The environment has emerged as an important determinant of the performance of the modem chemical industry. This paper reviews approaches for incorporating environmental issues into the design of new processes and manufacturing facilities. The organizational framework is the design process itself, which includes framing the problem and generating, analyzing, and evaluating alternatives. A historical perspective on the chemical process synthesis problem illustrates how both performance objectives and the context of the design have evolved to the point where environmental issues must be considered throughout the production chain. In particular, the review illustrates the need to view environmental issues as part of the design objectives rather than as constraints on operations. A concluding section identifies gaps in the literature and opportunities for additional research.