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Promoting Cleaner Production in the Value Chain

Promoting Cleaner Production in the Value Chain. Burton Hamner, MBA, MA President, CleanerProduction.Com bhamner@cleanerproduction.com. CP and Sustainable Business is a consequence of a set of behaviors. 1. Good accounting 2. Employee Participation 3. Networking and benchmarking

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Promoting Cleaner Production in the Value Chain

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  1. Promoting Cleaner Productionin the Value Chain Burton Hamner, MBA, MA President, CleanerProduction.Com bhamner@cleanerproduction.com CP Promotion - Hamner

  2. CP and Sustainable Business is a consequence of a set of behaviors • 1. Good accounting • 2. Employee Participation • 3. Networking and benchmarking • 4. Life cycle management • 5. Customer eco-satisfaction CP Promotion - Hamner

  3. 1. Good Accounting • Understand the true full cost of waste • EVERYONE underestimates the cost of waste • Activity-Based Costing is the leading accounting approach • With the costs right, investment analysis can be done CP Promotion - Hamner

  4. Process Maps for Cost Data CP Promotion - Hamner

  5. 2. Employee Participation • No one ever succeeded at CP by themselves • Employees are often only ones who really know why waste happens • Simple analysis tools help employees solve problems • With cost baseline in place, employee financial incentives are possible CP Promotion - Hamner

  6. Find the True Cause of Waste CP Promotion - Hamner

  7. 3.a. Networking • MOST firms don’t know all the resource available to help them • Have examples to show what other resources can do • Clustering of firms can increase info resource use • Peer-to-peer networking promotes best practices • Training in internet resources also helps • Firms need someone who is the “Networking Expert” CP Promotion - Hamner

  8. 3.b. Benchmarking • Focus on Best Practices for Competitiveness • Can benchmark technologies, processes or management strategies • Key is to get comparable metrics • Direct competitors are not best benchmarkers; find related but non-competitive firms • Very fashionable business approach CP Promotion - Hamner

  9. 4. Life Cycle Management • Focus on upstream and downstream resource issues • Upstream: What risks do suppliers face and how do suppliers pollute YOU? • Downstream: What impacts do products have on customer’s own enviro performance? • Leads to risk analysis and risk reduction strategies CP Promotion - Hamner

  10. 5. Customer Eco-Satisfaction • Focus is on product design; improve the CUSTOMER’s eco-performance! • Requires analysis of customer concerns; how do You pollute Them? • Show customers how you can reduce their waste cost and other enviro problems • Produce a company CP report with details of improvements • SALES staff are key for training CP Promotion - Hamner

  11. Life Cycle Scoping • How to Promote CP to Suppliers and Customers? • Focus on sustainability of business partners • Focus on life cycle industries • Scoping identifies the key enviro concerns for specific industries CP Promotion - Hamner

  12. Life Cycle Industries • 1. Natural Resource Harvesters/Extractors • 2. Primary Producers • 3. Original Equipment Makers • 4. Direct Suppliers • 5. Distributors • 6. Customers/Users • 7. Disposers CP Promotion - Hamner

  13. Life Cycle Scoping Model CP Promotion - Hamner

  14. Executives and Internal Management – Adding Value • Executives are very concerned about their manager’s abilities • Show Executives how CP enhances competence BY DEPARTMENT • Use the Value Chain model to show new CP concepts CP Promotion - Hamner

  15. The Sustainable Value Chain • Shows how PROFESSIONS have evolved with CP • Focus on practical skills and tools for each department • Breaks CP into manageable pieces • CEO’s job is to ensure managers know about best practices for their jobs CP Promotion - Hamner

  16. Sustainable Value Chain Model CP Promotion - Hamner

  17. Promoting CP to Professions • CP has produced new tools and Best Practices • Emphasize effect on competitiveness • Emphasize professional learning • Use continuing education opportunities CP Promotion - Hamner

  18. CP in New Investment • CP is by far most successful in DESIGN • Products, processes, buildings • Do a CP analysis for all new investments • Contact INTEC for help CP Promotion - Hamner

  19. Socially Responsible Investment (SRI) • SRI funds are growing very fast • They are looking for good investments with CP performance and social benefits • Attract investors with your CP performance • Many new products can promote CP implementation • Produce “Mass Market Sustainability Technologies” CP Promotion - Hamner

  20. A New Vision for Chile? • Many products can be produced in Chile that will help all people reduce waste and pollution • Governments want the people to use these products • International investors want to invest in the factories that produce them • Can Chile become the Source for Sustainable Technologies in South America? Why not? CP Promotion - Hamner

  21. How to find valuable CP information on the Internet • Search for “Pollution Prevention” or “Cleaner Production” • Use www.Google.com, the best search tool • Look for developing country examples first • www.cnpl.cl • www.cleanerproduction.com • www.p2rx.org • www.uneptie.org/pc/cp • www.emcentre.com/unepweb/ CP Promotion - Hamner

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