Environmental impact of the service sector - and improvement potentials

Summary and conclusions

Background and Purposes

During the previous decades the Danish service sector has grown steadily. Thus the service sector bears its share of resource consumption and environmental impacts.

The purposes of the actual project are as follows:
analysis of environmental impacts deriving from the service sector
identification of possible measures to promote the environment within selected service fields, supplemented with listing of optimisation ideas
listing of ideas of implementation of future environmental protection measures

Moreover, the project aims at providing information on environmental conditions and possible measures of improvements. Useful information which the Danish Environmental Protection Agency (Danish EPA) can exploit when planning its future efforts.

The long-range plan for the review is also to reduce the environmental impacts of the Danish service sector and to widen the supply of environmentally friendly service activities.

Methods and Procedures

The project was accomplished in two stages:

Stage 1: definition of the service sector and general examination of its environmental conditions
Construction of data base containing data on resource consumption, emissions, working environment and overall commercial conditions of the sector.
Stage 2: examination of environmental conditions and potentials of improvements within 4 selected service branches:
- banks, representing office works
- nursing homes, representing the institutional field
- fruit and vegetables trade, representing wholesale and retail trade respectively (representing 2 subgroups of trading)


Environmental reviews of 6 workplaces within each of the above-mentioned service branches have been accomplished through interviewing key figures. Besides, interviews with other relevant major presences representing the 4 service branches have been accomplished.

Improvement potentials have been identified and ideas of optimisation have been formulated. Subsequently, these issues were thoroughly discussed among major presences of the branches during 3 round table discussions in succession.

Environmental Characterisation of the Service Sector

Basically, this project defines the service sector very broadly. By and large, all activity areas not decidedly related to commodity production are defined as service activities - irrespective of being either public or private activities. According to this definition, the service sector occupies 75% of year-round occupied people in Denmark. The service sector accounts for almost 30% of gross energy consumption and approx. 15% of gross water consumption in Denmark.

The service sector covers a wide field of enterprises and activities, and proportionally its environmental conditions are widespread. Therefore, the service sector cannot be characterised by one certain environmental profile only. Its activities range from considerably polluting and resource consuming activities, i.e. the transport sector, to pronounced environmentally protective activities such as wastewater treatment plants and refuse disposal.

The project comprises establishment of a database with environmental data for the various branches of the service sector. This means that the environmental impact of each individual branch has been subject to examination. The applied data mostly emanate from Statistics Denmark. Among others, the project work has demonstrated a need for further detailing of statistical (valid) environmental data in relation to the various branches of the services sector and for further collection of data concerning e.g. wastewater and waste.

Banks

The environmental impact from banks in relation to the service sector in general can be characterised as "medium". The impact from Danish banks on the working environment is characterised as "medium" too. However, assessed per employee, the (working) environmental impacts from banks are less than "medium". Banks can be ranked as part of the knowledge-based enterprises, which make up a major part of the entire service sector.

Traditional banks have so far attached no importance to the environment and a green image, and their investors, shareholders and customers have taken up this attitude. The remaining part of the financial sector is characterised by these circumstances too.

The operational staff appears to have several ideas of optimising the running of the buildings. However, the banks have so far no incentives to increase their environmental efforts - neither internally nor as to incorporating such efforts in their external services. As regards credit rating, environmental issues appear to have gained foothold in the banking practice, but only in relation to risk assessment.

As regards running and purchase procedures in banks, the project results are typical for the financial sector and other office works. Thus the project examination brings forwards an example of saving potentials regarding heating and electricity consumption amounting to 20 and 25% respectively.

The examination leaves the impression that at present the banks do not possess any internal incentives, but only passively await some external pressure as regards wording of environmental policy, implementation of environmental management procedures and development of "green markets". Till now, the banking associations have taken no initiatives either, but simply put the matter in the hands of the individual banks.

We suggest establishment of a debate forum (or similar initiative) with participation of major presences and, possibly, entering into a voluntary branch agreement in order to create the necessary and general incentive.

Nursing homes

The environmental impact per full-time employee from individual nursing homes can be characterised as "low" seen in relation to the service sector in general. It is remarkable, however, that good examples and results from individual "front runner" nursing homes have not been adopted by Danish nursing homes in general. The project results indicate that the majority of Danish nursing homes can go through with considerable environmental (operational) improvements (electricity, heating and waste) by implementing up-to-date cleaner technologies. The examination results quote as example potentials of 15-70% reductions of the operational consumption. It is recommended that nursing homes concentrate the efforts on e.g. lighting for a start.

The municipalities play an important role as to initiating environmental efforts at nursing homes, among others by drawing up operational goals for nursing homes and catering centres, but also by stipulating guidelines directives as to joint purchase procedures and environmental demands in connection with building construction and maintenance.

The project results are considered typical for institutions in general. Moreover, the operational improvement potentials may be applied to other municipal (public) buildings. Thus the effort of putting focus on environmental issues within the institutional area should be incorporated in an overall aiming at optimising municipal/public buildings. On the basis of the project results it is suggested that existing networks for spreading of knowledge / examples get the necessary support. At present, there is a need for systematisation of communication of existing knowledge. Besides, benchmarking could prove to be an important motivation factor too.

Fruit and Vegetables

Wholesale and resale trade forms an essential part of the service sector. Trade with fruit and vegetables only amounts to a small percentage hereof. Focus should be put on spheres directly related to the individual enterprise, namely the potentials of the operating economy. Implementation of cleaner technologies within lighting, cooling and sorting of waste items holds considerable environmental potentials. E.g. 10-30% as regards lighting and up to 50% as regards cooling. Environmental management is an important tool of implementation, and in particular the major presences of the trade play an essential role as to spreading of knowledge and motivation. Furthermore, the criteria for eco-labelling of shops can be used as direction finder in the environmental management efforts, and thus the criteria may facilitate the initial measures.

Focus should be put on overall efforts beyond the individual enterprises’ sphere of influence. E.g. influencing consumer awareness as well as influencing professional / public buyers. Furthermore, focus should be put on spheres where wholesalers as well as retail dealers inquire for official guidelines and regulations in order to avoid distorting competition practices. Appropriate regulations could be environmental documentation regarding fruit and vegetables and maximum lux level in fruit and vegetable shops.