International Symposium on Indicators of Sustainable Development

1. Moving Beyond Principles : Making Sustainability Operational by: Mr Chandran Nair Chairman, ERM Asia-Pacific 1-2 December 2000, Taipei International Symposium on Indicators of Sustainable Development

2. Sustainability is a MUST not an OPTION Concern for Tomorrow Beyond Pollution Control Strategies Making decisions today which do not reduce the options for tomorrow Taiwan - decisions taken in last two decades Introduction

3. Forces Shaping the Future Economic GOVERNMENT Political Social Technological Environment

4. A process requiring changes in: Exploitation of resources Direction of investments Orientation of technology Institutional policies and structures Consistent with future as well as present needs (Brundtland Commission) Sustainable Development ….

5. Shape of Economic Development Consistency: Shape of development and environment Future Quality of the Environment Government Policy and Planning

6. Ecology - living within the bounds of the ecological life system-preserving environmental “capital” Economic - acting now for long-term viability of markets and resources - strategies which reduce cost - trade-offs, understanding timescale Moral - genuine concerns for tomorrow in present day decision making - behavioural changes Big Picture Perspective

7. Economist assume the future will be much like the past. Since markets and technology have avoided catastrophe in the past, we can count on them to do the same in the future. Ecologist believe they see unique problems in the future, which will demand solutions outside the capacity of our present market mechanism. Ecologists are worried about irreversibilities. Economics vs Ecology

8. International Commitments, Agenda 21 “Governments... should adopt a national strategy for sustainable development... This strategy should build upon and harmonise the various sectoral, economic, social and environmental policies and plans that are operating in the country... Its goal should be to ensure socially responsible economic development while protecting the resource base and the environment for the benefit of future generations.” Sustainability is at the heart of economic planning, not simply environmental protection Why care?

9. Consensus that improvements in the quality of life need to accompany improvements in economic well-being and growth Environmental controls in themselves will not prevent further deterioration: growth in causes and sources of pollution offset attempts to control emissions and manage waste Increasingly the underlying causes of the reduction in quality of life are the policies and actions of government and industry Why care?

10. Sustainability: A Balancing Act Social Economic Environment

11. Industry: secure markets, less uncertainty, financial return Financial Institutions: financial return, management of risks, long-term viability Neighbours, employees: employment, economic viability, share in responsibility Regulators: achievement of agreed targets, responsibility, disclosure Policy makers: development of agreed goals and targets and joint problem-solving Sustainable Economy: the needs of the players

12. Move beyond controlling industrial pollution Issue is: How can increasing demands for infrastructure and transportation (goods and services) be met in a way that minimises their resource use and environmental impacts Business is being watched by Government, consumers, employees and other stakeholders Re-shape goods and services, alter process to meet quality of life demands Sustainability for BusinessAdvantage

13. Open dialogue earlier: explain your needs and concerns Give evidence of a responsible attitude: implement policy and procedures and disclosure progress Seek to share the problem: lay out the market trade, employment and economic effects Management of ‘sustainability’ is an irreversible trend that will affect every aspect of business and will deliver competitive advantage Some general principles for the private sector

14. Government and businesses can influence societal behaviour Lifestyle changes, realistic for policy makers - Achievable without undue recourse to regulations - Acceptable without the need for full public understanding of environmental technicalities - Attractive, with no perceived decline in standards of living Individuals

15. Identify short - medium - long term goals Agree targets for goals, not too ambitious initially, set interim targets Integration of sectoral policies Demonstrate results by actions, measure and monitor Framework for Negotiation Strategy Framework

16. Must be: Economically acceptable Technically credible Socially acceptable Take account of Interest of all, for the good of all Strategy

17. Stakeholders are: Government, Businesses, Individuals Tools Needed: Goals - set direction Targets - specific destination Initiatives - choosing the route Implementing Sustainability

18. A journey not a destination Manage tensions between: Present and Future Need and Demand Equity and Efficiency Growth and Development Fact and Values Public and Private Incentives and Controls Amenity and Necessity Tools for Implementation

19. Take account of views of all Establish long-term goals Set interim, achievable target Agree on strategy and agree on responsibility of the players involved to meet targets Measure and monitor progress Flexible, revise the targets or revise actions as required Tools for Implementation

20. Must be implementable Understand causes and effects Built through political process Dependent on consensus Political will is essential Societal “buy-in” - ecological, economic, moral Arriving at Workable Solutions

21. Defining “sustainability” for Hong Kong Developing guiding values, indicators Striking a balance: economic, social, environmental needs Tools for decision making : Sustainable Development System Widest possible public participation Delivering Hong Kong’s Future Hong Kong Study: Objectives

22. Tools to facilitate decision making. (SDS) Facilitate evaluation of sustainability. Raising awareness of public and stakeholders. Institutional mechanism for integrated, cross-sectoral decision making. Building consensus, better forward planning SusDev 21 Products and Results

23. - Economy - Mobility - Society & Social - Natural Resources Infrastructure - Environmental Quality - Biodiversity - Health & Hygiene - Cultural Vibrancy Guiding Principles: Coverage

24. Indicators Criteria • Representative • Scientifically valid • Simple and easy to interpret • Show trends over time • Early warning about irreversible trends • Sensitive to change • Readily available data • Predictable • Have a target level or guideline for comparison

25. Hong Kong should promote the sustainable use of natural resources through improving consumption efficiency, minimising the use of non-renewable resources and re-using, recycling waste and recovering energy from wastes. Guiding PrinciplesNatural Resources

26. Consumption of energy per unit of output ($ GDP). Quantity of municipal solid waste, public fill and C&D waste requiring final disposal per capita. The total remaining landfill capacity (by volume). Volume of freshwater supplied per capita. Percentage of demand met by locally-derived freshwater resources. Area of countryside. IndicatorsNatural Resources

27. Hong Kong should provide safe, accessible and efficient transport systems and pedestrian facilities along with an efficient transport network for the movement of goods and facilitation of services for the community. Guiding PrinciplesMobility

28. Average Travel Distances; the unit of such a measure is passenger distance travelled, ie the distance in kilometres travelled by passengers to get to work by all major groups of transport modes. Average Network Speed, ie the average network speed of travel across all major groups of transport modes both public and private and which reflects the proportion of passenger use (calculated as total passenger kilometres divided by total passenger hours). The cost of freight transport; the cost of charges and operating costs as a percentage of GDP. IndicatorsMobility

29. Tool to help with the integration of decision-making and comprising: Computerised and non-computerised functions Computerised: GIS and Decision Support System Non-computerised: Worksheets for scenario testing Institutional arrangements: Single most important outcome Sustainable Development System

30. Does not require chain of scientific evidence before a recommendation is made or action taken Requires a capacity for database management for useful information Primer, provides step-by-step guide using scenarios to improve the quality of decision making Operational and Strategic Awareness NOT AN EXPERT SYSTEM SDS: Early Awareness System

31. Facilitate a single vision Compelling Ministries/Department to develop long term strategies Stronger message, framework for communicating Government decisions Early flagging of key concerns through coordinated use of tools Avoid bureaucratic tussles, efficiency gains Reinforcing accountability at all levels Institutional Strengthening - Why?

32. Long-term commitment Effective and efficient co-ordination and integration of all decision making Balancing of the interests of different sectors Clear strategy with priorities identified Institutional Needs

33. Promote accountability Generate commitment Ensure well informed decision making Encourage integration, communication and co-operation Avoid redtape Effective monitoring and reporting Politically acceptable Institutional Selection Criteria

34. Focus is on changes in Government structures and institutions Provide confidence in the process Beyond exhortation, advocacy Understand political pressure Operationalise Sustainability Institutional Arrangements

35. Ensuring policy integration Reshaping economic incentives (taxes etc) Transferring of responsibility to actors (liability etc) Providing frameworks for negotiation Rewarding publicity and disclosure Instruments

36. agree to clear goals and guiding principles; set measurable targets (e.g.. quantitative emissions reduction); demonstrate responsibility for action; develop appropriate action plans and tools to implement them; measure progress and provide feedback to all actions; and re-evaluate and modify goals as necessary. Political Objectives The principles of sustainability represent important political objectives. Managing sustainability requires decision makers at all levels to:

37. It is also realistic to acknowledge that there are barriers to encouraging today’s decision-makers, politicians and voters to pay today to protect the future. Whilst the rhetoric of moral fairness or equity between generations is voiced by many, it usually falters when confronted with self-interest. It requires institutional and policy adjustments to begin affecting change in how decisions are made by Government, corporations and individuals. Barriers

38. Securing public support Build consensus around political objectives Promoting sound understanding of SD within Government and Industry Overcoming resistance to change Fostering an enabling environment in Government Challenges

39. Political Objectives Managing Tensions Building Consensus Catering for self interest Choices only, no absolutes Doing More with Less Sustainability(Beyond Principles)