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Delivering solutions Next Generation Environmental Management Techniques and the Emergence of Sustainability Management Presented by Edward L. Quevedo,

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Presentation on theme: "Delivering solutions Next Generation Environmental Management Techniques and the Emergence of Sustainability Management Presented by Edward L. Quevedo,"— Presentation transcript:

1 delivering solutions Next Generation Environmental Management Techniques and the Emergence of Sustainability Management Presented by Edward L. Quevedo, Director Environmental Management & Sustainability Programs WSP Environmental North America

2 delivering solutions Overview of Session 1.EMAS 1 and the Emergence of Environmental Performance 2.Experiences and Legal Issues in EMAS I 3.The Foundation for EMAS II – the Sustainabitlity Debate and the Pendency of Earth Summit II 4.EMAS 2 and Sustainable Production 5.Anticipated consequences of EMAS II and Potential Legal Issues

3 delivering solutions Fundamental Argument of the Session  The Context in which our clients’ businesses (whether those are private sector manufacturers, municipal agencies, universities, service organizations, or other entities) operate has fundamentally changed  This change is a consequence of clear trends identified as early as 1972 which are now coming to vest  This changed context makes the traditional environmental lawyer’s toolbox, including resort to cautious regulatory interpretation, defensive advocacy, and agency negotiation, drastically inadequate to meet our clients’ needs and our fiduciary duties to our clients and their stakeholders and shareholders

4 delivering solutions Part 1: EMAS 1 and Environmental Performance  Rio Earth Summit and Agenda 21  Continuing environmental degradation in the face of increasingly strict environmental laws  The persistent problems of regulatory prescription  Stifles innovation  Distracts from the business  Makes environment and ecology a side line issue  So... What to Do?

5 delivering solutions The Regulatory Design Problem “ Bad design is having to institute several hundred thousand rules and restrictions under the jurisdiction of government and expecting business to know them all, much less obey them. Good design makes things easier and simpler. Good design seems natural, unaffected, and appeals to common sense. Good design for the commercial system accounts for and appeals to the innate behavioral modes of both governance and commerce. Let governance govern with a minimum of intrusion and a genuinely “conservative” approach; let business be business at its best: humane and creative and efficient.” Paul Hawken, The Ecology of Commerce

6 delivering solutions Enter EMAS  New Ideas  Voluntary Environmental Performance  The Initial Review  The Environmental Statement  Product design, facility planning, supplier management, employee education, personal responsibility, continuous improvement  Are these legal issues?

7 delivering solutions Part 2: Experiences and Legal Issues in EMAS I

8 delivering solutions Legal Issues We Encountered during the EMAS I Period (April 1993 through March 2001): Legislation from DG Environment (XI)  Integrated Product Policy document released in early 1999  Developing Sector timetables for submission of sustainability plans and indicators, based on environmental indicators in EPE Guidance  Release of SD strategy document in October 2000

9 delivering solutions Integrated Product Policy  Definition: “Public Policy which explicitly aims to modify and improve the environmental performance of product systems”  EU considering comprehensive policy to address all life-cycle stages of product  DG Environment has developed a Green Paper  Potential measures within IPP: waste and materials prohibitions; green product design; public procurement policies; product- focused fiscal measures; labelling schemes; EMAS scheme for retailers; extended producer responsibility

10 delivering solutions Goals of IPP  Replace Product, Packaging, Process and Logistics regulations with “integrated” approach a la IPC  Add principle of User Responsibility to Producer Responsibility  Rationalize existing Regulations  Rely on EMS and EMAS as a regulatory device

11 delivering solutions Content and Principles of IPP  Statement published by the Consultative Forum on the Environment and Sustainable Development  Public authorities should strive to avoid distorting the market - work toward cooperative approach  Task is to provide a frame within which private sector can take advantage of the workings of the market

12 delivering solutions Information  The green market is still lagging as the decisions made and supply management do not integrate ideas of sustainable production  High information demand exists  Marketing instruments and behaviours must lay the foundation for Integrated Product Policy

13 delivering solutions Instruments  Existing instruments will lay the foundation  Assessment, prioritization, and reassembly into “a coherent framework”  Business sector use voluntary instruments  collaborative model for reduction in toxics in products, packaging, logistics, supply chain  using scale and cooperation to increase leverage  production model for hazardous materials management and use (moving the waste equation upstream)

14 delivering solutions EMAS is both a response to and aid in meeting these new kinds of regulatory goals  New Ideas  Voluntary Environmental Performance  The Initial Review  The Environmental Statement  Product design, facility planning, supplier management, employee education, personal responsibility, continuous improvement  Are these legal issues?

15 delivering solutions Part 3: The Foundation for EMAS II – the Sustainabitlity Debate and the Pendency of Earth Summit II

16 delivering solutions Evolution of Sustainable Development as a Political and Legal Concept  1972 – Stockholm Conference on the Environment  1987 - Bruntdland Commission Report (World Commission on Environment and Development)  1992 – Earth Summit (UN Conference on Environment and Development)  1999 – European Union Sustainability Policy Document  2000 – Draft legislation in Holland and Bavaria, Germany  2001 – ABA Meetings in St. Louis, MO  2002 – Johannesburg, RSA, Rio + 10 Conference (or, Stockholm +30)

17 delivering solutions Background  1987 Brundtland Commission report “Our Common Future” - coined the term “sustainable development” Development that meets the needs of the present without compromising the ability of future generations to meet their own needs

18 delivering solutions Alternate Definition of Sustainability  The pursuit of long-term viability and progress of our business while taking responsibility for listing, calculating, and improving the environmental, social, and economic consequences of our enterprise.

19 delivering solutions EU Developments  Since publication of 1st Environmental Action Plan in 1973, the EU has been the most progressive supra-national environmental regulatory body in the world  EU Foundational Treaties: 1987 Single European Act: identified Environmental policy as an area in which member states should develop common policies 1992 Maastricht Treaty: incorporates sustainable development as an aim of the EU (but vague)

20 delivering solutions EU Response to Rio  1993: EU Fifth Environmental Action Plan “Toward Sustainability”: strategy for 1992-2000 on environment and sustainability  2 major principles: 1. Integration of an environmental dimension into all major policy areas will be a key factor in sustainable development 2. Commitments to agreed measures will only be fulfilled by replacing command & control approach with shared responsibility among various actors (government, industry, public)

21 delivering solutions The Poverty of Environmental Law and the Limits of Compliance Counselling  What we know about Products and Design:  Primary output of today’s production process is waste  Across all industries, less than 10% by weight of all raw materials become incorporated into usable products  The remaining 90-95% of raw materials become waste from production  Much of the resulting 5-10% that becomes a product also eventually become waste via disposal at end of life Sources: Hawken & Lovins, Natural Capitalism, 1999, at p. 14; Industrial Metabolism, R.U. Ayers, in Technology & Environment (Ausubel & Sladovich, eds. 1989); and A Roadmap for Natural Capitalism, Hawken, Lovins & Lovins, HBR 77 (May-June 1999) at pp. 145.158).

22 delivering solutions Poverty and Limits Continued  Key learning: while our business top managers fret and obsess over labor and financial capital efficiency, we have created possibly the most inefficient system of production in human history

23 delivering solutions More Poverty, More Limits  Meantime, according to the World Bank, the poorest quartile of humankind has seen its share of global income fall from 2.5% to 1.25% in the past 25 years  Inverted, this means that the richest 20% of the earth’s human population increased their share of global income from 70 to 80%  In the U.S., the top 10% of the population enjoys 28.5% of the wealth, and the bottom 10% receive only 1.5% of the wealth Sources: Innovating Our Way to the Next Industrial Revolution, Senge & Carstedt, MIT/Sloan Mgmt Rev., Wntr 2001, at p. 25; UNDP Human Development Report, Oxford Press 1996; World Development Report 1999,World Bank, Washington D.C.

24 delivering solutions  The poorest quartile of humankind has seen its share of global income fall from 2.5% to 1.25% in the past 25 years  In the U.S., the top 10% of the population enjoys 28.5% of the wealth, and the bottom 10% receive only 1.5% of the wealth

25 delivering solutions What are the key questions here?  Is this of any concern to my clients?  Is this relevant to how I counsel them?  If so, WGD?

26 delivering solutions  We can choose to find the relevance  Or the relevance can be thrust upon us

27 delivering solutions The Relevance is Thrust Upon Us  European product regulation  The Seattle Effect, and the Genoa Corollary  Due Diligence and undue risk  The poverty of compliance counselling  Land Use/Energy/Water Supply  TSCA and RCRA  The regulatory/corporate interface

28 delivering solutions Part 4: EMAS 2 and Sustainable Production

29 delivering solutions The EU Sustainability Policy and Regulatory Framework  EU: Council request for Commission to draft long term comprehensive strategy for EU sustainable development policy  Sweden: 1997 plan to achieve sustainable development within one generation; EMSs implemented at 99 public agencies (including all ministries)  Germany: to be released by government in Fall, 2000. National Council for Sustainability established to coordinate all policies.  Netherlands: Sustainability as key tenet of NEPP4, prioritizing social issues, climate change, and quality of life

30 delivering solutions European Council, cont’d  Cologne (June 1999):  emphasize speedy ratification and implementation of Kyoto Protocol  Climate policy is the single most important example of commitment to sustainable development  Urges early decision re: framework for energy taxation  Call upon Councils to report back in 2000 on integration progress in all policy areas

31 delivering solutions European Council, cont’d  Helsinki (Dec 1999):  Called upon European Commission to draw up long term strategy for sustainable development for the EU  Called upon European Commission to begin working on 6th Environmental Action Plan  Plan for 2001 ecological summit - to prepare for and contribute to Rio+10

32 delivering solutions Agenda 21 Ch. 30: Strengthening the Role of Industry a. Make environmentally sound technologies available in transitioning economies without extra external charges b. Encourage overseas affiliates to modify procedures in order to reflect local ecological conditions and to share these experiences with local authorities, national governments and international organizations. c. Strengthen partnerships of government and industry to implement principles of sustainable development d. Establish worldwide policies on sustainable development e. Ensure responsible and ethical management of products and processes from the point of view of health, safety and environmental aspects. f. Further, towards this end, business and industry [should collaborate] in order to increase self- regulation, guided by appropriate codes, charters and initiatives integrated into all elements of business planning and decision-making.

33 delivering solutions Context for Member State Action  EMAS II  Focus on sustainable development as goal of EMSs  Emphasizes ISO 14001 framework and legal compliance, improvement of performance, employee involvement, and external communication  Uses P2 hierarchy  Strong supplier management component “Organizations must be able to demonstrate that the SEAs associated with their procurement procedures have been identified and that significant impacts associated with these aspects are addressed within the management system. The organization should endeavor to ensure that the suppliers and those acting on the organization’s behalf comply with the organization’s environmental policy within the remit of the activities carried out for the contract.” EMAS II Annex VI Sec. 6.3

34 delivering solutions Part 5: Anticipated consequences of EMAS II and Potential Legal Issues

35 delivering solutions The Legal Implications of Seattle, Genoa, and Durban, and the Rumblings in Johannesburg  Organizations will be held to a higher standard of responsible production and product design and manufacure  Increasingly, organizations will be required to account for their social responsibility actions and social and economic impacts  It is inevitable that this will lead to ETHICAL scoring of our clients  Financial Scorecards  Environmental Scorecards  Sustainability Scorecards  A Sustainability Management System  An Integrity Management System?

36 delivering solutions The Earth Charter (UNEP/UNDP 1999)  Build democratic societies that are just, sustainable, participative, and peaceful;  Secure the natural bounty and beauty for present and future generations  Protect and restore the integrity of ecosystems, especially the natural processes that sustain life  Use prevention as the best environmental protection device and when knowledge is limited, apply the precautionary principle  Adopt patterns of production, consumption, and reproduction that protect the ecosystem’s regenerative capacities, human rights, and community well-being

37 delivering solutions Response – Combine Sound Legal Risk Management Counselling, ISO 14001, EMAS II, Agenda 21, mix well...  The Sustainability Management System

38 delivering solutions Unique SMS System Elements  Sustainability execution and performance  Supplier management, customer partnership, and business alliances  Stakeholder engagement  Functional control and integration (OpCon)  Scope Includes:  Environmental Protection  Economic Resilience  Social Responsibility

39 delivering solutions  SMS and Supplier Management, Customer Partnership, and Business Alliances  “The organization shall establish and maintain procedures to communicate the existence and requirements of its sustainability management system to all relevant suppliers, contractors, and customers. The organization shall consider methods and practices which will enhance its ability to use its economic relationships to responsibly increase prosperity in the public and private sectors.”  “Methods and practices will also be considered which will enable the organization to structure its business alliances with a view toward optimizing opportunities to enhance and encourage sustainability throughout its value chain.”

40 delivering solutions SMS and Communication (excerpt)  “The organization shall adopt and implement documented processes for external communication on its significant environmental, economic, and social aspects.  “This communication shall form the basis for a continuing dialogue with interested parties (i.e. local communities, customers, shareholders, distributors, trade-unions, non-governmental organizations, industry associations, suppliers, regulators, and others), with the goals of (1) enhancing understanding of the organization’s operations, activities, and sustainability management system, and (2) increasing participation in the organization’s sustainability management system.”

41 delivering solutions An SMS Begins with Sustainability Aspirations

42 delivering solutions Designworks/USA Sustainability Policy Statement: “We practice responsibility in all areas of human endeavor, by pursuing services that positively affect the lifestyles of our clients and their customers.”

43 delivering solutions  We meet this goal by:  Meeting or exceeding all [EH&S] legal requirements  Delivering services that incorporate our devotion to responsible resource use, environmental protection, economic resilience, and social responsibility  Building relationships with all of our stakeholders, including our suppliers and contractors, to share our SMS goals, encouraging them to incorporate similar practices and goals into their own organizations, and working with us to improve the quality and effectiveness of our SMS

44 delivering solutions The Relationship Between Product Design and Compliance  Lessons from the High Technology and Life Science Sectors

45 delivering solutions The Relationship Between Environmental Performance & Compliance  Lessons from the Educational Sector

46 delivering solutions Is this Relevant to My Clients and to How I Counsel Them?  We have considered having the relevance thrust upon us  Can we find the relevance for ourselves?

47 delivering solutions “The gross national product includes air pollution and advertising for cigarettes, and ambulances to clear our highways of carnage. It counts special locks for our doors and, jails for the people who break them. It grows with the production of napalm and missiles and nuclear warheads… And if the gross national product includes all this, there is much that it does not comprehend. It does not allow for the health of our families, the quality of their education, or the joy of their play. It does not account the beauty of our poetry or the strength of our love for each other, the intelligence of our public debate or the integrity of our public officials. It measures neither our wit nor our courage, neither our wisdom nor our learning. The gross national product measures everything, in short, except that which makes life worthwhile, and it can tell us everything about us-- except whether we are a good people....” Robert F. Kennedy, May 1968, Chicago

48 delivering solutions Further Reading  The Dance of Change, Peter Senge, 1999  Innovating Our Way to the Next Industrial Revolution, Senge & Carstedt, MIT Sloan Management Review, Winter 2001  The Green CEO, Fortune, 24 May 1999  Industrial Metabolism, R.U. Ayers, in Technology & Environment (Ausubel & Sladovich, eds. 1989)  The Ecology of Commerce (Little Brown 1993), Paul Hawken  Biomimicry (University of California 1995), Janine Benes  Where On Earth Are We Going? (Texere 2001) Maurice Strong  Agenda 21, United Nations Conference on Environment and Development (New York 1992)

49 delivering solutions Edward L. Quevedo WSP Environmental North America 343 Sansome St., Suite 450 San Francisco, CA 94105 (415) 402.2207

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