Promoting Cleaner Production in the Value Chain

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Promoting Cleaner Productionin the Value Chain
Burton Hamner, MBA, MA President,
CleanerProduction.Com bhamner_at_cleanerproduction.co
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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

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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

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Process Maps for Cost Data
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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

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Find the True Cause of Waste
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3.a. Networking

• MOST firms dont 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

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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

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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
  customers own enviro performance?
• Leads to risk analysis and risk reduction
  strategies

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5. Customer Eco-Satisfaction

• Focus is on product design improve the
  CUSTOMERs 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

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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

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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

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Life Cycle Scoping Model
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Executives and Internal Management Adding Value

• Executives are very concerned about their
  managers abilities
• Show Executives how CP enhances competence BY
  DEPARTMENT
• Use the Value Chain model to show new CP concepts

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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
• CEOs job is to ensure managers know about best
  practices for their jobs

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Sustainable Value Chain Model
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Promoting CP to Professions

• CP has produced new tools and Best Practices
• Emphasize effect on competitiveness
• Emphasize professional learning
• Use continuing education opportunities

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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

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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

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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?

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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/