In my 1997 HBR article, Beyond Greening: Strategies for a Sustainable World, I made the case for sustainability as a key driver of business growth. Now, well over a decade later, as developing-economy competitors take the lead, U.S. companies still don't get it.

Can Detroit produce a $3,000, five-passenger vehicle that gets 55 MPG and can pass European safety and emission standards? Tata Motors can, and, what's more, the electric version of this car will be coming soon to a dealer near you.

Can U.S. companies produce the batteries required for price-competitive electric vehicles that can truly shift the market? BYD of China can. The company appeared at this year's International Auto Show in Detroit with a mid-sized hybrid car that, at under $30,000, has better fuel efficiency than any other such product in the world. The BYD car outperforms the new Chevy Volt but retails for nearly $15,000 less (granted, quality is an issue, but just give them a few years).

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Publication/Copyright: Harvard Business Review