As the cost of environmental non-compliance increases, firms are begin
ning to incorporate an environmental dimension into their strategic pl
anning process. This paper describes an ecologically-oriented portfoli
o model which enables firms to examine their product lines and competi
tive position in terms of both environmental and economic attractivene
ss. Examples illustrate the model's utility and suggest that positive
environmental performance can be associated with neutral or positive e
conomic performance, in contrast to the often asserted negative effect
s.