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Model for selection of future target areas in the Danish Program for Cleaner Products

4 Recommended target areas in 2002

As mentioned in the previous chapter the use of the model points out a total of 14 product groups with potentially "high" environmental and enviro-economic impacts, which have not earlier been subject to an industry-oriented product action:

25: Salt, earths and stone
27: Mineral fuels
28: Inorganic chemicals
29: Organic chemicals
31: Fertilizers
38: Miscellaneous chemical products
40: Rubber and articles thereof
68: Articles of stone, cement etc.
72: Iron and steel
73: Articles of iron and steel
74: Copper and articles thereof
76: Aluminium and articles thereof
83: Miscellaneous articles of base metal
86: Railway rolling stock and signalling equipment.

The present model for selection of future target areas is a first issue. It means that the amounts of information involved as well as the details of information are limited. Moreover, the model primarily includes environmental and economic information. In order to find the most suitable areas of action for the year 2002 it is necessary to have supplementary information in the decision-making process such as information about capacity and needs within the industrial sectors themselves.

It could also be relevant besides the technical-environmental aspects to have other aspects included in the study such as political issues and the prospects of achieving public visibility and widespread information about the actions. Such points of view may result in another ranking of product groups and consequently in actions oriented against products groups, which do not have the ranking "High".

As an example the product group "motor cars" is ranked "Medium" and not "High" in the environmental assessments, but motorcars represent a large and visible product group in Denmark. Motorcars also cause several important environmental problems related to use and final disposal. On an international level the car manufacturers put emphasis on sustainable development aspects. Several companies are registered in the Danish Ethics Database and are issuing reports about sustainable development based on the guidelines laid down by the Global Reporting Initiatives. It could be relevant to join the existing information in order to create a consumer-targeted campaign about environmentally friendly cars comprising consultancy with regard to purchase, use, maintenance and final disposal. Several consumer groups and trade associations would probably be interested in joining such an initiative. It is also important to involve the automobile dealers and the importers.

4.1 Fourteen product groups

The 14 product groups are listed below. The list shows the related industrial sectors as well as the most important trade associations, which could be involved in the actions.

For each of the selected 14 product groups the types of action judged relevant are listed below. All the 14 product groups are featured by an economical and environmental importance and the lack of a sector-oriented action. A sector-oriented action means an action for cleaner products based in a trade association and/or in a product panel. A further order of priority between the selected 14 product groups has not been established since it requires a number of supplementary evaluations, which are beyond the scope of this study.

The evaluations and recommendations as described above are based on the fact that several types of product-oriented action are judged relevant such as the actions mentioned below:

1. Sector-oriented action targeting manufacturing companies, which until now have not been subject to environmental action. A prerequisite is that the action can be based in a trade association.
2. Supplementary sector-oriented action with relation to on-going activities.
3. Supply chain-of-goods projects laying emphasis on management in international supply chains-of-goods.
4. Supply chain projects laying emphasis on manufacturing, use and final disposal of the products in which producers, wholesalers and retailers are involved or in which the users have influence on the earlier steps in the supply chain.
5. Individual projects laying emphasis on utilization and spreading of existing knowledge including the use in public tenders.
6. Inclusion in other product groups such as product groups comprising primary raw materials and sub-products.

Experience gained from earlier sector-oriented actions shows the importance of having central players within or in relation to the supply chain. Another essential aspect is market-orientation. Market-orientation means the endeavours to include the environment as a natural parameter of demand and supply. In other words the actions being launched should put focus on environmental benefits and market development in such a way that the companies are motivated to continue even after termination of the project and withdrawal of the support by the Danish EPA.

The following table gives an overview of the recommendations described above with relation to the selected 14 product groups.

Table 4-1:
overview of the recommendations with relation to the selected 14 product groups

4.1.1 25: Salt, earths and stones

Until now no specific product-oriented action has covered the extraction of salt, earths and stones, but the manufacture of cement etc. and in particular the use of these products in the building sector is covered by the actions initiated by the Buildings & Construction Panel. The product cement has earlier been subject to life cycle assessments.

It appears logical to relate a future product-oriented action to the on-going environmental activities in the building sector. The environmental benefits of such an action may be rather limited due to the fact that the most important aspects, which are related to the production of cement, already are or can be included in the on-going activities. On the other hand benefits may be achieved in spreading the systematic work with environmental issues such as environmental management to a larger number of companies within the industrial sector. This is by experience a demanding task while so many small enterprises exist. A combined view on Life Cycle and Market may indicate a potential in stimulating companies to carry out actions based on supply chains from the extraction of raw materials such as stone and gravel over the production of building materials to use of the products in the building sector. Gravel pits, quarries etc. will hardly on their own initiate a product-oriented environmental action if such an action is not demanded.

Since about one third of the total supply is imported environmental gains may be achieved in imposing environmental requirements on imported goods. A prerequisite is a more detailed analysis since the already gathered information does not show exactly which materials are imported and in which quantities. It is therefore unknown whether the imported goods are the most polluting ones or not.

4.1.2 27: Mineral fuels

A future product-oriented action must include producers as well as wholesalers and retailers in order to cover all relevant parts of the supply chain of goods. Within several sub-trades the companies are actively involved in more elements of the supply chain of goods such as extraction of raw materials, production, distribution and sales and perhaps also maintenance. This applies for instance to the refineries and the asphalt works. This means that an integration of life cycle considerations in the environmental management of the companies can be recommended especially concerning the earlier phases of the life cycle.

The asphalt industry has during several years made efforts to promote cleaner technology, environmental management and development of cleaner products. The most important customers of the asphalt industry are public authorities and private contractors, which also put a certain focus on the environment, but until now the environmental aspects do not play a role in marketing. Therefore a product-oriented action could strengthen the inclusion of environmental aspects in the tenders.

4.1.3 28: Inorganic chemicals

Until now the product-oriented actions covering chemicals primarily have targeted the substitution of non-desirable substances across the borders of different industrial sectors. No sector-oriented action has taken place.

While an important share of the inorganic chemicals used in Denmark is imported it is recommended to focus on a sector-oriented action with international co-operation. As an example projects aiming at supply chains submitted to management by the supplier. The Danish Association of Chemical Distributors comprising more than 50 importers/distributors could be a potential partner.

4.1.4 29: Organic chemicals

Until now the product-oriented actions covering chemicals primarily have targeted the substitution of non-desirable substances across the borders of different industrial sectors. No sector-oriented action has taken place neither within the chemical nor the pharmaceutical industry, which are the most important related industrial sectors.

A possible future action within the pharmaceutical industry could focus on a further development and integration of the product-oriented environmental aspects in environmental management and other management systems used in the industry. As an example could be mentioned the environmental management of supply chains. This also implies co-operation on international level since the market for pharmaceutical products to a high degree is global. Furthermore the pharmaceutical industry in general puts emphasis on sustainable development

4.1.5 31: Fertilizers

A future product-oriented action must include producers (mainly chemical industry), users (mainly agriculture) and traders (mainly wholesalers) in order to cover all relevant parts of the supply chain of goods. Since imports equal production in Denmark a future action should include environmental requirements to imported fertilizers as well as requirement to the transportation of imported fertilizers. The manufacturers importing raw materials for fertilizers and/or the wholesalers importing an essential share of the fertilizers could handle these requirements. The market is featured by three larger producers, which also have wholesales within their core business.

4.1.6 38: Miscellaneous chemical products

This product group is very versatile. It is therefore difficult to point out a specific action to be taken, but such an action should probably be linked to an action covering other areas and/or industrial sectors in which the products are used.

4.1.7 40: Rubber and articles thereof

The raw material rubber is imported and used in Denmark for the manufacture of products mainly to vehicles. There is no basis for a sector-oriented action, but a future action could instead be linked to a broad action covering manufacture, use, maintenance and final disposal of vehicles.

Furthermore rubber finds use in the manufacture of pharmaceutical articles. A sector-oriented action within the pharmaceutical industry could thus comprise articles of rubber.

4.1.8 68: Articles of stone, cement etc.

Via the Buildings Panel (Byggepanelet) emphasis has been put on the products used in the building industry, but this industry is using a very large number of different products. Therefore it could be relevant to launch a product-oriented action aiming at a number of selected product groups. Such an action could be related to a supply chain consideration comprising extraction of stone, gravel and similar raw materials (see product group 25).

4.1.9 72: Iron and steel

For many years iron and steel works have been synonymous with the Danish Steel Works. The recent bankruptcy of this company makes it irrelevant at the present moment to discuss a sector-oriented action for the product group iron and steel.

On the other hand it is even more important to improve the environment in the international supply chains of goods. A possible partner could be the Association of Danish Steel-Stockholders, which is an association of wholesalers in steel (see also product group 73).

4.1.10 73: Articles of iron and steel

Articles of iron and steel are one of the largest product groups in Denmark. This fact itself argues for an action. On the other hand the product group is very broad and comprises a large number of mainly small production companies. The product group also has several related trade associations. Therefore a study aiming at the identification of the most important environmental issues and the major players is needed. A part of the products are used by artisans (plumbers as an example), which are working on behalf of private consumers and others having virtually no knowledge about the products. Therefore it could be advantageous to target a co-operation between several players comprising producers and artisans. Until now the artisans have only been involved to a minor degree.

Another possibility is an action targeting the building materials stores in order to promote supply and demand of cleaner products and/or products from manufacturers being actively involved in environmental activities. As an example: a campaign promoting "green" maintenance of houses including guidelines to the do-it-yourself people.

4.1.11 74: Copper and articles thereof

Copper is not produced in Denmark, but copper is used in the production of a large number of goods. Therefore a large number of manufacturers are involved. A sector-oriented action for this product group is therefore not relevant. On the other hand a possible action aiming at large scale recycling of copper could be relevant since copper is regarded as a scarce resource.

4.1.12 76: Aluminium and articles thereof

Aluminium finds application just like copper in a number of different areas and based on environmental assessments it could be recommended to have recycling to a large extent. The smelting of aluminium only costs 10% of the energy used to produce primary aluminium. A product-oriented action could have the aim of finding out in which areas recycled aluminium is advantageous and subsequently promote the use of recycled aluminium to the largest possible extent.

Goods of aluminium comprise furniture, kitchen and household articles as well as sanitary articles. An action could preferably be related to an action involving the plumbers and heating contractors.

4.1.13 83: Miscellaneous articles of base metal

The extraction of base metals and the transportation of base metals are the main pollution contributors from a life cycle point of view. Only the life cycle until and including manufacturing is regarded. Therefore it is relevant to pose environmental requirement to the international supply chains, which could involve the wholesalers and agencies being responsible for about half of the imports.

4.1.14 86: Railway rolling stock and signalling equipment

The Danish production of locomotives and railway rolling stock is decreasing. It means that environmental requirements should be applied in international tenders for equipment to Danish railways. It is obvious to focus on the steel used for manufacture of rolling stock.

4.2 Types of action

With regard to the earlier mentioned 6 different types of action the recommended future actions can be summarized as follows:

4.2.1 Sector-oriented action targeting manufacturing companies, which until now have not been subject to environmental action

The product groups, which appear most relevant for initiating a sector-oriented action, are the following: iron and metal industry, pharmaceutical industry and probably also the chemical industry. Within all these industries there is a certain level of knowledge of environmental management, which is due to previous projects about the promotion of environmental management. The pharmaceutical and the chemical industry are both internationally oriented and featured by large companies. The iron and metal industries also take part in international supply chains, but mainly rely on the home market and are featured by a large number of smaller companies.

4.2.2 Supplementary sector-oriented action with relation to on-going activities

Within the chemical industry the general action has been the substitution of dangerous substances. This work is important and should have a high priority in the future, as the environmental impact of many chemical substances is very high. A supplementary sector-oriented action should be taken into consideration. In this action the industry itself should find solutions in order to speed-up the on-going activities and spread the knowledge about less polluting alternatives.

Also within the building sector it could be relevant to have a supplementary action with relation to the on-going activities in the Buildings Panel (Byggepanelet). Special emphasis should be put on extraction of raw materials and manufacture of building articles. This can perhaps to a certain degree be included in the new project referring to the tenders of Danish EPA in 2002.

4.2.3 Supply chain-of-goods projects laying emphasis on management in international supply chains-of-goods

4.2.4 Supply chain projects laying emphasis on production, use and final disposal involving producers, wholesalers and retailers

In many supply chain projects the wholesalers play an important role with relation to import and distribution of the products. In this way the wholesaler is the central body handling environmental requirements and improvements up-stream (foreign producers) and down-stream the supply chain (retailers). An action involving the wholesalers requires improved information from the database. The present information is available on a three-numbered level and it is not sufficient for pointing out the relevant players for the individual product groups.

4.2.5 Individual projects laying emphasis on utilization and spreading of existing know-how

Within several industrial sectors environmental activities have been carried out during recent years putting emphasis on the promotion of cleaner technology, environmental management and cleaner products. Contrary to the activities about cleaner technology and environmental management, which take place in the individual companies, the work with cleaner products requires a direct co-operation with other players and in particular with the market. As a matter of fact environmental issues have not had a break-through in the market. Therefore it is important to maintain and develop further the on-going activities in order to achieve a market break-through. Market orientation is by nature something new in many fields.

A special area may be to strengthen the environmental aspects in public tenders. With regard to the selected 14 product groups the areas of asphalt and railway rolling stock and signalling equipment could be relevant.

4.2.6 Inclusion in other product groups