3.1. Introduction

One of the key purposes of this evaluation has been to complement the knowledge compiled in connection with the previous evaluation of the waste tax, especially with regard to waste management in enterprises. In this study it has therefore been sought to analyse and quantify the development in waste amounts at a number of enterprises before and after the increase in the waste tax. Enterprises have been selected according to the following criteria:

	Enterprises having prepared green accounts.
	Enterprises whose green accounts give information on absolute waste amounts and distribution by treatment option in 1996 and 1997.
	One enterprise from each of the items A-F and J on the list of activities in Statutory Order No. 975 of 13th December 1995 (on enterprises’ duty to file green accounts).

No representative study

With these selection criteria, the present study is not a representative study of the effects at Danish enterprises from the increase in the waste tax. The present study is a case-methodological study from which primarily analytical conclusions may be drawn.

Large enterprises and high level of information

All other things being equal, the selected manufacturing enterprises are expected to generate relatively large amounts of waste, and they are also expected, due to their size, to have a relatively high level of information on environmental issues. According to a study of more than 300 Danish enterprises, the share of enterprises working with environmental management increases with the size of enterprise (Neergaard m.fl., 1998: 8). This impression is confirmed in another study of 200 small and medium-sized enterprises within industrial manufacture, building, retail and service, demonstrating that only every twentieth enterprise with a staff of one to four has introduced environmental management, and that three out of four enterprises are not even familiar with the concept. For enterprises with a staff of five to nine every fifth enterprise has introduced environmental management (Håndværksrådet, 1998: 17).

Few enterprises have precise information on waste

In the selection of eleven enterprises meeting the requirements for information it was necessary to study green accounts for around 40 enterprises. This study showed that only very few enterprises were able to state precise information on waste generation for both 1996 and 1997. This confirms experience from previous attempts to compile information on waste generation and treatment in Danish manufacturing industry (Danmarks Statistik, 1993; 1994 and 1995).

Green accounts

The organisational set-up of the eleven selected enterprises has made it necessary to analyse a larger number of green accounts covreing almost 30 production units of which many are of such a size that they are often seen as independent enterprises. For example, the descriptions of Tarco Vej, Coloplast and Novo Nordisk include 4, 5 and 9 different production sites respectively, distributed over the entire country.

Enterprise visits

Furthermore, in the evaluation of the effects of the increase in the waste tax, several visits were paid to enterprises. However, Aalborg Portland was the only enterprise visited that was finally included in the study³. The other enterprises visited were excluded due to, for example, problems of providing relevant data on waste generation, or to the fact that the enterprise since 1996 has undergone so large changes in organisation and production that a comparison of waste generation in 1996 and 1997 would not be meaningful.

Correlation between environment and financial situation

The demonstration of the correlation between environmental and financial performance in the selected enterprises is made by preparing an environmental and financial statement with information on the development in waste generation and various financial parameters, including the cost burden from the waste tax, net turnover, production costs, payroll costs and operating profit/loss. In the analyses, it has been necessary to complement information on environmental performance of the enterprises as stated in the green accounts with information on financial performance in the financial accounts⁴.

3.2. Description of enterprises

Description of enterprises

In the following sections, each enterprise is described in more detail. First, the enterprise is described briefly (staff, net turnover and export share). This information is followed by a number of tables on the development in waste generation, physical situation (production and raw material consumption), and financial situation. Finally, the development in waste amounts is described, and the effects of the waste tax on waste management and disposal are evaluated. The study of enterprises was finalised by a verification of the descriptions carried out by the enterprises themselves.

Correlation between competition and waste management?

In the study of enterprises, the correlation between the competitive situation and waste management and disposal was studied, including the enterprise’s evaluation of the implication of the waste tax. Information on the export share may contribute to describing the part of the enterprise’s competitive situation that concerns international competition. However, it has not been possible to identify corresponding indicators for the domestic competitive situation, i.e. to which extent the competitive situation is influenced by competition from foreign enterprises. Furthermore, the report Erhvervsministeriet (1999: 25-26) shows that all available competition indicators are subject to uncertainty and should be interpreted with much care, and consequently it was decided not to compile further competition indicators.

Enterprise no. 1: Kongskilde Maskinfabrik A/S

Manufacture of agricultural machinery and industrial plants

Kongskilde Maskinfabrik is the parent company of Kongskilde Industries⁵. The enterprise, manufacturing agricultural machinery and industrial plants, had a staff from 1996 to 1998 of around 350 and a net turnover of some DKK 230 million. The export share of the enterprise amounted to around 80 per cent.

Source: Kongskilde Industries (1998a and 1999a).

Plan for correct separation of waste

In 1997, the enterprise drew up a plan for correct separation of waste that was implemented in 1998.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Source: Kongskilde Industries (1997; 1998a;1998b, 1999a and 1999b) and own calculations (italics)

90 per cent recycling

In 1996 and 1997, Kongskilde Maskinfabrik generated around 1,000 tonnes of waste, of which around 90 per cent was recycled. The major part of this was waste metal⁷. From 1996 to 1997 total waste amounts increased by 86 tonnes, corresponding to an increase of 9 per cent. However, primarily recycled waste amounts increased (by 85 tonnes), whereas waste for incineration increased by less than 1 tonne. The reason why waste amounts for incineration did not increase further is that the enterprise, thanks to better separation, was able to increase recycling of paper and cardboard considerably from 1996 to 1997. Without this improved recycling of paper and cardboard, waste amounts for incineration would have increased by a further 6 tonnes.

Increased recycling

From 1997 to 1998, the implementation of the plan for correct separation of waste led to a significant increase in the recycling of paper and cardboard, from 8 tonnes to 26 tonnes, whereas the increase of 100 tonnes in waste metal for recycling was primarily due to extraordinary scrapping of unsalable goods.

Difficult to compare

The comparison of the development in waste amounts with the development in physical and financial key figures has been rendered difficult by the fact that the reduction in production and raw material consumption stated in physical amounts, all other things being equal, is expected to have led to a reduction in waste amounts, whereas the financial development seems to indicate the opposite. Furthermore, there were large changes in turnover of the different production lines and in stock building in the enterprise from 1997 to 1996.

Limited cost burden from waste tax

Since the share of waste that was not recycled only accounted for some 10 per cent of total waste amounts, the cost burden from the waste tax was limited. One of the reasons for this was also that the enterprise, neither in 1996 nor in 1997, sent waste to landfill (subject to the highest waste tax rate).

References

Kongskilde Industries (1997), Grønt regnskab 1996, Sorø: Kongskilde Industries

Kongskilde Industries (1998a), Årsregnskab 1997, Sorø: Kongskilde Industries

Kongskilde Industries (1998b), Grønt regnskab 1997, Sorø: Kongskilde Industries

Kongskilde Industries (1999a), Årsregnskab 1998, Sorø: Kongskilde Industries

Kongskilde Industries (1999b), Grønt regnskab 1998, Sorø: Kongskilde Industries

Discussions with Henrik B. Jensen

(English homepage: http://www.kongskilde.com)

Enterprise no. 2: Odense Staalskibsværft A/S

Manufacture of large containerships

Odense Staalskibsværft is the parent company of the Odense Staalskibsværft Group, a part of the A.P. Møller Group⁸. The enterprise, manufacturing large containerships, had a staff from 1996 to 1998 of around 3,100 and a net turnover in 1996 and 1997 of DKK 3.9 billion and DKK 2.7 billion respectively. An adjustment of the shipyard’s net turnover due to special production conditions results in DKK 3.5 billion in 1996 and 1997, and DKK 4 billion in 1998⁹.

Special conditions

Due to special market conditions in the shipbuilding industry it is not meaningful to illustrate the competitive situation of the Odense Staalskibsværft by calculating how large a share of the net turnover is exported. Of three containerships delivered in 1997, two were delivered to the shipping line of A.P. Møller, whereas the third ship, owned by the shipyard, was leased to the same shipping line.

Source: Odense Staalskibsværft (1998a and 1999a).

Information from green accounts

Information on waste amounts at Odense Staalskibsværft derives exclusively from the green accounts of the enterprise, as the enterprise did not wish to participate further in the study.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Source: Odense Staalskibsværft A/S (1998a and 1998b) and own calculations (italics)

More than 20,000 tonnes waste and around 85 per cent recycling

In the period from 1996 to 1998, Odense Staalskibsværft generated 20,000 to 22,000 tonnes waste, of which 85 per cent was recycled. The major part of recycled waste consisted of scrap (incl. steel shot and steel slag), but also paper, cardboard, plastics and glass were collected for recycling. Waste going to landfill consisted of residual waste, kitchen waste, sludge, and tempered paint residues.

Increasing waste amounts

From 1996 to 1997, total waste amounts increased by 800 tonnes, corresponding to an increase of 4 per cent. Of this, the increase in waste amounts for recycling accounted for 600 tonnes. In the same period, waste amounts for incineration or landfill increased by 200 tonnes, corresponding to an increase of 6 per cent, and at the same time there was a considerable shift in the distribution of taxable waste amounts. The increase in waste amounts for incineration is, however, due to the fact that the incineration plant of Fyns Værket only started incineration of waste in the last quarter of 1996. For that reason the change cannot be attributed to the further differentiation and increase in the waste tax as from 1^st January 1997 (cf. table 1.1.).

Decreasing waste amounts

From 1997 to 1998, total waste amounts decreased by 1,850 tonnes. The decrease in waste amounts of 9 per cent was primarily due to a decrease in waste amounts for recycling of 1,750 tonnes. In addition, waste for incineration decreased by 100 tonnes, and waste going to landfill remained stable.

Difficult to compare

A comparison of the development in waste amounts with the development in physical and financial key figures is rendered difficult by the fact that the net turnover of the parent company dropped from DKK 3.9 billion in 1996 to DKK 2.7 billion in 1997. Furthermore, a minor part of the decrease in net turnover was due to the fact that in 1997 Odense Staalskibsværft took over shipyards in Estonia and Lithuania, both working as sub-contractors for the shipyard.

Considerable cost burden from increase in waste tax

The major part of waste generated was recycled in 1996, but still the waste tax constituted a non-negligible cost burden of almost DKK 600,000, though this amount only accounted for a limited share of total production costs. Furthermore, the increase in the waste tax as from 1^st January 1997 led to a further increase of more than DKK 300,000, so that the total cost burden from the waste wax amounts to almost DKK 1 million per year.

References

Odense Staalskibsværft A/S (1998a), Årsberetning for 1997, Munkebo: Odense Staalskibsværft A/S

Odense Staalskibsværft A/S (1998b), Grønt Regnskab 1997, Munkebo: Odense Staalskibsværft A/S

Odense Staalskibsværft A/S (1999a), Årsberetning for 1998, Munkebo: Odense Staalskibsværft A/S

Odense Staalskibsværft A/S (1999b), Grønt Regnskab 1998, Munkebo: Odense Staalskibsværft A/S

(English homepage: http://www.oss.dk)

Enterprise no. 3: Aalborg Portland A/S

Cement manufacture

Aalborg Portland, a subsidiary of FLS Industries¹¹, is the only cement manufacturer in Denmark. The enterprise had a staff from 1996 to 1998 of some 750 and a net turnover of DKK 1.3 to 1.5 billion, of which half was exported. On the domestic cement market, Aalborg Portland had a market share of some 85 per cent.

Source: Aalborg Portland (1997; 1998 and 1999)

Manufacture involves considerable amounts of waste

The manufacture of cement at Aalborg Portland involves considerable amounts of waste, partly as primary raw material and alternative fuel, and partly as residues. On an annual basis, around 400,000 tonnes of waste are used as alternative raw materials, and 140,000 to 170,000 tonnes of waste are recycled in-plant, whereas 5,000 to 10,000 tonnes are recycled externally. In addition, 30,000 to 40,000 tonnes of waste are disposed of at a private inert waste landfill. In the past, however, even larger amounts of waste were landfilled (in 1994, for example, some 50,000 tonnes).

Working group and environmental certification

In 1996 the enterprise took a decision to work for decreasing waste generation and better recovery of waste, and since 1997 a working group has been assessing the possibilities of reducing waste arisings. In 1998, the environmental and energy management system of Aalborg Portland was certified.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Around 200,000 tonnes of waste and more than 80 per cent recycling

In the period from 1996 to 1998, Aalborg Portland generated 180,000 to 220,000 tonnes of waste annually. By far the major part (80 to 85 per cent) was recycled. From 1996 to 1997, Aalborg Portland increased total waste generation by almost 12,000 tonnes; in-plant recycling increased by more than 21,500 tonnes, and waste to landfill decreased by almost 9,500 tonnes. The increase in recycled waste amounts was primarily due to the installation of a plant allowing the recycling of around 18,000 raw meal and cement clinker in the production, instead of landfilling discarded production as waste, as it was the case in the past. Thanks to this investment of DKK 6.5 million, the enterprise achieved savings in 1997 of more than DKK 6 million in the waste tax.

Decreasing waste amounts

Despite the fact that Aalborg Portland reduced generation of taxable waste by 9,235 tonnes in this period, which corresponded to a decrease in waste amounts of 24 per cent, the cost burden from the waste tax increased by 30 per cent. Hence, the increase in the waste tax as from 1^st January 1997 led to additional costs of DKK 2.3 million, as the cost burden from the waste tax increased from around DKK 7.5 million in 1996 to almost DKK 10 million in 1997. The significant decrease in taxable waste amounts took place at an unchanged level of activity, since the production of cement increased by 2 per cent from 1996 to 1997, whereas raw material consumption decreased by 1 per cent.

Increasing waste amounts

From 1997 to 1998 a considerable increase in waste amounts of more than 23,500 tonnes was seen; waste for recycling increased by a further 14,500 tonnes, and waste going to landfill increased by more than 9,000 tonnes, and this development almost outweighed the reduction achieved from 1996 to 1997. The higher in-plant recycling was caused by, among others, the establishment in 1998 of a plant for recycling of cement from, for example, cleaning of cement silos. This plant allowed recycling in the internal recirculation of more than 1,500 tonnes of cement, instead of landfilling this waste, and by a capital investment of DKK 1 million, savings of more than DKK 0.5 million were attained, only in saved costs from the waste tax. The reason for the increasing waste generation is to be found in a number of specific conditions at the enterprise¹⁴, since the level of activity was identical in 1997 and 1998.

Readjustment of objective

The objective for Aalborg Portland for 1998 was to reduce landfilled waste amounts by 5 per cent. For 1999, this objective is readjusted to a reduction in waste amounts going to landfill by 1 per cent.

Waste as input

In addition to reducing waste amounts from the manufacture of cement, the enterprise has investigated the possibilities of using alternative raw materials and fuel in the production. In 1998, the enterprise in co-operation with Invest Miljø, set up the company CemMiljø, whose purpose it is to acquire and reprocess waste from other industries into alternative fuel in cement manufacture. In 1998, 5,000 tonnes of waste were used, and for 1999 it is planned to use 40,000 tonnes. In a long-term perspective, it is expected that 100,000 tonnes of waste – corresponding to 10 per cent of the fuel consumption of the enterprise – will be used as alternative fuel. Aalborg Portland sees the waste tax as a threat to the profitability of industrial exploitation of burnable waste, and according to the enterprise, the tax has caused exportation of Danish waste to cement manufacturers in Sweden.

Considerable cost burden from waste tax

As mentioned, waste is a non-negligible component of cement manufacture at Aalborg Portland. This is also the case with regard to the financial situation of the enterprise, since the cost burden from the waste tax from 1996 to 1998 accounted for 4 to 5 per cent of the operating profit of the enterprise.

References

Aalborg Portland (1997), Grønt regnskab 1996, Ålborg: Aalborg Portland A/S

Aalborg Portland (1998), Grønt regnskab 1997, Ålborg: Aalborg Portland A/S

Aalborg Portland (1999), Grønt regnskab 1998, Ålborg: Aalborg Portland A/S

Discussions with environmental manager Preben Andreasen

(Some publications available in English on homepage http://www.aalborg-portland.dk)

Enterprise no. 4: Glasuld A/S

Manufacture of insulating material

The main activity of Glasuld, a subsidiary of the Saint-Gobain Group¹⁵, is the manufacture of insulating material. The enterprise had a staff from 1995 to 1998 of around 250 and a net turnover of almost DKK 400 million. The products of the enterprise are primarily marketed in Denmark and Germany, but due to competition the export share is not published.

Source: Glasuld (1999).

Considerable amounts of waste

The manufacture of glass wool products involves considerable amounts of waste, partly as alternative raw materials and partly as residues. A sideline activity is the crushing of waste glass, assuming waste disposal for other enterprises and municipal collection schemes. In 1997, glass wool was manufactured from 45 per cent waste glass, and the objective for 1998 was that waste glass was to constitute half of total amounts of glass. In addition to replacing virgin raw materials, the use of waste glass in the production reduces energy consumption.

Environmental certification and EMAS registration

In 1991, Glasuld started to survey environmental impacts from production, including the development in waste amounts and the distribution by treatment option. In 1992, the enterprise signed the international charter for sustainable development¹⁶, which now constitutes the environmental objectives of the enterprise. Glasuld’s environmental management system was certified and registered under EMAS¹⁷ in 1997, and it was the first mineral wool manufacturer to attain this position.

Development in waste amounts by treatment option

Financial development

Around 2,000 tonnes of waste and 75 per cent recycling

In 1996 and 1997, Glasuld generated around 2,000 tonnes of waste, of which around 75 per cent was recycled or recirculated. The major part of this consisted of glass wool wastage. From 1996 to 1997 total waste amounts decreased by 269 tonnes, corresponding to a decrease of 13 per cent, and at the same time the production of glass wool increased by 15 per cent. Furthermore, the distribution of waste by treatment option changed, as recycled or recirculated waste decreased by 108 tonnes, whereas waste going to landfill decreased by 161 tonnes. The decrease in waste going to landfill of 32 per cent was mainly due to the fact that in 1996 the enterprise renewed the furnace for melting of virgin glass and waste glass due to wear, which caused extraordinarily large amounts of waste in the form of ceramic stone. The melting furnace is renewed approximately every eight years.

1997-1998

From 1997 to 1998, total waste amounts increased by almost 400 tonnes due to an increase in recycled waste amounts, so that in 1998 they constituted more than 80 per cent of total waste amounts. At the same time, taxable waste amounts decreased further. From 1996 to 1998, waste going to landfill decreased by 270 tonnes. The decrease in waste amounts of more than 50 per cent took place concurrently with a production increase of almost 20 per cent.

In connection with an extension of Glasuld’s productive capacity in 1998 of DKK 71 million, the enterprise decided to make an environmental investment of DKK 3.5 million for recirculation of dry waste. The investment is planned to take place in 1999.

Environmental profile decisive

The desire to appear as an environmentally conscious enterprise has been the decisive factor for waste management at the enterprise, whereas the waste tax is estimated to have played only a minor role. Due to decreasing waste generation and the distribution on disposal by landfill or incineration, the cost burden from the waste tax has been almost identical from 1996 to 1998. Furthermore, the increase in the waste tax as from 1^st January 1997 has had the positive effect that the enterprise has had easier access to waste glass generated in other enterprises.

Own environmental objectives fulfilled

In 1992, the share of waste led to incineration or landfill accounted for almost 70 per cent. This share has since been reduced considerably, and in 1997 the enterprise attained its own environmental objective: that the share of waste to incineration or landfill should not exceed 22.6 per cent. Since waste landfilled or incinerated in 1998 only accounted for 17 per cent, the environmental objective of the enterprise of not exceeding a 20.5 per cent share, was also attained. For year 2000, the objective of the Saint-Gobain Group is that a maximum of 10 per cent of waste is incinerated or landfilled, and that no glass wool waste is landfilled after year 2002.

References

Glasuld (1997), Årsregnskab for 1996, Vamdrup: Glasuld A/S

Glasuld (1998a), Årsregnskab for 1997, Vamdrup: Glasuld A/S

Glasuld (1998b), Miljøredegørelse 1997 for Glasuld A/S, Vamdrup: Glasuld A/S

Glasuld (1999), Årsregnskab for 1998, Vamdrup: Glasuld A/S

Glasuld homepage: http://www.glasuld.dk/ and discussions with chemical engineer Lasse Sall and quality and environmental manager Jeanette Hounsgaard

Enterprise no. 5: Tarco Vej A/S

Road construction and manufacture of road material

Tarco Vej, a subsidiary in the Tarco Group, is engaged in road construction and manufacture of road material. In 1996 and 1997, the enterprise had a staff of around 350 and a net turnover of around DKK 300 million¹⁹. The export share for the entire Tarco Group amounts to some 50 per cent.

Source: Tarco (1998a).

Only small amounts of waste

The waste amounts stated in the green accounts of Tarco Vej derive from the four asphalt factories of the enterprise, having in 1997 a staff of 62. The manufacture of road material generates hardly any waste, as residues are merely reheated and added to the production as recycled asphalt. Waste described in the following is therefore only small amounts of waste similar to domestic waste.

Development in waste amounts by treatment option

Financial development

1996-1997

From 1996 to 1997, Tarco Vej reduced their waste going to incineration and landfill by 1 tonne.

Even if only very small amounts of waste are generated in the manufacture of asphalt, considerable amounts of waste are used as alternative raw materials. An important sideline activity to the asphalt manufacture is the crushing of different materials²¹. In some of the manufactured asphalt, new stone and gravel material is replaced by these materials. In 1997, recycled materials covered between 24 per cent and 57 per cent of stone and gravel material used, depending on the plant.

Broken stone from railway tracks

Due to competition, Tarco Vej does not publish the consumption of raw materials. However, it can be seen from the green accounts for 1996 and 1997 of the Danish State Railways and the Danish National Railways Agency that considerable amounts of, for example, broken stone from railway tracks are used. In 1997, almost 80,000 tonnes of broken stone from railway tracks were recycled in the asphalt industry. By recycling broken stone in the asphalt industry, the Danish State Railways and the Danish National Railway Agency have been able to reduce amounts of waste going to landfill from more than 40,000 tonnes in 1996 to around 700 tonnes in 1997. Waste that would otherwise have been subject to the waste tax.

References

Banestyrelsen (1998), Miljøberetning og Grønt regnskab 1997, København: Banestyrelsen

DSB (1998), DSBs grønne regnskab 1997, København: DSB

Tarco A/S (199y), Tarco, Nyborg: Tarco A/S

Tarco A/S (1998a), Beretning og regnskab 1997, Nyborg: Tarco A/S

Tarco Vej A/S (1998b), Grønt regnskab 1997 (Region Fyn/Sydjylland), Nyborg: Tarco Vej A/S

Tarco Vej A/S (1998c), Grønt regnskab 1997 (Region Sjælland), Nyborg: Tarco Vej A/S

Tarco Vej A/S (1998d), Grønt regnskab 1997 (Region Jylland), Nyborg: Tarco Vej A/S

Tarco Vej A/S (1998e), Grønt regnskab 1997 (Region Bjergskov), Nyborg: Tarco Vej A/S

Discussions with Quality Manager Jørgen Havshøi-Jensen

Enterprise no. 6: A/S Hygæa

Manufacture of paints and varnishes

The main activity of Hygæa is the manufacture of paints and varnishes at the two production units of the enterprise in Aalborg and Nørresundby. Furthermore, the enterprise is engaged in marketing of paints and varnishes via 12 Hygros shops, of which Hygæa owns six²². From 1996 to 1998 the enterprise had a staff of 140 to 150 and a net turnover of DKK 180 to 200 million. The export share accounted for around 10 per cent.

Source: Hygæa (1998a-c; 1999a-c).

Environment as marketing tool

A part of the business concept of Hygæa is to develop and manufacture environment-friendly paints and varnishes, and environmental arguments are used in the marketing of products (for example, UV and water-based varnishes). In 1998, the quality management system of Hygæa was certified, and by the end of 1999 it is expected that also the environmental management system will be certified.

Development in waste amounts by treatment option

Financial development

Source: Hygæa (1998a-c; 1999a-c) and own calculations (italics)

Increasing production and decreasing waste generation

Despite an increase in total production from 1996 to 1998, Hygæa reduced total waste amounts by at least 3 tonnes in 1997 and by a further 14 tonnes in 1998, resulting in reductions in total waste amounts of 9 per cent. However, the reduction, which has taken place in waste for incineration, is underestimated due to the fact that in 1996 waste amounts recycled in the production unit of Nørresundby were not recorded. At the Hygæa production unit in Aalborg, waste for recycling decreased from 1996 to 1997 by 11 tonnes, corresponding to a reduction of 19 per cent.

Substantial reduction in the generation of hazardous waste

Whereas Hygæa was able to reduce taxable waste amounts by 17 per cent from 1996 to 1998, hazardous waste amounts (chemical waste) decreased in the same period by no less than 42 per cent. This substantial reduction is explained, among others, by the fact that chemical raw materials constitute one of the major items in resource consumption in the manufacture of paints and varnishes. Thus, the costs of raw materials in 1997 accounted for DKK 109 million of the net turnover of DKK 193 million. In comparison, the cost burden from the waste tax in 1996 and 1997 amounted to a modest DKK 20,000 to 25,000, which is explained, among others, by the fact that Hygæa neither generated large amounts of waste nor did they send much waste to landfill.

References

Hygæa (1998a), Årsregnskab 1997, Ålborg: Hygæa A/S

Hygæa (1998b), Grønt regnskab 1997 for aktiviteter på Virkelyst 1, Ålborg: Hygæa A/S

Hygæa (1998c), Grønt regnskab 1997 for aktiviteter på Gasværksvej 30, Ålborg: Hygæa A/S

Hygæa (1999a), Årsregnskab 1998, Ålborg: Hygæa A/S

Hygæa (1999b), Grønt regnskab 1998 for aktiviteter på Virkelyst 1, Ålborg: Hygæa A/S

Hygæa (1999c), Grønt regnskab 1998 for aktiviteter på Gasværksvej 30, Ålborg: Hygæa A/S

Discussions with Niels Poulsen

(English homepage: http://hygæa.com)

Enterprise no. 7: Coloplast A/S

Manufacture of medical disposables

The main activity of Coloplast is the manufacture of medical disposables. From 1996 to 1998, the five Danish factories of the enterprise had a staff of around 1,500 and a net turnover of around DKK 1 billion. The export share exceeded 90 per cent²⁵.

Source: Coloplast (1997 and 1998b).

Environmental management and EMAS audit

In 1995, Coloplast established an environmental organisation by extending the field of responsibility of the health and safety organisation to include environment work. At the end of 1996, Coloplast implemented an environmental management system, and in 1997 the five Danish factories of the enterprise received their environmental certificate. At the same time, an environmental research division for further development of the environmental management system was established. In 1998, the first environmental statement of the enterprise was audited under EMAS.

Waste has a significant environmental impact

Waste generation is estimated to be one of the major environmental impacts from the manufacture of plastic materials (polymeric materials). One of the essential environmental objectives of the enterprise is therefore to reduce process wastage and waste arisings.

According to the enterprise’s own analyses, environmental impacts from the production only account for a minor share of total environmental impacts caused by the manufacture of polymeric raw materials, which are imported, and in the disposal of products, which also primarily takes place abroad.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Around 2,200 tonnes of waste and 5-7 per cent recycling

In the manufacture of plastic materials, Coloplast generated from 1996 to 1998 some 2,200 tonnes of waste annually. By far the major part of waste was sent to incineration. From 1996 to 1997, Coloplast reduced total waste amounts by 143 tonnes. This reduction in waste amounts of 6 per cent covered primarily a reduction of waste going to incineration.

Increase in waste amounts, raw material consumption and net turnover

From 1997 to 1998, total waste amounts increased by 300 tonnes. Even if the increase in waste amounts primarily covered an increase in waste going to incineration, it was remarkable that waste for recycling in the period increased by more than 50 per cent. The increase in waste amounts from 1997 to 1998 of 14 per cent shall also be seen against the background of an increase in raw material consumption and net turnover of 13 per cent and 23 per cent respectively.

References

Coloplast (1997), Årsberetning 1996/97, Humlebæk: Coloplast A/S

Coloplast (1998a), Miljøredegørelse 1996/97, Humlebæk: Coloplast A/S

Coloplast (1998b), Årsberetning 1997/98, Humlebæk: Coloplast A/S

Coloplast (1999), Miljøredegørelse 1997/98, Humlebæk: Coloplast A/S

Discussions with Environmental Manager Torben Steen Nielsen

(Some publications available in English on homepage: http://www.coloplast.dk)

Enterprise no. 8: Carlsberg A/S

Manufacture of beer etc.

The Carlsberg Breweries, in conjunction with the Tuborg Breweries, are the parent company of the Carlsberg Group, comprising some 100 subsidiaries, of which the major part is located outside Denmark²⁷. The main activity of the breweries is the manufacture of beer for the Danish and a number of export markets, and the total share of the beer market in Denmark of the Carlsberg Group amounts to around 70 per cent.

Focus on development in waste amounts

Below, large parts of the financial description of the enterprise are excluded, and focus is put on a description of the development in waste amounts at the Carlsberg Breweries. This is done as financial information in the Carlsberg financial accounts concerns the parent company, i.e. the Carlsberg and Tuborg Breweries, and that the Tuborg Fredericia Brewery does not want information from the enterprise’s green accounts to be used for other purposes.

Environmental management

At the end of the 1970s, Carlsberg implemented an energy management system that has subsequently been extended to cover also environmental management. Furthermore, the quality management of the enterprise’s production is certified. Since 1995, Carlsberg has reported on parts of the enterprise’s environmental situation in the financial accounts. From 1996, green accounts have been prepared for the Carslberg Breweries. In the enterprise’s environment policy it is stated that current regulation shall be complied with, and in addition it should be sought to be at the forefront of development in beer manufacture.

Large organisational changes

From 1995 to 1998, large organisational changes in the production at the Danish breweries of the Carlsberg Group took place, as beer production was gathered at the Carlsberg Breweries in Valby and the Tuborg Fredericia Brewery. In 1996, production ceased at the Tuborg Breweries in Hellerup, and in 1998 production at the Wiibroe brewery was transferred to other breweries.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Reduction in waste amounts

A comparison of the development in the enterprise’s waste amounts will naturally also have to take into account, as far as possible, the organisational changes that took place from 1995 to 1998 in the production at the Danish breweries of the Carlsberg Group. Waste amounts for 1995 and 1996 derive from the production of beer and soft drinks²⁸ at both the Carlsberg Breweries and the Tuborg Breweries in Copenhagen, and figures for 1997 and 1998 derive only from the Carlsberg Breweries. Consequently, in the following, focus is put on the development in waste amounts from 1996 to 1998, in which period the development in raw material consumption at the Carlsberg Breweries remained stable.

Further reduction

From 1996 to 1997 total waste amounts decreased by more than 2,000 tonnes. This reduction in waste amounts of 15 per cent covered mainly a decrease in waste for recycling of 1,500 tonnes, and at the same time waste going to landfill decreased by 500 tonnes, corresponding to a reduction of no less than 67 per cent. Waste for recycling covered primarily cullets (55-60 per cent) re-melted at a glassworks, and discarded pallets (around 20 per cent).

From 1997 to 1998 total waste amounts decreased by a further 1,700 tonnes, as waste for recycling decreased by almost 1,400 tonnes, and waste for incineration decreased by almost 400 tonnes, whereas waste going to landfill increased slightly.

High rate of recycling

Despite the problems caused by the organisational changes taking place in the Carlsberg Group in this period it seems reasonable to conclude that a very large part of waste at Carlsberg was recycled (almost 90 per cent), and that from 1996 to 1998 large reductions in waste generation were achieved. The reduction in total waste amounts from 1996 to 1998 amounted to almost 4,000 tonnes, corresponding to almost 30 per cent. In the same period, Carlsberg almost halved taxable waste amounts from 2,000 to 1,000 tonnes, and was thereby able to reduce the cost burden from the waste tax in 1998 compared to 1996.

References

Carlsberg A/S (1995), Beretning og regnskab 1994/95, København: Carlsberg A/S

Carlsberg A/S (1996), Beretning og regnskab 1995/96, København: Carlsberg A/S

Carlsberg A/S (1997a), Beretning og regnskab 1996/97, København: Carlsberg A/S

Carlsberg A/S (1997b), Grønt regnskab 1996/97, København: Carlsberg A/S

Carlsberg A/S (1998), Grønt regnskab 1997/98, København: Carlsberg A/S

(English homepage: http://www.carlsberg.com)

Enterprise no. 9: A/S Bryggeriet Vestfyen

Manufacture of beer etc.

Bryggeriet Vestfyen primarily manufactures beer, but the brewery also has a small production of soft drinks. From 1997 to 1998, the enterprise had a staff of some 60 and a net turnover of DKK 75-80 million. No information was given on the export share.

Source: Bryggeriet Vestfyen (1998b and 1999).

Plan for treatment and separation of waste

In 1998, the enterprise launched a comprehensive plan of action for the treatment and separation of waste. In addition to solid waste, the manufacture of beer generates considerable amounts of by-products such as draff and surplus yeast that are sold as animal fodder.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Source: Bryggeriet Vestfyen (1998a; 1998b and 1999) and own calculations (italics)

Around 600 tonnes of waste and 70 per cent recycling

In 1997 and 1998, Bryggeriet Vestfyen generated around 600 tonnes of waste, of which two thirds were recycled. The major part of recycled waste was in the form of glass for re-melting, but also plastics and cardboard were separated for recycling. From 1997 to 1998 total waste amounts increased by 68 tonnes. The increase in waste amounts of 12 per cent primarily covered an increase in waste for recycling of 64 tonnes, and was the result of the plan of action for treatment and separation of waste, implemented at the enterprise in this period. The modest increase in taxable waste amounts of 4 tonnes covers, however, a considerable diversion of waste, as waste for incineration increased by 39 tonnes, whereas waste going to landfill correspondingly decreased by 35 tonnes. Waste for incineration covered mainly label residues from bottle cleaning (label pulp), wood and cardboard, whereas waste going to landfill covered various sweepings. The increase in taxable waste amounts of 2 per cent shall also be seen against the background of an increase in the production of beer and soft drinks of 8 per cent from 1997 to 1998.

Waste tax is decisive

In recent years, the enterprise has taken no initiatives to reduce waste generation, but has sought to divert waste from landfill to incineration. The costs of disposal of waste are estimated to be the most essential factor for the enterprise’s waste management and disposal, and in this respect the waste tax is estimated to have had a considerable effect.

Limited tax burden from waste tax

The direct cost burden from the waste tax in this period was limited thanks to, for example, the large recycling rate at the enterprise. When the cost burden, despite the plan of action of the enterprise, was only reduced by a few thousand Danish Kroner, it is also due to the fact that the change in waste disposal primarily consisted in diverting waste from landfill to incineration. The saved costs in relation to the waste tax thereby only reflected the difference in tax rates for waste to incineration and waste going to landfill. If recycling of waste had not increased, there would, however, have been an increase of DKK 15,000 to 20,000 just as a consequence of the cost burden from the waste tax.

References

Bryggeriet Vestfyen (1998a), Grønt regnskab for året 1. oktober 1996 til 30. september 1997, Assens: A/S Bryggeriet Vestfyen

Bryggeriet Vestfyen (1998b), 113. Årsregnskab - Driftsregnskab og status for året 1. oktober 1997 til 30. september 1998, Assens: A/S Bryggeriet Vestfyen

Bryggeriet Vestfyen (1999), Grønt regnskab for året 1. oktober 1997 til 30. september 1998, Assens: A/S Bryggeriet Vestfyen

Discussions with head brewer Trine Seitzberg

Enterprise no. 10: Thorfisk A/S

Fish processing

Thorfisk is a subsidiary in the Norway Seafood group²⁹. In 1996 and 1997, the fish processing factory had a staff of some 300 and a net turnover in 1996 of more than DKK 300 million, of which around 85 per cent was exported. In 1997, the enterprise reduced the productive capacity, which led to a reduction in the number of employees and in the turnover of around 15 per cent.

Source: Thorfisk (1998a).

Small amounts of solid waste

By far the major part of waste from fish processing is recycled externally by reprocessing fish waste into animal fodder, whereas fish sludge is used for agricultural purposes and for the generation of biogas. Solid waste amounts described below therefore only account for 4 to 5 per cent of total waste generation in the enterprise.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Source: Thorfisk (1998a and 1998b).

Around 350 tonnes of waste and more than 30 per cent recycling

In 1996, Thorfisk generated more than 350 tonnes of waste, of which around 70 per cent was sent to incineration. From 1996 to 1997, waste amounts increased by almost 80 tonnes. The increase in waste amounts of 22 per cent took place concurrently with a reduction in raw material consumption of 18 per cent.

Waste tax of minor importance

Due to the competitive situation of the enterprise much attention is paid to keeping costs low. Green taxes have caused the enterprise to focus on environmental issues, but no initiatives have been taken to reduce solid waste amounts, as they only account for a very small part of total waste arisings at the enterprise. The enterprise estimates that the waste tax and the increase in the rate as from 1^st January 1997 has had only minor importance for waste management at the enterprise.

References

Thorfisk (1998a), Årsregnskab for 1997, Grenaa: Thorfisk A/S

Thorfisk (1998b) Grønt regnskab 1997, Grenaa: Thorfisk A/S

Discussions with Financial Director Jacob Pedersen

Enterprise no. 11: Novo Nordisk A/S

Manufacture of medicine and enzymes

Novo Nordisk is an international enterprise with production in eight countries³¹. The enterprise, manufacturing medicine and industrial enzymes, had from 1996 to 1998 a staff of around 9,000 in Denmark and a net turnover in the entire group from DKK 15 billion in 1996 up to DKK 18 billion in 1998. The export share accounted for 98 per cent.

Source: Novo Nordisk homepage (http://www.novo.dk).

Large amounts of liquid waste

The manufacture of medicine and enzymes generates large quantities of liquid waste deriving from fermentation and cleaning processes. The biomass, which is the concentrated part of liquid waste, is recycled as a fertiliser in agriculture or as a fodder additive to pigs. Process wastewater is treated before discharge.

Around one third is recycled

Around one third of solid waste from the production processes is recycled. Recycled waste covers primarily gland bulk (pancreas from pigs), paper and cardboard, and waste metal.

First environmental certification

In 1998, the environmental management system at Novo Nordisk Copenhagen was certified as the first enzyme factory of the enterprise.

Development in waste amounts by treatment option

Development in production and raw material consumption

Financial development

Over 11,500 tonnes of waste and around 35 per cent recycling

The Danish units of Novo Nordisk generated in 1996 more than 11,500 tonnes of waste. From 1996 to 1997, total waste amounts increased by 700 tonnes. The increase in waste amounts of 6 per cent covered mainly increases in waste for recycling and incineration of almost 600 tonnes, whereas waste going to landfill decreased by over 400 tonnes.

1997-1998

From 1997 to 1998, waste amounts decreased considerably. Total waste amounts decreased by no less than 1,400 tonnes, corresponding to a decrease of 11 per cent. Waste for recycling and incineration decreased by 900 and 800 tonnes respectively, whereas waste going to landfill increased by 300 tonnes.

Difficult to compare

It has not been possible to compare the development in waste amounts at the enterprise with the development in raw material consumption from 1996 to 1998. This is due to, firstly, that it is uncertain whether increases in purchased raw materials of 22 per cent from 1996 to 1997 are due to larger purchases or improved data collection³⁴. And secondly, from 1997 to 1998 the enterprise changed the method of statement, as data for raw materials were changed from purchased to consumed quantities, making it impossible to compare data from 1998 by data from previous years.

Furthermore, it has not been possible to compile financial information concerning only Danish production units.

References

Novo Nordisk (1998), Miljø & Bioetik Rapport 1997, København: Novo Nordisk A/S

Novo Nordisk (1999), Miljø & Bioetik Rapport 1998, København: Novo Nordisk A/S

(Some publications available in English on homepage: http://www.novo.dk.

_________________________

3 In addition to Aalborg Portland, visits were paid at ADTranz, Danish Crown and Grundfos.

4 The green accounts have primarily been acquired through the homepage of Publi-Com, the sales organisation of the Danish Commerce and Companies Agency (http://www.publi-com.dk/).

⁵ In the following, only information regarding the Danish parent company is included.

6 Consumption of steel sheets and sectional steel.

7 Scrap iron, cuttings, mill scales, and iron dust

8 In the following, only information regarding the Danish parent company has been included.

9 The net turnover is adjusted for lags in current contracts for external clients and other operating revenue (Odense Staalskibsværft (1998a: 9) and (1999: 15)).

10 Consumption of steel plates, sectional steel, and steel tubes.

11 Aalborg Portland is owned by the FLS group (50 per cent) and Blue Circle Industries PLC, UK (50 per cent). In the following, only information regarding the Danish subsidiary is included.

12 In-plant recirculation of dust and own desulphurisation gypsum, and recycling of clinker, raw meal and cement from cleaning of silos.

13 "Reuse".

14  Increased landfill of dust (from furnace 78), less dust recycling (in furnace 87), excavation works for new construction and increased sweepings from the plant (Aalborg Portland, 1999: 14).

¹⁵ Saint-Gobain is a world-wide group, comprising some 1,000 enterprises with a staff of more than 100,000. In the following, only information regarding the Danish subsidiary is included.

16 ICC Business Charter for Sustainable Development, Principles for Environmental Management.

17 EMAS (Eco Management and Audit Scheme) is an EU regulation on industrial enterprises’ voluntary participation in a Community scheme for environmental management and environmental auditing (EEC 1836/93).

18 Oil and chemical waste is recorded in Glasuld (1998b: 18) as waste "incinerated without energy recovery". However, as hazardous waste is exempt from the waste tax, this waste fraction is not included in waste amounts for incineration.

19 In the following, only information regarding the asphalt factories in Tarco Vej is included.

²⁰ Due to competition, data for amounts of asphalt manufactured have been indexed in the green accounts of Tarco Vej. The calculated index is an average of the different divisions’ production index, and furthermore, the base year has been changed from 1994 to 1996.

21 Stone, construction waste, recyclable asphalt, steel slag (residues from steel works) and broken stone from railway tracks.

22 Information on waste amounts derives from the green accounts of Hygæa, and concerns production at the two production units in Aalborg and Nørresundby.

23 The production index is calculated as an average of the indices for the production volume for Hygæa (Ålborg) and Hygæa (Nørresundby), and 1995 has been used as base year.

24 Raw materials and other production costs.

25 In the following, only information regarding the Danish factories in Humlebæk, Espergærde, Kokkedal, Thisted, and Ålsgårde is included.

26 In Coloplast (1198a: 23) waste going to landfill is stated at 130 tonnes. A footnote reveals that the waste in question is contaminated soil, which is not subject to the waste tax. In Coloplast (1999a: 25) waste going to landfill is stated at 5 tonnes.

27 In the following, only information regarding the Danish parent company is included, and focus is put on the Carlsberg Breweries.

28 Information on products in 1995 shows that the production of soft drinks only accounted for 5 per cent of total production.

29 In the following, only information regarding the Danish subsidiary is included.

30 The distribution of total waste amounts is not stated in the green accounts, but according to the enterprise is has been stable from 1996 to 1997.

31 In the following, unless otherwise stated, information is only included regarding the eight Danish production units of Novo Nordisk in Bagsværd, Copenhagen, Gentofte, Hillerød, Hjørring, Kalundborg, Måløv, Værløse and FeF Chemicals, Denmark, a subsidiary of Novo Nordisk A/S.

32 Share of net turnover abroad.

33 In addition, 679 tonnes of construction and demolition waste from Novo Nordisk Hillerød were landfilled in 1997.

34 For example, quantities of purchased raw materials for Novo Nordisk Bagsværd increased from 1996 to 1997 by almost 60,000 tonnes.

4. Analysis of enterprises’ behaviour

4.1. Introduction
4.2. Outline of development in waste generation at selected enterprises
4.3. Interview study
4.4. Financial implications of waste tax
4.5. Analysis of enterprises’ behavioural patterns

4.1. Introduction

Comprehensive analysis

In this chapter, a more comprehensive analysis of the behaviour at the selected enterprises is presented. In section 4.2, the development in waste generation at enterprises from 1996 to 1997 and 1998 is outlined. In section 4.3, the results of a brief interview study are presented. Section 4.4 gives an analysis of costs in connection with waste management compared to key financial figures for the enterprises. Finally, section 4.5 discusses the possible correlation between behaviour, especially regarding the development in taxable waste, and various independent variables.

4.2. Outline of development in waste generation at selected enterprises

Development in waste amounts at enterprises

This section describes in more detail the development in selected enterprises’ waste generation. In table 4.1, an outline is shown of the development in total and taxable waste amounts from 1996 to 1997, and table 4.2 gives the development in waste generation compared to the development in industrial and commercial waste generally, and for manufacturing industry etc. specifically. For 1997, it is possible to compare figures from the study of enterprises with data from the Danish Information System for Waste and Recycling, the ISAG.

1996-1998

For most enterprises data are also available for 1998, and table 4.3 shows an outline of the development in total and taxable waste amounts from 1996 to 1998. As yet, ISAG data for 1998 are not available.

Item	Enterprise	Total waste amounts	Taxable waste amounts	Taxable waste amounts by treatment option
				Incineration	Landfill
		Relative change from 1996 to 1997 in per cent
A4	Kongskilde	9	1	1
A5	Odense Stålskibsværft	4	6	36735	-32
B1	Aalborg Portland	7	-24	82	-25
B3	Glasuld	-13	-28	4	-32
C	Tarco Vej	-2	-2		-2
D8	Hygæa	-2	-2	-2
D9	Coloplast	-6	-6	-6
E	Carlsberg	-15	-29	-6	-67
E	Bryggeriet Vestfyen
F	Thorfisk	22	22	22	18
J36	Novo Nordisk	6	2	14	-11

Table 4.1. Increase or decrease in waste generation 1996-1997 (per cent)

Large differences

Table 4.1 shows large differences in the development of selected enterprises’ total and taxable waste generation from 1996 to 1997, including the distribution of taxable waste amounts by treatment option. Enterprises and their production are not directly comparable, and no further attempts have been made to interpret these differences.

	Total waste amounts	Taxable waste amounts	Taxable waste amounts by treatment option
			Incineration	Landfill
	Relative change from 1996 to 1997 in per cent
Sum of selected enterprises	5	-18	20	-25
Sum of selected enterprises (excluding Aalborg Portland)	-2	-3	18	-25
Industrial/commercial waste	9	-2	8	- 7
Manufacture	4	-7	8	-14

Table 4.2. Development in sum of enterprises’ waste amounts, compared to the categories "industrial and commercial waste " and "waste from manufacturing industry etc." in Waste Statistics 1996-1997 (Source: Danish Environmental Protection Agency (1999) and own calculations).

Comparison with ISAG data

On the basis of ISAG data for 1997, a comparison of the sum of selected enterprises’ waste amounts with the development in industrial and commercial waste and waste from manufacturing industries in general shows that it is difficult to determine precisely whether the development in selected enterprises’ waste amounts from 1996 to 1997 was more positive than for enterprises in general.

With and without Aalborg Portland

Total waste amounts at the selected enterprises showed an increase of 5 per cent from 1996 to 1997, whereas industrial and commercial waste and waste from manufacturing industry, according to the ISAG, increased by 9 per cent and 4 per cent respectively. This seems to indicate a fair accordance, but a study of taxable waste amounts shows that the studied enterprises had a considerably more positive development than the average. The reduction in generation of taxable waste at the selected enterprises amounted to 18 per cent which is considerably more than reductions in similar taxable waste for industrial and commercial waste and waste from manufacturing industry in general (which amounted to only 2 and 7 per cent respectively). However, a comparison of waste generation at the selected enterprises shows that Aalborg Portland’s share accounts for 70 to 80 per cent of total amounts. By excluding Aalborg Portland from the statement it is seen that the development in taxable waste amounts at the selected enterprises (excluding Aalborg Portland) is less significant. Here, the reduction in taxable waste amounts only amounts to 3 per cent, whereas reduction in waste from manufacturing industries etc. from 1996 to 1997, according to the ISAG, reached 7 per cent.

1998

For most enterprises, it has also been possible to compile waste data for 1998. When ISAG data for 1998 are available, it will be possible to see whether the enterprises studied do still not stand out significantly from total figures on waste reduction.

Item	Enterprise	Total waste amounts	Taxable waste amounts	Taxable waste amounts by treatment option
				Incineration	Landfill
		Relative change from 1996 to 1998 in per cent
A4	Kongskilde	19	-13	-13
A5	Odense Stålskibsværft	-5	3	333	-32
B1	Aalborg Portland	19	0	91	-1
B3	Glasuld	6	-33	156	-53
C	Tarco Vej
D8	Hygæa	-9	-17	-17
D9	Coloplast	7	6	6
E	Carlsberg	-27	-47	-37	-63
E	Bryggeriet Vestfyen37	12	2	83	-25
F	Thorfisk
J	Novo Nordisk	-6	-4	-5	-3

Table 4.3. Increase or decrease in waste amounts 1996-1998 (per cent)

Also large differences in 1998

Table 4.3 shows that also in 1998 there were large differences in the development in selected enterprises’ total and taxable waste generation compared to 1996. However, it is remarkable that all enterprises having stated waste generation in 1998 have reduced waste going to landfill. For some enterprises (Glasuld and Carlsberg) decreases in taxable waste amounts from 1996 to 1997 have continued in 1998, giving substantial reductions from 1996 to 1998.

	Total waste amounts	Taxable waste amounts	Taxable waste amounts by treatment option
			Incineration	Landfill
	Relative change from 1996 to 1998 in per cent
Sum of selected enterprises	13	-2	9	-5
Sum of selected enterprises (excluding Aalborg Portland)	-10	-8	6	-23

Table 4.4. Development in sum of waste amounts 1996-1998 (per cent).

Further reduction in waste amounts

Table 4.4 shows that the enterprises as a total have reduced their waste amounts further compared to 1997, as taxable waste amounts from the selected enterprises (excluding Aalborg Portland) from 1996 to 1998 decreased by 8 per cent. However, even when excluding Aalborg Portland the statement is sensitive to substantial variations at some enterprises.

4.3. Interview study

Interviews

In order to study enterprises’ internal measures relating to waste management and the underlying motivation, an abbreviated version of the questionnaire for the interview study from Working Report from The Danish Environmental Protection Agency no. xx 1997 was used at the selected enterprises. One enterprise (Odense Stålskibsværft) did not want to participate.

Initiative to reduce waste amounts

Eight of the participating enterprises stated that they had taken initiatives to reduce waste generation or to change the distribution on treatment option for their waste in recent years (cf. table 4.5.). Reductions in waste generation are mainly due to increased recycling and changed raw material consumption (cf. table 4.6.).

Has the enterprise taken any initiatives to reduce waste generation or change the distribution on waste treatment option in recent years?	Number
Yes No   Total	8 2   10

Table 4.5. Number of enterprises having taken initiatives to reduce waste generation.

How did the enterprise reduce waste generation? (several possible answers)	Number
External recycling Changed raw material consumption In-plant recycling Requirements to suppliers Other   Total	6 4 3 2 2   8

Table 4.6. Measures to reduce waste generation.

Costs have an effect on disposal

Six of eight enterprises replied that costs in connection with waste disposal had had a significant effect on their decision to reduce waste generation (cf. table 4.7.). Disposal costs were evaluated to have had a somewhat more significant effect than requirements in municipal waste regulations and the desire to enhance the environmental profile of the enterprise.

Which factors have had an essential impact on the decision to reduce waste amounts? (several possible answers)	Number
Costs of disposal Requirements in municipal waste regulation Enhanced environmental profile Requirements in environmental approval Revenues from sale of residual products Other   Total	6 5 4 2 2 1   8

Table 4.7. Motivation for reduction of waste amounts.

Three of the six enterprises replying that costs of disposal of waste had a significant impact, evaluated that the waste tax had had an effect in its own right (cf. table 4.8.).

If yes to cost factor – has the waste tax had an effect? (only one answer)	Number
To a large extent To some extent To a minor extent None at all   Total	1 2 2 1   6 (of 8)

Table 4.8. Effect attributed to waste tax.

Which effect did the increase in the waste tax as from 1st January 1997 have on waste disposal at the enterprise? (several possible answers)	Number
Increased recycling Changed raw material consumption Other No effect   Total	4 3 3 4   10

Table 4.9. Consequences of the increase in the tax rate.

Difficult to compare

Three of ten enterprises evaluated that the waste tax had had an effect in its own right on waste disposal at the enterprise. In comparison, only two of 16 enterprises in the previous evaluation of the waste tax were of this opinion. However, it is difficult to assess whether this difference is due to the increase in the waste tax rate as from 1^st January 1997 or is explained by the mix of selected enterprises.

4.4. Financial implications of waste tax

Large differences in cost burden

The description of enterprises shows that there are large differences in the cost burden from the waste tax at the different enterprises and consequently also from the increase in the waste tax rate as from 1^st January 1997. Of the enterprises for which it is possible to compare the cost burden from the waste tax with net turnover and operating profit/loss, only Aalborg Portland has a substantial cost burden. For the other enterprises, the burden does not exceed 1 per mille of the net turnover and 1 per cent of the operating profit/loss. For Aalborg Portland, the cost burden from the waste tax in 1997-98 amounts to 7 to 8 per mille of the net turnover and 4 to 5 per cent of the operating profit/loss.

Changed behaviour –

reduced cost burden

The total cost burden for the selected enterprises (excluding Aalborg Portland) increased from DKK 2.9 million in 1996 to DKK 4.3 million in 1997, and in 1998 the cost burden decreased to DKK 4.1 million. If the enterprises had not been able to reduce their taxable waste amounts, however, the cost burden would have increased to DKK 4.6 million, which for 1998 would have meant a further increase in costs as a consequence of the waste tax of almost DKK 0.5 million.

Overestimate of cost burden

Where enterprises have been able, in total or in part, to shift the waste tax onto prices, the calculated cost burden is, however, an overestimate of the financial effects of the waste tax. Erhvervsministeriet m.fl. (1997: 25) describes by various degrees of tax shifting the possibilities in different sectors to shift green taxes³⁸ onto consumers by increasing sales prices.

Sector	Degree of tax shifting
Manufacturing industry	0.35
Service sector	0.70
Other sectors39	0.50

Table 4.10. Shifting of green taxes in different sectors (Source: Erhvervsministeriet m.fl., 1997: 25)

Possibility of shifting waste tax

Table 4.10 shows that the service sector, due to a more limited number of foreign competitors, is assessed to be able to shift 70 per cent of costs of green taxes, whereas the manufacturing industry is assessed to be able to shift only 35 per cent. If this degree of tax shifting may be transferred directly to the waste tax, the actual cost burden from the waste tax has amounted to around two thirds of the calculated burden.

Limited cost burden

With this limited cost significance it is not surprising that only few enterprises indicate the tax as decisive for their activities. The tax is only one of several cost elements in waste management (fees, transportation, handling etc.), so the calculated shares do not give a definite indication of the extent of waste-related costs.

4.5. Analysis of enterprises’ behavioural patterns

Recycling and export shares

Table 4.11 gives an outline of the results from the enterprises studied with regard to total rate of recycling, development in production, and development in waste generation. Furthermore, where possible, the export share is stated.

	Recycling rate in 1996	Waste reduction from 1996 to 1997	Decrease in production from 1996 to 1997	Export share in 1996
Kongskilde	89		+	84
Odense Stålskibsværft	85
Aalborg Portland	79	+		61
Glasuld	73	++
Tarco Vej40	-	(++)	(+)
Hygæa	32	++		7
Coloplast	6	++		93
Carlsberg	86	++
Bryggeriet Vestfyen41	66
Thorfisk	27		+	87
Novo Nordisk	33			97

Table 4.11. Recycling rate in 1996 for enterprises studied compared to attained waste reduction ('++' indicates reduction in both total and taxable waste amounts; '+' indicates reduction in total amounts). Third column indicates enterprises with a decrease in production and column four the export share.

Considerable variations

It is seen in table 4.11 that there are considerable variations in total recycling rates at the enterprises. Six enterprises have high rates of recycling – 66 per cent or more (three enterprises exceed 85 per cent) – and four enterprises attain relatively moderate rates of recycling, from 33 per cent and downwards. It is remarkable that enterprises with a relatively high environmental profile such as Coloplast and Novo Nordisk fall within the latter group, whereas the first group covers enterprises of the more conventional "chimney-industry" type.

No correlation between rate of recycling and new initiatives

However, there does not seem to be any systematic correlation between high rate of recycling and lack of new initiatives for waste reduction after the increase in the waste tax, or between low rates of recycling and new initiatives to waste reduction. A comparison of information on recycling rates with indications on waste reductions for 1996 to 1997 shows that there is no unambiguous correlation.

No correlation between competition and environmental performance

The export share is not available for all enterprises, but on the basis of available data there seems to be no indication of a correlation between enterprises’ export share and the reaction to the increase in the waste tax rate. Hence, there seems to be no clear correlation between the competitive situation of the enterprises, expressed by their export share, and their environmental performance.

Correlation between production growth and development in waste amounts

By contrast, there seems to be a certain correlation between production growth in enterprises and the development in waste amounts. Table 4.11 shows that among five enterprises not having reduced waste amounts, three enterprises experienced a growth in production.

Table 4.12 shows the correlation between reduction in taxable waste amounts and development in production.

	Taxable waste amounts
	Decrease		Increase
Production	Decline	Tarco Vej	Kongskilde Thorfisk
	Growth	Aalborg Portland Glasuld Carlsberg Hygæa Coloplast	Bryggeriet Vestfyen Odense Staalskibsværft Novo Nordisk

Table 4.12. Comparison of taxable waste amounts and production from 1996 to 1997.

It is seen from table 4.12 that three enterprises with declining production have experienced an increase in taxable waste amounts. Among seven enterprises with a growth in production, five have been able to reduce taxable waste amounts whereas two have had a certain increase. Among these two, Novo Nordisk has experienced a very considerable growth in production that has, despite certain waste-related initiatives, caused an increase in total waste amounts. The other enterprise, Bryggeriet Vestfyen, is a small enterprise, and variations in both production and waste generation are moderate. Only one enterprise (Tarco Vej) has had a decrease both in production and waste generation, but this enterprise is very untypical, as it only generates waste similar to domestic waste.

Attention to environmental issues

It is natural to interpret the correlation between the development in production and waste generation to the effect that enterprises on a production decline do not have resources to optimise their environmental costs and that the decline therefore is not reflected in decreasing waste amounts. Enterprises in a growth situation, however, have both possibilities and resources to optimise production and reduce waste generation, also in absolute figures. For some enterprises, however, production growth may be so important that it leads to higher waste generation.

Difficult to estimate optimum marginal costs of reduction

A more precise comparison of enterprises would require a separate statement of each separate waste fraction. Total recycling rates cover very different waste types. Only by comparing every single waste fraction and assessing specific costs of recycling in enterprises, would it be possible to evaluate whether waste reductions are attained at optimum marginal costs of reduction. As such data by nature cannot be obtained for enterprises having declared a number of waste types as residual waste, with a modest rate of recycling, such an analysis would be extremely resource consuming.

_________________________

35 In the description of Odense Staalskibsværft it is seen that very specific conditions prevailed for the development in waste amounts for incineration from 1996 to 1997.

36 The nine production units mentioned in the description of Novo Nordisk cover, in addition to item J (manufacture of enzymes) also item D (manufacture of medicine).

37 Information on development in waste amounts from 1997 to 1998.

38 Energy and environment taxes.

39 Building and construction sector as well as extraction industries.

40 Only domestic waste, as all asphalt is recycled.

41 Information concerns waste amounts in 1997.

5. Summary and recommendations

The results of the evaluation may be summarised as follows:

	Taxable waste amounts increased by 7 per cent from 1996 to 1998, but this increase may be explained by the extension of the taxation base to comprise also slag and residues from power plants,
	Net delivered waste amounts at municipal waste treatment plants decreased by 0.5 per cent (around 14,000 tonnes) from 1996 to 1998,
	Net delivered waste amounts at inert waste landfills decreased by 23 per cent (around 56,000 tonnes) from 1996 to 1998,
	The net production index for industry and consumption index for households show an increase for the period 1996-98 of 7 per cent, so the stagnation in waste amounts delivered to municipal plants reflects a de-coupling of economic development and waste generation,
	A comprehensive data collection has been carried out on the basis of green accounts for around 30 production units distributed on eleven enterprises in order to study the development in waste amounts and the cost burden from the increase in the waste tax rate,
	The study of the eleven enterprises having included waste data in green accounts has shown that for 1997 there were very large differences both in the general recycling rate, going from 90 per cent at Kongskilde Maskinfabrik to 5 per cent at Coloplast, and in waste types and recycling initiatives at the enterprises,
	A comparison of the development in waste amounts at the selected enterprises and the general development in industrial and commercial waste for 1996-97 as stated by the ISAG, shows that the reduction in net delivered taxable waste amounted to 18 per cent at the studied enterprises compared to a total reduction of 7 per cent for the entire manufacturing industry,
	One enterprise, Aalborg Portland, accounts for 80 per cent of waste amounts among the eleven enterprises. If this untypical enterprise is excluded from the study, the result is a net reduction in taxable waste of only 3 per cent, which is less than the total reduction of 7 per cent for 1996 to 1997, as stated by the ISAG,
	Five of the enterprises have reduced their taxable waste amounts in parallel to a growth in production. Another five enterprises have increased taxable waste amounts, but of these three have experienced a production decline or stagnation, whereas only one has experience a steep production growth. This reflects special conditions at the different enterprises and also the fact that a proactive waste management strategy is incompatible with restructuring or crises at enterprises,
	At the selected enterprises, a more significant diversion has taken place from landfill to incineration than in the manufacturing industry as a whole. Waste going to landfill has decreased by 25 per cent in the studied group, whereas the national figure amounts to 14 per cent,
	Six of eight enterprises having taken initiatives to reduce waste generation, indicate costs of waste disposal as a significant factor, but only three of these believe that the tax in itself has had an effect to some extent or to a high extent,
	The cost burden from the waste tax for the selected enterprises was relatively modest in 1996 and 1997. In general, it did not exceed 1 per mille of the net turnover or 1 per cent of the operating profit/loss. Aalborg Portland stands out from the other enterprises, as the tax here accounted for 6-8 per mille of the net turnover and 4-5 per cent of the operating profit/loss.

Evaluations:

Waste tax contributes to de-couple economic growth and waste generation

It is remarkable that the steep increase in the waste tax rate as from 1^st January 1997 did not lead to a decrease in taxable waste amounts, since the increase as a weighted average amounted to around 60 per cent of the previous waste tax rate. An important reason for the lack of reduction in waste generation seems to be the significant growth in production and consumption of around 7 per cent for the past two years, which is believed to have resulted in increasing waste generation in relation to the base year of 1996. Within private consumption especially the consumption of electronics and durable consumer goods has increased more than the average, and this type of consumption is believed to lead to a relatively larger waste generation (packaging etc.) Against this background, it must be concluded that the waste tax increase has contributed to ensuring that waste amounts did not increase correspondingly, and that waste generation and economic growth have been de-coupled. Another reason for the moderate waste reduction is that the differentiation in the tax means that considerable savings may be obtained by diverting waste from landfill to incineration.

Waste tax not directly reflected in householders’ costs

Despite substantial tax increases in both 1993 and 1997, the stagnation in taxable waste amounts from 1993 to 1998 indicates that the instrument has had certain problems of penetrating to the waste producers. The explanation given in the Working Report from The Danish Environmental Protection Agency no. xx 1997 was that the tax is not reflected in the waste collection fees paid by householders, as fees under collection schemes are typically calculated according to a fixed volume and not by weight. Thereby, there is no financial incentive for householders to increase recycling. The lack of transmission of the price signal of the waste tax in financial transactions in the waste sector, especially regarding households, is assessed to constitute one of the decisive barriers to a decrease in taxable waste amounts. Some local authorities have changed to weight-based fee systems for household waste, but as very few have done so, it does not have a decisive impact on total waste figures.

Low cost burden for most enterprises

Large enterprises are typically not comprised by collection schemes and have therefore the possibility of reacting to the price signal of the waste tax. However, as demonstrated by this study, not all enterprises pay attention to the costs of waste disposal. For most enterprises, the waste tax amounts to less than 1 per mille of the net turnover and will consequently range low in the hierarchy of attention. For a few very waste-intensive enterprises, however, the tax does put a significant stamp on the financial result, and this makes it difficult to implement new tax increases without showing regard to the competitive situation of certain enterprises and production processes.

"Chimney-industries" are most advanced

The analysis of enterprises’ waste management confirms the assumption put forward in Working Report no. Xx 1997 that waste-intensive enterprises typically are significantly further advanced in their waste management than enterprises that are waste-extensive. This may imply that the marginally cheapest waste reductions today are hardly found in traditional "chimney-industries", but rather at enterprises in the pharmaceutical, plastics, electronics and telecommunications industries, or within trade and offices that so far did not pay much attention to waste issues (as reflected in relatively low recycling rates).

Increasing attention

However, it is a positive sign that, according to the ISAG, taxable waste amounts from industry and commerce from 1996 to 1997 showed a decrease of 2 per cent. The study of enterprises indicates that attention to waste management increases in enterprises, and it is the first time for several years that a drop in enterprises’ waste amounts can be seen. Similarly, several enterprises have reacted by diverting their waste from landfill to incineration.

Recommendations:

It is recommended to improve procedures for entry and filing of reports on received waste amounts from the Customs and Tax Regions. Cases on deferred payments should be recorded on a consolidated list. Data on weighed waste amounts should be integrated directly in the ISAG statement.

The statistical basis for estimating the development in industrial and commercial waste amounts should be improved so that waste can be stated both by sub-sectors and waste types. The market concentration in the manufacturing industry is relatively high (the average market share on the domestic market is estimated to be around 55 per cent just for the four largest enterprises in each sector cf. Konkurrencestyrelsen (1999: 26)). As a consequence it will be possible, on the basis of analyses of a limited number of enterprises, to design a database covering the most relevant sectors. This database could be based on, for example, a total of 50 to 80 enterprises and could be used with considerably larger certainty in future analyses in the waste area, and in environmental-economic modelling tools. Such a database could be similar to the LOOP (Landovervågningsoplande) designed by the Danish National Environmental Research Laboratory in the area of nutrients.

References

Danmarks Statistik (1993), Collection of Data on Current Expenditure and Investments Relating to Environmental Protection in Industry, Internal Document, Eurostat F3: Environmental Statistics, København: Danmarks Statistik.

Danmarks Statistik (1994), Pilotundersøgelse 1993 af industriens affaldsgenerering og affaldsbortskaffelse, København: Danmarks Statistik.

Danmarks Statistik (1995), Industriens omkostninger til miljøbeskyttelse. Pilotundersøgelsen 1994, (Arbejdsnotat no. 38), København: Danmarks Statistik.

Danmarks Statistik (1999), Affald 1997, Miljø og energi 1999:13, København: Danmarks Statistik.

Erhvervsministeriet m.fl. (1997), Erhvervslivets vilkår, København: Finansministeriet.

Håndværksrådet (1998), Små og mellemstore virksomheders holdninger til miljøkrav, miljøhensyn og grønne afgifter, København: Håndværksrådet.

Konkurrencestyrelsen (1999), Konkurrenceredegørelse 1999, København: Konkurrencestyrelsen, Erhvervsministeriet.

The Danish Environmental Protection Agency (1997), The waste tax 1987-1996 (Working Report from The Danish Environmental Protection Agency no. Xx 1999), Copenhagen: The Danish Environmental Protection Agency.

The Danish Environmental Protection Agency (1999), WASTE 21. Waste Management Plan 1998-2004, Copenhagen: The Danish Environmental Protection Agency.

The Danish Environmental Protection Agency (1999), Waste Statistics 1997 (Environmental Review from The Danish Environmental Protection Agency no. xx 1999), Copenhagen: The Danish Environmental Protection Agency.

Neergaard, Peter m.fl. (1998), Kvalitet og miljø i danske virksomheder (Working paper no. 5/1998), Institut for Produktion og erhvervsøkonomi, København: Handelshøjskolen i København.

Rendan (1998), Affald & Miljø 98-99, Søborg: Rendan A/S.

Data Sheet: Taxable waste amounts 1996-1998 (tonnes)⁴²

See also figures 2.1.-2.3.

Municipal plants	1996	1997	1998
Gross delivered	4,086,404	4,037,932	4,033,860
Removed	1,066,559	1,034,919	1,027,970
Net delivered	3,019,845	3,003,013	3,005,890

 

Inert waste landfills	1996	1997	1998
Gross delivered	415,993	349,163	394,958
Removed	178,087	133,133	212,932
Net delivered	237,906	216,030	182,026

 

"Other"	1996	1997	1998
Gross delivered	887	49,903	293,847
Removed		3,321	12,535
Net delivered	887	4,582	281,312

 

Total	1996	1997	1998
Gross delivered	4,503,284	4,436,998	4,722,665
Removed	1,244,646	1,168,052	1,240,902
Net delivered	3,258,638	3,268,946	3,481,763

_________________________

42 Waste amounts in 1996 deviate somewhat from waste amounts stated in Working Report from the Danish Environmental Protection Agency no. xx 1997 (Danish Environmental Protection Agency, 1997: 115) due to improved statistics.

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