PRESS BRIEFING ON ROLE OF INDUSTRY IN SUSTAINABLE DEVELOPMENT

Press Briefing

PRESS BRIEFING ON ROLE OF INDUSTRY IN SUSTAINABLE DEVELOPMENT

Representatives of business, labour, environmental groups and governments rose from a two-day dialogue on the role of industry in sustainable development at Headquarters yesterday with a call on the industrial sector to develop legally binding environmental regulatory and monitoring systems, as well as to have greater accountability. But representatives of industry demanded flexibility and the trust of other partners in the global efforts to improve the environment and promote economic and social progress.

Speaking to correspondents this morning on the outcome of the dialogue, at a press briefing sponsored by the Division for Sustainable Development of the Department of Economic and Social Affairs, were five of the participants in the dialogue: Jagjit Plahe, of EcoNews Africa; Lucien Royer, of the International Confederation of Free Trade Unions; Peter Scupholme, Manager of Environmental Relations at British Petroleum Company; Mustafa Tolba, head of the Egyptian delegation; and Michael Odevall, Environment and Sustainable Development Minister of the Ministry of Foreign Affairs of Sweden.

They said that issues discussed in the dialogue, held on 21 and 22 April at the current session of the Commission on Sustainable Development, included voluntary business codes and initiatives, regulation and reporting standards, environmental management systems and the transfer of technology from the North to the South. Position papers presented at the meeting highlighted the successes of voluntary business initiatives, the business community's increased awareness of the financial benefits of improved environmental performance and a record of private sector technological cooperation with small- and medium-size enterprises in developing countries.

In their introductory remarks, the five participants said the spirited exchange of views at the meeting was highly rewarding and fruitful.

Ms. Plahe, of EcoNews Africa, who spoke for non-governmental organizations (NGOs) working on the environment, said it was interesting to have had various groups discussing common concerns. The NGOs submitted proposals on voluntary business initiatives and codes which were well received by the industrial sector.

Mr. Royer, of the International Confederation of Free Trade Unions, said there was a need for better coordination of worldwide efforts to improve the environment and promote sustainable development. The Confederation had 137 million members at 2.3 million workplaces throughout the world. Employees and employers should be effectively involved in the implementation of programmes for sustainable development. Education and training were important. Coordinated programmes were needed both within and outside the work place. Workers could extend the skills they had acquired in health and safety areas

to environmental issues. International agreements, government support and transitional programmes to protect displaced workers were also needed. Without a job, one could not promote sustainable development.

Mr. Scupholme, of British Petroleum Company, said concerns were raised by some participants about hidden agendas and about the implementation of commitments made at meetings. The industrial sector placed a lot of emphasis on the importance of voluntary initiatives and accepted the need for transparency in the way voluntary codes were implemented.

Mr. Tolba, head of the Egyptian delegation, said issues such as voluntary codes and initiatives, corporate management tools, water pricing, transfer of technology and intellectual property rights, needed further discussions.

Mr. Odevall, of the Swedish Ministry of Foreign Affairs, said water and industry were the two most important issues addressed at the meeting. Those were issues that would soon be negotiated by governments. They were basic to every society, and they were important to combating poverty, forming modern partnership and applying eco-efficiency.

Asked whether it was possible to talk about water without talking about chemical pollution and how freshwater use could be evaluated, Mr. Tolba said a global monitoring system was in place. The World Health Organization (WHO) and the United Nations Environment Programme (UNEP) produced periodically a report on the state of the world's water supply. The International Register of Potentially Toxic Chemicals and the International Chemical Safety Programme also addressed that particular problem. Of course, every group must be involved. The cost of water pollution had not yet been assessed worldwide. A price tag must be placed on such pollution.

Mr. Scupholme said both the economic value of water and its social value must be dealt with. The international community must become smarter about monitoring the environment. There should be trust between governments, NGOs, industries and trade unions. People should be more prepared to accept what others say.

Asked what framework the industry would prefer for evaluating voluntary initiatives and the role of government regulations, Mr. Scupholme said the business sector was just beginning to think about the process and methods of evaluating and reviewing voluntary initiatives. The criteria had to be worked out. Once voluntary initiatives were regulated, they would no longer be voluntary. Today's voluntary initiatives would become tomorrow's regulations. Voluntary environmental reporting by companies worldwide would in time become mandatory. In the meantime, there should be some flexibility in how companies were allowed to initiate voluntary programmes.

Sustainable Development Briefing - 3 - 23 April 1998

Responding to the same question, Mr. Tolba said voluntary initiatives should be done within a legal framework.

A correspondent asked for concrete steps that would be taken to ensure that commitments were implemented. Mr. Royer said workers would be involved in enforcing initiatives if the workplace were democratized. Workers should know and understand those initiatives, know the rules and be more involved in the decision-making process. Workers were the most effective and cheapest enforcement mechanism.

Responding to the same question, Mr. Scupholme said many companies which had made voluntary commitments often backed them up with evidence of what they had done. Many business associations had made commitments on behalf of their members. The NGO proposal for monitoring the implementation of agreements reached at various meetings on the environment and sustainable development was good. It would help to make the process more transparent.

Continuing, Ms. Plahe said NGOs needed more information from all groups on their efforts to enforce commitments.

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