Eco-Management and Auditing Eco-Mgmt. Aud. 6, 61–75 (1999) ENVIRONMENTAL SELF-REGULATION AND SUSTAINABLE ECONOMIC GROWTH: THE SEAMLESS WEB FRAMEWORK William J. Altham 1 and Turlough F. Guerin 2 * 1 Murdoch University, Australia 2 Environmental Adviser, USA A ‘seamless web’ framework of environmental regulation is emerging. The seamless web provides a comprehensive and holistic framework for facilitating the transition to ecologically sustainable development (ESD). This seamless web comprises numerous threads, that is regulators and regulatory mechanisms, which provide the framework in which society may attain effective protection from environmental degradation. Regulatory bodies include government and state regulators, NGOs, industry peers, investors and consumers. Regulatory mechanisms and incentives range through lower costs, increased market share and long term resource access and sanctions ranging through incarceration of directors, license withdrawal, fines, falling profits, loss of market share and falling investor confidence. We conclude that self-regulation is a useful mechanism to promote environmental protection, and that industry will increasingly face pressure to improve its environmental performance from many stakeholders. The seamless web framework recognizes the pivotal role of industry in environmental regulation, catering for a range of corporate cultures, and thereby stimulating innovation of appropriate technology. Copyright 1999 John Wiley & Sons, Ltd and ERP Environment. Accepted 3 February 1999 INTRODUCTION T he environment, according to many opinion polls, is the issue of the ‘future’ (Gunningham, 1994a). Concern for the environment has led to many innovations, fora and institutions that study, discuss or attempt to provide solutions for our environmentally unsus- tainable social and economic system. The World Business Council for Sustainable Development, Brundtland Report, Agenda 21 and the Earth Summit, Climate Change Convention and Ozone Conventions are just some examples of institu- tional responses to environmental problems. Many of these responses see industry involve- ment, through self-regulation in a broad sense, as a critical component of a successful resolution of these issues (Anonymous, 1996; Deavenport, *Correspondence to: Dr. Turlough F. Guerin, 1691 E Green Briars Drive, Suite 3821, Schaumburg, IL 60173, USA. CCC 0968-9427/99/020061–15 $17.50 Copyright 1999 John Wiley & Sons, Ltd and ERP Environment.