Towards a green economy

in collaboration with the private sector, the public sector can also lead by example and support recognised green labeling schemes and standards through its own sustainable public procurement programmes.

Governments can introduce support programmes with special focus on cleaner production or eco-efficiency, targeting specific sizes of companies or specific industries. An example is the provision of management and technology assistance to assist SMEs in exploiting opportunities for increased resource use efficiency and recycling.15

Another example would be public-private

partnerships for the disassembling and collection of e-waste in socially and environmentally beneficial ways in developing countries that have a comparative advantage in this industry. In addition to creating employment and decent work that meets recognised occupational health and safety standards, a formalised and advanced system of collecting and recycling e-waste can also boost the rate of recovery.

Public institutions can support R&D, revised educational curricula and training programmes to promote cleaner processes and systems, eco-design, products and services. Faced with possible job losses, training needs in the heavy manufacturing industries include training related to change in production processes (energy and resource efficiency, recycling, hazardous waste management),

environmental impact assessments,

skills upgrading for technicians and retraining into other heavy industries (Strietska-Ilina et al. 2010); Martinez- Fernandez et al. OECD 2010).

Self-regulation in the form of voluntary initiatives by manufacturing industries includes longstanding initiatives such as Responsible Care by the chemicals industry, with participants from over 50 countries. As of 2004, the International Council of Chemical Associations and its members developed a Global Product Strategy to improve the global chemical industry’s product stewardship performance. Since the 1990s, manufacturing industries have been involved in a range of voluntary initiatives started with the aim to fulfill or exceed standards set by legislation. The trigger for these has often been shock events such as industrial accidents during the 1980s. Voluntary initiatives by manufacturing industries can be complemented by public-private partnerships to facilitate dialogue with governmental bodies. A recent example is the Strategic Approach to International Chemicals Management (SAICM), a policy framework which promotes chemical safety around the world.

15. UNEP and UNIDO have been supporting such approaches through a growing network of National Cleaner Production Centres in developing countries. Available at www.unep.fr/scp/cp/network/

In the last decade, many industry voluntary initiatives introduced more systematic stakeholder engagement practices, monitoring and disclosure through reporting requirements. The reporting guidelines of the Global Reporting Initiative have been supplemented by sector specific guidance developed with the mining and metals, automotive manufacturing, telecommunications, apparel and footwear industries. Reporting on strategic management approach by these industries provide an opportunity for investors and other stakeholders to discuss with management what greening the relevant industry entails.

From an overview with 22 industry groups of progress made since the 1992 Rio Summit with sustainable business practices, UNEP (2002) among others recommended that voluntary initiatives be made more effective and credible as a complement to government measures. In an update of this review five years later, UNEP (2006) received report cards from 30 industry groups including the manufacturing sectors covered in this chapter. Industry groups reported voluntary initiatives for promoting awareness and integration of sustainability concepts into their daily operations as well as initiatives related sustainability reporting. Many industries reported the development of sector-specific voluntary standards. Some of these were developed in consultation with regulatory authorities (e.g. the automotive sector’s fuel-efficiency standards in Europe). Few referred more specifically to certification and labelling initiatives, as was done by the pulp and paper industry.

The reporting process facilitated by UNEP (2006) showed growing interest in measurement of progress in greening industry. Use of and reporting against agreed indicators at industry sector level can help to fill the gap between national, macro level and company, micro level indicators. The Iron and Steel Institute, for example, reported agreement by its Board on the use of 11 indicators, which resulted in a collective report for which 44 member companies provided data.16

The International Aluminium

Institute reported agreement by its members to twelve sustainability objectives supported by 22 indicators. It developed a material resource mass-flow computer model to identify future recycling flows. The model projected that global recycled metal supply from post- consumer scrap will double by 2020 from a 2004 level of 6.7 million tonnes. It undertook to report annually on its global recycling performance.

16. The four economic indicators were: investment in new processes and products, operating margin, return on capital employed and value- added. The five environmental indicators were: greenhouse gas emissions, material efficiency, energy intensity, steel recycling and environmental management systems. The two social indicators were: employee training and lost time injury frequency rates (UNEP 2006).

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