Cleaner products - new tools, players and relationships2 Experience with cleaner technology - general conclusions2.1 On the road to a Product Oriented Environmental Initiative2.1.1 Cleaner products and tools 2.1.2 New players and cooperation relationships 2.1.3 The market 2.1.4 Measures – between the government and the market 2.2 Different development dynamics in each sector 2.3 General conclusions 2.3.1 Cleaner technology in the sectors 2.3.2 Results 2.3.3 Dissemination 2.4 Blind spots in the product-oriented projects to date 2.4.1 Transport and consumption as blind spots 2.4.2 Organisational anchoring of environmental considerations in product development 2.5 Recommendations concerning program administration This chapter summarises the conclusions and recommendations from the evaluation performed, with the special aim of pinpointing the challenges to the future Product Oriented Environmental Initiative. Product Oriented Environmental Initiative The Product Oriented Environmental Initiative, as it was formulated in the discussion paper from the Danish Environmental Protection Agency in December 1996 and in the subsequent statement on this in 1998, is without a doubt the most ambitious attempt so far to draw up a strategy for preventive environmental initiatives. The three preceding action plans for cleaner technology represent more of a consultant-driven project approach, in which the Environmental Protection Agency provided the framework for carrying out the projects, but the incoming project ideas and proposals have also had a large influence on the direction of development. – a change of course A new strategy for preventive environmental initiatives – which in many respects is a radical change of course – must give occasion to evaluate critically the strengths and weaknesses of the earlier cleaner technology strategy, focusing on where action should specifically be taken to increase the product orientation of the cleaner technology strategy. The strengths of cleaner technology The strengths of the earlier approach to cleaner technology – as outlined in section 1.1 and 1.2 – included:
The weaknesses The preceding evaluations of the cleaner technology action plans (Jørgensen, et al, 1990 & Andersen and Jørgensen, 1995) and other assessments of these (Remmen, 1995 & 1998) provide the basis for highlighting some overall weaknesses in the dominating project concept to date. These are:
The projects and initiatives under the cleaner technology action plan from 1993-97 have sought to change these characteristics in many respects, for example by initiating more product-oriented projects. At the same time, the assessment based on this sub-evaluation is that the above weaknesses are exceedingly tenacious and cannot in any way be said to have been eliminated in the three sectors investigated and in the selected product projects –although they have been reduced. With the implementation of the Product Oriented Environmental Initiative, the Ministry of the Environment and Energy has clearly signalled a change of course which primarily aims to change the former strategy from being focused on the available cleaner technologies – technology push to a strategy based on demand for cleaner processes and products – market pull. In the longer term this will help reduce at least most of the above weaknesses.2 The structure of the chapter In the light of these overall characteristics of the earlier cleaner technology strategy, the conditions for the strategic implementation of a Product Oriented Environmental Initiative will be discussed in the following section –seen in the light of experience gained from the evaluation (sect. 2.1). Then the way in which the development dynamic and characteristics vary between the various sectors will be highlighted (sect. 2.2). Then general conclusions from the evaluation will be drawn together (sect 2.3), and a couple of blind spots in the earlier rudiments of a Product Oriented Environmental Initiative will be highlighted (sect 2.4). In closing it will be pointed out that the program administration will have to be adjusted in order to support the Product Oriented Environmental Initiative (sect 2.5). 2.1 On the road to a Product Oriented Environmental InitiativeIn the discussion paper from 1996 the Environmental Protection Agency defined three chief cornerstones for the Product Oriented Environmental Initiative“– products, players and the market. This section will therefore emphasise the strategic conclusions from the evaluation carried out in each of these areas.3 2.1.1 Cleaner products and toolsThe life-cycle perspective Under the cleaner technology action plans, many resources have generally been employed to develop life-cycle assessment as a method and tool via general method projects and sector-oriented projects, including in textiles and electronics. At the same time it can be observed that the product projects evaluated up until 1998 have had a limited understanding of the life-cycle perspective and life-cycle assessment, since half of the product-oriented projects have simply been based on common knowledge of environmental factors in the sector, without the use of systematic environmental assessments (see sect. 3.4 and Environment Project 522). The schism This schism can be partly explained by the fact that the projects have been carried out at a time when life-cycle perspective, life-cycle assessment, and the Product Oriented Environmental Initiative were becoming more widespread and being developed. No doubt another contributory factor has been the fact that most of the method projects carried out were scientifically focused on developing life-cycle assessment as a tool, and have also been carried out by a relatively small group of experts in cooperation with large enterprises. This is particularly true of the EDIP project, and to some extent of the life-cycle assessment projects within textiles and electronics. New method projects Method development projects have been commissioned with the aim of changing this situation, including a project on simplifying life-cycle assessment for use in small and medium-sized enterprises (the TIC project),another on simplifying life-cycle assessment (the ISME project), and a project on linking an enterprise’s environment work with the life-cycle perspective (the Promille project). There are, in addition, a number of new projects commissioned under the Programme for Cleaner Products, on chemical assessment, on LCA and waste, on LCA and transport, and on updating the EDIP database (LCA News, no. 10). These projects had not been reported on at the time of writing. Anchoring the Product Oriented Environmental InitiativeHowever, the question is whether these initiatives are sufficient. All the projects currently underway – with the Promille project as a partial exception – are based on a simplification of life-cycle assessment as a tool, rather than being based on the tools and approaches which designers and developers use in product development. Without a thorough assessment, it appears that there is still a need for greater focus on:
In this section, the problem of tools and development cooperation will be further examined, while environment communication and cooperation between players in the product chain will be dealt with in the following section (2.1.2) and organisational anchoring will be considered later (section 2.4). The toolbox The target group varies significantly in relation to incorporating environmental considerations into product development, from smaller enterprises where the director is also the development manager, to large enterprises which have both an environment and development department. It is therefore necessary to have a general range of methods and tools in the toolbox. Evidence There are basically two different approaches to the life-cycle perspective. The scientific, evidence-based approach asks the question: How can the most accurate evidence of the most significant environmental impacts for the product’s entire life-cycle be obtained? Life-cycle assessment / LCA in Denmark has been synonymous with this approach – so far. Improvement In contrast, the dialogue and improvement-focused approach asks this question: How can a process be started in each enterprise based on the life-cycle perspective which aims to continually reduce the environmental impacts of the product?—This approach has been quite absent in Denmark to date, but is internationally more widespread, for example as Design for the Environment (DfE), and is characterised by being based on simple design criteria and rules of thumb which enterprises can apply directly to product development (e.g., see Behrendt, et al, 1997). Either/or? In other words, the question is, should the focus for future tool development be scientifically correct methods, or design criteria for making direct environmental improvements to the product? The balance – both The aim should be to achieve a better balance between these two approaches. This will require that improvement and practice-oriented projects, especially, be given higher priority for a period of time, as a supplement to the present focus on evidence and scientific correctness. This should not be seen as an attempt to tone down the need for reliable environmental documentation – on the contrary. It is a call for much greater effort to be placed on ”walking on both legs“. It is necessary to further spread the individual tools and design criteria, with the aim of motivating enterprises to incorporate environmental considerations into product development. An operational approach based on the life-cycle perspective can lead to specific environmental improvements to products, and can in this way stimulate enterprises to continue a product-oriented environmental initiative. This takes into account the fact that most innovations are gradual adjustments and improvements to existing products. Longer term, this will clearly motivate more enterprises to prepare full life-cycle assessments of their products’ environmental impacts, which are essential if an enterprise wants to use the environment offensively as a competition parameter on the market. The level of detail must reflect the goal A further argument for a more balanced approach is the risk of “data death” and information overload in life-cycle assessments. Full life-cycle assessments often end in a discussion of data quality. Enterprises must therefore expend more effort to work out what they want to achieve by integrating environmental considerations into product development, so that the choice of tool and method for environmental assessment is matched to the goal. If focus is on environmental improvements to the product, the conceptual elements in the life-cycle perspective or simple life-cycle screenings will be sufficient. If the results of the environmental assessment are to be used externally in relation to environmental declarations, sales and marketing activities or something similar, a detailed life-cycle assessment will be necessary (Jensen, et al, EEA, 1997). Fundamental perceptions The schism between evidence and improvements can to some extent be traced back to fundamentally different perceptions of the product development process. Rational system The first approach is based on a rational understanding of product development and sees environmental consideration as a new, extra parameter which has to be incorporated into basic specifications and project management manuals. It can follow from this, that at various milestones in the development process, environmental assessments must be carried out based on checklists and/or life-cycle assessments. It is the product developers, possibly in cooperation with environment specialists, who define how environmental considerations should be incorporated into product development. This expert-based approach is based on the assumption that there are no conflicts over goals and measures in the enterprise or in the business and development network. Social system The other approach is dialogue-based and builds on the supposition of an enterprise as a social system. The focus is on getting relevant players to show an interest in the environment and on establishing cooperation and communication across the traditional boundaries in the organisation. Attitude shaping, experience exchange, and action-oriented learning processes are in focus (Broberg, 1993). Development work These different approaches are founded on fundamentally different views of the work of product development in an enterprise and have a great impact on which methods and solutions will be used, cf. documentation versus improvements. The expert-based approach also perceives decision-making as a rational process based on complete information. In the area of decision theory, these assumptions have long been challenged, and learning processes, conflicts and a rapidly changing world all contribute to this ideal not holding true. Focus must therefore be shifted to how opportunities and motivation can be created for incorporating environmental considerations into product development and how all the relevant players can be involved in this. From an academic viewpoint there are fundamental contrasts between these approaches? different perceptions of the enterprise and product development, which are central for understanding the strengths and weaknesses of the chosen approach. But in daily practice in an enterprise, both perspectives are clearly drawn on: environmental considerations are incorporated both via changes to basic specifications, procedures and manuals, and via learning processes, attitude changes, and experience exchanges. The above call for better balance in future method development and should thus be seen as a concern about what is necessary to convince small and medium-sized enterprises that they can immediately begin with a product-oriented environmental initiative. As already mentioned, a number of method and elucidation projects have developed tools which will be useful in the Product Oriented Environmental Initiative in the future, as long as enterprises are motivated from the beginning to carry out full or simplified life-cycle assessments. Put another way, the present method development has focused on the development of the tool which has been equivalent to full life-cycle assessments. This is a necessary but insufficient condition for integrating environmental considerations into product development and marketing. Tool focus In most of the method and tool-focused projects, the perspective has been: life-cycle assessment as a tool for getting more precise data about the products’ environmental impacts. Seen in this light, full life-cycle assessments are an indispensable tool. But this is too narrow. There is also a need for methods to establish closer cooperation between designers, manufacturers and marketing people and the other players in the product chain and in the enterprise knowledge and regulation network. Integration of environmental Rather than just focussing on tools, it is appropriate to establish an even considerations broader perspective and to openly ask the question: which processes have to function differently in order to integrate environmental considerations into product development and marketing? With the Product Oriented Environmental Initiative, focus has been given to this type of question, which will hopefully contribute to the development of a comprehensive range of tools in the longer term. Recommendations – products Following on from the above, the recommendations and ideas below are significant to the aim of promoting the development of environmentally friendly products:
These recommendations also illustrate the assessment that some characteristics of the strategy constitute specific barriers to the future Product Oriented Environmental Initiative. Barriers to initiatives are not something static or final, but reflect just as much the characteristics of the previous approaches and measures. The above conclusion regarding the integration of environmental considerations into product development leads us directly on to the problem of involving more players and establishing new communication and cooperation relationships between them. 2.1.2 New players and cooperation relationshipsThe previous cleaner technology strategy focused predominantly on the development of cleaner production processes based on projects carried out by experts and consultants. Role of the players This observation leads to three main conclusions concerning the roles of the players in earlier cleaner technology projects: a. primarily people with an environment and/or production background have been involved, Acknowledgment of these facts lies behind the initiation of the Product Oriented Environmental Initiative, with the discussion paper especially highlighting the importance of a special focus on product developers, distributors and consumers. This evaluation provides an opportunity to highlight the fact that the cleaner technology projects reflect the strong tendency for cooperation to take place between partners who are used to cooperating. Relatively few projects experiment with the establishment of new cooperation patterns and the involvement of all relevant interested parties. Parties to date With respect to the textiles sector, and to some extent the electronics sector, the cleaner technology projects have been carried out by people with an environment and/or production background. This has been significant both for focus and interest, and perception of the problem and solution. In other words, this has been critical to the character of the projects and the approaches employed in the environmental initiatives carried out to date (see the previous chapter). New players The Product Oriented Environmental Initiative represents a change of course in preventive environmental initiatives, with the result that great efforts must be made to support projects initiated and carried out by designers, product developers, communications and management consultants, the retail sector, consumer groups, educational institutions, etc. Other national programmes, such as the Danish Design Foundation and the Programme for the Promotion of Environmental Management and Environmental Auditing in Small and Medium-sized Enterprises have, to a limited extent, supported the “missing” players. However, this is not enough, since the separation of activities into various institutional contexts appears to be synonymous with a limited general knowledge of the “other” projects. Synergy Even greater focus must therefore be placed on creating the synergy and the new cooperation relationships between development, marketing, and production, which are necessary conditions for a product-oriented environmental initiative. A further condition is that focus must not be just on the players who are to be involved, but also just as much on the relationships which must be made to function differently. This was placed on the agenda in the discussion paper for the Product Oriented Environmental Initiative in 1996. Communication and cooperation An example emphasising the necessity of changed cooperation relationships can be seen in a project which the British Department of Trade and Industry carried out in cooperation with the Textile Finishers’ Association in the early 90’s, which included the aim of identifying opportunities for waste minimisation and dye reduction in wastewater (DTI, Demos, 1994). Despite the project’s quite technical focus, right in the introduction it was spelt out that “improved communication and understanding between the various players in the textiles sector is of critical importance”. At the same time one can note that textile designers follow the trends set by consumers and social and cultural development. It is against this background that fashion changes, and hence the dyes, choice of materials, etc., change, and the designer chooses palettes and styles based on these. In practice, textile manufacturers are completely separate from this process; while textile designers, conversely, are completely separate from the requirements and conditions which the environmental authorities place on textile manufacturers (see figure 2.1). Summery of Communication Channels Throughout theTextile Industry
Figure 2.1 A product-oriented environmental initiative in the textiles industry thus requires a different concept for communication and cooperation between the players in the product chain – a textiles life-cycle and in the business network. In the words of the report: “Through the establishment of partnerships for the exchange of information, those who have traditionally been excluded from product development can be brought into the centre of the communication process.” (Department of Trade and Industry (DTI), Demos, 1994). (See figure 1.2). New Paradigm for Communication Throughout the Textile Industry
New paradigm for communications throughout the textile industry The conclusions highlighted might appear trivial. Of course new players must come on the field, and of course new cooperation relationships have to be established in order to implement a product-oriented environment policy. But the above example shows that new players must be led to cooperate on, among other things, experience exchange, and that long standing traditions have to be broken down in order to establish these new communication channels and cooperation relationships. So the challenge is significantly greater than it might first appear. Production focus These conclusions apply particularly to the earlier production-focused initiatives in the textiles industry. The picture is more varied in relation to the electronics industry, where product projects have been carried out within enterprises, but these have almost exclusively focused on environmental assessment and on setting up guidelines for “sustainable electronic products”. This is absolutely essential, but has not contributed to gaining practical product development experience, with trade-offs between functionality, design, quality, etc., and with increased environmental cooperation between environment, production, development, and marketing people. The signal change Similarly, it has been hard to find any evidence in the cleaner technology projects evaluated that the cooperation and communication patterns in the two sectors were in the process of being extended to involve the missing player groups. However, the composition of the product panels appointed under the auspices of the Danish Environmental Council for Cleaner Products – especially for textiles – signals the necessary change of course, and the product panels’ action plans are also moving in this direction. In isolated product-oriented projects, for example related to commercial laundries in the current evaluation, and in the context of the Programme for the Promotion of Environmental Management and Environmental Auditing in Small and Medium-sized Enterprises, positive experience has been gained with involving business associations and with carrying out projects in “growth groups” as a measure to actively involve more players in preventative environmental work (Christensen, et al, 1997). The product chain The previous section highlighted some critical, different conceptions of the development process in enterprises. In a similar fashion, one can distinguish between fundamentally different conceptions of activities in the product chain. – technical/material A product chain can be described with an emphasis on the technical, material, and environmental aspects of the activities in the chain. Life-cycle assessment clearly has this focus with the aim of itemising and assessing the environmental effects in the various phases of a product’s life-cycle, from the cradle to the grave. – economic/social A product chain can also be described with an emphasis on the economic, social and communication relationships between the players in the chain. This focus is necessary in order to understand the conditions for implementing changes in the product chain with the aim of promoting the development of cleaner products. However, the methods and tools for understanding the economic/social aspects are relatively unknown and untried in the environment field. But projects have been carried out, especially in relation to the communication aspects of environment work in the product chain, for example on raising awareness of products’ environmental properties (Environment - Quality Function Deployment) (Olesen, et al, 1997), on market-oriented environmental communication (Arnfred, et al, 1997) and on Environment Dialogue (Niemann, et al, 2000). But the funding for these has been “peanuts” compared to what has been spent on the development of life-cycle assessment as a tool. This bias is gradually being changed, for example by the appointment of the product panels under the Environmental Council for Cleaner Products. The balance The right leg – life-cycle assessment – is well developed and powerful; while the left leg – the player perspective – has been quite atrophied until now. To avoid misunderstandings, both legs are necessary for the Product Oriented Environmental Initiative, which is why the economic and social perspective of the player relationships in the product chain clearly must be given greater priority, to ensure balance. Recommendations – players Against the background of the perspective in this section, the following recommendations and ideas are presented with the aim of ensuring broader participation of the different actors:
2.1.3 The marketThe marketAnother characteristic of the earlier cleaner technology strategy is that the technological innovative value – gradually in a broader and broader sense – together with the potential environmental improvements, have been the critical decision criteria in the assessment of whether a project should be given funding and initiated. – a naive relationshipThis does not mean that economics in terms of possible savings and competitive advantages have not been assessed or had no significance. The claim being made is simply that economics and competitive advantages have not been among the primary success criteria, and this has contributed to creating a naive relationship to the market in the cleaner technology strategy up until 1999. Pieces of the explanation This is supported by the fact that the market has been “non existing” in the projects evaluated. The focus on production, the expert and consultant- driven projects, the players involved, the implicit success criteria, etc., are all significant elements to explain this. The market has thus not been in focus up to 1999, but is increasingly becoming so with the Product Oriented Environmental Initiative, with the market becoming a central mechanism in relation to creating demand for more environmentally sound products. Added to this is the fact that the perception of the relationship between the environment and economics is only slowly changing to a more integrated perception (cf. the examination below). The environment and economics Based, among other things, on this evaluation, distinction can generally be made between different perceptions of the relationship between the environment and economics:
These different perceptions of the relationship between the environment and economics reflect the fact that, in step with changes in the cleaner technology strategy (cf. chapter 1), changes have also taken place in the perception of the relationship between the environment and economics, including the perception of the significance of the market for an enterprise’s environmental initiatives. The environment as a cost The original focus in the environmental regulation of industry using end-of- pipe solutions in the form of sewage treatment plants, chimney filters, etc. led to a perception of the environment as a cost to enterprises. Not only did enterprises have to make comprehensive investments in plant as a result of environmental requirements, there were also significant operational expenses associated with these. At the international level, the Polluter Pays Principle became an importance principle. The environment as resource savings One of the critical successes of cleaner technology has been that this strategy has contributed to changing the perception of the environment as a cost to industry. The slogan since the late eighties has instead been, Pollution Prevention Pays (3P), and the vast majority of projects focusing on cleaner production processes have resulted in good opportunities for cost reductions in the form of resource savings on water, energy, raw materials, etc., with associated reductions in the costs of emissions and waste disposal. Against this background, the environment has been increasingly associated with cleaner technology and resource savings. This aspect has been most apparent in the textiles industry, where the cleaner technology projects carried out at dye houses have shown potential for a 90 per cent reduction in water usage and a 70 per cent reduction in energy use, with associated reductions in emissions. This significant potential will be a competitive advantage for the Danish dye houses – if it is realised and if resource costs are similar in other countries.4 In the textiles industry there is an example of an enterprise, on its own initiative, achieving such large resource savings via cleaner technology projects carried out, that it is keeping the approach close to its chest – since the savings constitute a competitive advantage. Similar examples have been seen in other sectors, for example the Northern Jutland herring industry. So even though the focus has been on cleaner production processes and on reducing resource consumption and emissions, these can still be associated with competitive advantages due to the magnitude of the savings; and some enterprises have also clearly gained an improved image via these activities, which might have indirectly contributed to market advantages in the marketing of their products. The environment as improved image With the increasing focus on environmental management from the mid-90’s, the perception of the environment and economics has been shifted further. Whereas cleaner technology was equivalent to resource savings, and the cleaner technology solutions developed were mostly cost neutral, the perception with environmental management has become more comprehensive and no doubt also more diffuse: the environment as improved image. In a study from 1998 of 107 environmentally certified enterprises, the general picture was that these enterprises had started environmental management primarily to be at the leading edge, and due to image and marketing considerations. Where environmental management has been introduced, 45% of enterprises as a whole have assessed that they have derived economic advantages from it. When the enterprises categorised the types of advantages, 54% stated they had derived economic advantages, divided into resource savings (53%), a better image (42%), strategic advantages (28%), environmental tax savings (25%), and increased sales (19%). (Christensen, et al, 1999). Thus resource savings still play a significant role, but in addition, a better image is particularly emphasised. Seen in light of the fact that market factors have generally been underplayed in preventive environmental initiatives, the above proportion of enterprises which achieved market advantages in the form of increased sales when they introduced environmental management might not actually be too bad. For the EMAS-registered enterprises, it is further the case that one quarter of these enterprises have recorded increased sales as a consequence of environmental management. It appears that a number of enterprises with a certified environmental management system proceed on to a product-oriented environmental initiative, partly through eco-labelling of products. This tendency has been especially clear in the graphics sector, where enterprises with an environmental management system based on EMAS or ISO 14001 – once water and energy use could not be significantly reduced further – have begun to work in a more product-oriented manner. Graphics enterprises are clearly over represented as a sector, in terms of the number of eco-labelling licences. This can be taken as an indication that the environmentally certified graphics enterprises have moved on to their products, and have sought to achieve a competitive advantage via eco-labelling. At the moment there are no other sectors in Denmark where the environment has become a competition parameter to the same extent, excluding some categories of foodstuffs bearing the Ø label for organic products. The environment as a market advantage It has not been possible to find any evidence of strong trends that cleaner products are becoming a competition parameter in the sectors evaluated. In all three sectors, some leading enterprises have a clear vision that there is a potential market advantage in developing cleaner products. But there is no sign – as yet – of a clear trend for the integration of environmental considerations into product development and marketing. The market has clearly been most in focus in relation to the selected product projects. Of 35 projects investigated, 20 have resulted either in a marketed product (6) or the production of a prototype (14). Of these 20 products, the assessment is that half will have higher production costs than comparable products, while four will have unchanged costs, and four will have lower production costs. Of the 14 prototype projects, eight enterprises have plans to market their products, and two are developing products which are expected to be marketed. All up, about half the 35 product projects will result in marketed products in the short term. The majority of enterprises involved in these product projects have a tradition for using environment in their marketing, but even so, only a very few have considered investigating the possibilities for eco-labelling. This is most likely due to the fact that official labels have not been developed for most of the products involved, but conversely, it is of concern that eco-labelling is not included as an option to be investigated. A market dynamic will necessarily require that the official eco-labels cover as many product categories as possible, and that the supported projects actively relate to eco-labelling. The environment as responsibility for nature, people, and economics The Brundtland commission’s report “Our common future” from 1988 introduced a “magic” triangle in which the corners were labelled environmental, economic, and social factors. This was to highlight the fact that governments, at the societal level, had to seek to politically balance economic, social, and environmental development. Some larger international enterprises have taken on this perspective in the form of “the Triple Bottom Line”. These enterprises are signalling that they will strategically work for profit – the economic conditions, people – the social and working environment factors, and the planet – the environmental conditions. These ideas are the expression of a new strategic orientation in leading enterprises, with an increasing recognition of the fact that these three factors mutually condition each other. Initially it appears to lead specifically to annual reporting on all three areas in the form of economic, social and “green” accounting, cf. Novo Nordisk’s publication of all three types of accounts for 1998. The meaning of the 3P abbreviation has changed no less than three times over the last 10-15 years. 3P originally referred to the “Polluter Pays Principle”, but then a shift to “Pollution Prevention Pays” took place with cleaner technology. Today it is used to refer to “People, Planet and Profit”, which, for example, Brd. Hartmann used in the environment report for 1997 (Brd. Hartmann, 1998). Brd. Hartmann is also one of the relatively few enterprises which systematically works with life-cycle assessment and environmental considerations in product development, and which also has a strategy for how each factory should gradually be “equipped” to work with these via environmental initiatives based on cleaner technology and environmental management. The new meaning of 3P can be taken as an indication that the profit motive and market forces no longer completely dominate enterprises’ horizons. Social and environmental responsibilities are having increasing significance –especially for enterprises which proactively seek to shape their stakeholders’ perception of the enterprise. In other words, this responsibility for people and the environment is becoming a condition for an enterprise to be able to continue generating profit. Break This examination of the changes in perception of the relationship between the environment and economics indicates at the same time a break and continuity. The break took place right back at the change from end-of-pipe to cleaner technology; from the environment as a cost to the environment as resource savings. This can be seen as a paradigm shift, both in terms of technology and in the perception of the relationship between the environment and economics. and continuity The other changes are all within the prevention concept and thus represent a gradual expansion of the perception of the environment and economics from the internal to the external, from production to product focus, from savings to strategic competitive advantages – that is, from economics in a simple sense, with a focus on price and savings, to economics in a more comprehensive sense, taking into account social/ethical and environmental factors. Put in another way, an enterprise’s social responsibility is becoming an economic condition for running an enterprise. Non-simultaneity In relation to enterprises, this development represents non-simultaneity, since among Danish enterprises all these types of perception of the environment and economics are clearly represented, presumably even with over-representation in the earlier categories. From productivity to innovation to credibility It is worth noting that the perception of competitive advantages has changed along the way in this process. As implied above, there are differences between whether competitive advantages are achieved via resource savings in production or by strategically developing and marketing environmentally friendly products. Competition parameters on the market can no doubt generally be said to be gradually expanding from productivity, with a focus on price and costs, to innovation, in the form of design, quality, image etc., to credibility, via official labelling of products and holistically linking profit, people and planet. Recommendations – the market With the Product Oriented Environmental Initiative, focus has been decisively placed on market orienting preventive environmental initiatives. Against this background, the following recommendations and ideas can contribute to ensuring greater market orientation by:
2.1.4 Measures – between the government and the marketChanges in policy A common characteristic of the development trends discussed is that a modernisation of the government’s traditional way of executing policy is taking place. A number of tasks are being managed by groups outside the public-administration apparatus, and policy is increasingly being aimed to make use of the dynamics of the market. There has long been interest from political parties in how competition conditions in the market might be extended to include environmental factors. A significant proportion of the political measures which have been put into play in recent years only have an effect if the market conditions are affected. This applies first and foremost to eco-labelling, but a number of other measures such as environmental management, green accounting, etc., have significance for an enterprise’s image and can be expected to influence market conditions indirectly. The market dynamic Back in the mid-90’s, people in EU circles (figure 2.3) were already thinking about how cleaner products could be initiated by creating a market dynamic. If environmental auditing is upgraded to environmental management, and analysis of emissions, etc. to green accounting, then the model is up to date with current conditions in Denmark. Environmental management, green accounting, and eco-labelling have been the important measures to date used to influence consumer awareness of and preference for cleaner products.
Figur 2.3 The figure indirectly illustrates a bigger problem in preventive environmental initiatives – the powerful split between process and product and between environmental management and eco-labelling (Remmen, 1996). One challenge for the Product Oriented Environmental Initiative is to link these aspects together to a much greater extent (cf. one of the themes in chapter 1). Industrial development strategy – .dk21 With the government’s new industrial development strategy, .dk21, and with the appointment of a working group for a new green industrial development policy, plans are in place to ensure that the Product Oriented Environmental Initiative is not just an environmental sector program, but that this initiative is anchored in the context of the Ministry of Trade and Industry and the other sector ministries. Value-based competition These initiatives can presumably contribute to placing greater focus on the environment as a responsibility and on value-based competition. “With the transition to the knowledge society, where the stream of information, the pace of innovation and the public’s level of knowledge is continuing to increase, value-based competition will win out. More and more enterprises in recent years are facing new demands from customers, investors, employees, and society around them. Enterprises are being required to take a position on central society issues such as, environmental development, social considerations, and the ethically responsible utilisation of new technology. Thus political decisions are being made increasingly via the market” (The Ministry of Trade and Industry, 2000). 2.2 Different development dynamics in each sectorSector changes In this section the similarities and differences in the development dynamics in the textiles and electronics industries will be assessed. The transport sector will not be considered at this point. Globalisation There are clearly similarities between the textiles and electronics industries in relation to how globalisation and changes to the international division of labour have led to significant restructuring in the two sectors. However, it is not necessarily just the parts of these sectors with the greatest environmental impact which are moving abroad, but rather the labour-intensive elements, of the textiles industry in particular. So the immediate consequence of this globalisation is that transportation’s contribution to each product’s total environmental impact – all else being equal – must have increased. There are just as clearly differences between the two sectors in relation to which environmental impacts and which potential solutions are being focused on. The environment in textiles In the textiles industry, focus has been on resource consumption and discharges and emissions from production, especially in relation to water usage and wastewater, and energy consumption with the associated emissions. The solution has been the development of new water treatment techniques which can dramatically reduce water usage, while also reducing energy consumption significantly. Textile products, however, have only been the subject of relatively few studies, and just a single project has focused on actual product development. The environment in electronics The production processes in the electronics industry and their environmental impacts have, however, only been the subject of cleaner technology projects to a limited extent. Focus has rather been on the materials used in products and on formulating guidelines for the development of cleaner electronic products. This is because the significant environmental impacts from electronic products arise in the use and disposal phase. Following on from this, it is our impression that preventive environmental initiatives in the electronics industry are only just beginning to seriously gain a footing – apart from three or four well-known enterprises. Incentives generally derive from the problem of waste in relation to electronic scrap, and from the debate around take-back of end-of-life products. There is also a difference between the sectors in how cooperation works in relation to development projects carried out within what can be called an enterprise’s development and knowledge network. The textiles network Environmental initiatives in the textiles industry have largely been carried out by two consultant/service institutions, the Danish Technological Institute (DTI) Centre for Clothing and Textiles, and the Institute for Product Development (IPU), especially in relation to cleaner production processes and cleaner products, while Cowi Consult has had a leading role in relation to environmental management. Out of 30 cleaner technology projects, only eight have been carried out without DTI or IPU involvement. The electronics network The picture is significantly more complicated in relation to who has taken the initiative for cleaner technology products in the electronics industry. In the vast majority of cases different organisations have taken the initiative and responsibility for carrying out projects. There are only two cases where the same organisation has been responsible for two different projects, Danfoss and Elektronikcentralen (now DELTA). The IPU and the DTI, on the other hand, have had a very subdued role in this sector, with the DTI only having been responsible for a single literature study back in 1992. The business associations The two central business associations have had different roles in environmental initiatives. The Federation of Danish Textiles & Clothing (DTB) has played an active role, both in relation to the development of a chemical assessment system and in communicating experience from cleaner technology projects. However, the DTB has consciously chosen to leave the responsibility for carrying out a sector environmental management project to a consultancy firm. The sector organisation for the Danish electronics industry (EI) has similarly played an active role in relation to the development of an environment database on cleaner technology, waste and waste processing, but has otherwise had a less dominant role in relation to carrying out and communicating cleaner technology projects. However, EI has chosen to be responsible for the environmental management project, using consultants as subcontractors. The differences in environmental impacts between the sectors, outlined above, also have significance for which measures are employed and are effective in government environmental regulation. Environmental regulation in textiles The traditional “command-and-control” regulation surrounding chemicals and wastewater has helped to get environmental initiatives underway at the textile dye houses. Both chemical and wastewater regulations have been implemented in cooperation marked by consensus between the authorities and enterprises, which combined with the cleaner technology projects initiated, has increased awareness of the importance of prevention at the source. It is not clear whether the environmental authorities will prescribe the use of the best avaliable technology – which are also cost-effective. Experience from other sectors does not suggest that these options will be employed, even though the effects of the technologies developed can be “translated” into emissions requirements. Economic measures in the form of taxes on energy have been implemented in a way which has aroused great opposition in the sector; and the differences between local authorities in the costs of wastewater discharges have also been a source of irritation to enterprises. It is our assessment that neither the normative nor the economic measures have had an effect yet in relation to initiating a product-oriented environmental initiative in enterprises. Only two enterprises have obtained official eco-labelling of their textile products with the EU Flower and the Scandinavian Swan label, in the summer of 1999. Green public procurement has not broken through according to those interviewed in the sector. Environmental regulation in electronics In relation to the electronics industry, normative regulation directed towards the production process has only had significance in sub-sectors with requirements for environment approval, such as for printed circuit board production. However, product-oriented regulation has a much greater significance in this sector, in the form of the statutory regulation regarding electronic scrap, and planned regulations such as a take-back scheme for electronic products, manufacturer responsibility for waste disposal, standards, etc. In terms of eco-labelling and purchasing guides, these have been prepared for photocopiers, computers, printers, fax machines and other electronic office equipment. Generally speaking, regulation of the electronics industry is still “on the drawing board”, with the clear trend that it is directed towards products, since the environmental impact derives primarily from the use and disposal of these. Clearly, international regulations and agreements, especially in the EU context, also have enormous significance in this sector. Sector differences It can be observed that awareness of the problem and solution in relation to preventive environmental initiatives varies quite significantly between the sectors, and that the incentives for getting started are different for the enterprises in these sectors. Something which works well and helps create interest in one sector can be quite absent in another. The main players and the relationship between the parties involved can also be extremely different, as has been the case in the textiles and electronics industries. Sector knowledge Against this background there might be reason to seek more detailed and broader knowledge of the sector prerequisites for enterprise environmental initiatives and greater insight into how cleaner processes and products can be developed and the knowledge disseminated in the individual sectors. Expensive technology development projects have been carried out, especially in the textiles industry, and yet dissemination of the very beneficial solutions happens, at best, quite slowly. More detailed knowledge of the sector conditions, information channels and patterns of communication might have influenced the way these development-oriented projects were tackled, and have contributed to greater priority on activities relating to experience exchange and knowledge dissemination in the sectors. The incremental steps method A clear strength of the cleaner technology strategy is the incremental method, where a platform for a product-oriented environmental initiative is gradually created through active involvement of the business associations and by extending the repertoire of measures, etc. The product panels appointed for textiles and electronics have a cleaner technology base to build on; but the dynamic in the Product Oriented Environmental Initiative is only now beginning to be established in these two sectors. 2.3 General conclusionsFrom an overall perspective, a shift has taken place in the perception of the problem and solution lying behind preventive environmental initiatives, from cleaner production processes to environmental management to cleaner products (see chapter 1 for more details). These changes are especially evident when one considers the environmental initiatives in the sectors along with the two support programs for environmental management. In terms of the action plans for cleaner technology, a shift in focus has taken place from technological development to dissemination to the beginnings of an integration of enterprise environmental initiatives, environmental regulation, etc. (Remmen, 1995 and 1998). This general characteristic is clearly in the action plans and in the intentions behind the initiatives, but penetration into the individual sectors is quite varied. 2.3.1 Cleaner technology in the sectorsCleaner technology in the textiles industry In the textiles industry, the commissioning of the framework program in 1993 meant that focus on technical demonstrations and development projects lasted a long time; while focus on dissemination only appeared in around 1997-98, because people were waiting for the results from the development projects. The commissioning of the Dantex project in 1990 laid out a path which has come to dominate the cleaner technology strategy in the textiles sector since that time. In parallel with this, work was being done on integration of cleaner technology into environmental regulation, business association initiatives, etc., while focus was also being placed on tool and method development directed towards products. Cleaner technology in the electronics industry The cleaner technology projects in the electronics industry are also atypical in that there has always been more focus on the products than on the production processes. Initially focus was largely on the substitution of environmentally harmful substances such as CFC, PVC, and heavy metals. While in the period from 1993-97, these projects continued in parallel with a more comprehensive and product-oriented environmental initiative. In addition, the trend has been for large enterprises in particular, such as Danfoss, NKT, and TDC, to be on the field – possibly with the implicit expectation that these enterprises could act as driving forces for preventive environmental initiatives in the electronics industry. In any case, it can be observed that there has been no separate focus on communication and dissemination in this sector. Cleaner technology in transport The transport sector differs from the other two sectors in that no support has been given to cleaner production – ie. reduction of the environmental impact from the production of the means of transport. In a way, the cleaner technology projects in the transport sector have always been product related, since focus has been on investigation of environmentally friendly forms of transport and on demonstration and development projects. The projects have largely been consultant-driven, and no projects have placed special focus on communication and dissemination. The projects have been relatively small, with an average cost of DKK 500,000, while the average has been about DKK 1 million in both the textiles and electronics industries. There has been no coordination and prioritisation of the cleaner technology strategy in relation to the significantly more extensive development funds of the Transport Council and the Ministry of Transport. 2.3.2 ResultsThe above differences in approach between the sectors mean that it is difficult – if not impossible – to compare the results across the sectors. But the following main results can be highlighted in relation to the individual sectors. Results in textiles The cleaner technology strategy in the textiles industry has been relatively targeted, compared with electronics and transport, since the framework program and the parties involved have contributed to focused initiatives directed towards textile wet processing. There has been no equivalent joint strategy in relation to the product-oriented projects. 30 cleaner technology projects have been carried out in the period from 1990-97, with a combined allocation of funds of about DKK 30 million. Just over half of these funds have been utilised in relation to dye houses. Textile wet processing Initiatives in textile wet processing have been characterised by a scientifically oriented approach, which has primarily been formulated and executed by consultants. Cleaner technology in wet processing deals with both simple process changes and restructuring working procedures, as well as completely new dye machines and equipment for processing and recycling process water. For textile wet processing, a total concept for the reduction of environmental problems has been worked out and on a demonstration basis, the potential for a wastewater-free dye house has been shown. Pilot and full-scale investigations have been completed dealing with the treatment and recycling of washing, dyeing and rinsing water. In the short term, significant reductions in resource consumption have been achieved, and in the long term there is great potential for a 90-per-cent reduction in water usage and a 70-per-cent reduction in energy consumption and in the associated emissions. A number of ideas for optimisation and resource savings at textile printing shops have also been collected and developed. Textile products Some of the product-oriented projects in the textiles industry have developed new tools with a general character relevant to other sectors. This is true of the projects on log books and supplier management. The product-oriented projects have been quite diverse and have almost exclusively had the character of elucidations. Only the project on “washable suits” has resulted in actual product development, although this has not been taken further. Results in electronics Just over DKK 10 million has been spent in the period from 1993-97 on cleaner technology projects in the electronics industry. Four of the projects, costing just under DKK 4.5 million, have focused on substituting the use of dangerous substances. A further four projects, costing just over DKK 6 million, have focused on the development of cleaner electronic products. Finally, two smaller projects have dealt with the problem of waste and regulation. Environmental assessments have been carried out in seven of the 10 projects, and in all but one case, the EDIP method has been used. Substitution and electronics The substitution projects have focused on harmful substances such as solder containing lead, PVC in cables and tin/lead associated with printed circuit board production. Only the project on PVC-free cables has been finally completed, and the technical possibilities for substitution are good, but because of higher prices and lack of knowledge about cable lifetimes, the competition situation is currently assessed as being less good. Electronic products Electronic products contain a number of different materials, leading to emphasis on both choice of materials and disposal. The strength of the product-oriented component of the cleaner technology strategy has been that guidelines have been developed for sustainable electronic products. One of the projects focused on developing an operational tool for product developers – a handbook containing specific guidelines and an introduction to life-cycle assessment. One critical problem is that knowledge about and application of LCA in the sector has been extremely limited, cf. below. Results in transport In relation to the transport sector, about DKK 5 million has been allocated to support 11 cleaner technology projects. This represents relatively few projects and quite modest funding compared to the other sectors. In the area of goods transport, the main focus has been on analysis; while in relation to passenger transport focus has almost exclusively been on carrying out life-cycle assessments of busses and cars. Product orientation within transport The projects evaluated have been predominantly product-oriented. But onlytwo projects have sought to do actual product development in the form of a solar hybrid car and an environmentally friendly oil burner for heating in busses. Only the latter project can be said to have gained any commercial or market significance. 2.3.3 DisseminationDissemination studies have only been carried out in relation to the cleaner technology projects in the textiles and electronics sectors, since the extremely diverse character of the projects in the transport sector and the selected product projects makes a study of the dissemination and awareness of the project results impossible. Overall impression The overall impression of the cleaner technology strategy in the two sectors is that the majority of the projects have been successful, but that dissemination of the results has been quite limited. This applies to both sectors, even though the reasons for this are undoubtedly quite different. Dissemination in the electronics sector There was generally good awareness in the electronics sector of cleaner technology; but awareness of the projects completed was quite limited – with the exception of the project on conductive adhesives. The results of the projects can generally be described as constructive, although the interest from other enterprises in the electronics sector has not been overwhelming. A seminar on accessible guidelines for environmentally friendly electronic products received no support and was cancelled. In addition, there was only limited interest in an information database on cleaner technology, recycling and waste management in the electronics sector; despite the fact that disposal is an important phase in an electronic product’s life-cycle. Pieces of the explanation for the limited interest Based on interviews with 20 electronic enterprises, the explanation is apparently to be found in the limited spread of preventive environmental work in the form of environment policy, environmental management, and environmental requirements for suppliers. This is combined with the fact that there has not been any preventive environmental work in the electronics sector resulting from government requirements regarding environmental approval, and the fact that customers and consumers have expressed only limited interest in the environmental impacts of electronic products. The new requirements relating to electronic scrap, the efforts of the business association for the electronics industry (EI) relating to product-oriented environmental management, the appointment of the electronics product panel, etc., are new trends which may contribute to increasing interest in the environment in the electronics industry. Dissemination in the textiles industry Preventive environmental work is definitely on the agenda in the textiles industry, especially among the dye houses. More than half the dye houses in the dissemination study had a written environment policy and were working systematically on ongoing environmental improvements by setting environmental goals and preparing action plans. Nine enterprises also had some form of environmental management, of which two were EMAS registered and one was certified. Virtually all the dye houses also placed environmental requirements on their suppliers of raw materials, dyes, and accessory agents. Good awareness – but limited use Against this background, it is not surprising that awareness of both cleaner technology and of the projects carried out was quite good. Despite this fact, only the slightest number of the technologies had been put to use to any appreciable extent, compared to the potential. In general, the degree of dissemination of the cleaner technologies developed depends on a number of factors, including the machine manufacturer, patent protection, relationship to the supplier, number of enterprises involved, etc. It has been significant, for example, that some dyeing machines have a modular construction and allow for ongoing technological modernisation and upgrading, also in terms of the environment, while machines from other manufacturers do not provide this facility. The limited dissemination can also be explained by the fact that relatively few enterprises have been involved in the individual projects, and that there have not been clearer requirements on the parties carrying out the projects to ensure ongoing communication. From awareness to application Viewed as a whole, there is reason to point out that the existing cleaner technology projects should be pursued to their conclusion. It is not satisfactory that there is widespread awareness of the developed technologies, if these are not being put to use in the sectors. For example, over DKK 15 million has been invested in projects directed towards the use of water, chemicals and energy in the textile dye houses. The parties involved should assess whether the dissemination and application of these cleaner technologies can be ensured via an increase in information initiatives, the initiation of economic schemes relating to environmental investment and/or via regulatory pressure. 2.4 Blind spots in the product-oriented projects to dateAt least a few factors stand out as completely or partially absent from the product-oriented initiatives under the cleaner technology action plan from 1993-97. These “blind spots” relate to consumption levels and transport, and the organisational anchoring of product-oriented environmental initiatives in enterprises. 2.4.1 Transport and consumption as blind spotsA pronounced characteristic of the cleaner technology strategy up until the launch of the Product Oriented Environmental Initiative has been that environmental impacts from the transport of goods have not been included as a significant factor in the projects in the textiles and electronics sectors and even less in the product-oriented projects. Similarly, consumption and the consumer have not been in focus in the earlier cleaner technology strategy, as the perception of the Danish Environmental Protection Agency is that this has not been warranted. Transport as a blind spot Globalisation in the various sectors has meant that goods transport is increasing, and the extent of transport has meant that the resultant environmental impact represents a significant problem – at society level. However, energy consumption for transport often represents a relatively small part of an enterprise’s total energy consumption – in one of the transport projects it was calculated for one enterprise to be about 7 per cent – and a similar proportion of the products’ total environmental impact. In other words, it can be observed that the earlier cleaner technology projects, along with tools such as environmental management, green accounting, and life-cycle assessment, have not necessarily focused on the transport of raw materials and products. There is thus a deficiency in the tools and approaches employed to date in relation to an enterprise’s environmental initiatives in the transport area, and this needs to be addressed. Consumption as a blind spot The earlier cleaner technology strategy contains the paradox that it is possible to conceive of environmentally friendly production of environmentally harmful products. Against this background, the Ministry of the Environment has focused on the development of cleaner products. This has been underway for several years. It is therefore surprising that the problems associated with consumption patterns and levels have been so absent in the cleaner technology strategy to date. Eco-labelling is basically the only activity which has focused on consumption; but it is worth noting that this takes place in a form whereby only the consumption pattern is changed, or in the best case, is pushed towards cleaner products. The future initiative relating to cleaner products also contains a possible paradox: cleaner production of cleaner products – but with environmentally harmful consumption. Let us consider a couple of examples: Significant technological improvements at the dye houses have meant that clothing production is much cleaner and that environmental consideration has been given in all the phases of the product from the organic cotton through to the retail outlet’s counter. But if changes in fashion mean that the product quickly becomes obsolete, then the environmental improvements vanish in the changeable nature of fashion. Similarly, it is well-known that the technological and design-related obsolescence of electronic products such as mobile telephones takes place much faster than the products actually wear out. Consumption levels are thus a factor to be independently taken up as a theme in any future environmental initiative directed towards sustainable development (Aal, 2000). That the problem is significant is indicated by the fact that “longer product life times” and “better product maintenance options” are the only two factors which have not been included in the work of Danish enterprises with life-cycle assessment (Broberg, et al, 1998). At the same time, these are the only two factors which could have affected actual consumption levels. 2.4.2 Organisational anchoring of environmental considerations in product developmentOrganisational requirements None of the cleaner technology projects evaluated had focused on which organisational factors are necessary to ensure that environmental considerations become integrated into product development. Based on experience with environmental management, the necessary conditions include: management commitment, motivation, engagement and resources of employees, and organisational anchoring of environment work. Environmental consideration A similar view can be seen in the handbook on “Environmentally Oriented in product design Product Design”, published by the Finnish business association for the electronics industry (Kärnä, 1998). The chapter entitled “How can environmental considerations be integrated into the product design process?” starts by observing that if environmental considerations are involved in product development at all, it is typically at a stage when the majority of the design work has been done. By that stage it is difficult and expensive to make dramatic design changes to improve the product’s environmental performance. It is similarly observed that product developers are often unaware of the environmental consequences of their decisions, which results in a limited possibility that environmental considerations are properly taken into account in the initial phases of product development. The design process Against this background, five aspects are outlined which should be considered with the aim of integrating environmental considerations more fundamentally into the design process:
These recommendations have been put forward on the basis of an enterprise viewpoint and emphasise that environmental consideration in product development is largely an organisational issue. Equivalent attention to these organisational aspects can be found in the UNEP journal, which in 1998 had a feature on “Product Development and the Environment”. Enterprise strategy Strategic effort In order for environmental considerations to be integrated into product development, management at all levels must be committed to the implementation of a product-oriented environmental initiative. This will require that management chooses the strategic focus areas for the development work. Based on the guidelines and design criteria which are known from “Design for the Environment”, an auxiliary tool has been developed for facilitating these strategic discussions and prioritisations. Raising awareness The tool is called the “Environmental product development strategy wheel” and is based on the life-cycle perspective. This tool can help to raise awareness in the entire organisation about the goal of initiating product development with the environment at the centre. The figure below illustrates an environmental profile of an existing product, which can be compared with the environmental profile for the product the enterprise wants to develop.
Figure 2.4 It is, of course, not enough to simply get all the development staff interested in the environment. The entire organisation has to be involved and committed, so that the production staff can understand the aim of changing production to be able to produce the new product and so that the sales staff can see the advantages of the new product and work out a sales strategy for it, using environmental documentation of the advantages – possibly in the form of an environmental product declaration or eco-labelling. Put another way, it is not enough to simply employ an environmental specialist to be responsible for a product-oriented environmental initiative. This initiative can only be carried out if it permeates the entire organisation. A product-oriented environmental initiative requires at least as much from the organisation as environmental management. These factors speak for both active participation of the various employee groups, and integrated product development with cooperation between development, production, and marketing (cf. the next two sections). Employee participation Employee contribution It is important to motivate the various employee groups to support a product-oriented environmental initiative, as this can lead to changes in an enterprise’s daily routines and organisation of work. Furthermore, there is reason to expect that the employees will be able to make a positive contribution of ideas for product development. Employees are also consumers out of hours, and are in contact with the enterprise’s customers and suppliers. Employees also have extensive knowledge about production, and in a number of enterprises they have been a significant resource both in relation to environmental optimisation of production, and the introduction of environmental management (Lorentzen, et al, 1997). Employees also have an interest in ensuring that consideration is given to the working environment during the development of new processes and products. Resources Management must therefore allocate the necessary resources to development work, in the form of time, knowledge (training), and money, and must also ensure that product development is organised in such a way that permits employees to contribute their ideas. Recommendations – employees Against this background, it is recommended that projects be initiated with the aim of working out:
Practical trials involving brain-storming sessions, training courses and experiments with cooperation and experience exchange, both internally and externally, are some of the ways to find answers to these questions. Integrated product development Sequential process Traditionally, product development has been arranged as a sequential process in enterprises. The development department first developed a prototype and then a product, after which the production department made minor adjustments to the product and then produced it, and finally the sales department organised the marketing and sale of the product. – the problems with this However, this way of organising product development leads to problems. Development staff have been caricatured as being enthusiastic about new technology, so that the product ends up being more fancy and advanced than originally intended; while the production department has had to make changes to the product in order to have any chance of being able to produce it; and the sales department has been mystified about what happened to the requests and signals they gave the development department 9 months ago, but in the meantime the market has changed anyway, so now … Integrated product development Integrated product development has therefore been launched as a measure for ensuring ongoing cooperation between development, production, and sales departments throughout the development of a product. But what models and experience of this are there when it comes to integrating environmental considerations into product development? What procedures and requirements have to be embedded in the organisation to ensure environmental consideration throughout the development process? This has never been seriously investigated and answered. Environmental management Similarly, it might be important to investigate how the relationship between – eco-labelling ISO 14001 and 14040 can be approached in practice. Philips is an enterprise which has some interesting ideas on this point and which has also formulated simple guidelines for how product developers should include environmental consideration in product development (Meinders: Philips EcoDesign Guidelines, 1997). There is also a need to establish a form of life-cycle-based environmental management whereby enterprises are stimulated to expand their environmental initiatives associated with cleaner production and environmental management to include products based on the life-cycle perspective (cf. chapter 1). Recommendations – management Against this background, it is recommended that development projects be initiated which shed light on:
2.5 Recommendations concerning program administrationProgram administration It has not been the purpose of this sub-evaluation to evaluate the administration of the programme, including organisation, the time taken to perform administrative procedures, etc. However, experience gained from the evaluation still gives rise to some general recommendations for the administration of the programme for cleaner products. The most important of these changes has already been made, since the product programme has become needs and supply driven, instead of being based particularly on the reports of consultants. The recommendations relate to:
Focus areas As long as there are sufficient resources, it is an advantage to choose focus areas as in the framework programme for the textiles sector. In this way it is possible to focus on selected problem areas, and it can help to disseminate and raise awareness of the initiatives. At the same time, this places greater demands on the program administration and any steering committee not to become “inwardly focused” in their work but to constantly seek new challenges by drawing new aspects and new players into the work. As mentioned in the textiles evaluation, the strength has been the focus, while the weakness has been the limited involvement of other players. A focused effort requires openness and that the steering committee, product panels and similar bodies constantly set new goals for the environmental initiatives each time the earlier goals are achieved: in other words, dynamic follow-up with ongoing adjustment of goals and measures. Program managementAs was stated in connection with the evaluation of the Programme for the Promotion of Environmental Management and Environmental Auditing in Small and Medium-sized Enterprises, the program administration has to let itself be inspired by the systematics of environmental management, by formulating a visionary policy as the long-term guide, by setting specific, measurable targets, by preparing action plans, and by constantly doing follow-up in the form of communicating experience and evaluating initiatives. These “virtues” from environmental management must also form part of the foundation for the work of the appointed product panels. The project’s own self-evaluation and more regular evaluations can provide the basis for making strategic course adjustments, cf. below. Communication Communication efforts have generally been strengthened on the part of the Environmental Protection Agency, while the business associations have also played quite a significant role in communication. However, we have not found any particularly clear indications that the communication effort is being given higher priority in the individual projects, or more accurately, it is extremely dependent on the individual project managers. Furthermore, the textiles evaluation in particular provides no evidence that there is a clear link between well-communicated projects and awareness of the projects in the sector. Recommendations – communication On this basis, investigation and consideration of several possible measures are recommended:
“Ripples in the water” Last but not least, there is reason to assume that the more enterprises are involved in a project, the more awareness within the sector will spread like ripples in the water. This can be achieved, for example, by having several enterprises take part in a sector network / growth group. This has been successfully employed in the Programme for the Promotion of Environmental Management and Environmental Auditing in Small and Medium-sized Enterprises, and also in the cleaner technology program, for example, in commercial laundries and industrial enamelling (see the evaluation of the product-oriented projects – Environment Project no. 522, the Danish Environmental Protection Agency, 2002). Rather than just seeing the projects as knowledge-building in the consultant firm or as development in the particular enterprise, there is clearly potential in viewing projects as the beginning of a learning process and shared experience exchange within the product chain or sector. The use of evaluations Finally, there is reason to question the way evaluations have been used to date in connection with the cleaner technology programme. In this evaluation, a disproportionately large amount of time has been spent on “archaeological excavations” in terms of finding relevant material on the projects carried out. It was difficult to get the questionnaires back from the enterprises in the textiles sector, despite the fact they have received funds for the projects in question. For this reason, more time-consuming telephone interviews were used in the other sectors, and with these it was similarly extremely difficult to get hold of the person responsible for the project in each enterprise. It was especially difficult to track down information in the electronics industry, because the key people had changed jobs, often several times. Furthermore, it is methodologically problematic to ask informants about motives and events which lie up to five years in the past. It could also be almost impossible to gather relatively simple information about, for example, the number of communication activities carried out, since no record of these had been made. Recommendations – evaluations These issues give rise to the following recommendations regarding evaluations:
These recommendations have a mutual interdependence. If the self-evaluations can be used to acquire the greater part of the documentation base, case studies of selected projects and theme evaluations can be used much more extensively to assess elements of strategic significance for program execution and for future preventive environmental initiatives. ____________________________________________________________ |
