Greening Business. Click to add title. Click to add text. By Ian Barnes

Transcription

1 Click to add text Click to add title Greening Business 2 nd Training of Trainers Capacity Development Seminar Green Growth: A Path to Good Governance By Ian Barnes

2 Click to add text Click to add title The Greening of Business: Making the Environment a Business Opportunity

3 Purpose of Greening Business training: Click to add text To familiarize stakeholders with Greening Business ideas and related concepts To Illustrate the importance/interrelatedness of Green Business (Economy and Environment) To identify possible policies and measures for implementation To show some examples of Green Businesses in Asia and the Pacific

4 Click to add text Click to add title What is a Green Business? Definition: Green businesses are enterprises which consider environmental protection as an essential component of their long-term business objectives, both by promoting eco-efficient production activities and by marketing sustainable products and services

5 Click to add text Click to add title Why should Governments encourage the Greening of Business? To promote more socially inclusive development Poverty alleviation- reduce disparity between rich and poor To reduce environmental degradation Increased scarcity and volatile prices of raw materials Ensuring resources for long term profits To mitigate and adapt to the effects of climate change To deal with pressures from population growth Significantly contribute to the achievement of the MGDs

6 Benefits of Greening Business Click to add text To spur greater environmental sustainability To pursue low-carbon growth and to mitigate GHG emissions To reduce costs and to maximize profits To use less energy and natural resources To generate new jobs To develop new products for domestic and international markets

7 Click to Drivers add textand enablers Government NOT playing the role of provider but that of facilitator (create right conditions for the markets to go green) Targeted subsidies/tax rebates, etc. (driver) Demand-side management (enabler)

8 The Click key challenge to add for text policy makers is how can businesses harness eco-efficiency and environmental protection as a driver of further economic growth and environmental sustainability? and How can the environment and eco-efficiency be presented as a business opportunity, rather than an extra burden and cost?

9 Present situation The current economic system is being driven by economic efficiency in use Click of resources. to add text This is based on a market price that does not reflect the full costs of the processing of inputs (natural resources, energy, etc.) and outputs (wastes, effluents, emissions). As long as the environmental costs are considered social costs these remain outside the workings of every transaction occurring in the market. As a result, the market is distorted and an ecological deficit is created. However, with the increase in the ecological deficit and increased frequency of natural disasters, the balance of the market is restored, nevertheless with multifold increases in the costs of the externalities.

10 Click to add text Click to add title Why we should start Greening Business NOW Energy, Food and Financial crisis = now is the opportunity to change the pattern of our economic and social development, can use Green stimulus packages as a driver Climate change is upon us. Potential - move away from the pursuit of the ever increasing quantity of economic growth Focus efforts on improving the quality of economic growth. The past axiom of grow now - clean up later is no longer an option.

11 Click to add text Click to add title Why we should start Greening Business NOW The world will move towards a low-carbon path, sooner or later. So companies need to start changing or they will NOT survive. Those who make the changes now will get the first mover advantage. Dr Rajendra K. Pachauri, Chairman, Intergovernmental Panel on Climate Change

12 Click to add text Click to add title We Need to Change the Pattern of Growth

13 Click to add text Click to add title Business Sector s Approaches to Eco-efficiency Reducing the material requirements for goods and services; Reducing the energy intensity of goods and services; Reducing toxic dispersion; Enhancing material recyclability; Maximizing sustainable use of renewable resources; Extending product durability; Increasing the service intensity of goods and services.

14 Click to add text Click to add title What actions can Business make to support Ecoefficiency? Integrate eco-efficiency into their business strategy, including their operational, product innovation and marketing strategies Report company eco-efficiency and sustainability performance openly to stakeholders Support policy measures which reward ecoefficiency

15 Click Human to add Capital: text refers to the capabilities of an individual or group, specifically the knowledge, training and skills that contribute to their level of productivity Social Capital: refers to connections within and between networks following the belief that social networks have a value

16 Green Jobs Click to add text Definition: Green jobs are positions that contribute substantially to preserving or restoring environmental quality, ILO 2008 Examples include: Engineers Architects Designers Energy auditors Operators Estimators Electricians Plumbers General construction workers Energy Technicians Environmental Specialists

17 Sectors that can create new Green Jobs Click to add text Renewable energy Carbon Capture and Storage Energy Storage: Equipment & Systems Energy Efficiency Green Buildings Transportation Sustainable agriculture Carbon Markets: Trading & projects Climate change adaptation Public-sector/Government Consulting Waste Reduction & Management Non-profit sector Research & Development

18 Global Trend towards Greening Business Click to add text The 2007 Global 100 most sustainable companies includes; Wal-Mart Stores DuPont Intel Corporation Sony Corporation Panasonic Microsoft Royal Dutch Shell Panasonic General Electric Company Hewlett-Packard Marks and Spencer Mitsubishi Heavy Industries Nike Nokia Toyota

19 Click to add text Click to add title Business Responses to Climate Change Companies can incorporate adaptation into their business models All companies need to find ways to mitigate their carbon emissions Senior management conduct SWOT analysis

20 Climate Change RISKS for Business Click to add text Direct impacts on facilities, infrastructure, equipment, employees Disruption of supply chains, damage, delays in electricity, water, transport New laws and regulations Loss of market share for products which exacerbate effects, boycotts, public opposition, difficult to find good employees Bankruptcy for inefficient companies Fall in demand for certain products Hard to find capital, loans, debt financing for companies at risk from climate change impacts or those who do not mitigate carbon emissions

21 Climate Change Opportunities for Business Click to add text Cost savings from improvements in efficiency Securing supply chains can build more collaborative partnerships with stakeholders Improved reputation and brand loyalty More CSR and helping society adapt New sustainable products and markets for climate adaptation and renewable energy Public-private partnerships

22 New Markets Click to add text Cleantech renewable energy, carbon capture, fuel cells, waste treatment, new batteries, Bioplastics and other new sustainable materials Hybrid vehicles Retrofitting buildings Carbon markets CERs credits, CDM, derivatives, exchange traded funds, equity funds, carbon brokerages, consultancies

23 Click to add text Click to add title Growth Markets for Renewable Energy Photovoltaic solar panels Organic solar panels solar foil, solar paint, solar fibers in clothes and accessories Solar thermal panels cheaper than traditional solar Wind generators large and small scale Fuel cells Micro-hydro marine, hydrokinetic devices Biogas small and large scale

24 Measuring criteria: The triple Click to add text bottom line The triple bottom line (TBL/3BL) People, Planet, Profit A criteria for measuring organizational (and societal) success: Financial, ecological and social Triple bottom line accounting = to take into account ecological and social performance in addition to financial performance.

25 Government Policy Options for GB Click Introduce to add green text public procurement Create a market for environmentally friendly products Incrementally introduce a Fiscal Budget Reform (GTBR) Channel extra revenue from pollution into development of renewable energy sources or propoor programmes Use a mixture of policies with economic instruments (e.g. taxes/incentives) Rewarding good actions while taxing pollution

26 Click to add text Click to add title Government Policy Options for GB Net metering, renewable portfolio standards and feed-in tariffs to encourage renewable energy companies Subsidies for green buildings (incl. refurbishing) Property Assessed Clean Energy Funding (PACE) Back micro insurance schemes (agriculture) Provide micro finance to rural entrepreneurs Public awareness campaigns and information centers for SMEs Green job skills training Establish a National Innovation Agency

27 How can Government support eco-efficiency? Set Click macro-economic to add text eco-efficiency targets and conversion criteria for sustainable development; Integrate policy measures to strengthen eco-efficiency (by, for example, eliminating subsidies, internalizing externalities and effecting shifts in tax policy); Work toward changing international policy rules and systems for trade, financial transactions, etc, to support higher resource productivity and emissions reduction, as well as improvements for the poor. Public awareness campaigns and information networks to inform the public and SMEs about eco-efficiency options

28 Click to add text Click to add title When people back home ask you about Green Growth and Green Business remember can actually make MORE money by protecting the environment and helping society.

29 Click to add text Click to add title Thank You