ap 2013 environmental management 22

7/30/2019 AP 2013 Environmental Management 22

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* The impact of globalisation on the environment :

- economic - regulatory - information - pluralisation effects.

+ national and global environmental policies

Need for a revitalised governance regime

* Increased economic integration + conceptual change in environmental thinking

Environmental problems = of international concern instead of national interest

* Consequence : as globalisation continues,

few societies are being left untouched by major environmental problems.

= the common heritage of mankind (cross-border effects )

* Not own national solution, but international (public and private)

* 4 key questions:

- Effect of globalisation on the environment ?- Effect of globalisation on national environmental regulation / economic integration

- International cooperation : useful or necessary

- Best management : skills, structure, position


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5.1. Effects of Globalisation on the EnvironmentEconomic opportunities but also new problems and tensions.

* Economic Effects

Environmental impacts of expanded economic growth and trade can be understood in terms of :

Scale effects : increased pollution and natural resource depletion due to increased economic activity

and greater consumption.Income or wealth effects : greater financial capacity - greater investment in environmental protection -

demands for attention to environmental quality.

Technique effects : tendencies towards cleaner production processes and access to new technologies andenvironmental best practices.

Composition effects : less-pollution intensive high-tech and services-based set of activities.

The overall environmental impact of economic growth depends on the net impact of these four effects.

If the income, technique, and composition effects overwhelm the negative scale effect of expandedeconomic activity, then the impact of growth will ultimately be positive.

But in the early stages of industrialization, it may well be that environmental conditions deteriorate.

* Regulatory Effects

Trade agreements often include disciplines .

Increased competitive pressure may manifest in industry or governmental efforts to reduce pollution controlcompliance costs.

This political dynamic could trigger a regulatory race to the bottom .

The concern is not about a race to the bottom, but rather about a race toward the bottom that translates

into suboptimal environmental standards, at least in some jurisdictions.

Divergent standards across jurisdictions may impose market access barriers :

More applied to product standards than to standards for production processes or methods (PPMs) .


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5.2. Effects of the Environment on GlobalisationInterest : efforts to liberalize trade and investment flows.

At one extreme : a rigid harmonisation of policy approaches and regulatory standards

= reaction

At the other extreme : uncoordinated national environmental policies = obstruction = reactionSimilarly, ecological realities may require policy coordination and collective action on the global scale.

National Activities with International Effects

In an increasingly interconnected and interactive world, environmental harms, such as greenhouse gasemissions, left unattended at the local and national levels may result in global-scale problems, such as :

- the global warming sea level rise,

- increased intensity of wind storms, and

- changed rainfall patterns

that may come to pass as a result of climate change

Transboundary pollution spilloversMainly : costs are borne locally and benefits spread across the world,

Deeper economic integration makes countries more sensitive to the regulatory choices and social policies

of their trade partners.


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5.2. Effects of the Environment on GlobalisationExamples :* Chinas trade with the United States (US) : the 1970s totaled less than US$ 1 billion

in 2002 US$ 92 billion

A key focus of trade policymaking centers on non-tariff barriers to trade

and the need for a level playing field in the global marketplace

Trade agreements now routinely include market-access rules and disciplines :

Public health standards,

Food safety requirements

Emissions limits

Labeling policies

Waste management and disposal rules

all national measures may shape the flow of international trade

* The EU import ban on genetically modified foods :

55 per cent decrease in US corn exports to Europe over the past five years

* Venezuela objected to the discriminatory approach of the reformulated gasoline provisions of the US Clean Air

Act of 1990 . And won a WTO dispute settlement case restoring its access to the US gasoline market.

In 1996, the reformulated gasoline rule did violate GATT as it subjected Venezuelan and Brazilian

refiners to potentially more stringent requirements for fuel emissions than domestic refiners

* The Tuna/Dolphin case of the early 1990s to the recent Shrimp/Turtle dispute. Ban on importation from

Mexico . Same principle for mortality of endangered sea turtles, e.g. exported from India, Malaysia, Pakistan,

and Thailand . For the first time in GATT history, decision for unilateral trade restrictions to conserve

extraterritorial natural resources.


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5.3. Global Environmental Policies

* Globalization is an ecological fact.

A series of environmental challenges : polluted waters, collapsing fisheries,

invasive species , climate change

Ecological realities : e.g. Water : independence or interdependence

* Protection of the shared resources of the global commons : e.g. the oceans, the

atmosphere, etc.

= rallying point for NGOs aiming to promote worldwide collective action

* Increased understanding of the interdependence of ecological systems contributes to

establish a more robust global environmental regime

* The primary responsibility for environmental protection :

national governments and local communities

Some problems are with international cooperation.Difference between the maximalisation of catching fish by a local fisherman

and collectively keeping the same principle which leads to overexploitation

But still : absence of clear rules and institutions ensuring sustainable

resource management.


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5.4. Globalisation and Global GovernanceWithout effective international-scale governance, globalization may intensify environmental harms

wherever national regulatory structures are inadequate.

- Some problems are local and can best be addressed on that scale .

- But even in these cases, there is a clear advantage of learning from other countries and

localities that have managed to address similar issues.- Problems are also so inextricably international that a coordinated multi-country response is

required.

- There is no Leviathan or overarching authority.

The problem, therefore, is one of organizing and maintaining cooperation.

Successful intervention requires some mechanism for promoting collective action.But fragmentation, gaps in issue coverage, contradictions among different treaties, organisations,

and agencies with competing responsibilities have undermined effective, results-oriented action in

the domain.

Also a pervasive lack of data, information, and policy transparency adds to the challenge.

An institutional structure is necessary that can provide:

* the data foundation needed for good environmental decision-making;

* the capacity to gauge risks, costs, benefits, and policy options comparatively;

* a mechanism at international level to exert leverage on private-sector and governmental resources;

* and means to improve results from global-scale environmental spending and programs.


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5.4. Globalisation and Global GovernanceEnvironmental and Economic Governance: Whose Reform?

* UN Environment Program (UNEP) = the environmental regime, with also multiple organisations in the United Nations (UN)

system. UNEP competes with more than a dozen other UN bodies,

* Blocked by a difficult mandate, a modest budget, and limited political support,.

* Besides fragmentation there are the independent secretariats to numerous conventions, including :

the Montreal Protocol (ozone-layer protection), the Basel Convention (hazardous-waste trade),the Convention on International Trade in Endangered Species, the Climate Change Convention, all contending for

limited governmental time, attention, and resources.

* The existing international environmental system has failed to deal adequately with the priorities of developed and

developing countries.

= inadequacy and dispersion of the existing financial mechanisms (IMF World Bank)

* Also the role of the WTO as the principal forum for the discussion and resolution of trade and environment concerns has

been contested by the environmental community and developing countries.

- Environmentalists perceive it as an organization charged narrowly with the promotion of trade liberalization

- Free traders perceive it as an inappropriate forum for environmental issues, which they see as burdening the

trade regime

- Developing countries see the inclusion of environmental rules among the responsibilities of the WTO as acomplication and a threat, potentially creating an excuse for protectionism and the exclusion of

Southern goods from Northern markets.

* Urgent need for the creation of a World Environment Organization to help focus and coordinate worldwide environmental

efforts (See the World Summit on Sustainable Development in 2002, French President Jacques Chirac called for

the creation of a Global Environmental Organization( not only economy)


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5.4. Globalisation and Global Governance


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5.5. Governance alternatives* Collective action in response to global environmental challenges continues to fall short of public needs and expectations

How to revitalize the global environmental regime ?

But institutions tend to be fragmented and poorly coordinated, with limited mandates and impenetrable decision-making

processes.

* Need for an approach that :

- acknowledges the diversity and dynamism of pollution control and natural-resource-management problems

- recognizes the need for specialized responses to the multi-faceted nature of the environmental challenge

* Functions at Various Levels of Governance .

Local problems but can be found around the world ( e.g. local water and air pollution)

Regional issues such as international water-bodies pollution or regional fisheries management become global concern

Most difficult issues require a strong structure of global collaboration (climate change, ozone layer, ocean pollution).

A number of functions need to be performed at the various levels of governance by different institutions.

* Institutions need to possess several capacities, including the ability :

- to identify and define problems,

- to raise awareness about them in various forums,

- to draft rules and create norms for behavior leading to the solution of these problems,

- to formulate policy options,

- to facilitate cooperative actions among governments and other actors,

- to finance and support activities, and

- to develop management systems

* The exchange of data, best practices, policies, and approaches could be an important tool in problem solving at the national level.

*National institutions and national governments remain the primary actors charged with regulatory and enforcement powers to solve

environmental problems


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5.5. Governance alternatives

Probable solution : a global environmental mechanism (GEM) that needs to focus on

promoting collective action on the international scale

* It is the chance to build a coherent and integrated environmental policymaking and

management framework for a shared global ecosystem.

* Three core capacities are as essential :

- provision of adequate data and information that can help to characterize the problems- creation of a policy space for environmental negotiation and bargaining

- sustained support for national efforts to address issues of concern and significance

* This global environmental mechanism (GEM) would provide a new model for collaboration,

overcoming the shortcomings of existing bodies.

* The GEMs core elements would be :

- a global information clearinghouse

- a global technology clearinghouse

- a global environmental bargaining forum


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5.5. Governance alternatives

* Global Environmental Information Clearing-House

Better environmental data and information to identify problems and trends, evaluate risks, set priorities,

establish policy options, test solutions, and encourage technology development.

= better timely, relevant, and reliable data on environmental issues and trends

= shift from assumptions to highlight preferences and sharpened policies

= data can make the invisible visible, the intangible tangible, and the complex manageable

Good information on how others are doing tends to stimulate competition and innovation.

Comparative performance analysis and benchmarking across countries could provide much greater transparency, rewardpolicy leaders, and expose laggards.

Global Environmental Technology Clearing-House

Technological advances are often the key to environmental gains.

Industrialised countries dominate the technology market and the generation of innovations.

Most multilateral environmental agreements contain provisions related to technology transfer as part of the incentivepackages for developing countries to meet their obligations under the conventions and cite technologytransfer as a critical method for achieving concrete environmental improvements.

Most technologies are owned by private companies not governments.

This CH could : - guide nations towards the use of appropriate technologies,

- support North-South partnerships, and

- provide a forum for coordinating financial assistance to developing countries

* Global Bargaining Forum

Need for effective international agreements. Developing countries will often need support, subsidies, and other incentivesto encourage their efforts

A great value would be in a forum for the facilitation of international deals on the environment that improve quality andresult in positive cash flow to custodians of environmental assets.

A global bargaining forum could act as a catalyst for action, facilitating financial discussion among countries or privateentities.

The forum might also provide mechanisms for verification, financial transfers, and dispute settlement.


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5.5. Governance alternativesCONCLUSION

* Economic and ecological interdependence require rigorous national policies and effective

international collective action.

* The increasingly globalised world makes new thinking about international environmental

cooperation essential

An extraordinary mix of political idealism and pragmatism will be required to coordinate

pollution control and natural-resource management policies on a worldwide

basis across diverse countries and peoples,political perspectives and

traditions, levels of wealth and development, beliefs and priorities

But the gains to be achieved go beyond the environmental domain.

* It is time for re-engineering the environmental regime.

* The logic of a GEM is straightforward:- a globalizing world requires thoughtful and modern ways to manage interdependence

- the world community would benefit from a systematic mechanism to promote

environmental cooperation in


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2011:6.98 Billion inhabitants

America (13.5%)Africa (15%)

Oceania (0.5%)Europe (10.6 %)Asia (60.4 %)

2050:9.58 Billion inhabitants

America (12.7%)Africa (24%)Oceania (0.6%)Europe (7.5 %)Asia (55.2 %)

TOP 3 Ranking :2011 : China (1.35), India

(1.24), USA (0.31)2050 : India (1.69), China

(1.31), Nigeria (0.43)


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Overpopulation

- population growth adds overwhelming

numbers- global warming- ozone depletion- deforestation- air pollution and acid rainwater pollution- disappearance of plants and animals- world food supply- poverty - bad economic policy

- control of fertility- war and revolution


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Environmental Analysis :Scrutinizing of the externalforces which have the bearing on

the functioning of the BUSINESS.= Part of an organisationsmanagement system used todevelop and implement itsenvironmental policyand

manage its environmentalaspects.

Why Environmental Analysis ?Analysis of the Environment

makes the Business aware of theThreats & Opportunities in theenvironment (**)


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(**) Why Environmental Analysis ?

Improve management of environmental impacts

Set targets to reduce energy use, water use & waste to landfill

Initiate and maintain procedures to improve efficienciesincluding :

Environmentally friendly purchasing procedures

Preferred business travel option Define key responsibilities for achieving targets

Monitor and measure environmental performance against keyindicators

Regularly assess progress towards achieving set objectives Ensure due diligence and ongoing consideration of legal and

other environmental requirements


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Stages of Environmental AnalysisScanning : the process of identifying early signals of environmental

changes and trendsSuccessful environmental scanning : attention to possible changes and

events before their occurrence, allowing time for suitable action.

Monitoring : detecting meaning through ongoing observations of environmentalchanges and trends(assemble sufficient data to make out whether certain patternsare emerging)

The outputs of monitoring :- a specific description of environmental patterns to be forecast;- identification of trends for further monitoring;- identification of patterns requiring further scanning.

Forecasting : developing projections of anticipated outcomes based on monitored

changes and trends

Assessment : determining the timing and importance of environmental changes andtrends for firms strategies and their management


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Techniques of EnvironmentalAnalysisTYPES OF FORECASTING :

Economic Forecast :general and complete economic conditions, .

Social Forecast :

population growth/decline

ethnic composition, life styles, etc.

Political Forecasts :

All political related matters and fiscal policy,

Technological Forecast : technologicaldevelopments


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POPULATION :- Article 25 of the Universal Declaration of Human Rights :

everyone has the right to a standard of living adequate for theirhealth and well-being

- Policy commitments from several World Summits

The gap between rich and poor people continues to grow all around the world.

Ecologically : massive environmental degradation and climate change threatenthe stability of ecological systems

Socially : an increasing gap between rich and pooran increasing gap between the global North and South

= no many access to basic human needs, rights, and education,and consequently leading to further environmental destruction.


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Environmental problems worsen and violent conflict continues.

1,25 billion (= 1/5 of the global population)

- still cannot fullfil their basic needs for food, water, sanitation,health care, housing or education

- must try to subsist on less than US$1 a day(1/2 the world live on less than two dollars a day)

- decline of real income per capita in more than 30 of the poorest

national economies- one child in seven in Africa dies before their 5th birthday- about 1,1 billion worldwide lack adequate drinking water

But : the modern organisation has the potentialto apply environmental resource managementwith sustainability principals to achieve highly affective outcomes.


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BUSINESS :Some companies : experiment with various new tools and conceptsOther companies : more traditional and stick to hierarchal decision makinghaving difficulty dealing with the demand for lateral decision making thatsupports affective participation

Is it a matter of ethics or just strategic advantage that organizations areinternalizing sustainability principles?

Examples of corporations who are shifting to sustainable environmental

resource management :Ford, Toyota, BMW, Honda, Shell, Du Pont, Swiss Re, Hewlett-Packard,and Unilever.

Sustainability of environmental resource management has improved, but

corporate sustainability has yet to reach the majority of global companiesoperating in the markets.


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3 major barriers to shift towards sustainable practice with environmentalresource management are :

- not understanding what sustainability is;- having difficulty modeling an economically viable case for the

switch;- having a flawed execution plan, or a lack there of;

= critical gap :

Need for creation of a shared vision and understanding

of what sustainability is andNeed for clarification of the business case.

Examples :- rich population = a higher energy consumption.

South Korea, in 1965 a developing country= level of consumption as Germany and Japan

- USA + Japan + Germany + other developed countries= 1.5 Billion people = 4 x oil consumption

China + India + Brasil and other non-developed countries

= 4.5 Billion people


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Sustainability and environmental resource management involves- managing economic, social, and ecological systems- within and external to an organisational entity- in order for it to sustain itself and the system it exists within

Sustainability = development will improve quality of lifewithout necessarily having to consume more resources.

Sustainability principals :- social and environmental accountability,

- long-term planning;- a strong, shared vision;- a holistic focus;- devolved and consensus decision making;- broad stakeholder

Transforming sustainable thinking into measureable and achievable results

Since the late 1990sFrom the periphery of the business world

to the top of many stakeholders agendasRight balance between economic, social and environmental goals


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Many significantchallenges, including:

- Profitability- Competitiveness- Globalisation- Speed of change

- Adaptability- Risk- Growth- Technology.

Need to unlock the potential in thecompany/ organisation by :

- Identifying and minimising risks- Managing the social, environmental and

financial risks- Improving operational effectiveness

- Reducing costs- Increasing customer and stakeholdersatisfaction

- Protecting the brand and the reputation- Achieving continual improvement

- Promoting innovation- Removing barriers to trade- Bringing clarity to the marketplace.

Businesses in the 21st century


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Always focus on financial performance and operational excellence.Today higher standard and it is all around sustainability.

Driven by a number of ethical, environmental, health, and safety concerns,now development of sustainability strategies to remain competitive in the market :

uphold Corporate Social Responsibilities (CSR),

and abide by regulations.

A more complex structure in each organisation and a shift toward a more holistic strategyin terms of people, processes, and technology: Enterprise Sustainability Management (ESM).

6 areas of sustainability :- Environment, Health, and Safety (EHS)

- Energy Management

- Carbon Management

- Operational Risk Management (ORM)

- Product Stewardship

- Sustainability Reporting

From departmental level to company level.


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Corporate Sustainability is the set of leadership, business process,culture, and technology capabilities that an organisation establishes to

maintain its social license for conducting business in a particular

community.


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Realisation of sustainable environmentalmanagement

- environmental conservation and- business operations- under a united decision-making

scheme

- various systems applicable

A solid and efficient sustainableenvironmental management =use of an environmental managementsystem (EMS)


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Plan:- Establish an environmental policy,- Define environmental impacts- Define legal requirements and- Set objectives and targets

Do :- Implement action plans,- Implement training and- Implement awareness

Check:- Conduct audits to check the system

according to the standards

- Monitor, measure, record

Act :- Management review and- Management recommendations for

improvement


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Sustainable Environmental Management Information System.PLANNING - IMPLEMENTATION - CONTINUED IMPROVEMENT

To implement the environmentalmanagement activities, man can use

the international environmentalmanagement standard ISO14001

A consolidated EMS enables thecompany to :

- reduce environmental impactssuch as energy, waste and waterand

- raise awareness across theorganisation

Environmental management isconcerned with controlling humanimpact on the environment.


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Managers' strategies reflect the mindset of the times

Industrial environmentalism (19601970)Industries were able to resist pressures and

make their own definitions and regulations

Regulatory environmentalism (19701982)Only important in terms of compliance with law.

Environmentalism as social responsibility (19821988)

More cooperative with government andNew managerial structures are implemented

Strategic environmentalism (19881993)Progress into a proactive stance on environmental protection

Environmental management as an opportunity (1993present)Competitive advantage in the marketplaceSustainable management is the new norm of the future


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Carbon ManagementCarbon footprint must decrease :Example : Slow logistics versus Just-in-Time : less CO

From push to pull market

Trucks or sea-vesselsEconomy of scale : bigger transport unitsSea-vessels (Triple E) : 18.000 TEU +

Efficiency, Economy of scale and Environmentally improvedEco-combi (Scandinavia) : 60 tons 25 m.

Modal shift : rail or barge or coastal vesselBut also less CO emissions for trucks

Reverse Logistics Management

Example : Return of packaging logistic carriers (pallets, etc.)


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Carbon ManagementThe ship will set a new industry benchmark for size and fuel efficiency. Four-hundred metres long, 59 metres wide and 73 metres high, the Triple-E is thelargest vessel of any type on the water today. Its 18,000 TEU (twenty-foot

container) capacity is large enough to hold 111 million pairs of sneakers.


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Waste ManagementExample : Interdependence : dependent on the others

Kodak : The disposable or single-use cameraShipping lines : no disposal of cargo residues or waste in the oceans

Developing Green ProductsConsumers want green products.Example : Sustainability in the value chain : Trash--porter.

Freitag : production of handbags from truck tarpaulin

Fendi : production of upcycled handbags andaccessories from recycled materials

Sustainable managementExample : Paperless document flows

Antwerp Mainport = ShorepowerWindmill park


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Specific functions

Eco-Municipalities

An eco-municipality is one that hasadopted a particular set of sustainabilityprinciples as guiding municipal policy and iscommitted to using a democratic, higlyparticipative approach to implementing

those principles and developing anecologically, economically and sociallyhealthy community for the long term.

The International Tourism Partnership

(ITP)Worlds leading international hotelcompanies to provide a voice forenvironmental and social responsibility inthe industry : e.g. laundry, catering.


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Gibraltar water catchment

A water harvesting systemcollects rainwater from the

Rock of Gibraltar into pipeswhich lead to tanks excavatedinside the rock


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12.1 EnvironmentEvery day focus on :

- a cleaner world- using renewable sources- enabling world trade

- encouraging development

12.2 (New) Ideas for sustainability- development of sustainable cleaning products- renewable energy projects- responsible management of raw materials- renewable ingredients- biodegradable ingredients

12.3 People - Profit - PlanetIt describes the triple bottom linesand the goal of sustainability


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The three P mantra People Profit Planet

What you measure is what you get,

First strategy : cost cutting is number-one business priority

Second phase : growing awareness of corporate malpractice

Third phase : growth of Fairtrade movementbut still limited (tea, coffee, bananas, cotton, cocoa


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People - Profit - PlanetOnly when companies also measure their social andenvironmental impact, there will be socially and

environmentally responsible organisations.

Only companies that produce a TBL are taking account ofthe full cost involved in doing business.

- corporate social responsibility,- climate change and- fair trade

The TBL (triple bottom line) is an accounting frameworkthat incorporates three dimensions of performance:social, environmental and financial.


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There is no universalstandard method forcalculating the TBL

Variables for the TBLscorecard :

- Economic- Social

- Environmental/Safety

Leads to target goals :- Environmental Quality

- Economic Prosperity- Social Capital and Equity


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Problem

posing Conclusion


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Marc De Witte 2013

ap 2013 environmental management 22

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