THE UN GLOBAL COMPACT

1. THE UN GLOBAL COMPACT • MODULE 4FROM PRINCIPLE TO PRACTICE • Session 2: The GC Toolkit – Environmental Principles

2. The GC Toolkit - Environmental Principles Introduction and Overview • The GC Tools have the following essential functions: • Provide a methodology for collecting and organising information • Improve knowledge and understanding of: • the dynamics of the system • the drivers of behaviour • the reasons for failure • Provide a description of accepted levels of performance and/or prompts the setting of performance targets • Identify proven means for modifying behaviour to reach these performance targets • Provide the means for monitoring and reporting on progress in improving performance • Some managers intuitively ‘see’ the challenge and the correct solution without the conscious help of tools

3. The GC Toolkit - Environmental Principles Introduction and Overview • Different types of Environmental Sustainability Tools • Environmental Management Tools • Environmental Assessment Tools • Environmental Monitoring and Auditing Tools • Environmental Reporting and Communication Tools • Note: the next few slides provide some examples of specific tools for each of these broad general types. Each of these types of tools is then linked to the UNGC Performance Model introduced in the previous Module. • A comprehensive Framework for Action is provided in Appendix 1 of the Manuals, showing the inter-relationship between the various tools, the GC principles, the training modules and the Performance Model.

4. The GC Toolkit - Environmental Principles Introduction and Overview • The response of a hypothetical company: What tools and when? • Decision to manage environmental risks by implementing EMS • Strategy of Cleaner Production (CPOA) • This leads to one or more of the following: - Environmental auditing - Pollution and waste audits - Supply chain audits and assessments - Ecological foot-printing • Environmental performance indicators may then be developed, which in turn may require more detailed assessments including for example: • Environmental impact assessment • Eco-efficiency • Life-cycle assessment • Industrial ecology • Total cost assessments • Environmental technology assessment. • Results could then be communicated by reporting.

5. The GC Toolkit - Environmental Principles Introduction and Overview • Different types of Environmental Sustainability Tools • Environmental Management Tools • Environmental Assessment Tools • Environmental Monitoring and Auditing Tools • Environmental Reporting and Communication Tools • Environmental Management Tools • Environmental Management Systems – e.g. ISO 14001 or EMAS • Environmental Management Strategies: • Cleaner Production, Sustainable Consumption and Eco-efficiency • Life-cycle management • Design for the Environment/ Eco-design • Product stewardship • Product-services systems • Industrial ecology • UNEP APELL 

6. From Principle to Practice Relating environmental management tools to the GC Performance Model GC TOOLS Environmental Management Strategies (e.g. Cleaner Production, Life Cycle Management, Design for Environment) GC TOOLS Environmental Management System (E.g. ISO14000) Environmental Management System Environmental Management System Internal Communication (as part of an EMS) Environmental Management Tools (E.g. Life-Cycle Management) Environmental Management Tools (E.g. Product Stewardship, Product-Services Systems)

7. The GC Toolkit - Environmental Principles Introduction and Overview • Different types of Environmental Sustainability Tools • Environmental Management Tools • Environmental Assessment Tools • Environmental Monitoring and Auditing Tools • Environmental Reporting and Communication Tools • Environmental Assessment Tools • Environmental Impact Assessment • Environmental Risk Assessment • Cleaner Production Opportunity Assessment • Environmental Technology Assessment • Life-Cycle Assessment • Total Cost Assessment

8. From Principle to Practice Relating environmental assessmenttools to the GC Performance Model GC TOOLS Environmental Assessment Tools (E.g. Risk Assessment, CPOA, LCA, TCA) GC TOOLS Environmental Assessment Tools (E.g. Risk Assessment, EnTA) Environmental Assessment Tools (e.g. Supply Chain Assessment, Life-Cycle Assessment) Environmental Risk Assessment

9. The GC Toolkit - Environmental Principles Introduction and Overview • Different types of Environmental Sustainability Tools • Environmental Assessment Tools • Environmental Management Tools • Environmental Monitoring and Auditing Tools • Environmental Reporting and Communication Tools Monitoring and Auditing Tools Environmental Performance Indicators Environmental Auditing Pollution and Waste Audits Supply chain audits and assessments

10. From Principle to Practice Relating monitoring and auditing tools to the GC Performance Model GC TOOLS Environmental Auditing & Monitoring Tools GC TOOLS Environmental Monitoring Tools (e.g. KPIs) Environmental Monitoring & Auditing Tools Environmental Auditing & Monitoring Tools (e.g. Supply Chain Audits)

11. The GC Toolkit - Environmental Principles Introduction and Overview • Different types of Environmental Sustainability Tools • Environmental Assessment Tools • Environmental Management Tools • Environmental Monitoring and Auditing Tools • Environmental Reporting and Communication Tools Reporting and Communication Tools Corporate Environmental / Sustainability Reports Stakeholder engagement activities   Developing partnerships for progress Environmental labelling programmes Ecological footprints

12. From Principle to Practice Relating reporting and communication tools to the GC Performance Model GC TOOLS Communication Tools (e.g. Stakeholder engagement) GC TOOLS Communication Tools (E.g. Stakeholder engagement) Communication Tools (E.g. Stakeholder engagement) Communication Tools (e.g. Eco-labelling) Environmental Reporting & Communication Tools (E.g. Sustainability Reporting)

13. The GC Toolkit - Environmental Principles Environmental Management Tools • Environmental Management Systems • An EMS is the part of the overall management system that includes organizational structure, planning activities, responsibilities, practices, procedures, processes and resources for developing, implementing, achieving, reviewing and maintaining the environmental policy. Key examples include ISO 14001 and EMAS. • EMS are used to: • Help companies to identify and prioritise their key environmental impacts in a structured and systematic manner • Provide a framework for setting clear objectives and targets for managing these impacts • Ensure that structured processes and procedures are in place for measuring and monitoring performance The type of EMS depends on the nature, size and complexity of the company’s activities, products and services

14. The GC Toolkit - Environmental Principles Environmental Management Tools ISO 14001 Environmental Management System Plan Continual Improvement Act Do Check

15. The GC Toolkit - Environmental Principles Environmental Management Tools • Plan • Identify aspects and impacts, hazards and risks • Document legislation and other requirements • Set objectives and measurable targets • Policy and management programme ISO 14001 Environmental Management System Continual Improvement Act Do Check

16. The GC Toolkit - Environmental Principles Environmental Management Tools • Do • Structure and responsibility • Training, awareness and competence • Communication • EMS documentation • Document control • Operational control • Emergency preparedness & response ISO 14001 Environmental Management System Plan Continual Improvement Act Check

17. The GC Toolkit - Environmental Principles Environmental Management Tools • Check • Monitoring, measuring and auditing performance • Maintaining records • Schedule, plan and conduct system audits • Non-conformance and corrective action ISO 14001 Environmental Management System Plan Continual Improvement Act Do

18. The GC Toolkit - Environmental Principles Environmental Management Tools ISO 14001 Environmental Management System Plan • Act • Implement corrective actions • Track improvement • Management review Continual Improvement Do Check

19. The GC Toolkit - Environmental Principles Environmental Management Tools • Training and Internal Communication – part of an EMS • Ongoing employee and management training and internal communication at all levels is critical for ensuring that there is sufficient commitment and understanding to integrating principles of environmental responsibility into the business, and to ensuring that there is a required change in attitudes and business behaviour • Training and communication should be undertaken on issues such as: • Awareness of the company’s environmental impacts and aspects • Technical understanding on how to manage these impacts and aspects • Knowledge of current and potential environmental liabilities • Skills to effectively implement management systems and programmes • Building and maintaining motivation to address environmental concerns

20. The GC Toolkit - Environmental Principles Environmental Management Tools • Cleaner Production • A preventive environmental approach, aimed at increasing resource efficiency and reducing the generation of pollution and waste at source, rather than addressing and mitigating the symptoms. Conserving raw materials, water and energy Eliminating toxic raw materials Reducing the quantity and toxicity of all emissions Reducing wastes at source “Cleaner Production is the continuous application of an integrated preventive environmental strategy to processes, products and services so as to increase efficiency and reduce risks to humans and the environment.” UNEP

21. The GC Toolkit - Environmental Principles Environmental Management Tools • Cleaner Production (CP) Strategy • For production processes, CP includes • More efficient use of raw materials, water and energy • Elimination of toxic or dangerous process input materials • Minimising the volume and toxicity of all emissions and waste • For products, CP focuses on • Reducing impacts through the product’s life cycle • Adapting design, raw material input, manufacturing, use, and disposal • For services, CP implies • Preventive environmental strategy in the design and delivery of services

22. The GC Toolkit - Environmental PrinciplesEnvironmental Management Tools • Promoting CP through good management practices • Establish senior management commitment for CP • Define, communicate and monitor progress against performance targets 2. Appoint waste minimisation ‘champion’ to • Review the true cost of waste • Motivate the workforce to reduce waste – appropriate incentives 3. Implement visible monitoring and reporting on • Volumes of waste generated/materials used • The cost of waste collection and disposal, and resource use • The total cost of waste and resource use 4. Inform company suppliers of CP commitment, and provide assistance 5. Share expertise through a waste minimisation club

23. The GC Toolkit - Environmental Principles Environmental Management Tools • Implementing a Cleaner Production Management Programme • Step 1: Planning & Organisation • Step 2: Preliminary Assessment • Step 3: Detailed Assessment • Step 4: Feasibility Analysis • Step 5: Implementation • Step 6: Monitor Progress

24. The GC Toolkit - Environmental Principles Environmental Management Tools • Implementing a CP Management Programme

25. The GC Toolkit - Environmental Principles Environmental Management Tools • Eco-efficiency • A management strategy that seeks to produce more value with less input of energy and material, and with reduced emissions • Key opportunity areas for business: • Re-engineering processes • Redesigning products • Re-valorising by-products • Rethinking markets Eco-efficiency measures • Reducing the material and energy intensity of goods and services • Increasing the service intensity of goods and services • Reducing toxic dispersion • Enhancing material recyclability • Maximising sustainable use of renewable resources • Increasing material/product durability • Increasing service intensity

26. The GC Toolkit - Environmental Principles Environmental Management Tools Implementing CP and Eco-efficiency: A Structured approach STEP 1 Assign formal responsibilityfor cleaner production / eco-efficiency STEP 2 Identify opportunities by undertaking a CP opportunity assessment STEP 3 Analyse theinformation STEP 7 Review theprogress STEP 6 Implement theaction plan STEP 4 Consider the various options available STEP 5 Produce anaction plan

27. The GC Toolkit - Environmental Principles Environmental Management Tools • Sustainable Production and Consumption • What is Sustainable Consumption?: • “…the use of services and products which respond to basic needs and bring a better quality of life while minimizing the use of natural resources and toxic materials as well as the emissions of waste and pollutants over the life cycle of the service or product so as to not jeopardize the needs of future generations.” UN CSD, 1995 • Includes interventions that influence consumption patterns (e.g, product stewardship, product labelling and information and product design) • “Consumers are increasingly interested in the world that lies behind the products. They want to know how and where and by whom the products have been produced.” • Klaus Toepfer, UNEP Executive Director

28. The GC Toolkit - Environmental Principles Environmental Management Tools • Business Response to Sustainable Production and Consumption • An extension of the eco-efficiency approach to include: • Technological and social innovations to improve quality of life (ESTs, Product-services systems, Green Procurement Strategies, etc.) • Provide and inform consumer choice (Eco-labelling, Green Advertising, etc.) • Improved market conditions through appropriate legislation and regulation (Extended Producer Responsibility, etc.) • Attention to the need to reduce resource consumption in production and products (Eco-design & Design for Environment, Eco-efficiency, CP, ESTs, Product-services systems) • To improve the effectiveness and quality of product use (Eco-design, etc.) • Reducing end-of-life waste (e.g. through recycling) (Product Stewardship, etc.)

29. The GC Toolkit - Environmental Principles Environmental Management Tools Production Chain Schematic - Examples of strategies to improve Resource Productivity in Production and Consumption Processing Industry Manufacturer of finished products Extraction of Raw materials • Cleaner processing and energy technology • More emphasis on material with a favourable life course • Less material per unit • Larger share of materials from recycling industry • Better moduling of components • Cleaner processing • and energy technology • Cleaner processing • and energy technology

30. The GC Toolkit - Environmental Principles Environmental Management Tools Production Chain Schematic - Examples of strategies to improve Resource Productivity in Production and Consumption …. Distribution Consumption Waste Management • Rationalize link between goods or • services and consumer • (computer shopping) • Better utilization of energy • More re-use and recycling • A large share of the total • consumption should refer to service • More “sharing” • Cleaner and more • effective transport • Possibly spread • Production • Re-use of transport • packaging • More systematic • Recycling • New materials • technology

31. The GC Toolkit - Environmental Principles Environmental Management Tools Life Cycle Thinking for Sustainable Production & Consumption … implies that everyone in the whole chain of a product’s life cycle, from cradle to grave, has a responsibility and a role to play, taking into account all the relevant external effects.” Klaus Toepfer

32. The GC Toolkit - Environmental Principles Environmental Management Tools • Design For The Environment (DFE) • Examining a product’s entire projected lifecycle and identifying measures that can be taken to minimise the environmental impact of the product at its design stage • DFE strategies considers design measures to reduce the environmental impact in each stage of its life cycle • Raw materials: design measures relating e.g. to resource conservation • Manufacturing: providing for eco-efficiency in the production phase • Product use: making provision in product-use phase e.g. for energy and water efficiency, reduced material use, and increased durability • End-of-life: key design considerations include design for disassembly, design for durability, product re-use, and design for recycling

33. The GC Toolkit - Environmental Principles Environmental Management Tools • Eco-Design • Eco-Design considers the relation between a product and the environment. • Common propositions: • Environmental impacts from products have continued to rise relative to production processes • A life-cycle perspective on the environmental impacts of a product captures the whole production-consumption chain • Of the (life-cycle) impacts from products, 60% to 80% are determined at the design stage • A focus on products is a better way to engage business interest and action because it focuses on the products' market vulnerability

34. The GC Toolkit - Environmental Principles Environmental Management Tools • Cradle-to-Cradle Design – A New Paradigm • Current Industrial System: a one-way manufacturing flow = a "cradle to grave" lifecycle • Eco-efficiency: minimizing waste, pollution, and natural resource depletion- seeks to make the current, destructive system sustainable • Not a strategy for long-term change • True change: Designing industrial processes so they do not generate toxic pollution and "waste" in the first place “Long-term prosperity depends not on the efficiency of a fundamentally destructive system, but on the effectiveness of processes designed to be healthy and renewable in the first place” - William McDonough

35. The GC Toolkit - Environmental Principles Environmental Management Tools • Cradle-to-Cradle Design – “Environmentally Intelligent” • New paradigm modeling human industry on nature’s processes in terms of which • WASTE = FOOD • Materials are viewed as nutrients circulating in healthy, safe metabolisms: • 1) Nature's biological metabolism should be protected and enriched • all waste = food for biological system (biodegradable) • 2) Technical metabolism enhanced through circulation of mineral and synthetic materials • All waste = food for another industrial system • Cradle-to-Cradle by William McDonough & Michael Bragnaurt • http://www.mbdc.com

36. The GC Toolkit - Environmental Principles Environmental Management Tools • Cradle-to-Cradle Design – Benefits • Design for life-time customers – products leased again & again to customer base • Risk management – risks to environmental and human health are reduced by eliminating the concept of waste & selecting materials that are safe to both human and natural systems • Cost reduction – dramatically reduce legal & material costs • Product differentiation – products that offer customers excellence by all measurements • “Cradle-to-Cradle designs have positive effects extending beyond the client company to its suppliers, customers, communities, and the natural world” • William McDonough

37. The GC Toolkit - Environmental Principles Environmental Management Tools • Product-Services Systems • Developing a marketable mix of products and services that are jointly capable of fulfilling a client's need - with less environmental impact • A new concept for businesses to improve their sustainability performance • Analyse the needs of consumers that are fulfilled with products and services, and use this as basis for innovation • A shift in focus from selling products to selling the utility provided by the product

38. The GC Toolkit - Environmental Principles Environmental Management Tools • Product Stewardship • A product-centred approach to environmental management, where manufacturers – either voluntarily or under pressure from government – take responsibility for the entire life-cycle impacts of a product and its packaging • Benefits: • Green marketing opportunities • Avoids regulation • Achieves environmental goals

39. The GC Toolkit - Environmental Principles Environmental Management Tools • Product Stewardship • The objective of product stewardship is to encourage manufacturers to redesign products with fewer toxins, to make them more durable, reusable, and recyclable, and using recycled materials. • Tools of Product Stewardship include: • Take-back programs • Leasing • Life-cycle management • Shared responsibility • Extended producer responsibility • Manufacturer responsibility

40. The GC Toolkit - Environmental PrinciplesEnvironmental Management Tools • Product Stewardship • Step 1: Evaluate a product from the life-cycle perspective Step 2: Choose one of the stages that seems to cause major environmental problems and think about alternative ways of performing that stage

41. The GC Toolkit - Environmental Principles Environmental Management Tools • Industrial ecology  • An interdisciplinary framework aimed at developing industrial systems that mimic natural ecosystems, typically achieved through the symbiotic co-location of industries so that waste from one industry can serve as a raw material input into another. The diagrams above show the application of industrial ecology thinking in the context of a brewery. The figure on the left shows the typical process flow diagram, resulting in waste to landfill. The diagram on the right shows how this waste can be an important natural resource for other processes. Taken from www.zeri.org

42. The GC Toolkit - Environmental Principles Environmental Management Tools • Industrial ecology  • Industrial ecology encompasses a variety of related areas of research and practice, including: • Material and energy flow studies ("industrial metabolism")  • Dematerialization and decarbonization  • Technological change and the environment  • Life-cycle planning, design and assessment  • Design for the environment ("eco-design") • Extended producer responsibility ("product stewardship")  • Eco-industrial parks ("industrial symbiosis")  • Product-oriented environmental policy • Eco-efficiency

43. The GC Toolkit - Environmental PrinciplesEnvironmental Management Tools • UNEP APELL is: • A modular, flexible methodological tool for preventing accidents • Failing this, to minimise their impacts • Explained in the APELL Handbook (1988) (www.uneptie.org/apell) • Directly supported by the International Council of Chemical Associations (ICCA) and numerous other partners • Achieved by assisting decision-makers and technical personnel to: • Increase community awareness • Prepare co-ordinated response plans involving industry, government, and the local community • Also adapted for specific applications: • APELL For Port Areas (1996) • TransAPELL, Guidance for Dangerous Goods Transport: Emergency Planning in a Local Community (2000) • APELL for Mining (2001)

44. The GC Toolkit - Environmental PrinciplesEnvironmental Management Tools • The Benefits of APELL are: • In reducing the likelihood of accidents and reducing their impacts • In helping to build relationships between a company and the community - of benefit over the long term • In assisting community awareness and understanding of the operation and its management - should generate the confidence, trust and support which companies need whether or not they experience an accident

45. The GC Toolkit - Environmental PrinciplesEnvironmental Assessment Tools Environmental Impact Assessment (EIA) • A planning tool aimed at identifying and minimising the environmental impacts associated with proposed projects • Key elements in an EIA: • Scoping • Screening • Identifying and evaluating alternatives • Mitigating measures, dealing with uncertainty • Issuing environmental statements: report EIA findings

46. The GC Toolkit - Environmental PrinciplesEnvironmental Assessment Tools Environmental Impact Assessments (EIAs) • Aim to: • Predict environmental impacts at an early stage in project planning and design • Find ways and means to reduce adverse impacts • Shape projects to suit the local environment • Present the predictions and options to decision-makers • Benefits: • Reduced cost and time of project implementation and design • Avoided treatment/clean-up costs • Avoided impacts of laws and regulations.

47. The GC Toolkit - Environmental PrinciplesEnvironmental Assessment Tools • Environmental Risk Assessment (ERA) • Typically consisting of Human Health Risk Assessment and Ecological Risk Assessment, ERAs: • Describe a hazard (e.g. a chemical pollutant detrimental to human health or habitat loss impacting on biodiversity) • Describe the potential for exposure to the hazard • Estimate the risk, or likelihood of a negative effect, based on the hazard and exposures • Consider uncertainties which may be inherent in arriving at the risk estimate

48. The GC Toolkit - Environmental PrinciplesEnvironmental Assessment Tools • Environmental Risk Assessment • A process which helps answer the following: • What can go wrong? (risk perception) • What is the likelihood and severity of any adverse occurrence? (risk assessment) • What can be done to manage any significant adverse occurrence and who should be involved? (risk management and risk communication).

49. The GC Toolkit - Environmental Principles Environmental Assessment Tools • Environmental Technology Assessment • A description of the technology, its goal, and the likely affected stakeholders • An assessment of the environmental pressure and impacts of using the technology • An evaluation of the environmental risks and their significance • A comparative assessment of alternative technologies • Recommendations on technology choices.

50. The GC Toolkit - Environmental Principles Environmental Assessment Tools • EnTA for Identification and Selection of ESTs • Aim to identify environmental, human health & safety impacts of a new technology investment • Require a dynamic, evolving process of assessment, transfer, uptake and verification of ESTs = EnTA • EnTA is a systematic procedure to assess technology options at the pre-investment stage, with a focus on: • relative environmental performances • implications for sustainable development • likely cultural and socio-economic consequences • EnTA helps all stakeholders reach a consensus on the technology intervention that is expected to be the most: • Environmentally sound • Socially acceptable • Economically viable