental performance improvement. Key steps include: (1)

identifying environmental aspects (e.g., energy use, discharges) and assessing associated

impacts; (2) setting measurable objectives and targets; (3) implementing operational controls,

roles, and responsibilities; (4) monitoring and measuring performance; and (5) conducting

management reviews and corrective actions to drive continual improvement (Molina-Reyes et

al., 2022). For the Navy, integrating EMS into existing maintenance, logistics, and quality-

assurance workflows leverages established command chains and procedures, minimizing friction

while introducing environmental accountability. EMS certification also enhances stakeholder

trust and provides a recognized benchmark for peer benchmarking within the Department of

Defense.

While ISO 14001 provides the overarching PDCA structure, the true power of an EMS

lies in its capacity to integrate environmental risk management into day-to-day naval operations.

For example, pre-deployment maintenance checklists can be augmented with specific

environmental checkpoints—verifying spill-containment equipment, confirming proper storage

of hazardous materials, and ensuring that bilge-water separators are calibrated and logged

(Muktiono & Soediantono, 2022). Data from these checks feed directly into a centralized

dashboard monitored by both command staff and shore-based environmental officers, enabling

real‐time visibility of compliance status across the fleet. When non-conformances arise, the EMS

enforces predefined corrective workflows, automatically generating work orders and

notifications. This seamless integration of environmental controls into existing operational

systems minimizes administrative burden, accelerates response times, and transforms regulatory

compliance from a static audit exercise into a dynamic, continuous process.

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3. Circular Economy Principles

Moving beyond linear “take-make-dispose” models, the circular economy promotes

resource loops—designing products for disassembly, remanufacturing components, and returning

materials to productive use—thus decoupling consumption from waste generation (de Oliveira &

Oliveira, 2023). Applied to naval vessels and systems, circularity can reduce the demand for

critical materials (e.g., rare-earth magnets, high-grade alloys), lower hazardous waste disposal

costs, and enhance supply-chain security. For instance, recovered turbine blades and electronic

modules can be remanufactured to original-equipment specifications; composite materials can be

repurposed in secondary applications. Collaborating with defense contractors to adopt design-

for-remanufacture standards can position the Navy at the forefront of circular innovation,

stimulating domestic industrial capacity and reducing long-term procurement budgets.

Moving from pilot to practice, circular economy thinking transforms how the Navy

sources, uses, and ultimately reclaims materials. Consider an electronic warfare module: instead

of procuring a new unit at end-of-life, the Navy could return the worn module to a certified

remanufacturer, where it is disassembled, cleaned, tested, and reassembled with upgraded

components. This remanufactured module meets the same technical specifications as new

production but at a fraction of the cost and embodied energy (de Oliveira & Oliveira, 2023). To

enable this, acquisition contracts include “take-back” clauses and material-tracking requirements,

supported by digital passports that record each component’s origin, maintenance history, and

remaining useful life. Onboard, crew members receive training on segregation and storage

protocols for returnable parts, linking frontline actions to supply-chain efficiency. As these loops

scale, the Navy reduces its dependence on volatile raw-material markets, mitigates disposal

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liabilities, and cultivates a domestic network of advanced remanufacturing facilities—

strengthening both economic resilience and force readiness.

Application by Other Companies

Numerous organizations have embedded sustainability deeply into their strategic and

operational practices, empowering key employees to drive the achievement of critical success

factors (CSFs) such as cost efficiency, innovation, regulatory compliance, and brand reputation.

The case studies discussed below underscore that sustainability becomes a core management

technique—not an adjunct—when organizations equip key employees with clear goals,

transparent metrics, and the autonomy to innovate. By doing so, they not only reduce ecological

impact but also drive improvements in cost efficiency, operational resilience, and brand

differentiation—CSFs that define long-term competitive advantage.

1. Unilever

Unilever’s Sustainable Living Plan (USLP), launched in 2010, exemplifies a continuous,

company-wide commitment. Over a decade later, Unilever reports that 94% of its core palm oil

volumes and 81% of its agricultural raw materials are sustainably sourced, reflecting systematic

supply-chain transformation that lowers environmental risk and secures raw-material

availability—key enablers of cost control and product quality for its business units (Arya, 2024).

Importantly, Unilever has trained over 13,000 farmers in improved agricultural practices,

illustrating how training and upskilling external partners and internal procurement teams together

safeguard both sustainability goals and the reliability of supply, thereby reinforcing the CSFs of

operational resilience and cost management (Arya, 2024).

To translate lofty targets into day-to-day performance, Unilever invested in an employee-

driven digital collaboration platform built on Microsoft 365. Within two months of its launch, the

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platform garnered 27,000 submissions from employees worldwide, distilled into over 50 priority

topics and generating more than 5,000 weekly interactions (Silicone Reef., n.d.). This tool not

only democratizes idea generation—fostering grassroots innovation that enhances product lines

and process efficiencies—but also provides transparency into progress against environmental

KPIs that feed directly into managers’ performance reviews. By linking sustainability metrics to

individual and team scorecards, Unilever ensures that employees at every level understand how

their actions influence CSFs like innovation throughput, cost reduction, and stakeholder trust

(Uren, 2011).

2. Interface

Interface, a leading global carpet-tile manufacturer, illustrates how embedding circular

economy principles over decades can transform both environmental footprint and business

performance. Beginning with the QUEST and EcoSense programs in the mid-1990s and

evolving into the Mission Zero commitment to achieve a zero environmental footprint by 2020,

Interface has involved cross-functional teams of operators, supervisors, and engineers in process-

improvement initiatives that have driven a reduction in waste per unit of production in Australia

(Lampikoski, 2012). Through its take-back program, end-of-life tiles are returned, recycled, and

reprocessed into new products, creating closed-loop material flows that reduce dependence on

virgin petrochemicals and stabilize material costs—directly supporting CSFs of cost efficiency

and supply-chain security.

Central to Interface’s success has been the empowerment of key employees via the Eco

Dream Team and a global sustainability council, which catalyzed over 400 individual

improvement initiatives by 1997 and later scaled globally through 18 cross-functional teams

(Lampikoski, 2012). These teams possessed clear charters—ranging from waste elimination to

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toxic material reduction—and reported progress quarterly to senior leadership, ensuring

accountability and continual refinement. By granting teams autonomy to test “green” solutions

and rewarding successful pilots with resources for broader deployment, Interface aligned

employee incentives with corporate CSFs such as product innovation, operational excellence,

and market leadership in sustainability (Lampikoski, 2012).

3. Maersk

In the maritime logistics sector, A.P. Moller-Maersk has pursued aggressive

sustainability targets through its ECO Delivery program and vessel-design initiatives. Maersk

now operates several dual-fuel vessels, capable of running on methanol or LNG, enabling

customers like Nestlé to cut ocean-transport GHG emissions on certified green fuels (Horn,

2023). Behind these technologies is a culture that empowers ship crews and on-shore analysts

with shared real-time performance data, accountability for emission metrics, and the authority to

adjust operations—such as optimizing speeds or fuel mixes—to meet both delivery schedules

and environmental benchmarks (Grey, 2015). This approach directly strengthens Maersk’s CSFs

of delivery reliability, cost‐per‐container control, and compliance with emerging IMO and EU

regulations (Early & Slavin, 2025).

Evaluating/Creating Applicability to the Chosen Company

To translate these insights into actionable steps for the U.S. Navy, a four-phase

implementation roadmap is recommended: Baseline Assessment, Pilot Programs, Organization-

wide Rollout, and Institutionalization.

Phase Implementation Steps

Phase 1: Baseline Assessment

(Months 0–6).

A rigorous environmental and cost baseline establishes the foundation for

target setting and resource prioritization. Key activities include: quantifying

shipboard fuel consumption per sortie and port-call; measuring GHG

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emissions and water use at shore facilities; auditing hazardous and non-

hazardous waste streams; and mapping the environmental footprints of

critical supply chains—particularly for high-use components such as turbine

blades, electronics, and specialty alloys. Utilizing Blocher et al.’s (2024)

strategic cost-management techniques, these environmental metrics should

be translated into cost-impact units (e.g., cost per ton of CO₂ equivalent,

disposal cost per kilogram of waste), enabling direct comparison with

readiness and maintenance expenses. In parallel, leadership interviews and

workshops identify existing pockets of sustainability practice and cultural

enablers or barriers.

Phase 2: Pilot Programs

(Months 7–18).

Two pilot tracks should be launched in parallel: an ISO 14001–driven EMS

on selected ship classes (e.g., Arleigh Burke–class destroyers) and a circular

economy procurement pilot at a major shore installation. The EMS pilot will

adapt ISO 14001 procedures to naval maintenance cycles, incorporating

environmental aspect identification into standard checklists, embedding

performance monitoring in digital maintenance management systems, and

convening quarterly environmental reviews at the task-force level. The

circular procurement pilot will require collaboration between NAVSUP

(Naval Supply Systems Command), PEO Ships, and industry partners to set

remanufacturing targets for specific high-value components, evaluate

lifecycle-cost models, and establish material-return logistics. Performance

metrics—fuel intensity reduction, waste-diversion rates, percentage of

remanufactured parts—should be monitored monthly and reported to a cross-

functional steering committee that includes finance, logistics, operations, and

environmental experts.

Phase 3: Organization-wide

Rollout (Years 2–4).

Building on pilot successes, scale EMS certification to all major vessel

classes and integrate circular procurement policies across the Navy’s supply

chain. Update readiness dashboards to include sustainability KPIs—fuel

usage per operational hour, GHG emissions per sortie, waste-diversion

percentage—and tie command-level resource allocations and award

programs to these metrics. Conduct “Sustainability Summits” at fleet

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headquarters, where commanding officers present environmental

performance outcomes, share best practices, and receive formal recognition.

Embed sustainability requirements in contracts and acquisition documents,

ensuring that new ship designs and major upgrades incorporate design-for-

remanufacture principles and energy-efficiency standards.

Phase 4: Institutionalization

(Year 5 and Beyond).

For lasting cultural change, ensure that sustainability is part of ongoing

professional training and advancement. Update the curricula in the Naval

War College, Officer Candidate School, and Senior Enlisted Academy to

include information on environmental risk management, circular design, and

sustainability accounting. Set up a system to honor personnel whose units go

above their sustainability targets with a “Green Ribbon” award. Ensure that

environmental stewardship objectives are included in IDPs and evaluation

assessments for senior officers and civilians. Occasionally engage with third-

party certification bodies to conduct audits that keep the Navy on track for

improvement and support its reputation as an environmental leader.

Following this plan will allow the Navy to steadily and effectively add sustainability to

its basic functions. The Triple Bottom Line framework makes sure that both environmental and

social matters are considered in strategic decisions, ISO 14001–style EMS gives the structure for

turning these plans into routine actions, and circular economy practices help reduce the use of

resources and lessen reliance on suppliers. Collectively, these measures will strengthen the

Navy’s CSFs—enhancing mission readiness by reducing logistical burdens, improving cost

efficiency through lowered lifecycle expenditures, bolstering force protection via resilient

infrastructure, and ensuring regulatory compliance that underpins global maritime partnerships.

Biblical Integration

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Proverbs Proverbs 3:9-10 “Honor the Lord with your substance and with the first fruits of all

your produce; then your barns will be filled with plenty, and your vats will be bursting with

wine.” God wants us to honor him and have a moral responsibility of integrity for the

mission.

Conclusion

The adoption of a sustainability framework linked to the Triple Bottom Line, ISO 14001,

and principles of the circular economy enables the U.S. Navy to achieve greater success by

enhancing mission preparedness, lowering overall expenses, making its troops safer, and

complying with regulations. Using Unilever’s employee-driven Sustainable Living Plan,

Interface’s Mission Zero circular activities, and Maersk’s sustainable vessels as examples, the

Navy should start with thorough environmental assessment, try out specific actions, and adopt

sustainability in all its processes. This integrative approach not only safeguards operational

effectiveness in an era of resource volatility and climate uncertainty but also cultivates a culture

of innovation and responsibility among key employees—thereby positioning the Navy as a

global leader in both maritime security and environmental stewardship.

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