From green factories to sustainable markets

October 01, 2000

WRI kicks off debate for Rio plus ten

The World Resources Institute published an analysis of the world’s fragile ecosystems and held a seminar in London on September 12, to kick off preparations for the Rio plus Ten gathering of world leaders on biodiversity in 2002. World Resources 2000-2001: The Fraying Web of Life, published in partnership with UNEP, UNDP and the World Bank, is part of a four year UN effort to influence decision-makers.

World environment ministers met on September 15-17 in Bergen, Norway, to start preparing the ten-year follow up to the Earth Summit, held in Rio in 1992. Contact the WRI on 001 202 729 7600 (http://www.wri.org/wri)

Sustainable development directors’ briefing

How does your business measure up on sustainable development? A draft guide published for consultation by the Advisory Committee on Business and the Environment in August aims to help identify key issues, prioritise action and establish successful practice, and was drawn up by a working group chaired by Gerry Acher, KPMG London’s senior partner. Contact ACBE on 020 7944 6278 (http://www.environment.detr.gov.uk/acbe)

New tools for environmental management

A framework to help companies measure their environmental performance is being finalised by Business in the Environment . Launched on September 20 in summary form, AMeasure of Progress is based on BIE’s annual index of corporate environmental engagement. It aims to support companies in measuring their performance against the criteria put forward by the index. It includes new business case studies and focuses on environmental issues, integrated with other stakeholder issues such as ethics, health and safety, and human rights. It stresses the importance of considering the needs of internal and external stakeholders in one measurement and reporting cycle. The project has been supported by Ernst & Young , and sponsored by Unilever .

COMMENT:

In the run-up to the Rio Earth Summit the battle was to persuade companies they actually had some responsibility in the small matter of saving the future of the world. A few pioneers stepped up to the challenge, ably led by Stephan Schmidheiny, the driving force behind what has become the World Business Council for Sustainable Development.

Today pretty well every major company admits to the problem and many are engaged in vigorous action internally to improve eco-efficiency, with typical business-like focus on results: individual schemes to eliminate waste, cut energy consumption, install environmental management systems and re-engineer products for reduced impact. (For example, General Motors in the US just won an award for a recycling scheme which cut waste by 30% and saved $15 million a year.) The big firms are now moving beyond their owned and operated functions, down into the supply chain.

But still too few – we cite some above – are moving up the value chain, towards the consumer. That is why we cannot yet say, in the run up to the next earth summit, that the planet is on course for a sustainable future. Indeed most of the indicators are still heading in the wrong direction, despite efficiency gains, because consumption is growing. (For example, Austria, Germany, Japan, the Netherlands and the USA together have increased total output of waste and pollutants by 28% since 1975.) Companies may have got the message, but most consumers have not.

A few leaders are starting to talk about these issues. Bill Ford Junior is saying Ford’s future can only be as a provider of transport, not of motor vehicles based on the internal combustion engine. John Browne is repositioning BP as ‘beyond petroleum’. But neither can put products in the market place which consumers won’t buy. Progress so far has focused on internal eco-efficiency – driven by saving money. Now the challenge is to change patterns of consumer demand – and find ways to make money. Much harder, but more rewarding.

Corporate Citizenship Briefing, issue no: 54 – October, 2000

Also available from BiE is a CD-ROM toolkit to help companies work with their suppliers to improve environmental management, and identify those which might pose a risk. Buying into the Environment was developed with TXU Europe and other supporters include Sainsbury’s and TI Group . The toolkit, launched on August 24, is also based on BiE’s annual index. Contact Tanya Mitchell, BiE, on 020 7268 0335 (http://www.business-in-environment.org.uk)

Getting PROPER environmental performance

PROPER is a system being adopted by developing countries, led by Indonesia, to rate companies’ environmental performance and so prompt improvements. Based on the ISO system, companies are given a colour rating (gold for world class performance, black for major polluters) which is then made public. A manual has now been produced to explain the system to new users. Contact Shakeb Afsah, International Research Group, on 00 1 202 289 0100 (http://www.worldbank.org/ nipr/work_paper/ PROPER2.pdf)

Two green mortgages

The Co-operative Bank launched a ‘green’ mortgage on September 25: the bank will make a donation to Climate Care, an initiative to tackle global warming, throughout the life of the mortgage. The aim is to offset a quarter of the household’s carbon dioxide emissions. The first Climate Care project is the Kibale Forest reafforestation scheme in Uganda. Customers also receive advice on how to make their homes more energy efficient.

The initiative follows a move in July by Norwich & Peterborough Building Society and Future Forests to produce what they believe to be the world’s first carbon neutral mortgage. For each &P Green Mortgage, Future Forests will plant eight trees a year for the first five years of the loan, enough to absorb the equivalent amount of carbon that the new home will emit. The package includes a 1% discount on &P’s standard mortgage rate and £500 towards energy efficiency improvements. Contact Paul Monaghan, The Co-operative Bank, on 0161 829 5460 (http://www.co-operativebank.co.uk) and Greg Moore, Future Forests, on 020 7721 8575 (http://www.npbs.co.uk)

Greenhouse gas emissions

BP, Shell, ICI, American Electric and Whirlpool are among pioneering companies measuring and tracking their greenhouse gas emissions. A report by the Pew Center on Global Climate Change, issued on August 1, describes approaches being developed by a dozen companies, the benefits they aim to realise, principles to follow and resources to help others get started. Contact Katie Mandes, Pew Center, on 001 703 516 0606 (http://www.pewclimate.org/ media/pr_801greenhouse.cfm)

Green power collaboration

Eleven major businesses, including DuPont, General Motors, IBM , and Johnson & Johnson, have launched a partnership with Business for Social Responsibility and the World Resources Institute to develop the market for renewable energy in the US. Members of the Green Power Market Development Group, launched August 7, together account for seven per cent of US industrial energy use and plan to develop a market for 1,000 megawatts of new ‘green’ energy capacity in the next 10 years. Contact Adlai Amor, WRI, on 001 202 729 7736 (http://www.wri.org)

Esso award scheme

To mark the fourth and final year of its Trees of Time and Place campaign, Esso UK is funding a new Golden Acorn Award scheme. Eleven awards are on offer to people or activities making a particular contribution to the scheme, which has encouraged over 15,000 individuals, 2,000 schools, more than 130 local authorities and half of all members of parliament to grow trees from seed. Contact Olivia Ross, Trees of Time & Place, on 020 7465 7096 (http://www.totap.org.uk)

news in brief

• A new sustainable business website, GreenBiz.com , has been launched with the aim of providing a one-stop-shop on sustainability issues. GreenBiz hopes to “harness the power of technology to bring environmental information, resources and tools to the mainstream business community.” Visit http://www.greenbiz.com

• The Collaborative Labelling and Appliance Standards Program has a new website which shares comprehensive information on energy efficiency standards and labelling in countries around the world and provides a clearing house of technical resources to implement appliance and equipment standards and labelling. Visit http://www.clasponline.org

• Over 20 environmental NGOs, including WWF, Greenpeace and Friends of the Earth , have come together to lobby for more action on global warming, using a new web site launched in August. Visit http://www.climatevoice.org

Comment

In the run-up to the Rio Earth Summit the battle was to persuade companies they actually had some responsibility in the small matter of saving the future of the world. A few pioneers stepped up to the challenge, ably led by Stephan Schmidheiny, the driving force behind what has become the World Business Council for Sustainable Development.

Today pretty well every major company admits to the problem and many are engaged in vigorous action internally to improve eco-efficiency, with typical business-like focus on results: individual schemes to eliminate waste, cut energy consumption, install environmental management systems and re-engineer products for reduced impact. (For example, General Motors in the US just won an award for a recycling scheme which cut waste by 30% and saved $15 million a year.) The big firms are now moving beyond their owned and operated functions, down into the supply chain.

But still too few – we cite some above – are moving up the value chain, towards the consumer. That is why we cannot yet say, in the run up to the next earth summit, that the planet is on course for a sustainable future. Indeed most of the indicators are still heading in the wrong direction, despite efficiency gains, because consumption is growing. (For example, Austria, Germany, Japan, the Netherlands and the USA together have increased total output of waste and pollutants by 28% since 1975.) Companies may have got the message, but most consumers have not.

A few leaders are starting to talk about these issues. Bill Ford Junior is saying Ford’s future can only be as a provider of transport, not of motor vehicles based on the internal combustion engine. John Browne is repositioning BP as ‘beyond petroleum’. But neither can put products in the market place which consumers won’t buy. Progress so far has focused on internal eco-efficiency – driven by saving money. Now the challenge is to change patterns of consumer demand – and find ways to make money. Much harder, but more rewarding.

Corporate Citizenship Briefing, issue no: 54 – October, 2000

COMMENTS