Capacity Building Selected WEC Capacity Creating Sustainable

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Capacity Building… Creating Sustainable Solutions What is Capacity Building? Capacity building is the process of solving problems that impact the quality of life for current and future generations and protect the earth’s ecological support system. Capacity building consists of: Training to build knowledge and skills on technical issues, enterprise management, community relations and other issues. Implementing management systems to achieve sustainable performance objectives and reduce public health and environmental risks. Advancing capabilities to utilize cleaner and more efficient technologies. Applying best practices to improve sustainability performance across the value chain. Building partnerships with the public and private sectors, non-governmental organizations and the university community. These components are applied across a range of initiatives including: improving energy efficiency; reducing the use of water and other natural resources; enhancing environmental, health and safety performance; reducing chemical risks; investing in social capital; and promoting global citizenship activities. Value of Capacity Building Capacity building advances the competitiveness of enterprises as part of the sustainability framework. It applies current scientific and economic information, engages a broad range of stakeholders in partnerships and leverages the timely delivery of information, skills and results to solve problems. For the corporation, capacity building begins with a recognition of the need to maintain high operating standards across far flung supply chains while enhancing its competitive position. For the individual, capacity building starts by participating in a network of like-minded and similarly motivated individuals that can gain access to education, information technology, knowledge of the market and capital. Capacity building is thus a unifying thread involving both individuals and institutions. As such, it makes possible the attainment of objectives (e.g., sufficient levels of high quality water, cleaner air, economic opportunity, reduced energy consumption) where improvement in economic indicators can help achieve environmental and social progress. WEC’s Approach to Capacity Building WEC member companies have made major contributions to implementing sustainable development through capacity building in all regions of the world. Working through pub- lic-private alliances with the U.S. Agency for International Development (AID), the Unit- ed Nations, the World Bank and other insti- tutions, WEC has applied a direct, “people on the ground” approach to capacity building by working in the field through initiatives ben- eficial to business and communities. WEC has developed a process for capacity building that integrates the roles of global companies, multi-lateral/government organizations, sup- pliers/business partners and local technical support providers. The diagram below illus- trates the roles and relationships for partici- pants in WEC’s capacity building initiatives. Greening the Supply Chain in China Supported by General Motors, the China Greening Supply Chain Pilot Project was implemented by Shanghai General Motors (SGM) and WEC. From October 2005 to July 2007, SGM invited eight top-level suppliers to participate. After a short training course, the suppliers evaluated opportunities to improve quality and reduce environmental impacts, and lower costs. Through the evaluation, suppliers were able to identify actions and investments that ultimately resulted in a combination of net financial savings as well as improved environmental performance, including: Eliminating or reducing electric lighting by installing transparent roofing and walls, dimmer switches and lower wattage lighting Eliminating leaks in air and water systems Increasing the use of wind-powered utilities Saving over 40 million gallons of water Reducing CO2 emissions Accumulating net financial savings Greening the Supply Chain in Romania From July 2006 to May 2007, WEC implemented a Greening the Supply Chain project together with Alcoa Fujikura (AFL) in Romania, supported by USAID. The objective was to assist small and medium sized enterprises supplying AFL Romania with goods and services to become more competitive by reducing energy, water and raw material consumption. This more efficient processing of resources simultaneously lowered the environmental impact for each product and service delivered to AFL. For this project, AFL Romania selected a dozen of its critical suppliers, including plastics manufacturers, machine producers, printers, measurement equipment producers, and EHS equipment producers. Working collaboratively with AFL Romania’s Purchasing Manager and a local technical support provider, WEC provided information, training and continued technical guidance to the selected SMEs over the course of ten months. Project results include: Substantial reduction of the suppliers’ energy consumption and material use, improved energy efficiency and enhanced workers’ safety Major capital investments using financial analysis techniques introduced by WEC Application of capacity building methodology to selected Tier 2 suppliers Quantitative results of the project are available in a separate WEC report: “Greening the Supply Chain in Romania” Selected WEC Capacity Building Initiatives Before After

Transcript of Capacity Building Selected WEC Capacity Creating Sustainable

Page 1: Capacity Building Selected WEC Capacity Creating Sustainable

Capacity Building… Creating Sustainable Solutions

What is Capacity Building?Capacity building is the process of solving problems that impact the quality of life for current and future generations and protect the earth’s ecological support system. Capacity building consists of:

• Training to build knowledge and skills on technical issues, enterprise management, community relations and other issues.

• Implementing management systems to achieve sustainable performance objectives and reduce public health and environmental risks.

• Advancing capabilities to utilize cleaner and more efficient technologies.

• Applying best practices to improve sustainability performance across the value chain.

• Building partnerships with the public and private sectors, non-governmental organizations and the university community.

These components are applied across a range of initiatives including: improving energy efficiency; reducing the use of water and other natural resources; enhancing environmental, health and safety performance; reducing chemical risks; investing in social capital; and promoting global citizenship activities.

Value of Capacity BuildingCapacity building advances the competitiveness of enterprises as part of the sustainability framework. It applies current scientific and economic information, engages a broad range of stakeholders in partnerships and leverages the timely delivery of information, skills and results to solve problems.

For the corporation, capacity building begins with a recognition of the need to maintain high operating standards across far flung supply chains while enhancing its competitive position. For the individual, capacity building starts by participating in a network of like-minded and similarly motivated individuals that can gain access to education, information technology, knowledge of the market and capital. Capacity building is thus a unifying thread involving both individuals and institutions. As such, it makes possible the attainment of objectives (e.g., sufficient levels of high quality water, cleaner air, economic opportunity, reduced energy consumption) where improvement in economic indicators can help achieve environmental and social progress.

WEC’s Approach to Capacity Building

WEC member companies have made major contributions to implementing sustainabledevelopment through capacity building in all regions of the world. Working through pub-lic-private alliances with the U.S. Agency for International Development (AID), the Unit-ed Nations, the World Bank and other insti-tutions, WEC has applied a direct, “people on the ground” approach to capacity building by working in the field through initiatives ben-eficial to business and communities. WEC has developed a process for capacity building that integrates the roles of global companies, multi-lateral/government organizations, sup-pliers/business partners and local technical support providers. The diagram below illus-trates the roles and relationships for partici-pants in WEC’s capacity building initiatives.

Greening the Supply Chain in ChinaSupported by General Motors, the China Greening Supply Chain Pilot Project was implemented by Shanghai General Motors (SGM) and WEC. From October 2005 to July 2007, SGM invited eight top-level suppliers to participate. After a short training course, the suppliers evaluated opportunities to improve quality and reduce environmental impacts, and lower costs. Through the evaluation, suppliers were able to identify actions and investments that ultimately resulted in a combination of net financial savings as well as improved environmental performance, including:

• Eliminating or reducing electric lighting by installing transparent roofing and walls, dimmer switches and lower wattage lighting

• Eliminating leaks in air and water systems

• Increasing the use of wind-powered utilities

• Saving over 40 million gallons of water

• Reducing CO2 emissions

• Accumulating net financial savings

Greening the Supply Chain in RomaniaFrom July 2006 to May 2007, WEC implemented a Greening the Supply Chain project together with Alcoa Fujikura (AFL) in Romania, supported by USAID. The objective was to assist small and medium sized enterprises supplying AFL Romania with goods and services to become more competitive by reducing energy, water and raw material consumption. This more efficient processing of resources simultaneously lowered the environmental impact for each product and service delivered to AFL.

For this project, AFL Romania selected a dozen of its critical suppliers, including plastics manufacturers, machine producers, printers, measurement equipment producers, and EHS equipment producers. Working collaboratively with AFL Romania’s Purchasing Manager and a local technical support provider, WEC provided information, training and continued technical guidance to the selected SMEs over the course of ten months.

Project results include:

• Substantial reduction of the suppliers’ energy consumption and material use, improved energy efficiency and enhanced workers’ safety

• Major capital investments using financial analysis techniques introduced by WEC

• Application of capacity building methodology to selected Tier 2 suppliers

Quantitative results of the project are available in a separate WEC report: “Greening the Supply Chain in Romania”

Selected WEC Capacity Building Initiatives

Before

After

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WEC Alliance for Private SectorCompetitiveness in El SalvadorIn November 2005, WEC established the Alliance supported by funding from the USAID. The Alliance’s goal is to promote economic development by strengthening the ability of Salvadoran businesses to produce goods and services more competitively and in a sustainable manner. WEC’s principal on-the-ground partners are the Ministry of Economy (MINEC), Ministry of Environment and Natural Resources (MARN) with input from the Private Enterprise National Association (ANEP) and the National Agro-Industrial Association (Camagro).

Depending on each company’s needs, technical assistance is directed to energy efficiency, water conservation, wastewater pre-treatment, hazardous waste management, electrical efficiency and other issues. The project continues to garner significant results, such as:

• Working with MINEC on developing a Technical Assistance fund for cleaner production, officially launched in April 2007

• Holding a total of 9 roundtables on different topics relevant to Salvadoran industry, such as biofuels, cogeneration, environmental management systems, and energy efficiencies

• Conducting technical assistance that has saved more than 40 million gallons of water per year, and $400,000 USD worth of energy and raw materials

• Establishing partnerships with Industrias La Constancia (one of Central America’s leading beverage companies) and ExxonMobil to work on cleaner production with their range of local suppliers in El Salvador

World Environment Center

WEC Contacts

Terry F. Yosie, President & CEO at 1-202-312-1210 or [email protected]

Isabelle Sécher, Global Director, Capacity Building at 49-821-598-3563 or [email protected]

Gwen Davidow, Global Director, Corporate Programs at 1-202-312-1281 or [email protected]

Ernesto Samayoa, Chief of Party, El Salvador

at 1-503-2231-5606 or [email protected]

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