1.4 Towards Sustainability
Overview:
In this section you will learn about Sustainability.
We will start with an introduction into the implications of different environmental constraints on organisations. We shall look at various issues including Local Agenda 21, Eco-efficiency as well some of the underpinning concepts.
We shall identify how environmental management can benefit wider areas. We shall identify the importance of design, resource management , energy use and waste reduction as part of good environmental management. Finally, we shall discuss ecological and carbon footprints.
Learning Aims:
At the end of this section you should be able to:
§ Be aware of the implications of environmental, fiscal, societal and ethical values and social constraints on an organisation.
§ Understand the concepts behind sustainability, including Agenda 21.
§ Explain the basic parameters of eco-efficiency and design for the environment.
§ Demonstrate an understanding of underpinning concepts:
o precautionary principle,
o product stewardship,
o polluter pays principle,
o best available techniques.
§ Appreciate the position of environmental management as a promoter of change and the role of environmental management systems in the process of continual improvement.
§ Understand the business benefits of environmental management.
§ Appreciate the importance of effective resource management including materials elimination or substitution, recycling, carbon management, waste reduction, the efficient use of energy and the role of renewable energy.
§ Appreciate the importance of reducing waste as goals of the EMS process.
Expected study duration:
3 hours.
Index
1. Implications of Environmental Constraints on an Organisation
2. Implications of Fiscal Constraints on an Organisation
3. Implications of Societal Values and Social Constraints on an Organisation:
4. Implications of Ethical Values on an Organisation
5. Agenda 21
5.1 Local Agenda 21
6. Eco-efficiency
7. Underpinning Concepts
8. Environmental Management
9. Design
10. Effective Resource Management
11. Materials Elimination or Substitution
12. Waste Reduction
12.1 Recycling
13. Efficient use of Energy
14. Carbon Management
14.1 Carbon Footprint
14.2 The Carbon Trust Standard
14.3 The Carbon Reduction Label
15. Ecological Footprint
1. Implications of Environmental Constraints on an Organisation
There are a number of reasons why organisations should improve their environmental performance. These reasons can be categorised into the following groups:
§ Ethical
o To care for the environment is the right thing to do.
§ Social
o The public have a growing appreciation and understanding of environmental issues, which can lead to consumer pressure for organisations to improve (e.g. selecting to purchase items with minimal packaging, wood from sustainable sources or items that do not contain palm oil).
§ Legal
o The amount of environmental legislation is increasing year on year. Organisations that do not comply face severe penalties. At present, certain environmental offences may attract unlimited fines and a custodial sentence of up to 2 years for individuals.
o The legal constraints are also wider than simply environmental legislation, health & safety legal requirements must also be met.
§ Financial
o Many environmental improvements also bring with them financial benefits (e.g. reducing waste generated will reduce waste disposal costs).
o The income that consumers have to spend may affect the amount they are willing to pay for a product.
§ Competition
o If an organisation’s competitors are becoming more environmentally responsible, it must follow suit to remain competitive.
§ Technology
o A manufacturing organisation’s operations are related to the technology that is available to them at the time.
We will look at some of these issues in more detail in a moment.
Organisations must be aware of their operating constraints and how they may change over time. There are two approaches an organisation may take:
1. Proactive / Anticipatory Approach
Organisations will be aware of the constraints and monitor future developments, anticipating the likely direction of future constraints. Such organisations will take action in advance, which can place them ahead of their competitors.
2. Reactive Approach
Organisations wait until a new constraint appears, or an existing constraint changes, and will only adapt after this change has occurred.
It is also true to say that a constraint can be turned into an opportunity. For example, if the Government discourages developers to use Greenfield sites, that it a constraint upon developing Greenfield sites. However, it is also an opportunity to develop Brownfield sites.
How an organisation chooses to identify and manage constraints, will affect its success in the future.
2. Implications of Fiscal Constraints on an Organisation
Financial Constraints may take a number of different forms. All organisations have a number of general outgoings, including issues such as:
§ Tax (VAT)
§ Employee Costs
o Staff wages
o Employers National Insurance Constructions
o Pension contributions
o Healthcare schemes
o Company car costs
§ Rent
§ Utility bills
§ Telecoms (phone lines & broadband)
In addition, there may be specific environmentally-related costs, including:
§ Waste Disposal Costs
§ IPPC Permit operating fees
§ Discharge consent fees
§ Abstraction Licence fees
§ Waste Exemption from Permitting charges
§ Packaging Compliance scheme fees
§ WEEE Compliance scheme fees
§ EMS Auditing fees
§ Costs to employ an environmental specialist or appoint an environmental consultant
§ The potential costs associated with an environmental prosecution, associated court costs and associated clean up costs
Not all costs are obvious. For example, utility bills now include a Climate Change Levy, whilst waste disposal costs may include Landfill Tax. In addition, new technology may be required to enable processes to be changed in light of current environmental requirements, such as a replacement for lead solder.
The implications of financial constraints are quite simple. An organisation must make money to stay in business. Increased outgoings reduce the available money to invest in new products and processes, employ competent staff or operate effectively. Ultimately, the management of financial constraints determine which organisations face liquidation.
3. Implications of Societal Values and Social Constraints on an Organisation:
Societal Values and Social Constraints are more fluid and may be harder to predict than other types of constraints. Societal Values is a term used to describe the collective values of a community.
In general terms, societal values are often related to customs or traditions and do evolve over time. However, a community is comprised of several individuals who may all have differing (perhaps even conflicting) values. It is this element that can make them hard to predict.
An organisation may be more likely to be constrained by certain societies that have a vested interest in their activities. This may be on a very local level, such as a community based in the same location as an organisation. If the organisation creates too much noise or dust, the locally community are likely to complain, which may cause the Local Authority to restrict activities, which is a constraint.
Society Constraints may also come from across the globe. An organisation may operate in a country with limited regard for environmental pollution, but their stakeholders do not. For example:
§ An internal organisation such as Greenpeace may publicise the negative activities.
§ Business customers may not import items unless there is evidence they were produced in an environmental acceptable manner (e.g. from a company that does not have a certified EMS).
§ The public may not purchase products that they believe do not conform to certain environmental standards (e.g. wood from a sustainable source).
§ Investors may not wish to invest in a company that is losing customers, losing public confidence and receiving bad publicity.
It is also true to say that societal values are influenced by the media. In the 1990s, the deforestation of the Amazon rainforests was a hot topic that was regularly on the news and it became a societal value. Today, it is rarely mentioned. The use of palm oil is pushed by the Government as a solution to the fossil fuel crisis, without proper mention of the many negative issues surrounding this. The issue is not yet filly understood by the majority of society and therefore it is not yet a widespread societal value.
4. Implications of Ethical Values on an Organisation
Ethics are related to morals; they are about what is right and wrong. In environmental terms, it is about what is right and what is wrong environmentally. However, ethics related to more than just the environment. An ethical organisation will be one that does not damage the environment or cause pollution. However, it will also not exploit its workforce, ensure good working conditions and will pay fair wages. It will not exploit suppliers, use harmful or dangerous raw materials and will not produce harmful or dangerous products.
The ethical constraint can be turned into an opportunity. Many studies have shown that organisations with an ethical profile have higher staff retention rates. Employees stay because they want to, not because they feel they have to. Organisations founded on an ethical basis, or selling ethical products, have a loyal customer base. Often these customers are willing to pay a little more for the level of internal satisfaction they gain from knowing they are doing the right thing.
The growth of ethical influences on organisations is demonstrated by the link below, which is to a website dedicated to ethical consumerism. It even has a section listing all companies that are currently being boycotted for various ethical reasons, such as animal testing or funding the arms trade.
http://www.ethicalconsumer.org/home.aspx
Ethical values and constraints is one area highly relevant to Sustainable Development. The concept of sustainable development came out of the United Nations Conference on Human Environment held in Stockholm, Sweden in 1972 and the report of the Brundtland Commission (1982) called Our Common Future.
Sustainable Development has been defined in many ways on many occasions, but this quote sums it up rather well:
“We do not inherit the earth from our ancestors, we borrow it from our children”.
Source: non-attributed quote
This quote underpins the spirit of sustainable development. It is a balance, allowing economic growth without compromising environmental or social well-being.
Just as commerce strives for an economic profit, we should all strive for an ecological profit (maintaining the long-term viability of ecosystems) and a social profit (fulfilling people’s cultural needs).
We all have a duty to reduce the use of non-renewable raw materials, use natural materials in such a way they can regenerate and minimise waste produced.
5. Agenda 21
Agenda 21 is a comprehensive global action plan for sustainable development. It contains action that should be taken globally, nationally and locally.
Agenda 21 was adopted at the Earth Summit (officially known as the United Nations Conference on Environment and Development (UNCED)) by more than 178 Governments at the held in Rio de Janerio, Brazil, June 1992.
To ensure that this was followed up effectively, the Commission on Sustainable Development (CSD) was created in December 1992. It was to monitor and report on implementation of the agreements at the local, national, regional and international levels.
According to the UN, the full implementation of Agenda 21 was strongly reaffirmed at the World Summit on Sustainable Development (WSSD) held in Johannesburg, South Africa from 26 August to 4 September 2002.
The text below is the Preamble of Agenda 21.
Preamble
1.1. Humanity stands at a defining moment in history. We are confronted with a perpetuation of disparities between and within nations, a worsening of poverty, hunger, ill health and illiteracy, and the continuing deterioration of the ecosystems on which we depend for our well-being. However, integration of environment and development concerns and greater attention to them will lead to the fulfilment of basic needs, improved living standards for all, better protected and managed ecosystems and a safer, more prosperous future. No nation can achieve this on its own; but together we can - in a global partnership for sustainable development.
1.2. This global partnership must build on the premises of General Assembly resolution 44/228 of 22 December 1989, which was adopted when the nations of the world called for the United Nations Conference on Environment and Development, and on the acceptance of the need to take a balanced and integrated approach to environment and development questions.
1.3. Agenda 21 addresses the pressing problems of today and also aims at preparing the world for the challenges of the next century. It reflects a global consensus and political commitment at the highest level on development and environment cooperation. Its successful implementation is first and foremost the responsibility of Governments. National strategies, plans, policies and processes are crucial in achieving this. International cooperation should support and supplement such national efforts. In this context, the United Nations system has a key role to play. Other international, regional and subregional organizations are also called upon to contribute to this effort. The broadest public participation and the active involvement of the non-governmental organizations and other groups should also be encouraged.
1.4. The developmental and environmental objectives of Agenda 21 will require a substantial flow of new and additional financial resources to developing countries, in order to cover the incremental costs for the actions they have to undertake to deal with global environmental problems and to accelerate sustainable development. Financial resources are also required for strengthening the capacity of international institutions for the implementation of Agenda 21. An indicative order-of-magnitude assessment of costs is included in each of the programme areas. This assessment will need to be examined and refined by the relevant implementing agencies and organizations.
1.5. In the implementation of the relevant programme areas identified in Agenda 21, special attention should be given to the particular circumstances facing the economies in transition. It must also be recognized that these countries are facing unprecedented challenges in transforming their economies, in some cases in the midst of considerable social and political tension.
1.6. The programme areas that constitute Agenda 21 are described in terms of the basis for action, objectives, activities and means of implementation. Agenda 21 is a dynamic programme. It will be carried out by the various actors according to the different situations, capacities and priorities of countries and regions in full respect of all the principles contained in the Rio Declaration on Environment and Development. It could evolve over time in the light of changing needs and circumstances. This process marks the beginning of a new global partnership for sustainable development.