Energy	Xenobiotics	Biological resources	Mineral resources
Textiles	X	X
Electronics	X	X		X
Transportation of goods	X	X

The table indicates the three priority environmental problems of significance to the product areas

	Turnover (DKKbn)	Employment (1,000)	Resource area
Textiles1	15.7	18.0	Consumer goods
Electronics2	25.9	24.6	Consumer goods
Transportation of goods3	24.6	22.5	Transportation

The table indicates the economic key figures for Danish manufacturing companies in the product areas selected (1996 Statistical Yearbook)
1) Textiles and clothing
2) Computers, electrical motors and telecommunications equipment
3) Hauliers

The following section offers a brief description of the areas selected. The description contains a broad description of the product area and its significance to Danish society. Then follows a synoptic description of the environmental impact generated by the product group in an overall perspective. Finally, the description contains a proposal for environmental objectives that may form part of an action plan for the area. The descriptions are drafts only, intended to form the basis for an initial meeting in the product area forum. Consequently, these descriptions offer only ideas and provisional assessments, no definitive attitudes or views having been formed in advance. Indeed, one of the main points of the product area panels is to try to obtain consensus on such attitudes and views.

A. Textile products

Textile products have been selected as a special area of action as the manufacture and use of textile products involves considerable consumption of energy, xenobiotics and biological resources. Added to this, environmental properties are already a competition factor in some market segments and, broadly speaking, Danish textile manufacturers regard the development of products with improved environmental properties as a strategy for survival. This is not least because most exports are bound for the quality and environmentally conscious parts of the potent German and Swedish markets. A number of companies have thus come a very long way in developing the environmental properties of products and documenting such properties. Furthermore, eco-labels have been developed for a few textile products, soaps and washing machines. Experience has thus been gained with different elements of a product initiative, and may form a basis for launching an overall priority drive with respect to textile products. Textiles fall under the "Consumer goods/leisure" resource area.

Product area profile

The Danish textile and garment manufacturing industry comprises some 500 companies. The textile and garment industry is characterised by many small and medium-size enterprises. Firms with fewer than 50 employees thus account for approx. 90% of all companies. Employment in the industry has fallen from approx. 30,000 to 15,000 employees over the past ten-year period.

Textile and garment exports are worth approx. DKK 12bn while Danish imports amount to about DKK 14bn. Most of the Danish production is exported - primarily to Sweden and Germany. The Danish textile manufacturers are facing an increasing and intensifying amount of international competition as a result of the deregulation of world trade. Increasing wage competition from low-pay areas in Asia and - most recently - Central and Eastern Europe constitutes a threat to parts of the industry. Two of the reasons why the sowing processes in particular have been moved out of Denmark are to be found in deregulation and increased competition. Design work and technology-intensive processes are likely to remain in Denmark as the level of training and education as well as the available infrastructure continue to make this advantageous.

Larger companies have relatively good product development skills. However, many of the smaller companies do not have the necessary competence and volume with respect to innovation, conversion, increased exports (including marketing capacity) and product development. The companies in the industry are organised in the Federation of Danish Textile and Clothing Industries while the employees are members of the National Union of Garment and Textile Workers in Denmark. The industry is characterised by fine co-operation with a differentiated structure of specialised companies.

In Denmark, the retail link for textile products has undergone major changes over the past 10-20 years. A large market for cheap textiles has developed; these are sold to large supermarkets or hypermarkets. At the same time, a number of nation-wide chains of shops have established themselves on the market, selling branded items and fashion. Small owner-operated shops are not widespread. Dealers of textile products are organised in the Association of Danish Textile Retailers while the importers are organised under the Danish Chamber of Commerce.

Different services relate to the use of textile products. A number of companies offer services based on the use of textile products only. This applies to such enterprises as laundries, dry-cleaners and linen service companies. Other companies supply machines or chemical substances used in connection with textiles, such as washing machine and soap manufacturers. Such companies typically form part of larger (multinational) groups. The interests of the companies in the textile field thus have no decisive effect on overall actions and strategies.

The final disposal of textiles is handled either by the refuse collection service or by nation-wide garment collection organisations.

Environmental properties of textile products

The environmental properties of textile products in the different links are determined by such elements as the following:

Raw materials and semimanufactures
Growing cotton involves a significant environmental impact, in that a vast amount of farm chemical substances are used. The production of man-made fibres is based on oil, which is a non-renewable resource.

The production process
One serious effect of textiles produced in Denmark has to do with the dyeing and printing of textiles. Many different chemical substances and auxiliaries are used, which to varying degrees escape into the environment with the wastewater or airborne emissions. A small part is bound up in the garments and released during use and final disposal of textile products.

Part of the environmental load from Danish textile production ties in with transportation from the dyeing and printing processes, which are carried out mainly in Denmark, to the site of the sowing process, i.e. primarily Poland and the Baltic States. Low-price textiles from Asian countries are produced with somewhat less regard for the environment than Danish textile production. For example, a greater amount of - much more environmentally degrading - chemical substances may be used.

Distribution and trade
The primary problems relate to transport and packaging, though compared to the other phases of the product life-cycle these problems are not deemed immediately significant.

Use
Some chemical substances that are problematic with respect to the environment and health may be released from the textiles during use. Special areas of focus are skin contact and emissions with the wastewater in the washing process. Also, large amounts of water, energy and chemical substances are used to wash and clean practically all types of textile product. For example, classification of the environmental impact of products, based on an eco-toxicological assessment made in a study of the environmental load generated by an average family, ranks textile soaps at the very top of the list. Industrial laundries and dry-cleaners must also be expected to generate a substantial environmental impact.

Recycling and disposal
Most textile products are incinerated in connection with final disposal but examples of textile fibre recycling have been seen.

Summary
As can be seen from the above, there are four areas which should be at the very heart of a product-orientated initiative: fibre production, substitution and minimisation of the use of chemical substances in the production process, the chemical content of the finished textile product, and minimisation of the use of chemical substances while the product is in use. Finally, a general reduction in the consumption of water and energy would be desirable.

	Raw materials	Production	Use	Final disposal
Denmark		Significant	Severe	Minimal
Other countries	Severe	Significant		Minimal

The table indicates where most of the environmental load is generated in the different stages.

Organising future efforts

In 1997, the Danish Ministry of the Environment will establish a product area committee, whose mandate will be to prepare and launch an action plan for a product-orientated environmental initiative with respect to textile products on the Danish market.

The following may sit on the committee:

	Representatives of different types of company in textile production (spinning mills, dye-works, clothing manufacturers etc.)
	Importers/producers of fibres, chemical and textile dyes
	Public-sector purchasers of textile products and representatives of different types of retail outlet selling textiles
	Consumers and green organisations
	Representatives of employees in the value-adding chain
	Representatives of other public authorities such as the National Consumer Agency of Denmark
	Technical experts and consultants advising companies in the value-adding chain on i.a. environmental aspects
	Representatives of importers and retailers

The objectives of the action plan might take in the following areas, in which the environmental properties of textile products could be improved by modifications to their design and useful qualities, thereby ensuring that they:

	are produced using much less energy
	are produced using much fewer ancillary agents hazardous to the environment
	are endowed with greater wearing strength
	will be more dirt-repellant
	will be easier to clean and require fewer chemical substances while in use
	will have a much longer life-cycle (depending on the use of the textile, of course)
	permit a high degree of material recovery
	cause only a small impact on the environment when finally disposed of
	lead to less in-use exposure to substances hazardous to the environment and health.

It must be stressed that a clash of interests may arise between some of the desired properties and qualities.

It may be possible to ensure the coherent development of textile properties, soaps and washing machine technology, resulting in fewer washes, smaller amounts and fewer types of chemical, as well as a washing process that requires much smaller water and energy input.

B. Electronic products

Electronic products have been selected because this product area is highly complex. It presents a problem owing to the mix of many different materials and substances - including a great many of the substances on the priority List of Undesirable Substances. This is an area undergoing rapid growth, which is why a steadily increasing load on the environment is to be expected for quite some time to come unless the environmental properties of the products are brought into the spotlight. Another reason for selecting this area is that the electronics industry and trade is very active and a great many of the products on the Danish market are imported.

Electronic products fall under several resource areas: TV, radio and home computers belong under "Consumer goods" while electronic products for use in the pharmaceutical industry belong under "Medical/health". Product-orientated efforts are to be targeted at those products classified under "Consumer goods" and under "General service trades" (PCs etc., in wide use).

Product area profile

The Danish electronics industry numbers some 300 companies and employs a total of about 25,000 people. The vast majority of companies are small or medium-size enterprises.

In 1994, the total turnover of the Danish electronics industry was approx. DKK 25bn. The production value underlying this turnover was approx. DKK 13.5bn. Exports in 1994 amounted to approx. 94% of the production value. The most important market is Germany, but Sweden, Norway, the UK, USA and the Netherlands are also major importers of Danish electronic products. The electronics industry accounts for 4% of the total manufacturing output and 8% of Danish industrial exports. However, this industry foots more than 30% of the total R&D bill for Danish industry. The electronics industry is thus extremely development intensive.

The industry is very young, has great development potential and operates in a cut-throat market. Engaging in such competition requires real financial muscle, which is why the most powerful nations and companies primarily dominate the industry. The USA, Japan, Germany and France are the leading countries at the moment. The Danish electronics industry focuses on niche products that are too small for the very big manufacturers. Denmark has no semiconductor/chip manufacturers - the "core" developers and manufacturers. On the other hand, almost every other conceivable discipline in research, training, product development, sales and service is mastered by Danish companies. Danish companies are innovative when it comes to electronics and owing to the modest size of the companies they are highly dynamic - capable of making quick decisions and swift launches on the market. Products with improved environmental properties are now entering the market, some (of the bigger) manufacturers having opted for environmental properties as a competitive factor.

The electronics industry is very complex and is not organised in any one trade organisation. The electronics manufacturers in Denmark are organised in the Danish Electronics Industry Association (EI), which has just over 100 members. The IT Industry Association is another alliance of companies, also with just over 100 members. Finally, the Consumer Electronics Trade Organisation (BFE), made up chiefly of importers and manufacturers of consumer electronics, has approx. 60 members.

The retail link for electronic products in Denmark is divided into a market for home electronic products, on which price competition is fierce, and a market for products to be used by authorities and businesses, on which operational reliability and service are other important parameters. The low-price market is characterised by many non-product-specific discount chains and large supermarket/hypermarket chains. The remainder of the market is dominated by relatively well-consolidated companies/chains.

The electronic products comprised by this study are used in homes and offices.

The environmental properties of electronic products

The environmental properties of electronic products in the different links are determined by the following factors:

Raw materials and semimanufactures
Electronic products typically contain a number of different substances - metals (aluminium, iron, tin, lead, zinc and several precious metals), organic materials (glue, plastics, wood, paper/cardboard) as well as glass and ceramic materials. Many of the metals are only used in very small amounts in each product, but because the volume of products is so large and is set to increase constantly, such metals nevertheless constitute a severe burden. Some of the substances are also on the priority list because of their toxic effects.

The production process
Several processes in the making of materials and components give rise to a considerable load on the environment. One of the reasons for this is the use of heavy metals. However, clean technology has been introduced in a number of instances, thereby allowing an immediate reduction in the environmental load from the manufacturing processes.

Distribution and trade
There is a considerable amount of transport of raw materials, other materials and components as well as finished products, which may play a significant part in determining the environmental properties of a given product.

Use
Energy consumption and standby power consumption are among the most important black spots where action may be needed. Another problem, closely linked with all the problems mentioned here, is the very short life-cycle and period of use of these products. The short life-cycle stems mainly from the rapid technological advancements in this area, making it hard to do anything about the rate at which products are being replaced.

Recycling and final disposal
In Denmark, some 45,000 tonnes of electronic products are disposed of every year. These are highly complex products and the substances used are very difficult to separate, refine and recycle. This, too, is a major field where action is required.

Summary
The industry and the product group are very complex, which is why the observations made above are of a general nature only. To this must be added that the knowledge available about the industry's impact on the environment is very limited, which is why it will only be possible to give a rough outline of the industry in this respect. However, there is no doubt that there is a considerable impact on the environment from every stage of the industry. Issues relating to resource application, energy consumption during transport as well as during production and distribution, energy consumption during use and final disposal or recycling of the products are those that spring to mind.

	Raw materials	Production	Use	Final disposal
Denmark		Significant	Severe	Severe
Other countries	Significant	Significant		Minimal

The table shows the occurrence of the bulk of the environmental load in the different stages

Organising future efforts

In 1997, the Danish Ministry of the Environment will establish a product area committee whose mandate is to prepare and launch an action plan for a product-orientated environmental effort with respect to electronic products on the Danish market.

The following may sit on the committee:

	Importers/manufacturers of electronic products and semis for electronic products
	Representatives of the different types of company in the manufacture of electronic products (telephones, computers, TV sets etc.), including developers and designers of electronic products
	Representatives of the different types of retail trade selling electronic products, as well as public-sector purchasers of electronic products
	Consumers and green organisations
	Representatives of employees
	Representatives of other public authorities
	Representatives from waste handling, municipal or private
	Technical experts and consultants advising companies in the value-adding chain on aspects such as the environment

The objectives of the action plans may contain the following areas with scope for improving the environmental properties of electronic products in terms of their design and useful qualities, thereby ensuring that they:

	do not contain as many heavy metals, substituting conductive glues for lead soldering as lead constitutes a serious burden on the environment consume less energy
	have a longer life-cycle and can be used for a longer period

It must be stressed that a clash of interests may arise between some of the desired properties and qualities.

C. Transportation of goods

Transportation of goods has been selected as an initiative area, being an area that contributes considerably to the environmental load (CO₂, air pollution and noise). Furthermore, transportation of goods has been selected because of the importance of gaining experience from initiatives in the service trades. Finally, this is an area in which the public sector plays a certain role as purchasers of transportation of goods and - more particularly, perhaps - as vendors of transportation of goods, not least in the towns (refuse collection, postal services etc.).

Product area profile

This product area covers transportation of goods by the following modes: aircraft, ship, rail, and lorry and van.

In international transportation of goods, i.e. transport between Denmark and other countries, ships are the dominant mode of transport, providing some 85% of transport operations (transport operations are obtained by multiplying the weight of the cargo by the distance covered). A good 10% of transport operations is effected by lorry while railways account for some 2%. Maritime transport is strong on low-value bulk goods needing to be conveyed long distances. Just under 60% of the volumes carried by ship is in the form of solid and liquid fuels.

With respect to national transport operations, lorries account for just over 80% while ships cover 13% and rail some 5%. Truck transport is the most expensive mode of those mentioned. The reason why this mode is nevertheless dominant in national transport is that it is strong on other competitive parameters such as frequency, accuracy, reliability and flexibility.

Based on an environmental assessment, truck transport is the least efficient mode. Truck transport represents approx. 20% of total national and international transportation of goods operations while the overland transport of goods accounts for approx. 75% of CO₂ emissions.

Efforts to minimise the load on the environment should thus be targeted at overland goods transport. The product area profile given below concentrates on this mode.

In 1993, the volume of goods transported nationally by lorries weighing more than 6 tonnes was just under 175m tonnes. Hauliers represented 125m tonnes or 72% while the remainder took the form of company transport (transport using a company's own vehicles).

In 1992, a good 11,000 VAT-registered companies were active within overland transportation of goods. This figure covers hauliers, furniture removers and other transport businesses. Most of these are hauliers - upwards of 90%. Of the VAT-registered companies active in overland transportation of goods, approx. 55% had a turnover of less than DKK 0.5m while 7.5% had a turnover of more than DKK 5m. 74% of the companies were one-man businesses. Consequently, this is an industry characterised by many small enterprises. Approx. 75% of the workplaces had less than 5 employees in 1992.

Overland transportation of goods employs a total of nearly 45,000 people, corresponding to 1/3 of all those employed in the transport sector. 34,500 of these are employed in a haulage company.

In the 1992 resource area analysis from the Danish Agency for Development of Trade and Industry, one of the conclusions is that the many small companies play an important role as subcontractors to larger companies as they operate as a flexible capacity. On the other hand, the small companies act as a barrier to the development of in-trade competence with respect to transport service and the application of new knowledge.

The analysis also offers an assessment of the development towards increased liberalisation and deregulation, stating that these will result in tougher competition for hauliers in the European Union and on their domestic markets. Conversely, Danish competitiveness is considered reasonably good as can be seen from the fact that 74% of the overall import and export volumes are moved by Danish companies.

The haulage companies are organised in the Danish Road Haulage Association, the Association of Danish International Road Transporters and the Danish Haulage Contractors' Employers Association. Other organisations in this product area are: the Danish General Workers' Union (SID), the Danish Shipowners' Association and DSB Freight.

The environmental properties of transportation of goods

A detailed analysis of the environmental load generated by transportation of goods comprises life-cycle assessments of the environmental impact in the following four stages: raw material production, manufacture, operation and final disposal for each element of the transport sector: traffic systems, propellants and means of transport. An analysis /1/ of this type shows that the environmental load is largely generated by the means of transport while the load from traffic systems and propellants is insignificant as far as most environmental problems are concerned. Furthermore, the analysis states that the environmental load is greatest during the operating stage. For example, it is estimated that 80% of the total energy consumption in the transport sector stems from the operating stage, just as air pollution and noise are generated mainly at that stage.

Organising future efforts

A product area has to be selected on the basis of the initiatives already taken or expected to be launched in the near future.

As part of its work on the transport/supply resource area, the Danish Ministry for Business and Industry has established a transport and logistics group, whose primary assignment is to discuss business policy objectives for this resource area. This group also discusses environmental issues to the extent that they tie in naturally with business policy discussions. The Ministry for Business and Industry is also responsible for maritime transport.

The Danish EPA has overall responsibility for environmental management and thus for the transportation of goods used by manufacturing companies. In addition, the EPA is an important stakeholder when it comes to public procurement, certification/eco-labelling and corporate environmental management etc. in this product area.

As a follow-up to The Government's Action Plan to Reduce CO₂ Emissions from the Transport Sector, the Danish Ministry for Transport will be entering into a dialogue with the hauliers in an attempt to optimise transportation of goods from an environmental perspective. The Ministry for Transport has sectorial responsibility for the transportation of goods business, covering road, rail and air transport, making it only natural for the Ministry to take the initiative in this dialogue. The Ministry intends to dovetail its work with a product-orientated environmental strategy in its dialogue with the enterprises transporting goods. At this juncture, the Ministry has not yet decided how to implement its work to promote a product-orientated environmental strategy. The proposals for participants and action plan objectives listed below should therefore be regarded as a source of inspiration in the continued deliberations regarding the organisation of this work.

The following might participate:

	Vendors of transportation of goods services (DSB, hauliers, forwarding agents etc.)
	Large public and private-sector purchasers of transportation of goods services
	Consumers and green organisations
	Representatives of employees in the transport chain
	Representatives of other public authorities
	Advisors for the companies in the value-adding chain on issues relating to the environment (consultants, auditors etc.)

The objectives of the action plan may contain the following areas with scope for improving the environmental properties and qualities of transportation of goods, thereby ensuring that:

	the utilisation rate for vehicle transport capacity is considerably increased
	the environmental load and energy consumption per kilometre are considerably reduced
	cleaner and less burdensome modes of transport (ships and railways) are given higher priority.

Among other things, the action plan could be based on the various action plans made for the transport sector as a whole.

Reference

1. Forstudie til livscyklusanalyser i transportsektoren ["Preliminary Study on Life-cycle Analyses in the Transport Sector"], Danish EPA, 1992.