Norsk Hydro president and CEO, Egyl Myklebust, has been named as the new chairman of the World Business Council for Sustainable Development, succeeding Livio DeSimone, chief executive of 3M. The announcement was made at the WBCSD annual convention, held in Prague on November 6 and attended by senior executives from 80 corporations. World Bank vice president, Jean-Fran?ois Rischard, spoke on the social responsibility of business and a new WBCSD book was launched. Eco-Efficiency: the business link to sustainable development, co-authored by Livio DeSimone and Frank Popoff, chairman of Dow Chemical, describes the savings companies are making, improving their competitive position. It argues that governments have a key role in setting adequate frameworks within which all businesses can operate. Contact Christine Elleboode, WBCSD, on 00 41 22 839 3100 or for copies of the book, MIT Press, on 00 1 617 253 0491
GREENING GOVERNMENTS
The Organisation for Economic Co-operation and Development (OECD) is facing a more difficult challenge than any in history: while all major eco-systems are in decline with rising population and growing economic activity, national government policies on the economy, environment and social justice are badly disconnected and often in direct conflict. This stark verdict was delivered at the end of November by the OECD High-level Advisory Group on the Environment, at the end of a review of the organisation. The 14 person Group included Stephan Schmidheiny of the WBCSD and Maria Livanos Cattaui of the International Chamber of Commerce. Their report, Guiding the Transition to Sustainable Development, calls on the OECD to take a lead in harmonising government policies, adopting sustainable development as an overarching strategic priority and redefining is mission of achieving ” sustainable economic growth” in terms of human and environmental, as well as economic, capital. Contact OECD on 00 33 1 45 24 8091 (www.oecd.org)
RENEWING THE BUSINESS
The Royal Dutch/Shell Group announced on October 16 that it is to create a fifth core business in renewable energy, along side exploration and production, oil products, chemicals, gas and coal. Shell International Renewables will invest more than 6500 million over the next five years, bringing together current activities in solar, biomass and forestry, and aiming for 10% market share in solar energy by 2005. Contact xx
TARGETING CARS
In November the government set up a Cleaner Vehicles Task Force in conjunction with the Society of Motor Manufacturers and Traders to examine ways individuals and fleet buyers can be encouraged to purchase ‘greener’ cars. Co-chaired by Ian McAllister, chief executive of Ford UK, the group will also promote greater research into cleaner fuel technology.
At the start of October, John Prescott MP, the deputy prime minister, charged the Advisory Committee on Business and the Environment with reporting on how companies can address the problem of climate change. Chaired by David Davies of Johnson Matthey, the Committee will focus on energy efficiency and reduction in usage. At the third conference on the UN Framework Convention on Climate Change, held in Kyoto, Japan, in December, the UK was due to support proposals for a 15% reduction in emissions below 1990 levels by the year 2010. The domestic target for CO2 reductions is 20% below 1990 levels. Contact DETR Enquiries on
FUELING TREES
The Esso-supported initiative, Trees of Time and Place, is encouraging millions of people to grow a personal tree from seed, planting it to mark the new millennium. Launched on October 16, the scheme is supported by 30 environmental and community organisations. Contact Trees of Time and Place Helpline on 0345 078139
DRIVING EDUCATION
Car manufacturer, Volvo, has launched an environmental education programme in the UK, aimed at young people. Announced on October 24, the PEP scheme (Practical Environmental Projects) is offering 3,000 action packs to schools and youth groups, with ?250,000 in grants and awards over three years for local projects they devise, up to a maximum of ?1,000 each. Contact Hannah Bicknell, Volvo, on 01628 478844 (www/volvocars.volvo.co.uk)
TAXING THE ENVIRONMENT
Over £30 million has been raised for environmental projects in the UK from the Landfill Tax, the scheme’s regulatory body, ENTRUST, announced at the end of October. One of the largest is a £3.5 million fund for the Royal Society for Nature Conservation from the construction material company, ARC, operator of a large waste management company. Under the Landfill Tax, levied at between 32 and £7 per tonne of waste, companies can pay a fifth of their tax bills directly to environmental causes, provided they contribute 10% of project costs themselves. In 1996/97, £500 million was due to be collected, with potentially ?100 million available for voluntary projects.
However in November, Friends of the Earth called for changes to make the tax more effective in discouraging waste production, including an extension to incineration. Its research shows four in ten waste producers have done little to minimise, reuse or recycle waste. The deadline for submissions to the government’s review closed on November 30, with changes possible in next year’s Budget. Contact ENTRUST on 0171 823 4574, John Mortimer, ARC, on 0966 411540 or Mike Childs, FoE, on 0171 490 1555 (www.foe.co.uk)
MANAGEMENT GUIDE
The Environment Council issued a new guide in its Business and Environment Programme Handbook series in October. A Manager’s Introduction to Facilities and the Environment examines transport, purchasing and building management, showing how substantial savings can be made while protecting the environment. Contact Catherine McNab, Environment Council, on 0171 881 7610
Comment
Most companies have the environment as a policy focus area for corporate community involvement. But sometimes the relevance to the business basics seems pretty obscure – just a green fig leaf, to be seen to be doing something/anything, given the environmental damage being done?
Companies don’t set out to pollute and destroy the eco-systems. That is a by-product of their main purpose which is to supply the goods that consumers want to purchase. They can and should minimise the environmental impact and be more responsible in their marketing. They can remember that profit maximisation does not always mean maximising sales. Certainly not enough companies are yet taking these issues seriously enough.
But consumers must alter their buying behaviour, consuming less and paying more, if damaging market dynamics are to change. The key is public education, especially of the next generation. A community involvement programme that makes environmental education in schools a priority is not so much a fig leaf, more a Trojan horse.
The second positive action is to help put right the damage being done. Planting trees, for example, makes a lot of sense for a oil company whose fossil fuels generate carbon dioxide when burnt. But community affairs budgets don’t stretch any where near far enough to rebalance that equation.
Which takes us to the third required action, namely lobbying governments to create a level playing field, to stop one company gaining competitive advantage by evading its responsibilities. And here the OECD has a vital role in stopping one country from trying to gain competitive advantage against the rest. Kyoto gives cause for hope.
As the world’s governments gathered in Kyoto, Japan, juggling the fate of humanity in their hands, companies continue the slow process of facing up to their environmental responsibilities.
Most companies have the environment as a policy focus area for corporate community involvement. But sometimes the relevance to the business basics seems pretty obscure – just a green fig leaf, to be seen to be doing something/anything, given the environmental damage being done?
Companies don’t set out to pollute and destroy the eco-systems. That is a by-product of their main purpose which is to supply the goods that consumers want to purchase. They can and should minimise the environmental impact and be more responsible in their marketing. They can remember that profit maximisation does not always mean maximising sales. Certainly not enough companies are yet taking these issues seriously enough.
But consumers must alter their buying behaviour, consuming less and paying more, if damaging market dynamics are to change. The key is public education, especially of the next generation. A community involvement programme that makes environmental education in schools a priority is not so much a fig leaf, more a Trojan horse.
The second positive action is to help put right the damage being done. Planting trees, for example, makes a lot of sense for a oil company whose fossil fuels generate carbon dioxide when burnt. But community affairs budgets don’t stretch any where near far enough to rebalance that equation.
Which takes us to the third required action, namely lobbying governments to create a level playing field, to stop one company gaining competitive advantage by evading its responsibilities. And here the OECD has a vital role in stopping one country from trying to gain competitive advantage against the rest. Kyoto gives cause for hope.
COMMENTS