GREENPRODUCTIVITY

An Approach to Sustainable DevelopmentPresented to the World Summit on Sustainable Development

September 2002 by the Asian Productivity Organization

GP

What is the Asian Productivity Organization (APO)?The APO is an inter-governmental organization established by Convention in 1961to contribute to the socio-economic development of Asia and the Pacific throughthe promotion of productivity. In 1994 the APO launched Green Productivity as anew approach to sustainable development in response to the Rio Earth Summit as ameans of entering the race for sustainability and meeting our core mandate.

The APO is a non-political, non-discriminatory, non-profit organization, headquar-tered in Tokyo with 19 member economies throughout Asia and the Pacific.

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CONTENTSExecutive Summary - The Race, TheCarrot and the Dare.................................

Message from the Secretary-General.....

The Manila Declaration on GreenProductivity...............................................

Two such simple words: SustainableDevelopment............................................

Why Green Productivity?.........................

What makes Green Productivity soattractive?.................................................

How does Green Productivity assistenterprise?................................................

Why is the concept of GreenProductivity gaining ground withGovernments & Enterprises?...................

Green Productivity Success in Six............

The Look of Success..................................

Green Productivity In Action...................

Strategic – Green ProductivityPromotion Missions (GPPM)....................

Practical – Green ProductivityDemonstration Projects (GPDP)..............

Tactical - Green ProductivityDissemination Assistance (GPDA)............

The Value of Green Productivity toEnhance Community Development........

The New Millennium - Starting withResults.......................................................

Conclusions...............................................

Recommendations for GP Actions..........

An Invitation to the 2nd WorldConference on Green Productivity (GP)..

Are you ready for success?......................

Acknowledgements..................................

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Executive Summary

Green Productivity is a holistic strat-egy whereby nations can leveragethe dynamism of productivity toachieve a better quality of life forall people, with social justice andfairness for their citizenry, andenhanced prosperity for their enter-prises. In this special report theAsian Productivity Organization(APO) invites you to learn aboutGreen Productivity (GP):

• its tools, techniques and method-ology that are gaining accept-ance in the APO’s nineteen member economies,

• the results that are being seen in enterprise and community projects, and

• the enthusiasm that has been shared with the APO by those who have already adopted GreenProductivity with success.

The Asian Productivity Organizationrecognizes that humans are in arace – a long distance marathon.The race is not against other coun-tries but against the challenges thathumans have created for themselves.

It is a race where winning occursthrough cooperative competition –where the closest person, the small-est enterprise and the farthestcountry with whom and whichmember economies trade are able

to live a life of quality. To achieve this goal APOmember economies need to work cooperativelyto bring forward policies to foster the transitionto sustainability using Green Productivity. Even as19-strong, we will not succeed on our own. Wemust work alongside other governments toensure that we remove hurdles to enterprise, tofoster innovation and develop market pull for theproduction of greener products and services.

Collectively we must take every effort to discour-age those activities that delay this transition. Together we must dangle the proverbial carrotto our respective citizenry so that they as indi-vidual taxpayers, investors and consumers allo-cate their votes, investments and purchasingpower to accelerate the global transition to asustainable lifestyle.

The Asia-Pacific Region holds a significant rolein the escalation of sustainable development.The Region is also home to half the world'spopulation - many of whom are struggling toraise their standard of living to match devel-oped country standards; others simply want tohave clean air and pure water – an environmentwhere their children can survive.

Green Productivity has proven to be a practicalapproach for enterprises and communities.Green Productivity enables them to innovatetheir business practices while improving envi-ronmental performance. Recent application ofGreen Productivity in communities to foster eco-nomic development and environmental protec-tion shows evidence of success. As GreenProductivity offers step-by-step guidance with aportfolio of proven tools, techniques and tech-nologies, it has universal appeal. This is animportant attribute of Green Productivity.

As the plethora of enterprise in the Asia-PacificRegion is hosted by small and medium enter-prises (SMEs), their ability to benefit from thepower and simplicity of Green Productivity isespecially important to our member economies.Other nations have the same potential to bene-fit by innovating environmental protection andenhancing community development.

Seeing is believing. We invite you to viewthe results of Green Productivity; we feelthe results are exciting enough to attract others to try.

The Race,the Carrot

and The Dare

The Asian Productivity Organization (APO) has beenconducting various activities related to the environ-ment over the past 10 years to increase environ-mental awareness and promote policy, technology,and know-how on the protection and improvementof the environment among its member economies.

In line with the 1992 Earth Summit recommenda-tions that both economic development and envi-ronmental protection would be key strategies forsustainable development, the APO launched itsSpecial Program for the Environment in 1994 undera special grant from the Japanese government. Inan endeavor to find practical and attractiveapproaches for its members to deal with both pro-ductivity and environmental protection for sustain-able development, the APO introduced the conceptof Green Productivity (GP).

By the definition as coined by the APO, GP is astrategy for enhancing productivity and environ-mental performance for overall socio-economicdevelopment. It is the application of appropriateproductivity and environmental management poli-cies, tools, techniques, and technologies in order toreduce the environmental impact of an organiza-tion’s activities.

In launching its GP program formally, the APOorganized the First World Conference on GreenProductivity in Manila in December 1996. The"Manila Declaration on Green Productivity" wasissued and endorsed by the conference delegates.

Since then, the objective of the APO's GP programhas been to enhance productivity and simultane-ously reduce the negative impacts on the environ-ment in its member economies. It seeks to realizethis objective by propagating GP consciousness; byperforming the roles of think tank, catalyst, region-al adviser, institution builder, and clearinghouse ofinformation on GP; and by promoting and dissemi-nating GP skills in its member economies.

Initially taking off in the industrial sector, GP is nowbeing increasingly applied to agriculture, the serv-ice industry, and even communities. GP is thusevolving as a driver with comprehensive strategiesfor sustainable socio-economic development andbetter quality of life for all.

The APO takes pride in pioneering the GP conceptas a practical approach to sustainable developmentand addressing global environmental issues. Ourexperiences of operationalizing GP through theAPO-sponsored demonstration projects have shownthat GP works in the industry, agriculture, servicesectors as well as in communities to address theissues of resource management, environmental pro-tection, and enhancing bottom-line benefits.

We are happy to share our GP achievements andthe lessons learned with the world community onthe occasion of the World Summit on SustainableDevelopment in Johannesburg. Through this specialpublication, the APO would like to make its officialstatement on GP known to the world community.

The message is simple: it is essential to integrateproductivity concerns in our quest for sustainabledevelopment. GP is a practical and workable strate-gy for this aim. The APO would therefore like tourge all stakeholders to adopt GP principles andpractices in their pursuit of sustainable develop-ment and millennium development goals.

The APO is committed to continuing its efforts inGP. It is also committed to the objectives of theWSSD and millennium development goals. It is anexciting challenge to expand the horizons of theAPO GP program. The APO invites cooperationfrom like-minded organizations in this endeavor, sothat together we can make this world a betterplace for future generations.

Mr. Takashi TajimaSecretary-General

August 2002

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Mr. Takashi Tajima,Secretary-General

message from the

Secretary-General

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Convinced that Green Productivity, being a con-cept of integrating socio-economic aspirationsand a means to harmonize environmental pro-tection and economic development, is the key tosustainable development for enhancing people'squality of life, the Asian ProductivityOrganization, in collaboration with theDevelopment Academy of the Philippines,organized this APO World Conference on GreenProductivity in Manila, the Philippines from, 4 to6 December 1996. The participants deliberatedon the concept and current status of GreenProductivity practices, discussed related issuesand problems and adopted strategies for pro-moting the Green Productivity Movement in theAsia-Pacific region and worldwide.

SUBSCRIBING to the principles adopted at theRio Earth Summit in 1992 that sustainabilitymust be the basic consideration for overall socio-economic development of the world and theconsensus reached at the World Summit forSocial Development in Copenhagen in l995 thatequity and justice in all respects must be the pri-mary goal of our society;

REALIZING that the Asia-Pacific region is hometo over half the global population and that,while the remarkable economic development inthe region in recent years has been facilitatingthe improvement of living conditions of themajority of its vast population, it has also beencausing deterioration of natural environmentand depletion of non-renewable resources;

REALIZING that promotion of sustainable eco-nomic development with concrete measures forthe Asia-Pacific countries will not only con-tribute to achieving greater employment oppor-tunities and steady improvement of people's lifein the region and to forestalling global environ-mental degradation, but will also serve as animportant model for the other countries in theworld; and NOTING that concerted efforts forbalanced and equitable socio-economic develop-ment require fundamental changes in people'sattitudes, perspectives, and lifestyles as well asre-orientation of ways to produce goods, renderservices and use natural resources;

This Conference resolves that:

• Industrial development should be pursued morevigorously by promoting technology development andavailing of technological advancement, with emphasis on building indigenous capacity for development and adoption of green products and green production processes to conserve natural resources;

• Service industries should ensure that the provision of service to society is bereft of damage to environment and is in consonance with environmental conservation concepts;

• Agricultural development should be re-oriented towards applying environment-friendly methods and practices to ensure sustainable food and nutrition security for the growing population and improve employment opportu-nities as well as welfare and amenities in the rural areas;

• Due heed should be given to the need for ISO 14000 standards to be effectively applied to all levels of eco-nomic activities especially in the industry sector, as such standards will have a significant bearing on the promo-tion of Green Productivity practices;

• Comprehensive market-based instruments should be instituted to enhance regulatory approaches in order to accelerate the shift to Green Productivity;

• Key industries having substantial contribution to nation-al income and employment generation should provide the lead in demonstrating efficient implementation of Green Productivity concepts and practices;

• In order to realize sustainable and equitable socio-eco-nomic development as a whole, priority should be given to the needs and requirements of developing countries and their small and medium enterprises, in particular. Forsuccessful implementation of Green Productivity practices in small and medium enterprises, considerationshould be given to introducing, at the initial stage, low-cost improvement measures before taking up sophisti-cated technologies. Good house-keeping and good engi-neering practices can be the starting point for pollution prevention, as such measures could bring about sub-stantial savings of resources and reduction in wastes;and

• Cooperative labour-management relations should be forged for introducing and operating cleaner technologies.

The Manila Declaration on

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To realize these resolutions, therefore, thisConference urges:

GOVERNMENTS to institute macro-level frame-works and systems such as national developmentpolicies, legislation, regulations and economicmeasures and implement them effectively alongwith complementary micro-level systems to pro-mote Green Productivity and encourage creationof green product alternatives through variousmeasures including taxation, financing andhuman resource development;

AGRICULTURE, INDUSTRY AND SERVICE SECTORSto adopt and implement Green Productivity poli-cies and practices, particularly environmentalmanagement systems, cleaner production and, asa supplementary measure, the use of end-of-pipetreatment;

INTERNATIONAL, REGIONAL AND NATIONALINSTITUTIONS to collaborate with relevant agen-cies, support the concept of Green Productivityand have it reflected in all their developmentactivities, provide special supporting funds forprojects having significant components of GreenProductivity, and make constant efforts to createfavourable environment towards GreenProductivity enhancement;

THE ASIAN PRODUCTIVITY ORGANIZATION, as aregional productivity organization spearheadingproductivity promotion efforts in the Asia-Pacificregion, to embrace the concept of GreenProductivity, integrate it in all its program ofactivities on human resources development, tech-nical assistance and information disseminationand continue extending its activities aiming atSMEs to help them apply cleaner production sys-tems, upgrade their absorptive capabilities forISO 14000 standards and take steps to set up net-works for the effective promotion of the transferof technology and south-south cooperative activ-ities;

THE NATIONAL PRODUCTIVITY ORGANIZATIONSto place a high priority on Green Productivity inall of their activities such as surveys, fora; semi-nars, training and consultancy services, and infor-mation exchanges and act as Green Productivity

promotion centres in order to promote and coor-dinate all the Green Productivity-related activi-ties at the national level;

NGOs AND COMMUNITY-BASED ORGANIZATIONSto propagate ideas and techniques of GreenProductivity, particularly at the grass-roots level,encourage people's participation in communitydevelopment projects and render extension serv-ices to raise social awareness and promoteincome-generating activities;

ACADEMIA to lay special emphasis on researchand education in Green Productivity whichshould also be included as an essential elementof all environment-related education and train-ing;

MASS MEDIA to focus on Green Productivity inorder to increase public awareness of environ-mental issues and establish fora for freeexchange of views and ideas on all matters relat-ed to Green Productivity, particularly in publish-ing successful Green Productivity showcases;

TRADE AND BUSINESS ASSOCIATIONS tostrengthen their functions as clearing houses ofinformation in order to bring home to theirmembers the clear message that they have asocial responsibility to adopt Green Productivitypractices in their operations and that such prac-tices will enhance their own productivity; and

ALL STAKEHOLDERS to promote awareness andmutual cooperation in Green Productivity byactively participating in networking of comple-mentary activities, exchanging of ideas and expe-riences, disseminating information, and encour-aging the involvement of everyone in the GreenProductivity Movement as the strategy for betterquality of life for all.

6 DECEMBER 1996MANILA, THE PHILIPPINES

Green Productivity

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Two such simple words: Sustainable DevelopmentYet when combined they represent the singlelargest challenge to the collective creativity andintellectual spirit that humans have ever faced.

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If the whole history of the world were framedwithin the context of one day, the presence ofhumans would constitute but a fraction of thisperiod. Yet in a span of time much less thantwo seconds, humans have caused profoundchanges on the face of this planet. The time inwhich it takes to snap one’s fingers.

In the thirty years since the introduction of envi-ronmentally sustainable economic developmentat the 1972 Stockholm Conference on theHuman Environment, the environmental issuehas evolved from being an intellectual pursuit ofthe few to a core business concern of the main-stream. With the publication of "Our CommonFuture" by the Brundtland Commission in 1987,the formality of a globally sculpted definitionrallied the interests of policy-makers and vision-shapers in many nations to focus on the pursuit of

"development that meets the needs of the

present without compromising the ability of

future generations to meet their own needs."

With the closure of the 1992 Earth Summit inRio, more than 178 Governments adoptedAgenda 21, the Rio Declaration on Environmentand Development, and the Statement ofPrinciples for the Sustainable Management ofForests. The time to move from rhetoric toresults arrived.

However, it is in the operational meaning of thisdefined phrase where much debate has ensued.The matter of ecological integrity, as well associal and economic equity, must become thefocus of innovation. Just as human systemsadopted agriculture and the use of fossil fuel asthe first and second transitions that completelychanged the way global society operated, thethird transition that humans must address is tooperationalize sustainability. To be successful wemust transform these three factors into mean-ingful policies, supported by unified social actionand show evidence of our success in our respec-tive corporate triple bottom-line results.

Despite the challenge and the potential for suc-cess, nations have not entered the race in a uni-fied manner. The APO believes that we havefound a track that moves us from the evocativeto where we have evidence of results. In thispublication, we offer an introduction to GreenProductivity, its history, its method, tools andtechniques. We also share our efforts as catalystfor change and examples of the various success-es that private enterprise, including small com-panies and communities, have had.

Innovation is a primary driver ofeconomic growth. Green Productivitygreens the process of innovation.

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Green Productivity is a strategy for simultane-ously enhancing productivity and environmentalperformance. Its aim is well-rounded socio-eco-nomic development that leads to sustainedimprovement in the quality of human life. It isthe combined application of appropriate pro-ductivity and environmental management tools,techniques and technologies that reduce theenvironmental impact of an organization's activ-ities, products and services while enhancingprofitability and competitive advantage.

In 1994, the APO launched its Special Programfor Environment, under a special grant from theJapanese Government, to help membereconomies integrate environmental concernsinto their productivity enhancement work. TheEnvironment Department, under which the pro-gram is administered, fosters the greening ofproductivity enhancements through three mainactivities: promotion, demonstration and dissem-ination. A special focus on small and medium-sized enterprises (SMEs) was taken in recogni-tion of the important role they play in economicdevelopment, environmental degradation andthe lack of resources and expertise that general-ly limits their advancement.

In 1996, the Asian Productivity Organizationtabled its strategy to meet this challenge headon - through Green Productivity. At theDecember 1996 World Conference on GreenProductivity held in Manila, the APO demon-strated empirical evidence that it had found away to move sustainable development from thepossible to the practical.

Why Green Productivity?

Green Productivityhas already provento be as effectivein the boardroomas it is on the shopfloor.The universality ofits applicationshould not beunderestimated.

SMEs are thebackbone of mostnationaleconomies. GP’s“Success in six”steps offer SMEsthe chance forcompetitiveadvantage bydoing better withless.

The starting line was productivity as a cost-reduction strategy. By picking up the baton ofquality, productivity has metamorphosed toincorporate environmental protection and com-munity enhancement as a means to increaseprosperity. Under the umbrella of GreenProductivity, innovation, a key engine of eco-nomic growth, becomes part of a holistic strate-gy to move towards a sustainable future.

Productivity is essentially amarathon without a finishing line.

Just as productivity was the essential strategythat enabled Japan to rebuild after the SecondWorld War, with other Asian nations beingattracted to the lure of its success, the 19 mem-ber economies of the Asian ProductivityOrganization have rallied behind a more broadlydefined concept of productivity to race in themarathon for sustainability.

In "The Concept of Productivity and the Aim ofNational Productivity Agencies" formulated inRome in 1959 the Productivity Committee of theEuropean Productivity Agency defined produc-tivity as follows:

"Productivity is above all a state of mind. It is anattitude that seeks the continuous improvementof what exists. It is a conviction that one can dobetter today than yesterday and that tomorrowwill be better than today. Furthermore itrequires constant efforts to adapt economicactivities to ever-changing conditions and theapplication of new theories and methods. It is afirm belief in the progress of humanity."

Green Productivity starts with an intellectualdare – to shift from a monochrome bottom lineto a more colourful triple bottom line.

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Previous approaches to environmental protec-tion have tended to ignore economic perform-ance. Regulators were tasked with the dubioushonour of having to closely monitor those withthe deepest pockets and most suspect of thegreatest 'wrongdoing' - sparked by the eventssuch as Chernobyl, Bhopal and the Exxon Valdez.This surveillance has led to substantial reduc-tions in single point source pollution in mostcountries. However it has left the seemingly triv-ial individual contribution of day-to-day ineffi-ciencies in other larger and smaller enterprisesand public organizations unattended.

Essentially the practice of Green Productivityresults in using material resources and energymore efficiently and sustainably - doing betterwith less. We know spurring innovation forproducts and services enhances economic devel-opment, therefore greening innovative mindsenables development with less risk of socio-eco-nomic and environmental degradation.

According to the World EconomicForum's Year 2000 Report, the abilityof a nation to improve its competitive-ness is measured by its environmentalperformance in addition to more tra-ditional economic criteria. Central toimproved competitiveness is productivity. Thismakes the concept of Green Productivity a sim-ple but elegant solution - to make environmen-tal protection a core business attractor insteadof an isolated cost contributor.

The recognition that environment and develop-ment are two sides of the same coin came inresponse to the need to link economic develop-ment strategies with environmental preserva-tion. Between 1993 and 1994 a number of theAPO member economies were involved inresearch focused on applications and opportuni-ties for cleaner production as the cornerstonefor guiding Asian countries towards a moreenvironmentally friendly industrialization.

While the tools, techniques and methods haveexpanded over the last eight years, the goal hasremained the same - to balance environmentaland economic needs. In doing so we improvethe quality of life for society as a whole. This

balance is achieved by keeping a focus onQuality (representing the voice of the customer),Profitability (determined by how well you dowith what you have - factor inputs) and theEnvironment (our natural capital).

Between 1996 and 1998 our efforts werefocused on mainly in the smaller enterprises inthe electroplating, textile, food processing andpapermaking sectors. As such, there was a verystrong emphasis on the manufacturing processin the methodology used. Subsequently, theapplication of Green Productivity extended tofarms and also to solving problems of villagecommunities. The methodology had to be modi-fied and made more general so that it can beapplied to other areas related to productivityand environment.

Between 1994 and 2000, over 1,000 peopleinvolved in specific projects have shown the suc-cess of Green Productivity. With the start of thenew century, we see a growing enthusiasm forthe power of Green Productivity as a strategicdriver for innovation. In this new Millennium,Green Productivity will help Asia and we hopeothers to innovate a sustainable future.

What makes Green Productivity So Attractive?

We need to shift from "mandate,

regulate and litigate" to

"smart growth" and unleash the

collective creativeingenuity of

mankind.Innovating

sustainability iskey.

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Green Productivity starts as a strategy forenhancing productivity and environmental per-formance for overall socio-economic develop-ment. It is the application of appropriate pro-ductivity and environmental management tools,techniques, and technologies to reduce theenvironmental impact of an organization'sactivities, goods and services.

In its formal definition, Green Productivity usesthree terms and phrases:- strategy- productivity and environmental performance- socio-economic development

Building on its strategic founda-tion, Green Productivity focuseson enhancing profitability throughcombined improvements in productiv-ity and environmental performance.This engenders an important mindshift from environment as a costor externality to an asset andopportunity for increasing effi-ciency and profitability. Thepower of this mind shift isnot to be underestimated.When excessive use ofresources andmaterials or gener-ation of pollution isseen as a manifesta-tion of lower pro-ductivity as well as poor environmental perform-ance, these are seen as manufacturing defectsthat need to be consistently corrected. The nextlevel of Green Productivity offers the logicalmethod drawn from quality management andprovides practical tools and techniques. Theknowledge and approaches under the umbrellaof Green Productivity can help companies attacktheir productivity challenges with increased con-fidence, leading to a better bottom line andcompetitive advantage.

Green Productivity follows through on thestrategic framework by seeking technical andmanagerial interventions, based on the conceptof continual improvement. Asia's strength in

implementing and improving through the cycli-cal nature of quality management has been anasset in the initiation of Green Productivity.

Another important factor along with this mindshift is a transition from end-of-pipe thinking todesign for environment. Design changes necessi-tate research and development, and this evolvesthe response of a company from concentratingon the cost of clean-up to the excitement ofinnovating new products and services. This is acritical crossover that Green Productivity enablespassage through, as innovation is a primary driv-er of economic growth. Making products and

services greener as a condition of innova-tion is significant. It excites business,

motivates investors, intriguesemployees and attracts consumers.Government has a role to play in foster-

ing this passage.

Government policy is an importantforce to remove barriers to innova-

tion and to think sensibly aboutsupporting new technologies

that enhance rather thandegrade the environment.

Green Productivity isbeing aided by the

shift to a demand sidemarket. As consumershave more money

they are asking for products with environmentalsensitivity be it shade tree coffee, recycled paperstock, to cars with lower emissions and greenerenergy sources. The lucrative lure of the marketis a carrot. As markets demand greener productsand services, Green Productivity helps to pushthe supply side by providing a logical processand practical tools and techniques by which thistransformation can be accomplished.

How does Green Productivity Assist Enterprise?

Even the tightfocus on cash flowthat keeps theone-person shopoperating can seethe value inGreeningProductivity.

We need to thinkbeyond our cur-rent horizons tomake our futuretechnology"down-to-earth".

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Green Productivity is an integrated approach. Itaddresses the concerns of policy makers and therealities that those who produce face. The prac-tice of Green Productivity is characterized byfour distinguishing criteria.

Integrated people-based approach: One of thestrengths of Green Productivity is its workerinvolvement and team based approach. Its peo-ple focus extends to improved working environ-ment, worker health and safety, non-discrimina-tion and related social welfare issues. The peo-ple involvement also ensures transparency andaccountability.

Productivity Improvement: The other side of theGreen Productivity coin is productivity improve-ment. The Kaizen approach of continuous improve-ment forms the basis. This has to accompany envi-ronmental protection. The concept of continuousimprovement achieved by adopting the tenets ofthe PDCA (Plan, Do, Check and Act) cycle is aimedat ensuring not only productivity improvement; itincludes environmental improvement, unlike classi-cal productivity improvement programs. This is adynamic and iterative process.

Environmental Compliance: The heart of GreenProductivity is environmental protection, whichis the purpose of legal instruments. It is one ofthe most challenging tasks facing industry. Thepractice of Green Productivity assists throughtools and techniques for pollution preventionand source reduction. Residues will require

being managed using end-of-pipe treatmentmeasures. While achieving environmental com-pliance it is the unique characteristic of GreenProductivity that productivity will also improve.

These practices may lead to a situation beyondcompliance with the ultimate aim of ensuringquality of life. It is paramount that governmentsupport enterprise to innovate new technologiesthat go beyond compliance, as it will bringgreater returns.

Information-driven improvement: Documen-tation and reporting are the strengths of GreenProductivity drawn from management systemsthat exist for quality and the environment (QMSand EMS respectively). The adage "What getsmeasured gets done" is one of the driving forcesof Green Productivity.

Performance of an organization after establish-ing a Green Productivity program would be con-tinuously measured and evaluated using a set ofdefined Green Productivity performance indica-tors.

The integration between what is conventionallytermed productivity improvement concepts andenvironmental protection concepts is evident.Ecological and productivity principles marry theresponsiblity and accountability for environmen-tal restoration into the producer’s hands so thatthe business benefits of profit and competitiveadvantage reward the people taking action.

Why is the concept of GreenProductivity gaining ground withGovernments & Enterprises?

The cyclicalapproach of Plan-

Do-Check-Act inquality manage-

ment was found-ed on the study

of how naturemanages varia-

tion. GreenProductivity

leverages thiscongruence forprofit-oriented

results.

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Green Productivity has an open framework toabsorb several of the existing, proven approach-es that leverage the benefits of eco-efficiency,cleaner production, pollution prevention,amongst others. The framework is based on twokey components:

• a set of tools used to rationalize the input-throughput-output focus and

• a set of defined sustainable practices that will guide the practitioner to achieve the objective of Green Productivity.

The emphasis of the framework however is noton terminology or systems. It is based on thestrategy of sustainability in economic develop-ment and environmental protection, a logicalstep-by-step path for change.

The benefits in adopting this framework must be measurable. Progress must beshown and shared. Metrics used to measure an organization’s performance basedon the impact of Green Productivity are Multifactor Productivity (MFP) andProfitability Analysis. These are measurements that are commonly used in business.Green Productivity adds dimension and value.

Green Productivity offers a Strong Framework that enables fluid passage to productivity improvements

Life cycle assessment is used asthe basis for generating informa-tion on a product/service.Decisions are made on productdesign, manufacturing practices,purchasing policy, product distri-bution and management prac-tices based on this information.

Product design must follow the principlesof eco-design thereby subscribing to theneed to develop products that have a lowerenvironmental burden. Having incorporatedeco-design principles into product design,the first step is to examine the purchasingpolicy for inputs and where required modifyit to ensure green purchasing.

Apart from green purchasing, eco-design requires that environmentalobjectives be incorporated into the manufacturing operation, with no orminimum loss of product performance, useful life or functionality whilereducing the generation of waste, reduction of toxics content of theproduct, reduction of the energy requirements an/or extending the usefulservice life of the product. This will also ensure health and safety in theworkplace as well as for consumers using the products. In using eco-design as the basis, product stewardship must be adopted in the distri-bution, use, and disposal of the outputs (products).

INPUT THROUGHPUT OUTPUT

What is productivity?As an integrated concept

Output x Satisfaction

Input x InnovationPRODUCTIVITY =

as objective Socio-Economic Concept

as a means Technical concept

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Green Productivity advocates the need to gener-ate profits be it through savings on raw materi-als by practicing resource efficiency, improvedproductivity, quality, sales, etc. GreenProductivity recognizes this as significant in thatfor any form of economic activity to be sustain-able, profitability is an essential ingredient.Competitive advantage is essential for businessesto establish and maintain a market position. Thisalso translates into profitability. This principleadvocates competitiveness in pricing, qualityand, in the case of Green Productivity, in ‘eco-

friendliness’. In the practice of GreenProductivity, the integration of environmentaland productivity improvement will create newbusiness opportunities and provide competitiveadvantage in a market where "quality" hasbeen the focus. Extending this concept toinclude environmental quality is shared by theglobal consensus that developed the interna-tional management standard ISO 14001. Of allthe tools available under the umbrella of GreenProductivity, ISO 14001 is valuable for internalmanagement improvements that align environ-ment performance with quality and as a meansof communicating these improvements to othersusing a globally accepted model. ISO 14001 isgaining in importance as a purchasing criterionand a passport to trade.

In the case of the quality revolution, businesseseventually realized that apart from cost reduc-tion, quality could increase profitability.

Similarly, integrating environmental protectioninto business strategies will return advantagesthat businesses will realize, enabled by GreenProductivity.

Green Productivity helps to leverage progresswithin an enterprise by transferring knowledgeand building confidence. People building andemployer orientation is crucial at two levels. Oneis the commitment of the top management sincethese people are responsible for setting prioritiesfor the company, allocating resources, motivating

and encouraging employees. For GreenProductivity to be successfully adopted in business,a pre-requisite is employer (top management)commitment to adopting "green" as a value-adding foundation. The second level is workerinvolvement in the practice of Green Productivity.The involvement and commitment of the lineworkers must be included for the effective imple-mentation of Green Productivity. Workers enablethe seemingly trivial contributions that add upover time to produce exponential value.

Empowering people to feel confident enough tochange daily habits, reduce their ecological foot-print1 and be rewarded with a business advan-tage is an important benefit that GreenProductivity offers.

Profitability is the cornerstoneof Green Productivity

1 The Ecological Footprint measures the amount of nature's resources an individual, a community, or a country consumes in a given year.

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Why does Green Productivity work?It takes the future vision of sustainable development, an amor-phous concept for the average person, and gives it form, rea-son, and process. It brings sustainability from rhetoric to withinreach in a methodical, logical and affordable manner. Increasedefficiency enables greater cost control, increased cost-effective-ness and this leads to a more profitable position.

The central concept of Green Productivity is that substancesshould not be produced faster than they can be reintegratedinto cycles of nature. In reality, there is no such thing as"away", energy is neither created nor destroyed, it just changesform. Therefore it is important to optimize the use of the mate-rials and energy to obtain full value of one's efforts and invest-ment.

What proof do we have?The companies that have participated in Green Productivityhave shared their results with us. They understand the need toincrease the wealth of their businesses by building on a sustain-able foundation including economic, environmental and socialcriteria as cornerstones. When walking through their factories,across their shop floors the hum of efficiency has a new pitch.There is pride in their voices about the company’s progressusing Green Productivity. This echoes on the street where theywork. It filters through to others in their community. It rever-berates as a wave upstream and downstream along their supplychain.

How does Green Productivity start?It begins with the end in mind – success.

Green Productivitytakes the symphoniccomplexity of sustainability and harmonizes it into a tune that anyone can whistle while they work

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I. Getting started is an easy task. Identifying the people who are going to be involved and forming a Green Productivity team marks the beginning. These people, led by a champion, walk through and survey the site or facility and record first impressions. This allows the team to gather baseline data and identify areas where there may be a problem. This data gathering activity is made even easier through the use of Eco-mapping©2, a simple, visual and practical tool for gathering, analysing and managing the environmental performance, which is especially suited to smaller enterprises. It is vital to have senior management’s buy-in to ensure that adequate resources are available for successful implementation.

II. Planning allows an organization to leverage the information gained in the first step to analyse the potential for improvement, along with analytical tools such as material balance, benchmarking, Eco-mapping and fishbone diagrams. Objectives and targets can be established and performance indicators identifiedto help guide the improvement process, allowing the company to manage and measure progress.

III. Generation and Evaluation of Green Productivity Options involves the development of options to meet the objectives and targets formulated in planning. It involves a review of prevention of pollution and application of existing or new control procedures to support the development of the options to enhance productivity. Options are screened against performance indicators. Those most likely to net the economic and technical results desired are given first priority; the company is now ready for action.

IV. Implementation of Green Productivity Options involves two actions, preparation and execution. Preparatory work includes awareness building, training and the development of competencies. If new equipment or systems are required, these are installed along with the operator instruction and hands-on training to ensure success.

V. Monitoring and Review of the new Green Productivity options is vital to check to see that they are producing or exceeding the anticipated results. This includes monitoring the whole system to ensure that it is on track and performing as designed. Findings are reported for review by management.

VI. Sustaining Green Productivity requires action to correct where necessary or to build on existing success. Having a feedback loop is essential to keep progress on track and to respond to the changing circumstances imposed by internal and external drivers including customer expectations, the environment and other innovations that may accelerate the greening of productivity.

2 Eco-mapping© is a shareware tool created by Heinz-Werner Engel of Belgium for mapping where the location of environmental problems and inefficiencies lie. Within minutes a smallbusiness can see the value in Green Productivity. Detailed Eco-mapping© information is on line at www.inem.org.

Green ProductivitySuccess in SixIn six simple steps an enterprise can examineand evaluate both its production processes andproducts to reduce its environmental impactsand highlight ways to improve productivity andproduct quality.

Green Productivity is a method by which any enterprise, large or small, can understand whatit is they do or have that impacts the environ-ment, reduces their efficiency, adds cost, andsuppresses their productivity.

15

Tools are matched to the step or steps wherethey can provide the most benefit.

Many of the tools in Green Productivity comefrom quality management. The reason for this isthe results of the system of ProfoundKnowledge that found a home in Asia with theexpert help of the late quality guru, W. EdwardsDeming.

The start of Green Productivity draws uponmany tools that support the generation of newideas, the basis for innovation. Flowcharts,process flow diagrams, brainstorming, bench-marking, cause and effect analysis using a fish-bone diagram created by Ishikawa, all help togenerate ideas to solve existing problems andthink of new ways to reduce the environmentalimpacts a business has on the environment. Newthinking is critical to success. It is the shot of thestart pistol that leads to improvements in pro-ductivity and innovation.

A tool that has proven useful especially to enter-prise is Eco-mapping as it helps even the smallestshop owner quickly see where money is beinglost from activities impacting on the environ-ment. As many of the problems faced are loca-tion-based, this tool is particularly helpful. Itrequires few skills to apply, minimal resourcesand provides immediate quantifiable results.

Armed with a clear picture of the challenges, asmall business owner can apply other tools suchas Pareto charting, checklists, control chartsamong others to analysis their existing ineffi-ciencies and areas of strengths.

What are Green Productivity techniques? Theyare methods of performance or work improve-ment, applicable to people, processes, equip-ment, material/energy, products and waste.These techniques are focused on the generationof options to support the adoption of GreenProductivity strategy in enterprise.

Green Productivity techniques range from simplehousekeeping approaches to more elaboratetechnologies for designing for the environment.

They bring about changes that result in betterenvironmental performance and improved pro-ductivity.

Good housekeeping entails simple awarenessbuilding to the 5S (a technique that focuses onmaintaining processes, equipment, workplacesand people in the way they should be), processmodification that can involve energy conservation,and a broad range of waste management tech-niques to core process design, where companiesconceive of entirely new products and services.

In cases where radical re-design is the option,companies innovate to create products unheardof before. This is a focus of serious competitiveadvantage and where new market niches arecreated for services that improve the standard ofliving.

How would the market react to a material twiceas tough as the highest-tech ceramic?How valuable would it be to a business if it hadthe rights to produce the thinnest thread thatwas five times stronger than the best steel?Or an adhesive that sticks to anything, includingsituations underwater, with no primer?

Green Productivity fosters the innovative mind-set that creates greener products and services.

Green Productivity Tools and TechniquesWhat are tools for Green Productivity?They are aids that can assist the enterprise in drawing quantitative and qualitative conclusions.

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Green ProductivitySuccess in Six

Brainstorming

Attribute Analysis

Needs Analysis

Responsibility matrix

Checklists, tally charts

STEP 1 Getting StartedForm a Green Productivity Team

Conduct a walk through survey and gather information

Brainstorming

Cost benefit analysis

Eco-mapping

Fishbone Diagram

Force field analysis

STEP 2 PlanningIdentification of Problems & Causes

Setting objectives and targets

STEP 3 Generation andGeneration of Green Productivity

Screening and Evaluation of Green

Preparation of Implementation

STEP 4 Options forImplementation of

Awareness Building,and DevelopingCompetence

STEP 5

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Flowcharts and process

Flow diagram

Material balance

Benchmarking

Brainstorming

Cost benefit analysis

Eco-mapping

Failure mode and effect analysis

Evaluation - Green Productivity OptionsOptions

Productivity Options

Plan

Training needs analysis

Team building

Responsibility matrix

Critical path analysis

Gantt chart

Spider web diagrams

Implementation of Green Productivity selected options

Training,

Solution effect analysis

Eco-mapping

Failure mode and effect analysis

Charts (control/tally, etc.)

Spider web diagram

Monitoring and ReviewMonitoring and evaluation of results

Management review

STEP 6 Sustaining Green ProductivityIncorporate changes

Identify new or additionalproblem areas forcontinuous improvement

The tools are repeated here since theactivities are looped back to the previ-ous steps to provide consistency andencourage continuous improvement.This empowers the people involved tobuild on their new knowledge withconfidence for success.

Pareto charts

Program EvaluationReview (PERT)

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The Look of SuccessBetween 1994 and the present, the APO has invested substantially in engaging experts fromaround the world to Asia to share knowledge, skills and the transfer of technology to AsiaPacific.

19

The APO serves as thinktank, catalyst, regional advisor, institution builderand clearinghouse for information on productivityfor member economies.

We provide human resource develop-ment, technical expert assistance anddissemination of knowledge andknow-how on Green Productivityand other fields to support produc-tivity improvements in general.

The APO activities include:

• Basic research studies, surveys, symposia, study meetings

• Training courses, seminars

• Fellowships, technical expert services, study missions

• Publications and audio-visual material

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Green Productivity Promotion Mission

The Green Productivity Promotion Mission(GPPM) is one of the key activities that the APOundertakes to support the acceptance of GreenProductivity as a strategic and high-level manage-ment goal. Deputized experts spread awarenessamong top-level government officials, businessexecutives, and other environmental stakeholdersof member economies on the importance ofGreen Productivity. More specifically, the GPPMseeks to promote partnerships in membereconomies by creating close working relationshipsbetween the National Productivity Organizations(NPOs) and environmental agencies in both thepublic and private sectors. The local network pro-motes Green Productivity, helps membereconomies identify major problem areas, andassists in choosing options for Green Productivityimplementation. These promotion missions areconducted in close cooperation with NPOs, withsupport and collaboration from relevant agenciesor organizations in the host countries.

Green Productivity Demonstration Program

In 1995, the APO initiated the GreenProductivity Demonstration Program (GPDP) tohelps NPOs establish demonstration projects in afactory, farm, community, or service enterpriseto demonstrate empirically that environmentalprotection and productivity improvement can beprofitably harmonized, even in smaller enterpris-es. Specifically, it shows how Green Productivityincreases productivity while at the same timereducing environmental impact without theneed for substantial financial investment. Itemphasizes doing better with less. The experi-ence and lessons gained from the demonstrationprojects are then disseminated to other APOmember economies for their information andapplication, thus multiplying the number ofenvironment-friendly factories, farms, communi-ties, and service enterprises in the region. A criti-cal component of a demonstration program is tobuild the organizational capacity and capabili-ties of the NPOs, which in turn promote andsupport Green Productivity activities.

The APO has so far implemented many GPDPprojects with a high degree of success. Theywere in tannery, metal plating, printing, preci-sion tools, dye manufacturing, fruit canning,livestock and crop farming, and community-based improvement projects.

Green Productivity Dissemination Assistance

Under the Green Productivity DisseminationAssistance (GPDA) Program, the benefits of expe-rience and information gleaned from demonstra-tion programs are leveraged among membereconomies. The main purpose is to promote fur-ther awareness of Green Productivity and to cre-ate a domestic pool of experts in conjunctionwith NPOs. These local Green Productivity expertshelp to amplify success in enterprise and commu-nity development. The opportunity to develop acompetitive advantage through cooperation is astrong attractor for other businesses. Lessonslearned from a peer or like-minded entity enablesa chain reaction; projects initiated with the assis-tance of Green Productivity Demonstration proj-ects foster success.

Green Productivity In ActionThe three key activities we employ to push Green Productivity through markets are:

- Green Productivity Promotion Mission (GPPM)

- Green Productivity Demonstration Program (GPDP)

- Green Productivity Dissemination Assistance (GPDA)

21

Green Productivity Technical Informationand Advisory ServicesIn 2001, apart from deputizing Green Productivity experts toengage in GPPM, GPDP, and GPDA activities, the APO depu-tized experts to make presentations or provide advisory serv-ices in member economies for the following purposes:

Life cycle assessment case study development in selected APO member economies (Singapore).

Development of an interactive CD ROM on the APO GP Program (Malaysia).

Preparation of the proceedings of the "APO International Symposium on Management of Industrial Estates through Green Productivity."

Technical assistance for implementing natural farming system for Green Productivity (Philippines).

Assessment of biogas reactors (Malaysia).

International CooperationThe APO maintains close links withother international and nationalentities to enlarge the knowledgebase of subject areas important tothe APO member economies. Liaisonwith these organizations enablescollaboration and broadens the net-work for sourcing experts to serve asin the technical expert scheme. Thisenables the parties involved to pro-mote solutions to matters of com-mon interest and concern. Thecountries that have joined usalready include Australia, Canada,France, Germany, the Netherlandsand the USA.

The APO also works to diffuse knowledge, empower change, and in cooperation with other agenciesaround the world, heightens the receptivity of markets for Green Productivity as a means to fostersustainability. Two more activities are helping to diffuse the knowledge, skills and benefits of GreenProductivity: Technical Information and Advisory Services, and International Cooperation.

The APO is pleased to identify that cooperative arrangements exist withthe following institutions.

The French Agency forInternational BusinessDevelopment(UBIFRANCE), France

Colombo Plan Secretariat International Food PolicyResearch Institute (IFPRI)

United Nations EnvironmentProgramme (UNEP)

ASEAN Foundation Department of Business,Economic Development andTourism (DBEDT), Hawaii

International GP Association United Nations DevelopmentProgramme (UNDP)

Asian Development Bank(ADB)

Economic and SocialCommission for Asia and thePacific (ESCAP)

International LabourOrganization (ILO)

United Nations IndustrialDevelopment Organization(UNIDO)

Asian Development BankInstitute (ADBI)

European Association ofNational Productivity Centres(EANPC)

International Rice ResearchInstitution (IRRI)

United Nations University(UNU)

Asian Vegetable Research andDevelopment Center (AVRDC)

Food and AgricultureOrganization (FAO)

International WaterManagement Institute (IWMI)

United States-AsiaEnvironment Partnership (US-AEP)

Canadian InternationalDevelopment Agency (CIDA),Canada

Food and Fertilizer TechnologyCenter for the Asian and PacificRegion (FFTC)

International Organization forStandardization (ISO)

United States EnvironmentalProtection Agency

Carl Duisberg Gesellschaft(CDG), Germany

Green Productivity Associationof Malaysia

Maastricht School ofManagement (MSM), theNetherlands

United States Agency forInternational Development(USAID)

Center on Integrated RuralDevelopment for Asian and thePacific (CIRDAP)

International Atomic EnergyAgency (IAEA)

Regional Institute ofEnvironmental Technology(RIET), Singapore

World Bank (IBRID/IDA)

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Strategic - Green Productivity Promotion MissionsIn 2001, there were four missions that went to Bangladesh, India, Malaysia and Nepal.

IndiaOrganizer: KanpurProductivity Council, alocal affiliate of theNational ProductivityCouncil (NPC) of India.Cooperation withExternal Experts: USEnvironmentalProtection Agency

Format: Workshop onGreen Productivity andEnvironmentalManagementSystems/ISO 14001

NepalOrganizer: NationalProductivity andEconomicDevelopment Centerand the Federation ofNational Chambers ofCommerce andIndustry.

Outreach Activity:Narayani LeatherIndustries (Birgunj),Birgunj Chambers ofCommerce, BhrikutiPaper and Pulp Mill(Bharatpur), and SuryaCarpets (Kathmandu).

BangladeshOrganizer: NationalProductivityOrganization ofBangladesh and theDhaka Chamber ofCommerce

Format: IntroductoryWorkshop on GreenProductivity

Outreach Activity:Chowdhury Leatherand Company Ltd.,Fortuna Bhaban,Bangladesh Small andCottage Industries,Ministry of Industry,and the Departmentof Environment.

MalaysiaOrganizer: MalaysianEmployers Federationand the NationalProductivityCorporation (NPC) ofMalaysia

Format: Workshopon EnhancingOrganizationalCompetitivenessthrough GreenProductivity

GPPM

23

Practical - Green Productivity Demonstration Projects

Shen's Art Printing Co. Ltd.A leading company in the field of cultural, commercial and art printing.

Why did GP appeal to the company?

Prior to Shen’s adopting GP, it had already reduced pollution andimproved energy efficiency by installing water recycling, temperature-control, dust filtration and air change systems. The company saw GP as anexcellent way to develop new technical and management solutions to itsbusiness challenges. The pull of innovation that GP fosters helped thecompany capitalize on reductions in raw material and resource consump-tion to lower production costs, upgrade productivity and improve thework environment. Shen’s implemented ISO 14001 as part of the GPimprovement process.

What was the payback? By using the six-step method, Shen’s was able toimprove its environmental performance, which led to an annual estimat-ed US$ 261,615 savings on an annual turnover of US$10,000,000.

"Obtaining ISO certification and our research in minimization of wasteare the results of the joint effort of our company and our customers inseeking excellences in the market.

By forming a team with our customers, Shen’s Art will success in pioneer-ing an approach that promises endless opportunities."

Mr. Hsi Chen, General Manager, Shen’s Art Printing Co. Ltd.

Shui-Hua Leather Industrial Co.Ltd.Shui-Hua tannery products are used as household names around the world.

Why did the company decide to implement GP?

The leather tanning industry in Taiwan faces significant pollution chal-lenges; in particular wastewater contains strong alkalis, bio-wastes ad highconcentrations of heavy metals such as chromium. If not well managedthese chemicals can result in high risk to the environment and humanhealth. GP helped the company address these issues in a timely and effi-cient manner bringing improved productivity, a higher level of complianceand economic returns. Process improvements alone netted the company asavings of US$ 2.3 million.

"From this experience, I personally believe that implementing GreenProductivity Methodology is the best way to reduce the environmental bur-den of an organization and at the same time improve its productivity."

Mr. Ching-Tsung Cheng, GP Demonstration Project Manager

Solasia Energy Development Co. Ltd.One of Taiwan’s leading solar energy equipment manufacturers.

The GP demonstration project at Solasia shows that improvements in resource usage and wasteminimization are technologically and financially feasible in the solar collector manufacturingprocess. In fact, the program results indicate that this sector could achieve a state of zero dischargeof key pollutants. Also the key environmental problem waste water from electroplating can bedealt with in an economically effective way.

What did GP net Solasia?

Between a reduction in the amount of discharged nickel, the benefits of recycling degreasing liquidand rinsing water, Solasia realized an annual benefit of US$ 72,225.

GPDP

24

Practical - Green Productivity Demonstration Projects

Kwan Kee Electroly Dyeing FactoryLocated in the Tsuen Wan industrial area to the south west ofthe Kowloon peninsula, the company worked with the HongKong Productivity Council (HKPC) to minimize the volume oftoxic wastes that created problems of non-compliance andhuman health risk.

The company’s annual savings on chemicals was US$ 5,153 andon water was US$ 541. The early stage success this representedencouraged the company to explore where other newimprovements could be made. Their success was seen as anattractor to other area factories.

"Despite an initial capital outlay, we found that the savingsproduced by the GP program made the system profitable. Wefound that we reduce both cost and pollution and anticipatethat we can earn back the investment capital within one totwo years."

Mr. Andy Yau, Director, Kwan Kee Electroly Dyeing Fty. Ltd.

Dintex Dyechem Ltd.The GP project at Dintex focused on the production of vinylsulphone that causes acute environmental problems. The proj-ect showed that a pollution prevention approach to environ-mental improvement could lead to significant production effi-ciency and profitability. The GP survey showed that the wastegenerated by dyestuff manufacturing requires complex andexpensive treatment and that many of the outputs of the man-ufacturing processes can be reused and thus represent aresource and income stream.

Was implementing GP helpful to the company?

"After implementing all the suggestions generated by the GPprogram, we will be able to meet the relevant regulatory stan-dards. This was not possible earlier.

Now we are also getting wealth from the waste. In this waywe are marching towards Green Productivity."

Mr. Dinesh S. Shah, Managing Director, Dintex Dyechem Ltd.

What was the impact to Dintex’ bottom line? The savingsresult in over US$ 357,136 a year from an initial investment ofsome US$ 357,457. Save resources, save a dollar, in fact many!

Nasser Tannery Co.& Tanchem IndustriesThese two tanneries are representative of the challenges faced by the tannery industry in India.Their participation allowed for an assessment of how issues of scale affect environmental and eco-nomic performance in the sector. Their role in GP also enabled a better understanding of the differ-ent leather production processes used for hides and skins.

Was the implementation of GP of value?

"This project introduced a systematic approach to continuous improvement in environmental per-formance and productivity. Among the changes we observed was a shift in the approach and atti-tude of our employees--they were very much concerned about wasted resources and took all stepsand measures to reduce losses."

Mr. A. G Nasser Ahmed, Managing Director, Nasser Tanning Co.

GPDP

25

Spindex Industries Ltd.

Why was GP of interest to Spindex?By applying GP methodology, the company has been able to identify new areasof environmental improvement while maintaining its core focus on quality. GPmethodology has now been integrated into Spindex's ISO 14001 EnvironmentalManagement System (EMS). GP solutions were helpful in identifying new tar-gets and programs for the existing EMS. It also helped the company to attracttalented employees who otherwise avoided the precision machining industriesdue to its unclean working environment.

What were the environmental and economic benefits that the company realized?

The new drag-out minimization facilities resulted in appreciable savings in theamount of cutting oil used ( ~ 40% for larger parts and 10% for smaller parts.)The improvements also resulted in less oil sludge generation and a reduction inthe VOC problem at the kerosene wash. GP helped Spindex uncover whereUS$ 56,170 worth of cutting oil was wasted with other savings netting themaround US$ 7,000.

Bangplee Chromium Co. Ltd.The electroplating industry is a major contributor to environmental pollution.Untreated wastewater from factories contain toxic metals (copper, nickel andchromium) that are also hazardous to human health. For an SME, the typicalbarriers to improvement are financial and knowledge about how to start. Theclearly defined six-step method enabled Bangplee to identify chemical loss,excessive water consumption and layout and production inefficiencies thatcaused pollution and lowered production.

"I personally gained benefits not only in the field of waste prevention but alsoin the field of new plating process technique applications.Once they have observed GP implementation in our process, I think that bothpublic and plating entrepreneurs will gain more confidence that waste preven-tion is a viable technique."

Mr. Prayut Chongkol, Owner, Bangplee Chromium

Can a small business benefit economically by improving environmental performance?

Yes! Bangplee saved US$ 7,738 annually through energy efficiency, material sav-ings and reduced wastewater discharges.

Chiang Mai Food Industry Co. Ltd.What did GP offer Chiang Mai?

The GP project at Chiang Mai shows that the same systematic analysis method can be applied totwo different production processes to yield significant environmental improvements and profitgains. The project's significance to the food industry in Thailand and other developing countries ispotentially massive, since it shows that cost effective solutions exist to the industry's main problem-waste water generation.

Did the company realize any savings?

Yes. In one growing season, Chiang Mai could realize a total savings of US$ 6,943.

"By adoption GP methodology, Chiang Mai Food Industry Co. Ltd. Is able to save substantially byminimizing citric acid and other resource usage and also on waste water treatment costs.

We expect more companies in Thailand to adopt this GP methodology and gain similar benefits."

Dr. Suporn Koottatep, Chiang Mai University, Thailand

GPDP

26

Publications on the experiences that Green Productivity has produced are available through theAPO office, or by visiting the APO’s website at http://www.apo-tokyo.org/gp.new/index.htm.

• Green Productivity: In Pursuit of Better Quality of Life

• Green Productivity in Asia: APO’s Demonstration Projects 1995-1999

• Linking Green Productivity to Eco-tourism: Experiences in the Asia-Pacific Region

• The International Symposium on Management of Industrial Estates through Green Productivity (GP)

• Technical Summaries, Reports and Video Tapes of Green Productivity Demonstration Programs

In 2001, almost as many people participated in the core programs offered by the APO as those thatwere involved in the first 6 years. The success of Green Productivity is a powerful attractor.

Tactical - Green ProductivityDissemination Assistance The challenge we face requires efficiency at every possible opportunity.The APO looks to leverage the benefits from one activity to providemultiple returns. Sharing the success that companies achieve in implementingGreen Productivity is a strong attractor to others.

GPDA

27

The APO also established the IntegratedCommunity Development (ICD) program in themid 1990s. The ICD program aims to strengthenlocal capacity for sustainable community devel-opment by enhancing individual and collectiveproductivity improvement. Just as small businessplays a critical role in national economies, thereis recognition that local communities play a criti-cal role in the protection of the environment andin the sustainable use of natural resources. Toaddress the problem of the growing disparitybetween rural and urban development thatexists in many of our member economies, GP-ICDprojects were created, by incorporating GP con-cept and principles in ICD.

Vietnam - An Example of GreenProductivity Success in LocalEconomic Development The Vietnam Productivity Centre (VPC) decidedto implement its Green Productivity Demon-stration Project in three different villages insteadof a factory or farm situation. The rationale forthis decision was that 80% of the population inVietnam live in small village communities. If suc-cessful in the demonstration phase, the potentialfor replication was high.

The issues chosen to address were arrived atthrough a consensus process that involved thevillagers:

• Drinking water supply

• Management and use of human and animal wastes

• Rubbish and solid waste management

• Pest management in rice and vegetable farms

Over a one-year period, about 1,055 peopleattended workshops and received training onGreen Productivity concepts and the methodolo-gy. One indication of the success of this projectwas the adoption of Green Productivity in neigh-bouring villages without official support. Theempowerment of people to be self-reliant is apowerful approach for sustainability; GreenProductivity enables this to happen.

Why is this case study an impor-tant one to share?In a second phase nine other villages were iden-tified as candidates. The Vietnam ProductivityCentre subsequently received requests from 63other provinces in Vietnam. The Centre hopes toget the joint GP-ICD project adopted by theGovernment of Vietnam as official policy toensure that adequate human and financialresources are allocated. Ultimately they hope tohave all 10,000 village communities involved.

As the APO went to press, we were informedthat 72 communities in Vietnam are startingGreen Productivity – Integrated CommunityDevelopment as a means to move to a betterquality of life. These 72 villages cover 21 out ofthe 61 provinces that exist in Vietnam. While it istoo soon to know if every country can be assuredof this kind of success, this initiative demon-strates the potential return in a social contractfor sustainability.

The Rule of 72 has a new meaning.

The Value of Green Productivity toEnhance Community Development Innovating Sustainability

28

M/s Rama Phosphates

Practicum Workshop for Trainers/Consultantson Green Productivity

25 Feb-29 MarchKuala Lumpur andPenang15-17 April, Nadi

27-31 May, Manila

22-26 July,New Delhi

5-9 August, Jakarta

19-23 August,Bangkok

1-5 Sept, Tehran

10-14 September,Seoul

16-24 September,Paris

3-6 October Kota Kinabalu, Sabah

28 Oct-1 Nov, Taipei

9-11 December,Manila

The Asia Pacific Regional Eco-tourismConference: The Sustainability Challengesand Green Productivity

Advanced Workshop on Green Productivityfor Productivity Facilitators

Workshop and Seminar of Green Energy forGreen Productivity

Workshop on Green Productivity with SpecialFocus on Occupational Health and Safety (OHS)

Multi-country Workshop on Green Productivity(GP) for Sustainable Investment (SI)

Advanced Workshop on Green Productivityfor Educators

Workshop on Green Productivity and NaturalFarming

APO-France Study Meetings on Urban Environ-mental Management (UEM) through GP

International Symposium on Ecotourism andGreen Productivity (GP) – Asia PacificEcotourism Conference APeco 2002

Workshop on GP and Hazardous WasteManagement

2nd World Conference on Green Productivity(GP)

Hai Duong

Indore

Manila

Sarawak

New Delhi

Taipei

Hanoi

Petaling Jaya

Yogyakarta

Nadi

Fukushima

Bangkok

Manila

Singapore

Ho Chi Minh

Hoang Thach Cement Factory

Jo Na’s Corporation

J.F. Trading Farm

Workshop on Green Productivity with a special focuson Occupation Health and Safety (OHS)

Multi-Country Workshop on GP and Hazardous WasteManagement

Forum on B2B Cooperation on "E2Commerce(Electronic-Eco-Commerce)

Enhancing Organizational Competitiveness through GP

Practicum Workshop for Trainers on Green Productivity

Workshop on the Application of Total Quality Environ-mental Management (TQEM) for Green Productivity

Multi-Country Workshop on Green Productivity andEco-Tourism

Workshop on Environmental Impacts Assessment (EIA)and Green Productivity

Workshop on Green Productivity and Eco-Tourism

Multi-country Workshop on Green Productivity forHospitals

Advanced Workshop on Environmental Economics:Cost Effectiveness of Green Productivity (GP)

Workshop and Seminar on Energy Efficiency for GreenProductivity

US EPA/APO Workshop on Sustainable ForestManagement in Vietnam

2001PROJECT TITLE

2002PROJECT TITLEVENUE

DATE &VENUE

THE NEW MILLENNIUM - STARTING WITH RESULTS

29

Green Productivity offers a successful strategyfor innovating sustainability. The informationtabled in this report is the measurable results ofAPO member economies, local communities andprivate enterprise. Green Productivity provides apractical method for creating value-added prod-ucts and services that result in triple bottom lineresults. Communities benefit from economicdevelopment while improving environmentalprotection. The rewards it enables are quantifi-able and demonstrate a method to obtain anenhanced quality of life.

Too often the apparent dilemma between envi-ronment versus development boiled down toarguments about who pays. Valuable time andresources were absorbed in fruitless banter. Thetruth is we all pay when inappropriate action istaken or indifference leads the way. The APO hasempirical evidence that Green Productivity endsthe dilemma, replacing "who pays" with thosewho profit and prosper. With the support of ourrespective countries, corporations and citizens,we can progress Green Productivity from trigger-ing innovative ideas to be a full innovation –where environmental protection nets prosperity.

The business of managing the planet for pros-perity demands a balanced approach betweengood governance, profitable enterprise and peo-ple who have a quality of life. More often thannot people will pay for quality when the choiceis offered. As more businesses understand thatthere is profit in improved environmental per-formance, that there is competitive advantage inoffering green products and services, a demand-side market will pull sustainability forward.

Governments have an important role to play insupporting this transition. We need to set agood example by our own actions – with sup-portive policies, sensible laws and appropriatefinancial incentives. With the results that GreenProductivity has captured, the conceptual darefor business and politicians evolves to be a carrotthat leads to competitive advantage and povertyalleviation. Green Productivity builds politicalwill, community confidence and profit-orientedresults.

There are signals that supporting market drivenapproaches will pay off. The investment interestin the stocks under the Dow Jones Index forSustainability3 indicates that investors are com-ing to appreciate more and more the manage-ment qualities that support a sustainability ethic.There is US data on the environmental technolo-gy market that shows the process and prevention

technology market segment grew by 23.3%annually between 1989 and 1998. While this sec-tor is only 1% of the entire environmental tech-nology market, it is the fastest growing one.Projections show this trend increasing. This is evi-dence that both governments and private enter-prise are interested in moving away from end-of-pipe technologies to prevention of pollution. It isinterpolated as a shift in both the public and pri-vate sectors moving their attention regardingenvironmental policy and management upwardsand forward4. The strategy, method, tools andtechnologies in Green Productivity reinforce thisrefreshing shift.

Cooperative competition in theory and in prac-tice can reduce costs and spread economic devel-opment opportunities. We must cooperatebeyond our traditional borders to bring competi-tive advantage to local communities, a marketdriven variation of the "think globally, act local-ly" mantra.

We need to send a powerful message to themarket – that natural capital must be integratedinto pricing. We need to move our money andour management decisions upstream and recog-nize the true costs of inefficiency. As govern-ments we must make policy decisions that over-come the barriers to change, our policies mustsupport ‘watershed economics’. By adoptingGreen Productivity into national policy, we cantake action to foster greener innovation.

The APO does not suggest that we have won thewar on waste – be it in any form. However, theresults of Green Productivity have enabled enter-prises, which have dared to think beyond compli-ance, to obtain competitive advantage.

Greening Productivity changes the pace of themarathon – the stakes involved are enormous.We have everything to gain; but we risk all if wedo not enter the race.

Just as profit is the carrot that temptsenterprise to improve productivity, weas governments must run in parallel tohelp enterprise in the race for the car-rot and innovate sustainability.

Conclusions

3 http://www.sustainability-index.com/4 Innovation and the environment: OECD Proceedings:

2000 at www.oecd.org

Green Productivityenables thosewho are daringenough to thinkbeyond compli-ance, innovatetheir businesses,and shift to amore competitiveposition by doingbetter with less.

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• Encourage nations to adopt Green Productivity into policy and governance measures, and position it to support sustain-ability through innovation.

• Increase cooperative alliances with public and private sector partnerships to enhance the diffusion of Green Productivity.

• Institute comprehensive market-based instruments to encouragesustainability, pulled by the mar-ket place and pushed by regula-tory measures to accelerate the shift to sustainability.

• Improve the ecological literacy of consumers so that they understand the power and rewards of green consumerism and apply this power.

• Promote adoption of sustain-able practices for micro-enter-prise and small and medium-sized enterprise by helping them adopt Green Productivity.

Recommendations for GP Actions

The message is simple.Promote Green Productivityas a sensible strategy toinnovate sustainability fortriple bottom line returns(economical, environmentaland social) returns andpoverty alleviation.

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• Facilitate cooperation betweenlabour and management to introduce Green Productivity and improving working condi-tions.

• Facilitate the development of green supply chains through-out all levels of governance and in business clusters.

• Focus Green Productivity activi-ties on product redesign based on innovations.

• The APO’s initial experience in leveraging Green Productivity with Integrated Community Development indicates that Green Productivity has a great potential in poverty allevia-tion, in line with Millennium Development Goals. Disseminate the experience in community economic develop-ment and Green Productivity to other countries.

• Promote the diffusion and adoption of ISO 14001 recog-nizing its role in greening supply chains and as a pass-port to trade.

Green Productivity has brought forward substantial, tangible results inless than a decade. The Asian Productivity Organization is proud to havecontributed towards realizing the goals and visions of Agenda 21 bybringing sustainability "down-to-earth". The APO pledges to continuethis progress in the Asia-Pacific Region and through cooperation, extendGreen Productivity to accelerate a growing green global marketplace.

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You are invited tothe 2nd World Conference on Green Productivity (GP)!

Manila, Philippines, December 9 – 11, 2002

The Asian Productivity Organization invites you to join us, National Productivity Organizations,Partnering Organizations and confirmed participants to engage in the relentless pursuit toinnovate sustainability through Green Productivity.

The first conference in 1996, “In Pursuit of Better Quality of Life”, brought together more than 450participants from 32 countries including senior government officials responsible for productivitypromotion and environmental management, representatives of United Nations’ agencies, otherinternational organizations, non-governmental organizations, industry, agriculture, labour unions,academia and the mass media. At the closing, the Manila Declaration on Green Productivity wasadopted, casting the seeds needed to sprout green innovation.

Join us at this important event where we share the roots of progress, the measurements and sto-ries of GP success.

The conference will address four key objectives:

1. To review the GP concept, principles, methodology, and tools as a practical approach to bothglobal competitiveness and the environmental problems on the occasion of Rio+10 Conference;

2. To assess the opportunities for enhancing the GP concept, methodology, and the tools andtechniques by incorporating other modern concepts and trends;

3. To identify new and innovative approaches to strengthen and sustain GP practices withinNPOs and other organizations, as well as at the national level; and

4. To network with like-minded national as well as international organizations to bring aboutsynergistic effects in regional activities on GP promotion and dissemination.

For details contact either the APO office in Tokyo or:

Productivity & Development CenterDevelopment Academy of the Philippines (PDC-DAP)

4th Floor, DAP BuildingSan Miguel Avenue, Ortigas Center

Pasig City, Philippines

Phone: 63-2-631-2137/631-0921 to 30

Fax: 63-2-631-2137/631-2123

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For inquiries and comments on thispublication, please contact:

Asian Productivity Organization2-10, Hirakawacho 1-chome, Chiyoda-ku

Tokyo 102-0093, JapanTel: (+81-3) 5226 3920Fax: (+81-3) 5226 3950

Email: env@apo-tokyo.org

w w w. a p o - t o k y o . o r g

Acknowledgements

This publication was prepared by:

Lynn Johannson, B.E.S. (Hons.), M.Sc., FRSA

President E2 Management Corporation (E2M)

Georgetown, Ontario, Canada Email: etwom@inforamp.netwww.e2management.com

Printed by:Simpson Screen Print & Lithography Ltd.

Ontario, Canadawww.simpson-print.com

Green Productivityis

…a strategy for enhancing productivity and environmental

performance for overall socio-economic development. It is the

application of appropriate techniques, technologies and

management systems to produce environmentally compatible

goods and services. Green Productivity can be applied in

manufacturing, service, agriculture, and communities.

Are you ready for success?