THE UN GLOBAL COMPACT MODULE 4 FROM PRINCIPLE TO PRACTICE Session 2: The GC Toolkit – Environmental Principles UNGC Module 4 – Session 2 1
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 UNGC Module 4 – Session 2 2
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. UNGC Module 4 – Session 2 3
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. UNGC Module 4 – Session 2 4
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 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 UNGC Module 4 – Session 2 5
From Principle to Practice Relating environmental management tools to the GC Performance Model GC TOOLS Environmental Management System (E. g. ISO 14000) Environmental Management System Internal Communication (as part of an EMS) Environmental Management Tools (E. g. Product Stewardship, Product-Services Systems) UNGC Module 4 – Session 2 Environmental Management Strategies (e. g. Cleaner Production, Life Cycle Management, Design for Environment) Environmental Management System Environmental Management Tools (E. g. Life-Cycle Management) 6
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 UNGC Module 4 – Session 2 7
From Principle to Practice Relating environmental assessment tools to the GC Performance Model GC TOOLS Environmental Assessment Tools (E. g. Risk Assessment, CPOA, LCA, TCA) (E. g. Risk Assessment, En. TA) Environmental Risk Assessment UNGC Module 4 – Session 2 Environmental Assessment Tools (e. g. Supply Chain Assessment, Life-Cycle Assessment) 8
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 UNGC Module 4 – Session 2 9
From Principle to Practice Relating monitoring and auditing tools to the GC Performance Model GC TOOLS Environmental Monitoring Tools Environmental Auditing & Monitoring Tools (e. g. KPIs) Environmental Monitoring & Auditing Tools UNGC Module 4 – Session 2 Environmental Auditing & Monitoring Tools (e. g. Supply Chain Audits) 10
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 Corporate Environmental / Sustainability Reports Stakeholder engagement activities Developing partnerships for progress Environmental labelling programmes Ecological footprints UNGC Module 4 – Session 2 11
From Principle to Practice Relating reporting and communication tools to the GC Performance Model GC TOOLS Communication Tools (e. g. Stakeholder engagement) Communication Tools (E. g. Stakeholder engagement) GC TOOLS Communication Tools (E. g. Stakeholder engagement) Communication Tools (e. g. Eco-labelling) Environmental Reporting & Communication Tools (E. g. Sustainability Reporting) UNGC Module 4 – Session 2 12
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 UNGC Module 4 – Session 2 13
The GC Toolkit - Environmental Principles Environmental Management Tools ISO 14001 Environmental Management System Plan Act Continual Improvement Do Check UNGC Module 4 – Session 2 14
The GC Toolkit - Environmental Principles Environmental Management Tools ISO 14001 Environmental Management System Plan • • Act Identify aspects and impacts, hazards and risks Document legislation and other requirements Set objectives and measurable targets Policy and management programme Continual Improvement Do Check UNGC Module 4 – Session 2 15
The GC Toolkit - Environmental Principles Environmental Management Tools ISO 14001 Environmental Management System Plan Act Continual Improvement Do • • Structure and responsibility Training, awareness and competence Communication EMS documentation Document control Operational control Emergency preparedness & response Check UNGC Module 4 – Session 2 16
The GC Toolkit - Environmental Principles Environmental Management Tools ISO 14001 Environmental Management System Plan Continual Improvement Act Do Check • • · • UNGC Module 4 – Session 2 Monitoring, measuring and auditing performance Maintaining records Schedule, plan and conduct system audits Non-conformance and corrective action 17
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 UNGC Module 4 – Session 2 18
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 UNGC Module 4 – Session 2 19
The GC Toolkit - Environmental Principles Environmental Management Tools Conserving raw materials, water and energy Eliminating toxic raw materials Reducing the quantity and toxicity of all emissions Reducing wastes at source UNGC Module 4 – Session 2 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. “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 20
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 UNGC Module 4 – Session 2 21
The GC Toolkit - Environmental Principles Environmental Management Tools Promoting CP through good management practices 1. 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 UNGC Module 4 – Session 2 22
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 UNGC Module 4 – Session 2 23
The GC Toolkit - Environmental Principles Environmental Management Tools Implementing a CP Management Programme UNGC Module 4 – Session 2 24
The GC Toolkit - Environmental Principles Environmental Management Tools Eco-efficiency measures 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: Reducing the material and energy intensity of goods and services Increasing the service intensity of goods and services • Reducing toxic dispersion - Re-engineering processes • Enhancing material recyclability - Redesigning products - Re-valorising by-products • Maximising sustainable use of renewable resources - Rethinking markets • Increasing material/product durability • Increasing service intensity UNGC Module 4 – Session 2 25
The GC Toolkit - Environmental Principles Environmental Management Tools Implementing CP and Eco-efficiency: A Structured approach STEP 1 Assign formal responsibility for cleaner production / eco-efficiency STEP 2 Identify opportunities by undertaking a CP opportunity assessment STEP 7 Review the progress STEP 6 Implement the action plan STEP 5 Produce an action plan UNGC Module 4 – Session 2 STEP 3 Analyse the information STEP 4 Consider the various options available 26
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 UNGC Module 4 – Session 2 27
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, Productservices 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 (Ecodesign & 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. ) UNGC Module 4 – Session 2 28
The GC Toolkit - Environmental Principles Environmental Management Tools Production Chain Schematic - Examples of strategies to improve Resource Productivity in Production and Consumption Processing Industry Extraction of Raw materials • Cleaner processing and energy technology UNGC Module 4 – Session 2 • 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 Manufacturer of finished products • Cleaner processing and energy technology 29
The GC Toolkit - Environmental Principles Environmental Management Tools Production Chain Schematic - Examples of strategies to improve Resource Productivity in Production and Consumption …. Distribution • Cleaner and more effective transport • Possibly spread Production • Re-use of transport packaging UNGC Module 4 – Session 2 Consumption • 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” Waste Management • More systematic Recycling • New materials • technology 30
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 UNGC Module 4 – Session 2 31
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 UNGC Module 4 – Session 2 32
The GC Toolkit - Environmental Principles Environmental Management Tools 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 UNGC Module 4 – Session 2 33
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 Mc. Donough UNGC Module 4 – Session 2 34
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 Mc. Donough & Michael Bragnaurt http: //www. mbdc. com UNGC Module 4 – Session 2 35
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 Mc. Donough UNGC Module 4 – Session 2 36
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 UNGC Module 4 – Session 2 37
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 UNGC Module 4 – Session 2 38
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 UNGC Module 4 – Session 2 39
The GC Toolkit - Environmental Principles Environmental 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 UNGC Module 4 – Session 2 40
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 UNGC Module 4 – Session 2 41
The GC Toolkit - Environmental Principles Environmental Management Tools 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 UNGC Module 4 – Session 2 42
The GC Toolkit - Environmental Principles Environmental 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) • Trans. APELL, Guidance for Dangerous Goods Transport: Emergency Planning in a Local Community (2000) • APELL for Mining (2001) UNGC Module 4 – Session 2 43
The GC Toolkit - Environmental Principles Environmental 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 UNGC Module 4 – Session 2 44
The GC Toolkit - Environmental Principles Environmental 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 UNGC Module 4 – Session 2 45
The GC Toolkit - Environmental Principles Environmental 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. UNGC Module 4 – Session 2 46
The GC Toolkit - Environmental Principles Environmental 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 UNGC Module 4 – Session 2 47
The GC Toolkit - Environmental Principles Environmental 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). UNGC Module 4 – Session 2 48
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. UNGC Module 4 – Session 2 49
The GC Toolkit - Environmental Principles Environmental Assessment Tools En. TA 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 = En. TA – En. TA is a systematic procedure to assess technology options at the preinvestment stage, with a focus on: • relative environmental performances • implications for sustainable development • likely cultural and socio-economic consequences – En. TA helps all stakeholders reach a consensus on the technology intervention that is expected to be the most: • Environmentally sound • Socially acceptable • Economically viable UNGC Module 4 – Session 2 50
The GC Toolkit - Environmental Principles Environmental Assessment Tools Key characteristics of an En. TA – Technology focused – Focused at enterprise level rather than national policy level – Designed to ensure consideration of alternative technology interventions – Simplifying, flexible, largely qualitative and often subjective – Designed to involve, and reflect the interests of, multiple stakeholders – Scoping tool - to be used at the “idea stage”, rather than after development of a formal/full proposal when it is more appropriate to undertake an EIA – A proactive environmental management tool – Multidisciplinary in approach – Comprehensive and integrated – with respect to the full life cycle and broad implications of the technology system – Identifies if more sophisticated assessment tools should be used – Voluntary – it is not considered to be a regulatory tool UNGC Module 4 – Session 2 51
The GC Toolkit - Environmental Principles Environmental Assessment Tools Overview of an En. TA D. I. C. E. – Describe - the proposed technology intervention, any alternatives, their requirements, and the operating environment – Identify - the pressures the technology places on the environment – Characterise - the environmental impacts these pressures may cause – Evaluate - the overall consequences of the impacts, in light of local conditions UNGC Module 4 – Session 2 52
The GC Toolkit - Environmental Principles Environmental Assessment Tools En. TA Preparation Step 1: Technology Description Step 2: Identify Environmental Pressures Step 3: Preliminary Judgement of Impacts Step 4: Comparison of Options Step 5: Consensus and Recommendations Completing the En. TA UNGC Module 4 – Session 2 53
The GC Toolkit - Environmental Principles Environmental Assessment Tools En. TA – Identify Environmental Pressures UNGC Module 4 – Session 2 54
The GC Toolkit - Environmental Principles Environmental Assessment Tools En. TA – Preliminary Judgement of Impacts UNGC Module 4 – Session 2 55
The GC Toolkit - Environmental Principles Environmental Assessment Tools En. TA – Performance Data • Ma. ESTRO - http: //www. unep. org. jp/index/ietc/index. html • Technical publications • Academic Journals • Expert information (Note: A full list of reference details is provided in Module 4: Session 3 of the Delegates’ Manual) UNGC Module 4 – Session 2 56
The GC Toolkit - Environmental Principles Environmental Assessment Tools Cleaner Production Opportunity Assessment A systematic approach to identifying opportunities for implementing cleaner production/eco-efficiency measures in a company Identify opportunities relating for example to: 1. Changing raw material and energy inputs 2. Organisation and management practices 3. Changing equipment and process technologies 4. Re-using and recycling wastes (internally and externally) 5. Introducing changes to the product and packaging UNGC Module 4 – Session 2 57
The GC Toolkit - Environmental Principles Environmental Assessment Tools Example of CP worksheet Solid waste item _ Approx. Amount Back to market (tonnes/yr) Total Major source (tonnes/yr) * * Not back to Market Hazardous Yes/no/ don’t know * _ Current expendi ture Reduction target _ _ (tonnes/yr) UNGC Module 4 – Session 2 58
The GC Toolkit - Environmental Principles Environmental Assessment Tools Example of CP opportunity checklist Activities-related questions Yes No Don’t know Lighting Are you using daylight in administration buildings and production sites? Do you normally switch lamps off after work? Do you have energy-saving bulbs or fluorescent tubes and avoid conventional light bulbs? Running office equipment Do you know the energy consumed by office equipment such as computers, printers, refrigerators and transformers? Do you normally switch office equipment after work? Ventilation and air conditioning Does your company avoid unnecessary air conditioning? Does your company use a heat exchanger to maximise ventilation? UNGC Module 4 – Session 2 59
The GC Toolkit - Environmental Principles Environmental Assessment Tools Life-Cycle Assessment (LCA) A systematic approach to measuring resource consumption and environmental releases throughout a product’s life cycle, from extraction through to disposal, with the aim of aiding decision-making when comparing the relative environmental merits of two or more product or service categories Key stages in LCAs: - Identify and quantify environmental loads - Assess and evaluate the potential environmental impacts of these loads - Assess options for reducing environmental impacts UNGC Module 4 – Session 2 60
The GC Toolkit - Environmental Principles Environmental Assessment Tools Life-Cycle Assessment UNGC Module 4 – Session 2 61
The GC Toolkit - Environmental Principles Environmental Assessment Tools Total Cost Assessment Developed in 1991 by the Tellus Institute as a tool for integrating business and environmental objectives, TCA seeks to capture costs and savings that are generally ignored by traditional approaches. It goes beyond traditional accounting by examining changes in direct, indirect, contingent and less-quantifiable costs and savings over the longer term The 5 major TCA Principles: 1. Accounting for costs rather than outlays 2. Accounting for hidden costs 3. Accounting for overhead and indirect costs to individual services 4. Accounting for past and future costs 5. Accounting for costs according to activities or paths UNGC Module 4 – Session 2 62
The GC Toolkit - Environmental Principles Environmental Monitoring and Auditing Tools Environmental Auditing A systematic, documented verification process of objectively obtaining and evaluating audit evidence to determine whether specified environmental activities, events, conditions, management systems, or information about these matters, confirm with audit criteria, and communicating the results of this process. Environmental audits may assess compliance against with e. g. – Environmental laws and standards – A company’s environmental management system (eg ISO 14001) – A company’s environmental/sustainability report UNGC Module 4 – Session 2 63
The GC Toolkit - Environmental Principles Environmental Monitoring and Auditing Tools Supply Chain Audits and Assessments An assessment by corporate purchasers of the environmental and social performance of their suppliers. This is a valuable means for the larger, more visible, companies to transmit pressure for change down the supply chain. Companies committed to sustainability should examine supply chains as: – Most of the innovations they may wish to implement internally will depend heavily on the quality (and sustainability) of what is coming in through their supply chain. – Management for sustainability implies a focus on long-term risk reduction, and in achieving this one’s dependence on other companies’ values and performance is critical. UNGC Module 4 – Session 2 64
The GC Toolkit - Environmental Principles Environmental Monitoring and Auditing Tools Environmental Performance Indicators – targets in an EMS Quantified information presented as aggregated data to provides decisionmakers and interested parties with an indication of performance trends. An important objective of such indicators is to provide a summary set of statistics to assess how performance is progressing towards stated targets and to assist decision-making. Environmental performance indicators can be presented as: – Absolute measures (e. g. total energy use): important to indicate an organisation’s overall direct impact on the environment – Relative/normalised measures (e. g. energy use per unit of output); to highlight the organisation’s efficiency, and for comparative purposes UNGC Module 4 – Session 2 65
The GC Toolkit - Environmental Principles Environmental Monitoring and Auditing Tools Ecological footprint “A graphic approach for conceptualising the environmental impact of a particular individual, organisation, product, service or political region, and for understanding how this relates to the overall carrying capacity of the planet. ” Ecological footprint analysis provides an informative area-based indicator of sustainability UNGC Module 4 – Session 2 66
The GC Toolkit - Environmental Principles Reporting and Communications Tools Corporate Environmental / Sustainability Reporting – Increasing community, regulatory and financial pressure on companies to report on their environmental performance – Such reporting should respond to the interests of key stakeholders and should report on issues that are material to core business – The process of reporting should feed into development of company strategy, and provide a stimulus for continuous commitment and improvement – The report should provide evidence that the company understands its key environmental impacts and should demonstrate its commitment to addressing these in an effective manner – Provision should be included for external verification / assurance UNGC Module 4 – Session 2 67
The GC Toolkit - Environmental Principles Reporting and Communications Tools Some Key Questions: – Why report? Motivation – To whom to report? Market – What to report? Message – How to report? Medium – What process to use? Method Materiality UNGC Module 4 – Session 2 68
The GC Toolkit - Environmental Principles Reporting and Communications Tools The GRI Sustainability Reporting Guidelines Environmental Performance Criteria • Energy - total use / move to renewables • Materials - total material use / specific issues • Water - total water use • Emissions, effluents and waste • Transport - distance and method • Suppliers - supply chain management • Product & services - impact with use • Land-use / biodiversity • Compliance UNGC Module 4 – Session 2 69
The GC Toolkit - Environmental Principles Reporting and Communications Tools The GRI Sustainability Reporting Guidelines Reporting “in accordance with. . ” – – Include GRI Content Index – Respond to core indicators in Section 5 of Part C – Ensure consistency with the reporting principles – UNGC Module 4 – Session 2 Report on numbered elements of Sections 1 -3 in Part C Include statement signed by Board or CEO 70
The GC Toolkit - Environmental Principles Reporting and Communications Tools The Global Compact Principles and the GRI Criteria UNGC Module 4 – Session 2 71
The GC Toolkit - Environmental Principles Reporting and Communications Tools Stakeholder engagement activities A well planned stakeholder dialogue: – Helps to scope and prioritise issues – Allows for greater understanding between stakeholders and their respective needs and constraints – Ensures direct engagement of different groups and helps forge alliances, collaborative partnerships and shared principles – Enables people to both recognize and take responsibility – Encourages synergy and new ideas – Manages disagreement and conflict UNGC Module 4 – Session 2 72
The GC Toolkit - Environmental Principles Reporting and Communications Tools Stakeholder engagement activities A stakeholder is any individual or group who is affected by, or can influence, the activities of another group. Stakeholder engagement refers to the process of interaction between an organisation and its stakeholders, beyond the one-way communication of data. A company’s stakeholders typically include (for example): – Employees and trade union organisations – Shareholders and financial analysts – Neighbouring communities and civil society bodies – Customers and suppliers – Business peers – Regulators UNGC Module 4 – Session 2 73
The GC Toolkit - Environmental Principles Reporting and Communications Tools Environmental Labelling Programmes e. g. Eco-Labels Why Label? – Allows consumers to make informed decisions about what they are buying – Shows commitment to reduced environmental impact – Third party verification gives credibility UNGC Module 4 – Session 2 74
The GC Toolkit - Environmental Principles Reporting and Communications Tools Types of environmental labels – TYPE I: Voluntary label verified by independent body, awarded to products fulfilling criteria corresponding to the best environmental performance within each particular product group. – TYPE II: Self-declared labels used by manufacturers to indicate the environmental aspects of a product or service. The label may take the form of statements, symbols or graphics on product or packaging labels, product literature, advertising or similar. – TYPE III: Label licensed by independent organisations, serving as a report card and providing information on the possible environmental impact of a product, leaving it to the consumer to decide which product is best. Also known as an Environmental Product Declaration. UNGC Module 4 – Session 2 75
The GC Toolkit - Environmental Principles Reporting and Communications Tools Environmental Labelling Programmes UNGC Module 4 – Session 2 76
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