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Transcript of CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME Life Cycle Management Navigator: 4_PR_CFT 1 The Life Cycle...
Life Cycle Management Navigator: 4_PR_CFT 1 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
The Life Cycle Management NavigatorKnowing Market Demands
Training Session 4
Life Cycle Management Navigator: 4_PR_CFT 2 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Knowing Market DemandsMajor Trends
Outline
Competitive pressure in global markets
Increasing costs for waste, engergy & materials
Supply chain pressure
1
2
3
Stakeholder pressure4
Life Cycle Management Navigator: 4_PR_CFT 3 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Knowing Market Demands Trends
Trend
Competitive Pressure in Global Markets
• Global Product Chains
• Regional Competitiveness
• Global Opinion Leaders
1
Life Cycle Management Navigator: 4_PR_CFT 4 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global MarketsGlobal Product Chains
Trends
Global systems of P&C
• Globalisation of product chains• Increasing competitive pressure • Global stakeholders on the watch
End-of-lifemanagers
ConsumersRetailersProducersResource Extraction
Life Cycle Management Navigator: 4_PR_CFT 5 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global MarketsRegional Competitiveness
Example
Case-study of textile industry in Wuppertal
• 4% of total industrial production
• Minor business branch (Employees < 3.000)
around 1870 2001
• about 70% of revenues of industrial production
• One of the most important textile regions in Europe
Source: Chambers of Commerce Wuppertal-Solingen-Remscheid
• Today: Most production in Asia, textile industry in Wuppertal only a minor business branch
• Structural change is a major challenge for SMEs
Life Cycle Management Navigator: 4_PR_CFT 6 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders
Trends
From stakeholder challenges...
Stakeholders
Manage your global supply chains!
Take responsibility for your product
applications!
…to business opportunities
Least Cost Supply Performance ContractingProduct-Service Systems
Open new markets
New business models
Reputation reward Higher quality
Trustful relationships
Greening the Supply Chain
End-of-lifemanagers
ConsumersRetailersProducersResource Extraction
Life Cycle Management Navigator: 4_PR_CFT 7 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders - NGOs
Example
Source: IBLF, 2002, Business & Human Rights: A Geography of Corporate Risk
• depicts human rights violations and operating companies around the world
• sector specific maps, incl. ICT
Map of Human Rights Risks
• Torture• „Disappearances“• Extra-judicial killing• Harassment of human right
defenders• Arbitrary arrest and detention
For example: Asia
International Business Leaders Forum
Life Cycle Management Navigator: 4_PR_CFT 8 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders - Financial Benchmarks
Example
Dow Jones Global Index2,500 largest companies 60 DJSI Industry Groups
34 countries
Component SelectionTop 10% of companies in terms of
sustainability in each industry group;
20% target market cap coverage in each industry group
DJSI World317 Components
60 DJSI industry groups22 countries
Dow Jones Sustainability Index (DJSI)
Life Cycle Management Navigator: 4_PR_CFT 9 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders - Financial Benchmarks
Example
Weightings for the DJSI
Dow Jones Sustainability Index (DJSI)
Life Cycle Management Navigator: 4_PR_CFT 10 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders - Int’l Initiatives
Example
The Life Cycle Initiative
• Objective: To put Life Cycle Thinking in effective practice
• Initiated by UNEP & Society for Environmental Toxicology and Chemistry (SETAC)
Life Cycle Management Navigator: 4_PR_CFT 11 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders - Int’l Initiatives
Example
Human Rights• Principle 1: Businesses should support and respect the protection of internationally proclaimed
human rights• Principle 2: make sure that they are not complicit in human rights abuses.
Labour Standards• Principle 3: Businesses should uphold the freedom of association and the effective recognition
of the right to collective bargaining;• Principle 4: the elimination of all forms of forced and compulsory labour;• Principle 5: the effective abolition of child labour;• Principle 6: the elimination of discrimination in respect of employment and occupation.
Environment• Principle 7: Businesses should support a precautionary approach to environmental challenges;• Principle 8: undertake initiatives to promote greater environmental responsibility; • Principle 9: encourage the development and diffusion of environmentally friendly technologies
Anti-Corruption• Principle 10: Businesses should work against all forms of corruption, including extortion and
bribery.
Life Cycle Management Navigator: 4_PR_CFT 12 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Competitive Pressure in Global Markets Global Opinion Leaders - Int’l Initiatives
Example
The Marrakech Process
• Refers to the international effort to develop 10 Year Framework Programmes on Sustainable Consumption and Production
• Lead by UNEP and UN-DESA
• In cooperation with national governments, private sector, and civil society
Marrakech Process Activities
held at international, regional and national
levels
Expert Meetings & Roundtables
developed at international, regional
and national levels
SCP Frameworks & Strategies
led by governments with focus on specific
SCP issues
Marrakech Task Forces
engages development agencies into SCP
activities
Cooperation Dialogue
Framework
Implementation
business to engage with implementation at regional development level (ICC/WBCSD)
Business/Industry
to integrate NGO’s activities into the
Marrakech Process
NGO Platform
Life Cycle Management Navigator: 4_PR_CFT 13 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Knowing Market Demands Trends
Trend
Increasing Costs for Waste,Energy & Materials
2
Life Cycle Management Navigator: 4_PR_CFT 14 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Increasing Costs for Waste, Energy & Materials
Trends
Rising costs for waste-treatment and disposal, energy supply, raw-materials etc. increasingly influence the bottom line.
Overall costs
time
Why?
Life Cycle Management Navigator: 4_PR_CFT 15 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Increasing Costs for Waste, Energy & Materials
Example
23% of total costs51% of total costsMaterial flow causes 21% on top
Material- and energy costs Personnel costs
Factor2-3 : 1
0%
30%
60%
material energy
others Depreciationrent
Cost elements as % of total costs*
personell
Source: Dr. Hartmut Fischer, 2003, ADL
* Fe
de
ral S
tatistica
l Office
, Co
st S
tructu
re o
f Ma
nu
factu
ring
In
du
stries, 1
99
9
Life Cycle Management Navigator: 4_PR_CFT 16 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Increasing Costs for Waste, Energy & Materials
Example
Saving 1 kg raw materials at the beginnig of the life-cycle reduces the ecological rucksack by 1 t.
Saving 1 kg raw materials at the beginnig of the life-cycle reduces the ecological rucksack by 1 t.
Material consumption is linked to costs
Source: Wuppertal Institute
$
a) costs
raw materialacquisition
pre-production
production recycling/deposite
use
kg
ecological rucksack
b) cumulated masses
c) perceivedmasses
Life Cycle Management Navigator: 4_PR_CFT 17 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Increasing Costs for Waste, Energy & Materials
Example
Waste Treatment
• Waste dumps and open landfills are a threat to human health as well as to the environment.
• Increasing awareness of proper landfill practices among decision makers.
• Introduction of standards/guidelines/regulations in Africa, Asia, Latin America, Caribbean.
Examples:
South Africa passed minimum requirements on landfills – existing dumps have to comply or close.
China developed a comprehensive set of policies on household waste, defining detailed criteria.
Examples:
South Africa passed minimum requirements on landfills – existing dumps have to comply or close.
China developed a comprehensive set of policies on household waste, defining detailed criteria.
Life Cycle Management Navigator: 4_PR_CFT 18 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Increasing Costs for Waste, Energy & Materials
Example
Cost implications of those measures:
• Disposal fees for municipal waste currently average US$ 10/ton throughout the regions, ranging from US$ 1.3 to 18.
• Increasing standards and enforcement will inevitably increase the costs.
Examples:
China is taking World Bank loans of US$ 269 million to invest in the solid waste sector. These expenses will increase tipping fees.
Expenditure in waste management in Mexico increased from 130 million US$ in 1990 to 275 million in 1994.
Examples:
China is taking World Bank loans of US$ 269 million to invest in the solid waste sector. These expenses will increase tipping fees.
Expenditure in waste management in Mexico increased from 130 million US$ in 1990 to 275 million in 1994.
Source: World Bank
Life Cycle Management Navigator: 4_PR_CFT 19 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Increasing Costs for Waste, Energy & Materials
Trends
Eco-efficiency
• Strategy to reduce costs
• By World Business Council on Sustainable Development
Source: WBCSD, 2006, Eco-efficiency Learning Modul
“Doing more with less impact”
Life Cycle Management Navigator: 4_PR_CFT 20 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Knowing Market Demands Trends
Trend
Supply Chain Pressure
3
Life Cycle Management Navigator: 4_PR_CFT 21 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain PressureUpstream and Downstream Pressure
Trends
high
lowEnv
ironm
enta
l and
soc
ial i
mpa
cts
Value Chain
Natural Resources
TransportationManufacturing
sitesProduct
distributionConsumersNatural
ResourcesTransportation
Manufacturing sites
Product distribution
Consumers
Impacts and Opportunities among consumer products
Life Cycle Management Navigator: 4_PR_CFT 22 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain PressureUpstream and Downstream Pressure
Trends
Value Chain
Natural Resources
Transportation
high
low
Man
agem
ent R
espo
nse Focus of current
management effort
only ad hoc and sporadic management
Manufacturing sites
Product distribution
Consumers
Current Management Effort
Life Cycle Management Navigator: 4_PR_CFT 23 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain PressureUpstream and Downstream Pressure
Trends
Manufacturing sites
Product distribution
Consumers
high
lowEnv
ironm
enta
l and
soc
ial i
mpa
cts
Policy, performance and reputation opportunities
80% of overall efforts focus on
20% of the total risk
Value Chain
Natural Resources
TransportationManufacturing
sitesProduct
distributionConsumers
Mismatch between Impact of Products and Management Efforts
Life Cycle Management Navigator: 4_PR_CFT 24 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain PressureUpstream and Downstream Pressure
Trends
Manufacturing sites
Product distribution
Consumers
high
lowEnv
ironm
enta
l and
soc
ial i
mpa
cts
Policy, performance and reputation opportunities
80% of overall efforts focus on
20% of the total risk
• life styles• norms and
values
• SMEs‘ performance & reporting
• sectors‘ role• regional
issues
Value Chain
Natural Resources
TransportationManufacturing
sitesProduct
distributionConsumers
Life Cycle Management Navigator: 4_PR_CFT 25 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain PressureProduct Chain Interdependencies
Trends
Producer operating in a market with high(er) environmental requirements
Interdependenciesin the
Supply Chain
Supplier
Life Cycle Management Navigator: 4_PR_CFT 26 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain Pressure Greening the Supply Chain
Trends
• A new quality of competition – networks of companies, led by a multinational, form “virtual cooperations” or partnerships along the value chain.
• Large companies include environmental issues when evaluating their suppliers, in order to
- comply with regulations;
- minimise their financial risk (liability);
- reduce costs.
Formal requirements
like certified environmental management systems (e.g. ISO 14001) are more and more common.
Formal requirements
like certified environmental management systems (e.g. ISO 14001) are more and more common.
Life Cycle Management Navigator: 4_PR_CFT 27 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain Pressure Procurement Policies of Corporations
Example
Royal Philips Electronics
Considers suppliers’ commitment to adhere to the Supplier Declaration on Sustainability (i.e. ”Declaration”) as an important factor in its decision to enter or remain in a business relationship.
Life Cycle Management Navigator: 4_PR_CFT 28 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain Pressure Procurement Policies of Corporations
Example
Source: CSCP, Retailer‘s CalendarUNEP, 2007, Life Cycle Management - A Business Guide to Sustainabilitywww.ikea-group.ikea.com
Significance of supplier depends directly on the scale of environmental and social impacts.
High level of impact
High possibility for • Cost reduction, • Waste minimization, • Reduction of downtime,• Decreasing risks of interruption,• Enhancing product and process safety, etc.
IWAY auditors screen its 1,600 suppliers in compliance with the company code of conduct. This allows IKEA to locate a geographical focus for performance improvements.
IKEA developed IWAY criteria on these issues
“The IKEA Way on Purchasing Home Furnishing Products” (IWAY)
Life Cycle Management Navigator: 4_PR_CFT 29 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Supply Chain Pressure Greening the Supply Chain
Example
Companies “greening” their supply chain
• Goal: to green the supply chain.
• Environmental performance criteria extend beyond company-owned facilities.
• Seek partnership with ecologically-responsible suppliers.
• Offer assistance to suppliers through own Environmental Action Team.
• Increasing importance of environmental audits due to corporate liabilities.
Life Cycle Management Navigator: 4_PR_CFT 30 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Knowing Market Demands Trends
Trend
Stakeholder Pressure
4
Life Cycle Management Navigator: 4_PR_CFT 31 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Trends
Community
FinancialInstitutions
Public Authorities
Customer
Media
Employees
NGO’s
Shareholder
Life Cycle Management Navigator: 4_PR_CFT 32 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Opportunity or Threat?
Trends
Opportunities Threats
Stakeholder involving decision making Greenwashing
CredibilityDistrust
Value creationValue limitation
Life Cycle Management Navigator: 4_PR_CFT 33 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Public Authorities
Trends
• Increasing regulation and authority pressure are observed all over the world.
• Traditional regulatory instruments (command & control) cover more and more sectors / environmental issues.
Consequence 1: Trend towards flexible and efficient regulation, providing strong incentives to reduce pollution (e.g. fees or pollution charges).
Consequence 1: Trend towards flexible and efficient regulation, providing strong incentives to reduce pollution (e.g. fees or pollution charges).
BUT: Often problem with enforcementBUT: Often problem with enforcement
Consequence 2: Legislation moves towards emission prevention instead of end-of-pipe (e.g. Mexican Env. Law encourages the development of programmes to prevent, control, abate pollution).
Consequence 2: Legislation moves towards emission prevention instead of end-of-pipe (e.g. Mexican Env. Law encourages the development of programmes to prevent, control, abate pollution).
Life Cycle Management Navigator: 4_PR_CFT 34 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Public Authorities
Example
Laguna Lake Development Authority, Philippines
• Problem: Laguna Lake high in organic pollutants
• Authority identified 5 industry sectors as prime source.
• Implementation of pollution charge for those sectors
a. Fixed charge per discharge volume;
b. Charge per unit emission that meets standard (low);
c. Charge per unit emission above standard (high).
• Result:
After 2 years reduction of biological oxygen demand (BOD) by 88 %
Increase of resources for monitoring and enforcement due to fixed charge
• Result:
After 2 years reduction of biological oxygen demand (BOD) by 88 %
Increase of resources for monitoring and enforcement due to fixed charge
Source: World Bank
Life Cycle Management Navigator: 4_PR_CFT 35 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Environmental Policy Approaches
Trends
ResourceExtraction
Production
ConsumptionWaste
Management:
- Collection- Recovery- Recycling
- Incineration- Landfilling
Naturalresources
Basic materials
products
Industrial wastes
MCW
Recovery, recycling
Miningoverburden
etc.
Wasteland illed,emis ions
1
44
2
1
2
3
4
Technical standards, landfill & pollution taxes
Sustainable Consumption & Production Action Plans (incl. raw material taxes)
Source: Adapted from Wuppertal Institute
Integrated Pollution Prevention Control (IPPC)
Producers responsibility, recycling quotas
4
3
Life Cycle Management Navigator: 4_PR_CFT 36 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - Extended Producer‘s Responsibility
Trends
• Strategy to close the loop of material use.
• Extend the (financial) responsibility of
producers across the life cycle - in particular
to the stage of disposal.
• Model example: Take-back systems.
Aim: to encourage environmental improvements in the entire product life cycle
Aim: to encourage environmental improvements in the entire product life cycle
What is Extended Producer‘s Responsibility (EPR)?
Life Cycle Management Navigator: 4_PR_CFT 37 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - Extended Producer‘s Responsibility
Example
EPR Systems in Europe
• EU: EPR integrated in the Directive on End-of-Life Vehicles and the proposal Directive on Waste Electrical and Electronic Equipment
• Sweden: Packaging, Newsprint, Tyres, Cars, Batteries
• Germany: Take-back obligation for transport & sales packaging.
“EPR should be extended to further areas of Community and Member State legislation whenever the integration of environmental concerns into the product design can be usefully achieved in this way.”
“EPR should be extended to further areas of Community and Member State legislation whenever the integration of environmental concerns into the product design can be usefully achieved in this way.”
Source: EU
Life Cycle Management Navigator: 4_PR_CFT 38 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - Extended Producer‘s Responsibility
Trends
Aim Prevention, reuse, recycling and recovery of electrical and electronic products, e.g. light bulbs, mobile phones, medical devices
Approach 1. Life-cycle thinking
2. Producer responsibility (design, production and disposal phase)
3. Consumer involvement (access to information and treatment facilities)
Concrete Measures
4 kg on average per inhabitant per year WEEE from private households, e.g. Ireland gathered 6.8 kg in 2005/2006
Business implications
• Producers must finance take-back systems since 2006 for products sold after August 2005
• Awareness and commitment of consumers is key to success• Strong agreements between state and economic operators,
difficult to implementSource: EU
Waste of electrical and electronic equipment (WEEE)
Life Cycle Management Navigator: 4_PR_CFT 39 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - Corporate Social Responsibility (CSR)
Trends
Corporate Social Responsibility
Internal Dimension External Dimension
• Human Resources
• Management
• Health and Safety
• Adaption to Change
• Environmental Management
• Local Communities
• Product Chain Partners
• Human Rights
• Global environmental concerns
Green Paper
“Promoting a European Framework for CSR” (July 2001)
– Broaden the dialogue on CSR– by supporting companies to manage CSR more efficiently
Life Cycle Management Navigator: 4_PR_CFT 40 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - Corporate Social Responsibility
Trends
European Multistakeholder Forum on CSR
2002 20062004
Demands on SMEs via MNCs
Promote innovation, transparency and convergence of CSR
Founding of the CSR forum
CSR at the global level: What role for the EU?
New Communication on Corporate Social Responsibility: Making Europe a pole of excellence on CSR
Common understanding of CSR among European stakeholders for competitiveness
2007
Life Cycle Management Navigator: 4_PR_CFT 41 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - Sustainable Consumption and Production
Trends
Sustainable consumption and production ... gives consumers the opportunity to consume products and services that meet their needs in an efficient and effective way, while minimizing the negative environmental, social and economic impact. The ultimate goal of sustainable consumption is to improve quality of life for all consumers in our and future generations, while minimizing associated environmental impacts. Source: Sustainable Consumption
in Asia, A Guidance Manual, UNEP, 2005.
Life Cycle Management Navigator: 4_PR_CFT 42 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Policy - SCP Action Plans
Example
EU SCP Action Plan
Towards a Green Paper • Background Document released• Consultation process ongoing
Communication• In 2008• Based on consultation
Timeline
Leveraging Innovation
Better Products
Leaner And Cleaner Production
Smarter Consumption
Global Markets
Dynamic Performance Requirements, Sustainability Labels, Eco-Design Instruments, Standardisation
Lead Market Initiative, Networking Of Innovation Stakeholders
Resource Efficiency Targets, Eco-Innovation and Environmental Technologies, Review of EMAS, SMEs
Retailer agreements, Market-Based Instruments, VAT rates, EU Eco-Label, Advertisement, Green Procurement
“Exploiting first mover advantages and leveling the playing field worldwide for sustainable technologies and products”
“...Build on, bring together, and improve coherence of existing
policies...”
Life Cycle Management Navigator: 4_PR_CFT 43 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Community
Trends
The local community living next to the company is of high importance, since
• the company’s workforce is likely to be recruited among residents;
• it is exposed to the operations’ social and environmental impacts;
• it might push authorities to more strictly monitor the operations and enforce existing regulations;
• it could start a campaign against the company.
Life Cycle Management Navigator: 4_PR_CFT 44 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Community
Example
IKPP – Indonesian pulp producer
• 1984:Operation start with old technology.
• Early 90s: Local community + NGOs claimed severe health damage from mill’s emissions.
• Mid 90s:Expansion of business need to access bond markets. BUT concern about long-term liability for pollution damage.
Indonesia’s national pollution control agency (BAPEDAL) mediated agreement between IKPP and community.
Source: World Bank
Life Cycle Management Navigator: 4_PR_CFT 45 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Community
Example
IKPP – Indonesian pulp producer
IKPP made investments in environmenal technology
Business is running profitably and outperformed the Indonesian Stock Index.
Business is running profitably and outperformed the Indonesian Stock Index.
Source: World Bank
Life Cycle Management Navigator: 4_PR_CFT 46 CSCP, UNEP, WBCSD, WI, InWEnt, UEAP ME
Stakeholder Pressure Financial Market
Trends
Banks, Insurance companies and Investors are increasingly interested in a companies environmental performance.
High pollution intensity signals
• inefficient production processes;
• potential financial losses from regulatory penalties;
• potential losses from liability settlements;
• potential losses through accidents;
• risk that financial markets revalue a firm in reponse to bad news (accident, NGO campaign, etc.).
High pollution intensity signals
• inefficient production processes;
• potential financial losses from regulatory penalties;
• potential losses from liability settlements;
• potential losses through accidents;
• risk that financial markets revalue a firm in reponse to bad news (accident, NGO campaign, etc.).