Download Green Industry

The Green Industry Platform:
knowledge sharing
Alex MacGillivray
Vienna, May 2012
Green industry Platform: key features
multi-stakeholder framework
Focus on factories: from candy and
cookware to toys and trainers
Promote measurable progress
Scale up the approach
Raise policy profile for ‘green industrial
revolution’
functions:
Existing data
Web-based portal: policies, technologies, developments
Exchange best practice, lessons learned
Overview: a critical 2012-15 opportunity
Are existing activities delivering at
scale?
Three hopeful trends in green
industry
A major challenge: knowledge
networking:
focus on knowledgeable industrialists;
Access good practice in fast-growth
countries;
incentivize exchange
Are existing initiatives at scale?
Source: The Emissions Gap Report 2, UNEP et al., 2011
(Pg C y-1)
CO2 emissions (Pg
Growth rate
2000-2009
2.5 % per year
CO2 y-1)
CO2 emissions
Industrial emissions still rising
Growth rate
1990-1999
1 % per year
Time (y)
“Under current policies we
estimate energy use and CO2
emissions will increase by a
third by 2020, and almost
double by 2050. This would
probably send global
temperatures at least 6C
higher within this century."
Maria van der Hoeven,
International Energy Agency
Emissions intensity declining
at -1.7% a year
When global growth
exceeds this, emissions rise.
Source: Friedlingstein et al. 2010, Nature Geoscience; Gregg
Marland, Thomas Boden-CDIAC 2010
Massive opportunities not widely shared
“Next industrial revolution”
(Nick Stern)
“Climate economy” US$2-3
trillion in 2020 (HSBC, CCI )
UK renewables sector to
be worth GB£24bn by 2020
(Innovas 2012)
Over 25% of US “clean
economy” jobs are in
manufacturing
(Brookings/Batelle 2011)
What share for fast growing
countries? Eg CIVETS
Sources: Playmobil factory refit; “Sizing the Clean Economy:
A National and Regional Green Jobs Assessment“,
http://www.brookings.edu/reports/2011/0713_clean_economy.
aspx ; http://uk.reuters.com/article/2012/04/24/uk-britainrenewables-report-idUKBRE83N0DF20120424
Biggest players in key sectors now moving
“We have the
largest portfolio of
green technologies
in the world.”
Peter Loscher,
CEO, Siemens
“We plan to make all
Hitachi Group products into
Eco-products by fiscal
2025...This should steadily
lead to business
opportunities around the
world.”
Hiroaki Nakanishi,
President, Hitachi
Sources: http://www.pakistantalk.com/forums/economy/3212-pakistanwould-certainly-good-area-terms-renewable-energy.html
http://www.youtube.com/watch?v=cePztAIzmDk
http://www.hitachi.com/New/cnews/100406.html
“Green is green... We can
make money by solving
some of the world’s
toughest environmental
problems.”
Jeff Immelt, CEO, GE
1. Racing for greenest portfolios
Hitachi, GE, Philips,
Siemens all growing
their green portfolios
rapidly
Growth in sales
penetration & product
ranges, partnerships,
patents & R&D
Green sales sustained
through 2009
Differences in
definitions, scope &
metrics but consistency
in trajectory
Source: CB analysis of company sustainability & annual reports
2. Engaging the supply chain
Walmart’s goal to eliminate
20 million tons of GHG
emissions from its supply
chain by 2015
The majority of Fortune 500
companies now have some
form of carbon reduction
target
In October 2011, the GHG
Protocol (WRI & WBCSD)
release Corporate Value
Chain (Scope 3) Standard
In 30 companies, scope 3 =
c. 80% of emissions
SAP; SC Johnson also
engaging value chain
Sources: https://www.cdproject.net/CDPResults/CDP-2011-SupplyChain-Report.pdf; http://insights.wri.org/news/2012/04/4-step-plancutting-value-chain-emissions
3. Setting meaningful targets
Sources: http://www.mars.com/global/aboutmars/principles-in-action-summary.aspx;
http://www.guardian.co.uk/sustainable-business/blog/greenhouse-gas-emissions-targets-reporting?CMP=twt_gu;
"Company target setting is
motivated by market forces, not
scientific requirements.” Carbon
Chasm report 2009 (CDP &BT)
"You've got to bridge the gap
between what you're committing
to, and what the science suggests
needs to be committed to. This
has become a very strong
hallmark of our sustainability
programme.” Kevin Rabinovitch,
Mars
BT, EMC, Novo also setting
science-based targets
No guidance for ‘normal’
companies
But ... most businesses are not engaged
Carbon disclosure rates of 4065% of largest businesses in
Europe, USA, Japan, Korea,
Brazil, South Africa
Low disclosure in India, China
Low disclosure outside G500
and outside G20 (0-25%)
This is disclosure, not even
emissions reduction
Many fast growing, highemitting companies not
influenced by US & European
investors
Few incentives for them to
engage
Sources: 2011 CB analysis of Carbon Disclosure Project database
https://www.cdproject.net/en-US/Results/Pages/Responses.aspx
New interest in green industrial strategy
Industrial policy back
on the agenda
Aside from S Korea,
few countries show clear
direction towards green
industrial
competitiveness
Implementation is a
major challenge,
particularly during
austerity
Opportunity, as many
countries are revisiting
their industrial strategies
Sources: UNIDO Industrial Development reports; IEA CO2 emissions
highlights, various years
1. Focus on knowledgeable industrialists in
industry ‘ecosystem’
Policy initiatives:
one stop shops,
development
plans,
competitiveness
& productivity
councils
Citizen &
consumer
lobbies:
ombudsmen,
supreme audit
authorities,
NGOs
Business
infrastructure:
quality,
standards &
certification /
ICT, logistics
&customs /
statistics
agencies
Ministries of
finance /
economy /
industry /
commerce/
planning
Green Industry
'ecosystem'
Research
collaborators:
universities /
business schools
/ research &
technological
organizations
(RTOs)/cleaner
production
centres /
consultancies
Business
associations:
confederations,
chambers
(sectoral,
geographic),
trades unions,
entrepreneur
clubs
Investors: stock
exchanges,
investment
agencies, banks,
international
cooperation
Micro & small
enterprise
support /
training agencies
/ supply chain
initiatives
/clusters
Source: adapted from Networks for
Prosperity, UNIDO/Leuven 2011
Dozens of players
Rivalries do arise on
occasion
Knowledge asymmetries
& transaction costs
Many theoretical & pilot
projects, but...
Good practice
sometimes hard to find –
often resides in
individuals or hidden
teams
Chambers of Industry
2. Share the new green industry know-how
Victory Ching Luh green
factory, Jakarta
Built to service Nike
contract
‘Triangular’ learning: TaipeiJakarta-Oregon
Victory starting to network
with local footwear
competitors on green issues
eg waste management
Other green industry
networks: lingerie, Sri Lanka;
green construction, Mexico;
China ‘low carbon zones’,
Costa Rica medical devices
Source: author interviews, March 2012
3. Incentivize knowledge sharing
UNIDO & partners have expertise
in effective knowledge networks
Most portals not heavily used and
few industrialists want them / have
time. Pull not push.
Not platform but Incentives are
key for knowledge sharing:
Eg global Green Industry /
Factory / Manufacturing Award
Peer-to-peer mentoring; study
visits
Innovation crowd-sourcing
Neutral brokers to maintain
commercial confidentiality
among local competitors
One of 100 new gas tunnel kilns in Bat Trang
Ceramic Village, Vietnam. Kilns improve
workplace air quality, save energy bills within 2
years, reduce emissions & enhance quality for this
ceramics cluster
Source: http://tietkiemnangluong.com.vn/en/activity-news/gas-tunnelkiln-revitalizes-bat-trang-ceramic-village-31003-7854.html
Copyright 2009 National Energy Efficiency Programme - Ministry of
Industry and Trade
Many thanks!
Looking forward to helping build the Green
Industry Platform ... and
See you in Rio!