COMMISSION ON SUSTAINABLE DEVELOPMENT DISCUSSES MANAGEMENT TOOLS, AS IT CONTINUES FOCUS ON ROLE OF INDUSTRY
Press Release
ENV/DEV/468
COMMISSION ON SUSTAINABLE DEVELOPMENT DISCUSSES MANAGEMENT TOOLS, AS IT CONTINUES FOCUS ON ROLE OF INDUSTRY
19980421 To ensure sustainable development, appropriate and flexible management tools must be developed which fit different situations, Cecilia Brighi of the Italian Confederation of Trade Unions said this afternoon, as the Commission on Sustainable Development continued its consideration of the role of industry in sustainable development.Ms. Brighi, who spoke on behalf of trade unions, was one of three keynote speakers addressing the Commission this afternoon, as it focused on management strategies for the creation of better business practices. She said that national, local and company policies should be designed and implemented in consultation with trade unions so their policies would reflect social and environmental needs.
George Carpenter, of the Proctor and Gamble company, said that corporations had adopted a number of management tools which had improved business practices with respect to sustainable development. Companies were providing much more accurate data on their activities to the public, as well as making improvements in health and safety both at home and abroad.
Improving management systems did not automatically improve the environment, Jan-Gustav Strandenaes of UM Norway said. Speaking on behalf of non-governmental organizations (NGO), he said industry must take a more proactive role in ensuring that development proceeded in a more environmentally and socially responsible manner. Industry must engage in an ongoing and constructive dialogue with all other stakeholders, including trade unions, consumers, governments and NGOs, he said.
The Commission subsequently engaged in a give-and-take on the subject of management tools, with the participation of industry representatives, NGOs, interest groups and Member States. Some speakers said that measures taken to make companies more responsive to environmental and social concerns also made them more competitive, as such activities created strong companies over the long run and increased competitiveness.
A number of speakers called for the establishment of specific targets to promote sustainable development. With targets -- aimed, for example, at eliminating pollution or improving worker safety -- workers and industry could create management tools to achieve them. Without targets, there would be few ideas for action. The Commission was asked to develop such targets.
The Commission will focus on the question of technology transfers when it meets again at 10 a.m. tomorrow, 22 April, to continue its discussion on the role of industry in sustainable development.
Commission Work Programme
The Commission on Sustainable Development met this afternoon to continue its consideration of the role of industry in sustainable development with a discussion on the topic of management tools. (For background information, see Press Release ENV/DEV/467 issued today.)
Statements on Management Tools
GEORGE CARPENTER, Director, Worldwide Environmental Quality, Health and Safety for Proctor and Gamble, and Chairman of the Environmental Committee of the United States Council for International Business, said that voluntary initiatives had brought changes to industry. Those changes would not have occurred as a result of just the usual regulatory controls. Voluntary initiatives were management tools, which were effective for companies irrespective of size.
Corporate sustainable development implied application of environmental codes to national systems, he said. In the area of eco-efficiency, for example, his own company, as many others, had many programmes for changing wastes into new products. That kind of development translated into savings for both companies and customers, and it also induced competitors to follow the example. That was good competitive industry in action. Corporate reporting, which did not exist 10 years ago, came about because of voluntary action. Five years ago, no accurate data about a company was provided to its stakeholders. Health and safety programmes were another example of voluntary action as a management tool. For example, there was no difference in the health and safety conditions of Proctor and Gamble's plants located in the United States or anywhere else.
CECILIA BRIGHI, of the Italian Confederation of Trade Unions, speaking on behalf of trade unions, said that all nations want to reach the objective of making industry and other economic sectors economically, socially and environmentally sustainable. To reach that objective, countries needed to develop appropriate and flexible management tools which meet the different situations and ensure equal opportunities.
National, local and company policies should be designed and implemented in full consultation with trade union organizations so that business policies and labour policies could match social and environmental needs, she added. Workplace experience of joint health and safety and environmental management showed that no technical tool would really give effective results without full and comprehensive workers participation. The workplace was at the heart of a social and environmentally sound market economy. Nations have to institutionalize such practices as holding social dialogue, collective
Sustainable Development Commission - 3 - Press Release ENV/DEV/468 5th Meeting (PM) 21 April 1998
agreements and having sound industrial relations and negotiated codes of conduct.
JAN-GUSTAV STRANDENAES, of UM Norway, a non-governmental organization, speaking on behalf of the NGO Working Group on Corporate Management Tools, said that improving management systems did not automatically improve the environment. Industry must take a more proactive role in ensuring that development proceeds in a more environmentally and socially responsible manner. The way forward was for industry to be engaged in the ongoing processes to implement Agenda 21, the programme of action adopted at the United Nations Conference on Environment and Development (UNCED). That required a constructive dialogue with all other stakeholders, including trade unions, consumers, governments and non-governmental organizations, among others.
There was a need to establish a framework and negotiate broader, enforceable guidelines to ensure the effective participation of stakeholders and the protection of their rights as individual citizens. Governments should create a framework where industry could function and feel secure while continuing to progress towards the goals of sustainable development. Steps should be taken to set the regulatory framework for industry to perform better in relation to those goals.
MUSTAFA TOLBA (Egypt) said a paper submitted by the International Chamber of Commerce to the Commission asked that companies reduced their energy use and maximize sustainable use of renewable resources. What steps were companies taking to really use renewable energy resources and to reduce their intake of non-renewable energy? Another paper submitted by trade unions stressed education and training of employees as a tool for sustainable development. Industry should elaborate on the role education of employees played in management strategies and sustainable development efforts.
PHILLIP WARD, Head of the Energy, Environment and Waste Directorate in the Department of Environment, Transport and Regions of the United Kingdom, speaking on behalf of the European Union, said improved management tools and strategies enhanced the ability of business to increase its sustainable development practices. The creation of such management tools, however, required the participation from all sectors. The European Union encouraged industry to continue its efforts towards sustainable development, and the use of management tools provided benefits to all companies regardless of size and location. The transfer of management techniques and experiences should be encouraged. There had been considerable progress in corporate management tools, but industry should not become complacent.
ALBERT BINDA, of AEISEC, an organization for children and youth, said the companies that used management tools were those that were large and had
Sustainable Development Commission - 4 - Press Release ENV/DEV/468 5th Meeting (PM) 21 April 1998
the money and resources to do so. The problem was with the small- and medium- size companies that could not implement positive management tools. It was impossible to have sustainable development in a situation where only the wealthy companies could undertake such efforts. Larger companies and developed countries should promote the use of management tools and encourage smaller companies to use them. Without such cooperation, sustainable development was not possible.
Discussion
In a subsequent discussion, the Commission heard views from representatives of industry, trade unions, NGOs, interest groups and Member States on the question of management tools.
One speaker said there was no difference between industry and infrastructure management tools when it came to the environment. Another cited a labour initiative in which 100 computer suppliers signed a certification agreement which created a win-win situation with respect to the environment; more such cooperation between labour and business was needed.
In many countries, labour unions were the only source of informal education for adults, a participant said. Specific attention was also drawn to the health and safety component of management tools, in terms of their effectiveness. The view was expressed that voluntary initiatives by industry were preferred over "command-and-control" methods, as only a cooperative approach would result in win-win situations.
To ensure sustainable development, much more had to be done than just simply taking eco-efficiency measures, one participant stressed. Another suggested that industry should be given time to respond to issues being raised during the current review by the Commission.
Mr. CARPENTER, of Proctor and Gamble, said a positive element of today's meeting was the agreement between industry and NGOs on the need for environmental solutions and for a balance between the environment and social life. They also agreed on the need to outlaw bad behaviour and reward good efforts. That was a fantastic foundation. Instead of looking at differences, the areas of agreement should be recognized and given attention.
The need for codes of conduct in certain sectors was stressed by some speakers. One said that attention should be given to the construction and transport sectors. Surveys, guidelines, working with NGOs, were all management tools, but emphasis should also be given to technology assessment and transfer, as well as to education.
Sustainable Development Commission - 5 - Press Release ENV/DEV/468 5th Meeting (PM) 21 April 1998
Germany's experience with managing climate change had resulted in cooperation between a group of 15 businesses and the government to result in a greater industry commitment, one speaker said. Another cited the experience of China, which as a developing country lacked the resources for entrepreneurship.
Many questions had been addressed to business because unless they gave priority to sustainable development issues, there would be no progress, one speaker said. Others said there was a need for more disclosure and reporting by industry to increase public trust in its practices. An NGO representative expressed concern about countries moving towards industrialization too quickly, stating that in some areas, air and water pollution had quadrupled as a result of industrial growth.
Measures to make companies more responsive to environmental and social concerns also made companies more competitive, speakers said. Such activities created strong companies over the long run and increased competitiveness internationally. A speaker for indigenous peoples cited the effect of industrial practices on the environment and on the labour market as well; often the cost of expanding production and profits was the destruction of the territories of indigenous peoples.
There was also a call for more specific targets to promote sustainable development. Speakers said that with targets -- such as eliminating pollution or improving worker safety -- workers and industry could create management tools to meet them. Without targets, the discussion was too general and there were few ideas for action. The Commission was asked to formulate such targets.
* *** *