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Evaluering af grønne lokale og regionale netværk med deltagelse af myndigheder og virksomheder

Summary and conclusions

• Focus of the evaluation
• The main issues of the evaluation
• Overview of existing networks
• Initiators of networks
• Models for green networks
• The development dynamics and effects of the networks
  • The effects of the networks
  • Supervision and networks
  • Interaction between the networks and the environmental strategies of the society
  • Interaction between enterprises in the networks' activities / network activities
  • Interaction with external players
• Possibilities for development of the function of the networks
  • Critical success factors and possibilities of action
  • Network-supporting functions - Environmental Forum Denmark and Partnership for Business and Environment
  • Possibilities for development of the networks' function
• The networks' interaction with the Product-orientated Environmental Initiative and Green Market Economy
• Development possibilities to support Product-orientated Environmental Initiative and Green Market Economy

Focus of the evaluation

A number of local and regional green networks have been initiated with a view to introduce local and regional activities based on expanded co-operation between enterprises and environmental authorities.

In May 2002, under the programme for cleaner products, an evaluation of these environmental networks was initiated in order to shed light on the possibilities of interaction with the Product-orientated Environmental Initiative (Danish: Den Produktorienterede Miljøstrategi (POMS)) and a strategy for green market development in Denmark. The specific purpose of the evaluation is to acquire systematic and documented knowledge about the networks and their function, including to:

• analyse existing networks
• describe models for green networks
• assess results of the networks up to now
• uncover critical success factors for networks
• assess how networks can be developed
• assess the possibilities and limitations of the networks as an instrument in the Product-orientated Environmental Initiative and a strategy for green market development

Focus of the analysis of the interaction of networks with green market development has been specified as the interaction with the strategy for Green Market Economy (Danish: Grøn Markedsøkonomi).

The main issues of the evaluation

The evaluation consisted of the following activities:

1. Workshop for central interested parties with the purpose of determining the evaluation themes
2. Preparation of a catalogue of the existing green networks, where the individual networks are described in brief regarding history, purpose, players, activities, structure, and results
3. In-depth interview round with players who do not participate in green networks
4. Preparation of seven cases on green networks on the basis of in-depth studies and focus group interviews with selected networks
5. Analysis and reporting.

The evaluation is oriented towards users and interested parties understood in the sense that, from the beginning, it has been planned that users (networks) and interested parties (Danish Environmental Protection Agency, The Danish Ministry of Economic and Business Affairs, organisations, etc.) were to be involved in the determination of the final evaluation themes. Workshop and interview study of interested parties have contributed to develop the evaluation topics, which form the basis for the planning of the case studies and the final analysis of the green networks.

Through this process, the main issues of the evaluation have been specified to being:

1. Which models of network exists?
2. What has motivated the establishment of local/regional environmental networks?
3. What is the effect of the networks? How is the relation between effort and effect?
4. What is the significance of the networks for the participating enterprises' environmental, financial, and competition-related issues?
5. How is the interaction between the enterprises in the networks? How can enterprises in a local area/region use each other?
6. What types of enterprise participate in the networks? Is it only environmentally positive enterprises?
7. Can the networks become so ambitious that they exclude some enterprises?
8. Do the networks have special significance for small and medium-sized enterprises?
9. How do the networks obtain the necessary resources?
10. What importance do the networks have for the environmental supervision with enterprises?
11. How is the networks' interaction with society's environmental strategies? To what degree are the networks dependent on legislation to support their activities? What is the strategic level of the participating authorities in relation to environmental issues?
12. What are the networks' critical success factors? How can the networks develop into becoming bigger and more viable?
13. How is the networks' interaction with external players?
14. How is the interaction of the networks with the Product-orientated Environmental Initiative, including competence building in relation to national environment targets and LCA methods and product chain management, green purchasing, and substitution of chemicals?
15. How is the networks' interaction with Green Market Economy, including the significance for enterprises' perception of the environmental issue as a strategic area, interaction with suppliers and customers on environment, access to environmentally related technological innovations, methods, etc., knowledge of economic means in the environmental area?

The result of the evaluation is summed up in the following sections.

Overview of existing networks

The evaluation has identified 21 environmental networks with participation of enterprises and authorities, of which one network is under establishment, and one network is a project, seeking to establish itself as a network. Add to this four other networks in the form of an annual environment prize, development groups for life cycle assessment, activities of The Society of Danish Engineers, and the umbrella of the networks, Environmental Forum Denmark (later established as Partnership for Business and Environment.

Local and regional networks exist in most areas of Denmark. Networks have been established in all counties except the counties of Ringkøbing and Frederiksborg and the municipality of Frederiksberg. A network project on the island of Bornholm has the purpose of establishing a permanent network. Below is an overview of networks distributed between counties and municipalities.

Table: Overview of municipal and county networks distributed on counties. Green City is not placed in the table, since it is a national network. However, Green City has weight in the municipalities of Videbæk, Herning, Ikast, and Silkeborg. Also the county of Ringkøbing and the municipality and county of Aarhus participate. The newest participant in the co-operation is Copenhagen.

Initiators of networks

There are the following initiators of establishment of networks:

• Enterprises
• Tender by a ministry (the environment-industrial show window of Denmark)
• Local environmental authorities in counties and municipalities
• Occupational health service (as a part of further training)
• LO (The Danish Confederation of Trade Unions)

Models for green networks

The identified networks have formed the basis for development of four network models, reflecting differences in the purpose of the networks, organisation, and participants. The four models are called:

• Environmental supervision and environmental management
• Local dialogue on environment
• Regional, sustainable development of trade and industry
• Commercialisation of environmental knowledge.

The models have been developed in order to promote an understanding of the networks' function. In reality, a network can contain elements from several models just like they can develop from one model to the others. However, in order to take this into account, the models have been described so flexibly that they overlap each other in those instances where the networks cover several elements.

Most networks have membership, while two municipal networks do not have membership, but inform all enterprises in the municipality.

The below table describes the four network models and their characteristics in the form of purpose, activities, participating players, necessary resources and their establishment.

Table: Overview of connections between network models and their characteristics.

The development dynamics and effects of the networks

The effects of the networks

The evaluation has identified four main types of effects of the networks:

• Significance for the participating enterprises
• Significance for the participating authorities
• Significance for the local framework conditions (i.e. effect which can also include non-participating enterprises and authorities)
• Interaction with the environmental strategies of the society in the form of dissemination and implementation on the local/regional level and the feedback to the environmental strategies on the national level from the local/regional experiences.

The below table sums up the identified effects.

Table: Overview of connections between network models and their effect

Even though several network secretariats emphasise distribution of diplomas to enterprises and institutions, preparing environmental statements as a basis for marketing of the environmental effort, interviews with enterprises in connection with the case studies of the evaluation do not indicate that enterprises utilise diplomas in their marketing.

The following section discusses the development dynamics and some of the identified effects of the networks.

Supervision and networks

In only two networks (municipal) all enterprises are informed about the activities of the networks and of relevant legislation. To all member-based networks, it is a necessity for the authorities simultaneous to maintain activities aimed at non-members, since not all enterprises in a county or municipality participate in the networks.

Dialogue between enterprise and authority in connection with development of environmental management or preparation of environmental statements in the models for environmental supervision and environmental management respectively and regional, sustainable corporate development gives the enterprises a better possibility for planning, since requirements from the authorities do not come as a surprise.

The resources utilised by environmental authorities in the network efforts in the models for environmental control and environmental management and regional, sustainable corporate development do not release a decrease in the supervision activities. All of these networks state that the networks mean an increased need for resources. On the other hand, these networks also offer the possibility of achieving several preventive measures in the enterprises.

There are no examples where requirements from authorities have been eased in connection with the network efforts, but a more dialogue-based relation is developed between enterprise and authority and there is an increased mutual knowledge in several models: Environmental supervision and environmental management, local dialogue on environment, and regional, sustainable corporate development.

Nothing indicates that ambitious networks, directly or indirectly, exclude less environmentally positive enterprises. A network such as Green Network has continuously increased its number of members, even though the requirements for the network's environmental statements have been expanded.

Interaction between the networks and the environmental strategies of the society

The networks cannot stand alone as organisation form in the environmental regulation system. The networks are based on environmental discussions of the society and environmental legislation and other forms of regulation of their activities. I.e. that the dynamics of the networks is dependent on environmental regulation and on the environmental discussions of society. Seen from society's perspective, the networks can contribute in transforming the environmental discussions and regulation into something operational when a new problem issue is suggested locally by an environmentally positive enterprise or authority, and development activities are initiated afterwards. Examples of this are Green Network's efforts in the area of strategic environmental dialogue and enterprises' social responsibility. Via the implementation through development projects and effort areas, dissemination is taking place to an extended group of enterprises than just the frontrunners so that the networks can develop the environmental work of a wide circle of enterprises. However, this presupposes that the necessary resources for development activities are present or can be obtained via the secretariat, applications or local allocation from enterprises or authorities. This form of activity is first and foremost seen in networks in regional, sustainable corporate development and commercialisation of environmental knowledge. None of the networks seem to recruit the environmentally `inactive' enterprises.

The networks' dependence on an interaction with environmental legislation and other forms of public environmental regulation also implies that the networks' effect will be significantly reduced in case of a deregulation in the environmental area with for example a transition to a widespread self-regulation in the environmental area.

The possibility of giving feedback to the regulation on national level is first and foremost an option for the networks, which, as a part of their binding co-operation, work with specific initiatives, and which, therefore, have the possibility of systematically collecting experiences on the measure in question (environmental management, environmental statements, marketing). Feedback is also a possibility for those networks with resources to initiate development projects within the framework of for example the Danish Environmental Protection Agency. An example of the latter is Green City's project on spreading of LCA via supervising authorities.

In connection with the networks' overall role in society, it is a drawback that the networks are not national. This means that the effects - described above - seen by the local authorities and enterprises in the networks do not have any effect on the national level.

Interaction between enterprises in the networks' activities / network activities

Different forms of interaction have been seen between the enterprises in the networks. One form is the ad hoc-based interaction in the form of exchange of experiences and viewpoints at meetings - possibly followed by one or several subsequent meetings in a circle of interested enterprises. There are also more formalised forms of interaction in the form of formation of working groups with a group of enterprises in the area of a problem issue such as environmental management (and often with participation of authorities), and as it is seen for example in connection with a group of drawing offices' development of a common check list for environmentally friendly planning of building and construction projects. The latter is seen in a network based on local dialogue on environment, which shows that also networks with relatively few resources for co-ordination can initiate more formalised activities. At the same time, it is an example that competing enterprises co-operate on developing the market for a service in the expectation that it will be advantageous to all enterprises. Finally, there is interaction between enterprises participating in proper development projects, where enterprises exchange experiences during projects, and where experiences are often subsequently disseminated in networks to be used by other members, for example via a developed tool.

Large enterprises with an environmentally positive attitude and experiences with environmental management and other forms of environmental work like to share these experiences with other enterprises in the networks. However, this presupposes that the networks at the same time offer development possibilities for the environmentally positive enterprises through development of new effort and activity areas. An example is an enterprise, which offered to share its experiences regarding preparation of environmental statements, if it would result in the possibility for the network's secretariat to develop new activities in the network. A small enterprise has expressed that, because of limited staff resources, it is unable to pass on it experiences to other enterprises to a higher extent. The enterprise in question would rather like to buy experience in new activity areas than having to be an active participant in the dissemination of the network activities.

Interaction with external players

Several networks have among their members also consulting businesses and some also have educational institutions among their members. Examples have been seen where networks have been able to form the framework for formulation of common knowledge needs, which subsequently have been formulated as projects and/or consulting tasks. Examples are the establishment of LCA development groups within Green Network and the development of a `Chemistry Guide' in Green Network. The latter was developed by the county of Vejle in co-operation with a consulting business (and financed by the county) as a part of the work done in a working group in Green Network and was subsequently made available to the network. As previously mentioned, networks with secretariats have the greatest possibility of initiating a process with formulation of knowledge needs and subsequent obtaining of external competence.

Possibilities for development of the function of the networks

In the following, focus is on the networks' possibilities for development. Initially, there is a description of central barriers to the networks' development and embedding and possibilities of action in order to overcome the barriers. Secondly, two specific initiatives are described: Environmental Forum Denmark and Partnership for Business and Environment. Today Environmental Forum Denmark has been replaced by Partnership for Business and Environment as the network of the networks. The purpose of the initiatives has been and still is to support the networks in their development, etc. The description focuses on the role of the initiatives as supporting function to the networks. Finally, a number of possibilities for development of the networks' function are pointed outlined.

Critical success factors and possibilities of action

There is a great difference between the networks within the individual model regarding how developed and embedded the networks are. The variation appears as differences in support for the networks, differences in the networks' resources, differences in the networks' degree of establishment, etc. The critical success factors and development possibilities of the models have become visible in the analysis by comparing the networks in the individual model. In this way, the central barriers to the networks' development and embedding have become visible as well as the possibilities of action of the networks in order to overcome the barriers. Often, there is more than one way of overcoming the barriers. Several of the models had a range of possibilities for solution among the networks. Since Green City is the only network in the model 'Commercialisation of environmental knowledge', it has not been possible to identify the critical success factors and development possibilities of the models' function in the same way as the case is for the other models. The below table lists the critical success factors and development possibilities of the models.

Table: Connections between network models and the models' critical success factors and possibilities for development.

Network-supporting functions – Environmental Forum Denmark and Partnership for Business and Environment

Environmental Forum Denmark was the network of the green local/regional network for a limited period. Environmental Forum Denmark was funded by the Danish EPA. Environmental Forum Denmark was deeply rooted in Green Network and they operated a joint secretariat. The purpose of Environmental Forum Denmark was to be the arena for exchange of experiences between the networks and to support and advise networks during their start up etc. Environmental Forum Denmark has now transformed into Partnership for Environment and Business, which is a more permanent initiative. This initiative is partly financed by the Danish state as an element of the strategy `Green Market Economy' and partly by dues from the members. Partnership for Environment and Business is now established as an independent organisation situated in Fredericia. The purpose of establishing Partnership for Environment and Business is to support the environmental efforts at Danish enterprises - including a special focus on the environmental performance as competitive parameter. The regional green networks are considered to be an appropriate forum for developing the environmental efforts at the companies. By supporting the regional networks with Partnership for Environment and Business, it is expected that the work done in the networks will be more effective and achieve a higher degree of `standardization'.

The purpose of Partnership for Business and Environment is:

-to strengthen the market-driven effort of the Danish trades and industries sector through increased dialogue between the authorities and the enterprises, including:

1. to strengthen competencies and knowledge sharing within the existing regional networks
2. to ensure a stronger co-ordination and uniformity of the utilisation of tools and methods in the regional networks and a clearer connection to international standards and guidelines
3. to contribute to the establishment of new networks in Denmark

-to contribute to the development of sustainability/ social responsibility - environment, health and safety at work and social responsibility and the transformation of this development to market advantages.

Below, the local/regional networks' needs and expectations regarding Partnership for Business and Environment are described. Finally, issues are pointed out, which Partnership for Business and Environment can pay more attention to.

In general, the networks experience that there is a need for a forum for exchange of experiences, and everybody have appreciated the experience exchange, which has taken place in Environmental Forum Denmark. Therefore, they hope that the possibility for exchange of experiences is carried on in Partnership for Business and Environment.

A number of networks of the model 'Regional sustainable corporate development' experience a need for support to the development activities, since it is difficult for the networks to find resources within the networks to initiate development activities. At the same time, the networks experience a great need for initiation of development activities in order to attract and keep frontrunner enterprises in the networks.

Furthermore, networks of the model 'Regional sustainable corporate development' experience that if the initiatives of the networks (environmental statement, etc.) are to be of significance in connection with enterprises' possibility of utilising the environmental initiatives as a competition factor, there is a need for greater uniformity of methods and tools etc. on a national level as well as in an international context. Networks in the model 'Environmental supervision and environmental management' point out that if they are to be able to utilise more standardised concepts, the concepts need to be less complicated than the concepts, which are utilised today in the model 'Regional sustainable development'. Networks in 'Local dialogue on environment do not expect to be able to use common tools and methods, since it would require that the networks change focus from dialogue to more binding co-operation forms, and the assessment is that there are no local preconditions for this.

Partnership for Business and Environment has to pay attention to whether the partnership utilises a top down or a bottom up approach. A top down approach is primarily based on development and dissemination of the model 'Regional sustainable corporate development'.

There is a great deal of variation between the different network models regarding activities, players, resources, etc. The different local/regional networks reflect the local/regional preconditions and the development dynamics of the individual networks is dependent on the local/regional possibilities. By utilising a top down approach, Partnership for Business and Environment supports those networks, which already have either secretariats and expanded co-operation between authorities and enterprises or have local preconditions to build secretariats and develop expanded co-operation between authorities and enterprises. In several of the existing networks in the other models, it is assessed that, at present, there are no local preconditions for this. A bottom up approach would make it possible for Partnership for Business and Environment to meet the needs for development support in several network models, but, at the same time, it would make it more difficult for the network to work in a goal-orientated way towards increased standardisation, etc.

Possibilities for development of the networks' function

Across the models, the individual networks have a number of possibilities for developing their function. This would require:

• That the networks utilise frontrunner enterprises both as good examples, but also as driving forces in planning, development activities, etc.
• That the networks utilise each other's experiences and are aware of both differences in experience in the individual model, but also of differences between the models. For example, networks in the models 'Regional sustainable corporate development' and 'Commercialisation of environmental knowledge' can benefit from utilising each other's experiences on both environmental statements and marketing.
• That the networks utilise resources for method development and development activities in Partnership for Business and Environment. This can increase the individual network's resources. However, it presupposes that Partnership for Business and Environment is aware of the different models and the different needs for different networks- models and takes this into account in their activities.
• That the networks use their local knowledge and experiences and possibilities for local co-ordination as a basis for interaction with external players, for instance consultants.
• That the networks are aware that they can influence environmental strategies in the society by continuously giving feedback to Danish Environmental Protection Agency, etc. For example, their possibilities are to make continuous systematic experience collection regarding core activities and to carry out development activities.

The networks' interaction with the Product-orientated Environmental Initiative and Green Market Economy

As a basis for an analysis of the networks' interaction with the Product-orientated Environmental Initiative (abbreviated POEI) and the Green Market Economy (abbreviated GME), various documents on characteristics for future POEI and GME efforts have been analysed, and activities, problem issues, and strategies have been identified.

An overall analysis of the network activities show that 12 of the 21 identified networks deal with or have dealt with activities directly related to POEI or activities, which can potentially promote POEI, and 13 networks have dealt with activities related to GME. I.e. that a little more than half of the networks have dealt with POEI and GME. Add those networks, which have dealt with environmental statements and environmental management, and if it is assumed that these initiatives can potentially contain product-orientated elements and contribute to market development via requirements for suppliers, the number of networks with activities in relation to POEI and/or GME becomes 15 and 17 networks respectively (i.e. around two thirds and three quarters of the networks respectively).

The analysis of the networks shows, from a general point of view, that the same problem issues are dealt with in different ways by different types of network - among others dependent on the nature of the networks and the affiliated resources. The below table shows the activity areas of the networks, identified as related to POEI and/or GME. As it appears from the table, several of the problem issues are relevant in relation to both POEI and GME.

Table: Overview of Product-orientated Environmental Initiative (POEI) and Green Market Economy (GME)-related problem issues, which local and regional environmental networks have worked with. An X under a network model for a problem issue means that one or more network in the network model in question have worked the activity as operation or development activity.

An overall analysis as to whether the network activities cover the identified central effort areas in POEI and GME shows that either one or more networks have activities in the central effort areas in POEI and GME.

Furthermore, from this analysis, it appears that the four network models differ from each other both regarding what problem issues the network models focus on and regarding how the network models handle the problem issues.

The network models differ from each other in the way that:

• Networks with focus on environmental management and environmental supervision only cover a small number of areas, but the areas, which they do cover, often lead to specific changes, for example in the form of introduction of new routines.
• Network with focus on local dialogue on environment cover many areas, but, primarily, in the form of topic meetings.
• Networks with focus on regional, sustainable corporate development focus on many areas and, in several cases, in the form of projects and effort areas.
• Networks with focus on commercialisation have focus on many areas, but do not seem to have focus on substitution of chemicals and on economic means. But this network seems to be the best with focus on information on the environmental properties of the products for market players and dialogue between environment and marketing.

It has been difficult to find information on the effect of a number of activities. This means that, in a number of cases, the evaluations are based on the fact that an activity has taken place in the form of a meeting, dialogue between players, development of tools or the like. Interviews with enterprises and authorities in connection with the case studies of the evaluation have resulted in more in-depth information, in a number of cases.

From a general point of view, the networks can be characterised by for building of regional environmental competence and for involvement of players in the implementation of Product-orientated Environmental Initiative, which is in line with two recommendations from the mid-term evaluation of the ongoing Programme for Cleaner Products (Oxford Research, 2001).

Development possibilities to support Product-orientated Environmental Initiative and Green Market Economy

The networks can play a larger role in the implementation of the Product-orientated Environmental Initiative and Green Market Economy. This is going to require:

• a larger geographical coverage with local and regional environmental networks
• national development funds for development projects in the networks
• that the Partnership for Business and Environment, in connection with strategy and tool development, focuses on a range of network types, since several small networks do not believe to have resources to develop into a network such as Green Network.
• that the networks also inform non-members on events and offer possibility of participation, for instance for higher participant fee.
• that authorities involved in the network actively utilises the obligation in the new departmental order on green accounts and commenting of enterprises' green accounts to have focus on whether enterprises comment their products' environmental impact (in the form of substances damaging to environment and health and materials in the products). This focus can be developed to a competence in dialogue with enterprises about focusing on environmental impact of their products.
• that networks seek to expand their circle of members to also include companies providing services and consultancies, since these have significance for purchase of products and integration of environmental considerations in projecting and development processes respectively.
• further implementation of green purchasing as a strategy in municipal and county administrations and institutions so that markets for environmentally improved products and services are developed further.
• that the networks, to a higher degree, organize arrangements with focus on enterprises' structuring of environmental competence and on dissemination of information on legislation, regulations, and tools. Such arrangements can be aimed at several target groups in enterprises: Environmental co-ordinators, managements, and product developers. Arrangements aimed at environmental co-ordinators should also focus on the planning of development of environmental competence in an enterprise in the form of internal and external dialogue and translation processes between environmental knowledge and knowledge in finances, product development (including product chain interaction with suppliers and customers).

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Version 1.0 Oktober 2004, © Miljøstyrelsen.