Design for Sustainable Development - Practical ...

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Hans van Weenen studied environmental chemistry at the University of Amsterdam. ...... Simplicity of services: low-tech is considered to be clever tech.
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social partners. The concept of 'sustainable business' presents a new challenge to tomorrow's business leaders. This publication describes this challenge for small and medium-sized enterprises (SMEs), providing ideas and examples to stimulate debate inside and outside Europe. It explores the concept of sustainable enterprise with the help of 25 examples of sustainable SMEs from around the world and also lists some organisations which have been set up to assist SMEs in achieving sustainability. As some of the examples show, it is possible for SMEs to develop a systematic business strategy which simultaneously integrates and realises economic, social and environmental objectives without threatening their viability.

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Design for Sustainable Development – Practical Examples of SMEs

Sustainable production and consumption is an issue of increasing international interest for the

SX-18-98-906-EN-C

Design for Sustainable Development Practical Examples of SMEs

Design for Sustainable Development Practical Examples of SMEs

ISBN 92-828-5267-9

EUROPEAN FOUNDATION for the Improvement of Living and Working Conditions

OFFICE FOR OFFICIAL PUBLICATIONS OF THE EUROPEAN COMMUNITIES L-2985 Luxembourg

9 789282 852675

Design for Sustainable Development

The European Foundation for the Improvement of Living and Working Conditions is an autonomous body of the European Union, created to assist the formulation of future policy on social and work-related matters. Further information can be found at the Foundation Web site: http://www.eurofound.ie/

This report has been written for the Foundation by Hans van Weenen, IDEA, Castricum. Hans van Weenen studied environmental chemistry at the University of Amsterdam. He obtained a Ph.D. in the technical sciences at Delft Technical University. His consultancy is called IDEA - International Design and Environment Activities - and is based in Castricum. He is chairman of the UNEP-Working Group on Sustainable Product Development (UNEP-WG-SPD) and director of the UNEP-WG-SPD International Centre of the University of Amsterdam.

Design for Sustainable Development Practical Examples of SMEs

Hans van Weenen

EUROPEAN FOUNDATION for the Improvement of Living and Working Conditions Wyattville Road, Loughlinstown, Co. Dublin, Ireland. Tel: +353 1 204 3100 Fax: +353 1 282 6456/282 4209 E-mail: [email protected]

Cataloguing data can be found at the end of this publication

Luxembourg: Office for Official Publications of the European Communities, 1999

ISBN 92-828-5267-9

© European Foundation for the Improvement of Living and Working Conditions, 1999 For rights of translation or reproduction, applications should be made to the Director, European Foundation for the Improvement of Living and Working Conditions, Wyattville Road, Loughlinstown, Co. Dublin, Ireland.

Printed in Ireland The paper used in this publication is chlorine free and comes from managed forests in Northern Europe. For every tree felled, at least one new tree is planted.

Foreword

The move towards sustainable development is one of the main challenges of the European Union. It is a key principle of the Fifth Environmental Policy and Action programme that environmental concerns are taken fully into account from the outset in the development of other policies and programmes. Because of its structure, the European Foundation for the Improvement of Living and Working Conditions can play a unique role in this area by working with industry and being able to operate on the interface of the environment and working conditions. Against this background, Sustainable Development is one of the six key issues in the Foundation’s programme for 1997-2000. The focus of the Foundation’s activities on sustainable development is sustainable production and consumption. In order to deal with these issues, the Foundation has launched a project on Design for Sustainable Development with the aim of developing tools, information networks and training for the main actors concerned, such as industry, social partners and designers. The first publication on Design for Sustainable Development is entitled Design for Sustainable Development - Concepts and Ideas; followed by Design for Sustainable Development - Guides and Manuals and the third publication of the series provides a Design for Sustainable Development Networks Directory. The database on which the publication has been prepared is accessible on the Foundation’s homepage on the Internet (http://www.eurofound.ie). The fourth report published is Design for Sustainable Development - Environmental Management and Safety and Health. This fifth publication, Design for Sustainable Development - Practical Examples of SMEs focuses on practical examples of sustainable product design. Further publications on the topic of sustainable design and on renewable resources for sustainable development are in preparation. Clive Purkiss Director

Eric Verborgh Deputy Director

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Participants in the Project

Members of the Coordination Group on Sustainable Design and the Evaluation Committee are: Yorick Benjamin Torsten Dahlin Hans van Weenen Gerard Zwetsloot Jan Kahr Frederiksen Margareta Mårtensson Andreas Tschulik

Robert Nuij Christina Theochari Wout Buitelaar

EDEN, Amsterdam Swedish Industrial Design Foundation, Stockholm IDEA, Castricum NIA-TNO, Hoofddorp FTF, Copenhagen. Representing the Trade Unions’ Group of the Foundation’s Administrative Board SAF, Stockholm. Representing the Employers’ Group of the Foundation’s Administrative Board Ministry of Environment, Youth and Family Affairs, Vienna. Representing the Governments’ Group of the Foundation’s Administrative Board European Commission DG XI, Environment, Nuclear Safety and Civil Protection Representing the Committee of Experts of the European Foundation for the Improvement of Living and Working Conditions Representing the Committee of Experts of the European Foundation for the Improvement of Living and Working Conditions

The research managers responsible for the project are: Henrik Litske Jørn Pedersen

European Foundation for the Improvement of Living and Working Conditions European Foundation for the Improvement of Living and Working Conditions vii

Contents

Foreword

v

Participants in the Project Introduction

viii 1

Chapter 1

Design for Sustainable Development Towards sustainable production and consumption SMEs and sustainability SMEs and product development Design for sustainable development project

3 3 4 5 6

Chapter 2

The Concept of ‘Sustainable Enterprise’ Human needs and SMEs Sustainable enterprise: a model Classification of sustainable SMEs Natural and urban SMEs Resource use by sustainable SMEs Sustainability promoting firms The societal context of sustainable SMEs

9 9 11 17 19 20 21 22

Chapter 3

Sustainable SME Programmes and Projects Fifth RTD Framework programme (1998-2002) PREPARE LIFE

25 25 26 26

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Chapter 4

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EkoDesign ‘Health and environment are good business’ Green SMEs Better Business programme EMAGE EET programme EcoDesign project VITO PREPARE-Steiermark-ÖKOPROFIT IDRC Solutions to pollution Target Zero project SME forum DESIRE

26 27 27 27 27 28 28 28 28 29 29 29 30 30

Examples of Sustainable SME Practice SME practice and renewable energy Fruits of the Nile, Uganda: solar fruit drying ULOG Gruppe, Switzerland: solar box cookers Luigjes Zonne Energie BV, The Netherlands: solar collector Development Alternatives and DESI Power, India: biomass power plant BayGen, South-Africa: Freeplay® radio - solar option FPR2S Wheels Within Wheels Limited, United Kingdom: HPVs SME practice and renewable materials Pacific Green Furniture Co. LTD, Fiji Islands: palm wood furniture Kambium, Germany: kitchen manufacturing The Martin Guitar Company, USA: certified wood guitar Natural Cotton Colours Inc., USA: naturally coloured cottons HempFlax, The Netherlands: fibre hemp products Vision Paper, USA: kenaf processing pulping and paper making AURO Pflanzenchemie GmbH, Germany: natural paints and varnishes SME practice and sustainable services Agrofair BV, The Netherlands: Oké Max-Havelaar banana trade A.H.M.&M., United Kingdom: sustainable school Ecomat, USA: water-based cleaning of clothing CITYgogo, Belgium: taxi cycle for inner city areas VTZ, Switzerland: green money Triodos Bank N.V., The Netherlands: social bank Noppes, The Netherlands: Local Exchange Trading System SME practice on reuse and repair The Intermediate Technology Development Group, UK: APT Kristinsson, The Netherlands: architecture and engineering office RUSZ, Austria: repair and service centre

31 31 31 34 36 38 40 42 44 44 46 48 50 52 54 56 58 58 60 62 64 66 68 70 72 72 74 76

Practical Examples of SMEs

Golden Gate, Austria: children’s shoes 78 Deep E Company, USA: footwear manufacturing 80 Overview of sustainable SME examples and some of their characteristics 82 Chapter 5

Access to Sustainable SME Information European Foundation for the Improvement of Living and Working Conditions IISD ILO INEM O2 Challenge 98 Sustainable Business Network Sustainable Investment WBCSD

83 83 83 84 84 84 84 84 85

Chapter 6

Observations and Conclusions

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Bibliography

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Introduction

This report builds upon the results of the European Foundation for the Improvement of Living and Working Conditions projects: New Materials for Environmental Design, Design for Health, and European Workshops on Eco-products. It presents strategies for the sustainable enterprise and practical examples of design for sustainability by small and medium-sized enterprises (SMEs). The report complements the Foundation’s Design for Sustainable Development booklets: Concepts and Ideas and Guides and Manuals. Sustainable production and consumption is an issue of increasing international interest. At the high-level segment of the Fifth Session of the Commission on Sustainable Development, in New York, 8–25 April 1997 (during the Dutch presidency of the European Union), the Dutch minister De Boer issued a statement on the subject on behalf of the EU. According to the EU, a new initiative is required concerning production and consumption patterns which will lead to an ecoe fficiency revolution. By the middle of the next century resource productivity should be improved by a Factor 10 compared to the current situation. As an intermediary step, improvement by a Factor 4 within the next two or three decades is considered feasible. Minister De Boer stated that, in this respect, the industrialised countries have a special responsibility and should take the lead. Strong and effective interaction is required between all sectors of society, particularly industry. Furthermore, the minister stressed that it is important that developing countries should benefit from these activities. Transfer of environmentally sound technology to developing countries, supported by adequate financial means, will be essential to assist them in attaining the necessary resource productivity and to broaden their economic development under sustainable conditions (EU Statement, de Boer, 1997). At the special session of the General Assembly for the Overall Review and Appraisal of the Implementation of Agenda 21, in New York, 23 June 1997, again on behalf of the European

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Union, the Dutch Prime Minister Kok invited the Secretary General of the UN to present strategies for a long term sustainable development, within a time frame of fifty to a hundred years. He suggested that those strategies should provide the background for high level considerations by the General Assembly, on the eve of the new millennium (EU Statement, Kok, 1997). The concept of ‘sustainable business’ has been presented as a new challenge to tomorrow’s business leaders (Willums, 1998). The World Business Council for Sustainable Development has addressed this subject in various publications. However, so far, very little attention has been given to the challenge that sustainable development poses to small and medium-sized enterprises (SMEs). Against this background the aim of this report is to give information on that issue, to provide ideas and examples, and to stimulate the debate in and outside of Europe. This report is divided into five chapters. Chapter 1 outlines the international trend towards sustainable production and consumption that poses the challenge to enterprises to become sustainable. The concept of sustainable enterprise is explored in Chapter 2. Although several national and international programmes exist that seek to stimulate and support SMEs that are already, or wish to become, engaged in the implementation of sustainable strategies, it is nonetheless important to continue to explore how the concept of sustainable development can be made tangible for implementation by SMEs. Chapter 3 gives 15 examples of the programmes which exist to promote and support SMEs which are involved in, or wish to become involved in, the implementation of sustainable strategies. Chapter 4 gives 25 examples of sustainable SMEs from around the world. They show the richness and diversity of sustainable enterprises. The SMEs that have been selected are excellent examples of the integration of vision, concepts, processes, products and services towards the target of sustainability. All of the examples display the typical characteristics of sustainable SMEs. In Chapter 5, some international organisations are presented that have been set up to help SMEs achieve sustainability. Finally, Chapter 6 presents some observations and conclusions.

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Chapter 1

Design for Sustainable Development

Towards sustainable production and consumption Design, in a broad sense, is essential to the envisioned change towards sustainable production and consumption patterns. It is a significant element in the important role of industry in this transition, in particular that of the small and medium-sized enterprises (SMEs). To plan changes in the natural resource base or to reformulate the composition of the natural resource input as a whole are becoming serious strategic activities for many businesses. Already, a growing interest is emerging in environmental and socially responsible investments. This is increasingly being expressed by the preferences of private and institutional investors and by the investment portfolios and the financial products of banks. Complete reorientation may result, for example, towards locally available resources, skills and experience, which are embedded in the existing environmental conditions, as part of the process of change that will occur. This change will engage all relevant groups such as the employees, customers, consumers, suppliers and shareholders. The participation of consumers, international exchange and cooperation, and access to new information sources through international communication, are ingredients of the first steps towards sustainable industrial development. Sustainable management concepts and systems aim for the integration or participation of workers, customers and consumers, providing new, pleasant, healthy and safe jobs. They also take into account the ethical implications of industrial relations, labour conditions, human rights and current and future environmental effects. Old and traditional technologies which possess inherently sustainable characteristics are being rediscovered and revived, while new processes, products, structures and services need to be developed in striving for a sustainable future. Stimulated by international policies (Local Agenda 21 and EU policies) and by national strategies (eco-effi-

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ciency, closing of material cycles), various new initiatives, programmes and projects have been initiated, especially in European Union countries, but also in Canada and Australia, and in some developing countries such as Brazil and Costa Rica. Against this background, this report deals with the concept of the sustainable enterprise with a particular focus on small and medium-sized enterprises (SMEs) and 25 illustrative examples of SME design practice for sustainability.

SMEs and sustainability SMEs differ in their business concepts, their core and their objectives. Criteria for sustainability have been or are expressed in different levels of commitment and realisation of SME sustainability. Some of the distinguishing features of sustainable SMEs are: • • • • •

Focus on elementary needs: the SME presents original or new, more sustainable solutions than those that prevail in the market. Sustainable resources: the SME has a long tradition of sustainable use of resources. Integration of concepts: social, economic, health, safety and environmental aspects are integrated within the SME. Local adoption of sustainability: the SME in its local context aims for sustainability by incorporation of sustainable development as a holistic concept. Local or regional initiatives: more general sustainable SME practice exists or is in development as part of a local or regional initiatives. It marks the beginning of local or regional sustainable industrial development.

Two targets are desirable in surveying sustainability and SMEs. Firstly, the concept of ‘sustainable enterprise’ needs to be developed so that it can serve as a model for reflection, projection and evaluation. Any examples of sustainable SMEs which are identified must either match the model substantially or completely, or the model must be pronounced inadequate and redefined. Secondly, in addressing future SME practice, it is essential to identify at least some current examples of good practice. Hopefully, once identified, they will serve either to express what a sustainable enterprise is about or to provide inspiration for further debate and development. Existing and new examples of sustainable practice of SMEs have to be collated and information about them analysed and classified. Thus a better understanding will emerge of the various levels of engagement of SMEs with sustainable development and of the possibilities and limitations involved. It is not the intention of this report to tackle the health and safety issues in current SME practice or difficulties which SMEs face when they wish to implement sound environmental management. Health and safety is dealt with in an EC Manual for SMEs (European Commission, 1993) and in a Community programme on Health and Safety at Work (European Commission, 1995). Other publications such as the PREMISE manual for small enterprises (European Commission, 1996), address the difficulties which SMEs face. Neither is it the objective of this report to intro-

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duce environmental product development, which has already been covered by a life-cycle design manual for SMEs (van Weenen, 1997). The aim is rather to focus on innovative, challenging and rewarding practices and examples, and on promising trends in sustainability already displayed by some SMEs. Some types of sustainable SMEs may have been there all along, but either we have forgotten about them or they are so obvious that we fail to notice them. Some SMEs can achieve sustainability relatively easily. Other types of enterprise might be difficult to bring into existence and require much preparatory work. Whatever the limitations, it is still worthwhile to start exploring and looking for best practice, even if there appear to be few examples. Therefore this research surveys the quality and diversity of examples from all around the world, rather than only looking at examples from Europe. An international, future and development-oriented focus is required, which goes beyond traditional geographic boundaries or mental barriers. If unsustainable systems, patterns and lifestyles must be corrected or abandoned and new more sustainable ways are to be found, then it is inevitable that some of their roots, basic elements and design practices must be critically assessed and new ones explored, with an open mind. One of the starting points was that creativity and ideas can be found and are stimulated by respecting and acknowledging different local, regional and cultural conditions. It is in this global diversity that the qualities essential to the much longed for sustainable industrial development are most likely to be found. It is also where sustainable enterprises are present, where they will emerge and have to be developed.

SMEs and product development In recent years, much attention has already been given to the role and importance of the industrial practice of SMEs. Examples of relevant initiatives are: activities of UNEP-IE/PAC and of EUREKA-PREPARE; Eco-design projects in the Netherlands and in Sweden; local initiatives reported by ICLEI; and a special EU workshop on SMEs and the environment in The Hague, February 1997. This was also one of the main themes of the informal Council of Ministers of the European Union, April 1997. In connection with sustainable product development, the importance of SMEs was recently covered in a publication on Life Cycle Design, a Manual for SMEs (van Weenen, 1997). Local industrial development and the opportunities for developing countries are closely connected to this and were dealt with in an article in the UNEP-IE Industry and Environment Journal (van Weenen, 1997). In addition, several related initiatives such as the Global Eco-village Network (G.E.N. Europe, 1997) and UNCHS-projects (HABITAT) on sustainable production and consumption were presented at the Rio +5 conference in New York, June 1997. In addition, the World Wide Web is increasingly providing information on sustainable production and consumption, as well as on related industrial practice. In March 1997, international experts met with representatives of the UNEP-IE Cleaner Production programme, to discuss how to improve the

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environmental performance of SMEs through better access to environmental information (UNEP-IE, 1997). In April 1997, the European Environment Agency organised an international meeting on ‘Environmental management operational information for SMEs’, in Lund, Sweden (IIIEE, 1997). At the beginning of 1998 the UNEP-IE began a new programme on sustainable production and consumption. It could even be argued that so much information is becoming available that SMEs who have access to the World Wide Web may have difficulty in finding and selecting attractive, relevant and suitable information. Much information on product design and environment concerns environmental optimisation of various aspects of production. However, integrated approaches and new concepts relating to sustainable product development are rather scarce and hard to find. At first glance it might seem that examples of such integration, especially by ‘sustainable’ SMEs, are likely to be brand new and unique. But often they are far from that and have already existed for many centuries in great numbers as ‘traditional’ crafts and practices. Either way, with a sustainability based frame of reference, integrated approaches currently present the most thought provoking and creativity stimulating directions for sustainable industrial practice. Much debate is still going on about the definition of sustainable development and its practical implementation. Sustainable development is a complex and holistic concept and therefore it is not easy (if not impossible) to find perfect examples of sustainable SMEs. What is possible, however, is to indicate the factors that make an enterprise a sustainable one. One major criterion is that within a sustainable enterprise one would expect to find the practice of sustainable product development – strategic product development practised on the basis of clear criteria for sustainability. The quest has been to explore and discover examples of SMEs which demonstrate an attractive and challenging approach towards sustainable product development.

Design for sustainable development project The Design for Sustainable Development project has studied the subject of environmental health and safety, focusing on management interactions at company level and in policy (Zwetsloot, 1998). It has also published a directory of networks working towards sustainable production and consumption (Benjamin, 1998). These activities clearly recognise that dynamic processes have begun both inside and outside SMEs by which they will, sooner or later, be influenced. And this helped to bring about the present study, which also builds on the experiences and insights gained from the studies for the European Foundation for the Improvement of Living and Working Conditions, Concepts and Ideas, and Guides and Manuals (van Weenen, 1997). The key questions underlying the information this report presents were: •



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What examples of SME practices and results demonstrating design for sustainable development could be found in current literature, on the World Wide Web, and among international networks and contacts? How could this information be made accessible to SMEs and to the social partners?

Design for Sustainable Development

The research has looked at SMEs which exemplify design for sustainable development rather than focusing only on environmental optimisation and eco-efficiency. It has concentrated upon SMEs which show new approaches (preferably in a local context) to: • • • • •

Renewable energy resource selection. Renewable material resource selection. Dematerialisation. Sustainable management. Sustainable service design.

SMEs from all over the world have been chosen, with a view to the principles which underlie them and their applicability. Because much more information is available on SMEs in the industrialised world, they dominate the outcome. However, as the emphasis is upon sustainable development, an effort has been made to include a number of examples from developing countries.

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Chapter 2

The Concept of ‘Sustainable Enterprise’

Human needs and SMEs All human needs can be classified as elementary or non-elementary. Elementary needs are biological needs that are essential to the quality of the physical, mental and social functioning of humans, in the short and longer term. Non-elementary needs are those needs that are not essential to the functioning of humans, but, that add to the quality of life as perceived by them. This distinction, however, is not clear. It depends on the individual, the type of society, the prevailing conditions and it may well vary in the course of time. The fulfilment of a human need can be a response by the person whose need it is, by the person, company or organisation to whom the need is expressed, or which observes the need and wishes to act. Such a response can be in reaction to, for example, a personal feeling, an observation, or a thought. It can be based on the personal assessment of a problem and the aspiration to realise an improvement of the conditions concerned or to get rid of the problem altogether. Such responsive action may also be the objective of a business or organisation whose purpose is to identify and satisfy the needs of others. These businesses or organisations, involving a maximum number of 500 people, are known as small and medium-sized enterprises (SMEs). SMEs make things or provide services in order to meet human needs, demands and wishes. These things and services are expected, either completely or partly, directly or indirectly, to match the needs concerned. The response to the original need will be based on a combination of information, material and energy, or of technology and service. Such combinations will lead to a product, system, structure or service. Any of these products will have their past, present and future environmental influence. The combinations are conceived in a product development

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process and realised in their actual design: the physical realisation, usually in the form of a material object. The process of product planning and development is a very important mental component of the material life cycle of a product, from raw material extraction to refining, processing, manufacturing, consumption, degradation and dispersion. Products involve the use of materials and energy. They reflect a certain way of understanding and meeting the need which the product is intended to satisfy. The product will commonly consist of one or more materials. A material is a substance or thing, originally derived from the environment by human action, which can be used either directly, or transformed into a product. The product, will sooner or later have to be returned to the environment. Therefore, any product will influence the environment. During or after its use and consumption, the form, concentration, character and location may have changed. Finally it will become waste or pollution with a potentially negative effect on the ecosystem to which it is introduced. However, often the main environmental effect will have occurred in the first stages of the product life cycle. At the extraction, refining and processing stages, tremendous quantities and volumes of accompanying or auxiliary materials are involved. Thus, although the individual final product may reflect purity, efficiency, precision and quality, the total quantity or volume associated with it as well as its prior environmental impact can be tremendous. This is sometimes referred to as its material history or its environmental ‘backpack’. This all concerns the actual material influence of production, and the material history and future of a product, which is encoded in its design. This ‘general product code’ consists of three components: the natural code, the observed code, and the added code. The natural code consists of the geology, evolution, and ecosystem based inherent constituent properties of a natural resource or material: it is the resource code (van Weenen, 1996). Natural materials are known to have many different properties, some of which are unique. However, whether or not and which of the properties will be observed, recognised or acknowledged depends on the knowledge, experience, interests and the reference frame of the observer. Therefore, the second code is the ‘observed code’. This code is related to ‘materiality’ which is seen as the locally adapted manifestation of the resources of a specific place through the local culture (Stevenson, 1998). Usually, once a material has been derived from the environment, it will be subjected to subsequent human action which will influence the material. It will become dislocated, transferred and transformed. At the and it may have changed location, shape, structure, composition and concentration beyond recognition. Thus characteristics will have been added to the natural code of the material. This added human influence as a whole presents its ‘added code’. Thus, in addition to the ‘backpack’ of a material a ‘brain pack’ exists: the human values led changes that have been imposed upon the natural resources and materials that humanity uses. The availability and accessibility of natural resources depends on factors such as the character of local ecosystems, geology, climate and the material cultural history. It also depends on the past and current political, technological, cultural and socio-economic conditions. Some countries were able to import raw materials from elsewhere, in huge quantities, for a few centuries. Others could and still can only watch most of their material resources being exported. Some resources -

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the non-renewable ones such as oil, coal and minerals like phosphate, Tin and Chromium - can be considered part of our common global heritage although they are concentrated in specific locations on earth. They are the heritage of the geological formation and of evolution. In the course of millions of years they have become unevenly distributed and locked in their original geological and ecological settings. The vast majority of the raw materials that have been extracted since the industrial revolution have become even more unevenly distributed, but this time into the structures, buildings, processes and consumption patterns of the people of the industrialised countries. Although this primarily occurred to the detriment of people in developing countries and their future, the resulting pollution and depletion will also affect the future of the industrialised world. Thus past, present and future resource use became a global concern.

Sustainable enterprise: a model Sustainable small and medium-sized enterprises are a particular kind of enterprise. Before addressing their general characteristics, some idea must first be developed of a ‘sustainable enterprise’. This will be done without engaging in a description of the traditional economic, organisational and technical components of any functioning and viable enterprise. Some elements are presented below of the model sustainable enterprise. In order to improve the prospects of the future, the concept of sustainable development has been internationally presented and discussed. The concerns and strategies are expressed in the following quotation (World Commission, 1987): “The satisfaction of human needs and aspirations is the major objective of development. The essential needs of vast numbers of people in developing countries - for food, clothing, shelter, jobs - are not being met, and beyond their basic needs these people have legitimate aspirations for an improved quality of life. A world in which poverty and inequity are endemic will always be prone to ecological and other crises. Sustainable development requires meeting the basic needs of all and extending to all the opportunity to satisfy their aspirations for a better life. Living standards that go beyond the basic minimum are sustainable only if consumption standards everywhere have regard for long term sustainability. Yet many of us live beyond the world’s ecological means, for instance in our patterns of energy use. Perceived needs are socially and culturally determined, and sustainable development requires the promotion of values that encourage consumption standards that are within the bounds of the ecologically possible and to which all can reasonably aspire.”

Enterprises are the production organisations in which consumer needs are reflected in products and services through the use of information, human capacity and natural resources. They determine and affect all the stages of the flow of resources through society. They shape, with their networks of customers and suppliers, the overall life cycle of materials. Therefore, in the transition to sustainability, the role of such enterprises is crucial. In the European Union, SMEs are defined as follows. To be classed as an SME or a micro-enterprise, an enterprise has to satisfy criteria for the number of employees and one of two financial

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criteria (the turnover total or the balance sheet total). In addition, it must be independent, which means less than 25 percent owned by one enterprise (or jointly by several enterprises) falling outside the definition of an SME or a micro enterprise, whichever may apply. The number of employees of a micro enterprise is less than 10, of a small sized enterprise less than 50, and of a medium sized enterprise less than 250. The thresholds for the turnover and the balance sheet are adjusted regularly (UN-ECE, 1997). Around 99 percent of businesses in the EU employ fewer than 50 people but account for half of all employment and nearly half of total turnover. Large concerns employing more than 250 people are responsible for 34 million jobs, a third of the total. Some 40 percent of EU enterprises are involved in the wholesale and retail trade and hotels, restaurants and catering. Finance and business services account for 15 percent; manufacturing and construction each account for around 13 percent (Financial Times, 1996). In a developing country such as India, SMEs with 1-50 employees account for 70 percent of the industrial output and 60 percent of the exports, and are highly polluting. They, in particular, need information, financing, and management skills to encourage them to change (Ashford, 1993). An enterprise contributes to the quality of life of the consumer. However, this no longer only concerns the direct functioning of the product, but also its social and ecological history and future. The definition of the product is changing to include the domain of accountability of the enterprise. The product reflects a certain environmental impact, which consumers increasingly recognise as affecting their quality of life. The ‘sustainability-promoting firm’ must ensure that when products (including services) and production processes are developed or modified to meet the needs of the active users, that they are also designed to serve the needs of the local community, people globally, future generations and nature (Sutton, 1998). If enterprises want to become sustainable, they must consider if and how they can promote sustainable living through the creation of work for the sustainable production of goods and services that are needed to improve the lives of people, in the industrialised, as well as in the developing world, now and in the future. This means the objectives of a company will change. Traditional objectives such as realising continuity and creating profits, have to be confronted with and, if possible, integrated with the objective of sustainable production and consumption. The external social and natural sustainability requirements must be incorporated in the internal policy, culture and practice of the enterprise of the future. For that purpose, participation, finding common ground and stimulating creativity and flexibility will become essential ingredients of enterprise practice. In addition, acknowledgement of environmental relations with the local, regional and global environment is required. The importance of the global context and the future as a dimension will increase. Enterprises, rather than being defensive or static with respect to the environment, will have to become and remain active and dynamic in order to contribute to a sustainable world. The world is at the beginning of a reconstruction of its production base. Unsustainable enterprises will be ended, partly sustainable enterprises will be changed, and wholly sustainable enterprises will take the lead and their establishment will be stimulated. The incentives will come from existing markets, from new policies and from the markets of the future. Existing systems have to be abandoned, improved or retrofitted and new ones will have to be developed from

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scratch. A fundamental shift in basic fuel use from fossil based to solar based will have tremendous implications. The reason is that most of the existing structures have not been built upon sustainable criteria. As a consequence, in many cases, just adding such criteria to existing systems will not be sufficient to render them sustainable. It will only present a transitional adaptation. Truly sustainable systems that already exist will benefit from the new challenge towards sustainability. Lifestyles, company cultures and urban centres will change, as will the infrastructures that connect them. The orientation to local resources and ecosystems will change the world (Norberg-Hodge, 1998). Sustainable industrialisation will be a central objective throughout the developing world. For the current and future markets in the developing world, it is necessary to create small, decentralised industries of a new kind, using local resources and clean technology to increase productivity and to make products and provide services that satisfy the fundamental needs of local people without destroying the environment (Ashford, 1993). The mission of SMEs simply to produce must be transformed into one of fulfilling needs in a sustainable way. This means that even companies who have begun to address the concept of the life cycle (from resource extraction to waste product disposal) of the product have only taken the first steps. They have to go beyond environmental optimisation of their product’s life cycle stages and question the very need for their product and how they can contribute to sustainable industrial development. Rather than operating only with the concept of a product’s life cycle, enterprises will have to look at its needs fulfilment cycle which runs through observations - values - needs - response - fulfilment. Crucial issues in this cycle are: •

a focus on elementary need;



the frame of reference of the observer;



the articulation of the needs by the consumer and their precise assessment;



awareness and openness to an array of alternatives;



a preference for systemic solutions;



an emphasis on functions to be delivered;



priority of services over material objects;



solutions that support, are in harmony or are compatible with nature.

A sustainable enterprise is an enterprise that provides solutions for fulfilling elementary needs by producing products or services through the organisation and input of human and natural resources, based on a development process which reflects the following immaterial and material objectives:

Values, vision and mission •

Formulation of the role of the enterprise in securing and improving the future prospects of the short and longer term, continuation and quality, of human and natural life on earth. The enterprise then expresses its mission, or the founder or president states their vision.

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Design for Sustainable Development



Dedication to the values of the quality of life, the interests of the poor, of future generations and the conservation and enrichment of natural ecosystems. Quality of life of course includes meaningful work and good quality jobs.



Acknowledgement and appreciation of the values of human resources, their social and cultural diversity, inside and outside the enterprise. This is done by facilitating participation for the joint exploration of current domestic and foreign needs, solutions and markets, and preparation for future markets. The related system, service and product functions to be delivered are assessed and well-informed selection is made of the alternatives identified.



Commitment to assess continually the precise character of the consumer, worker, and customer needs involved, the relevant functions to be delivered by products, services or systems, and the best ways in which human, natural, material and energy resources can be involved and invested for their realisation.





Contributing clearly to providing a sustainable basis to the prevailing production and consumption patterns by: – –

substantially reducing the level and intensity of the use of natural resources redirecting their primary material and energy resources and input selection



reformulating their resources and input composition

– –

realising an even global distribution of material and energy resources securing and improving their future availability and potential.

Supporting developing countries and practising co-development with them, by realising and maintaining direct contact and cooperation with enterprises in developing countries, so as to ensure that the product or service of the enterprise involved can also be developed and used by them.



Realising a fair and equitable distribution and sharing of the benefits of using non-material and material resources among communities, nations and generations. There is a clear need to make up for past and present inequalities in resource use between the industrialised and the developed world. A future, more equitable distribution of resources among nations and generations must be realised. This particularly concerns the use of resources which have a relatively high potential of saving lives, alleviating world poverty, or contributing to the quality of life of huge numbers of people.



Committing to contribute to the realisation of an ethical use of resources. From an ethical point of view the enormous inequality in resource use between the industrialised and the developing world must be changed. The additional resource use in the North beyond what is required to fulfil elementary needs is already difficult to defend and will become increasingly so if considered in the light of the extent of world poverty. Further growth of the material use level in the industrialised world would only aggravate this situation. The world population will grow from 6 billion people in 1999 to more than 9 billion in 2050 and the expected population explosion will occur in developing countries, where serious poverty already exists. This consideration will become part of the sustainable accountability of a company.

14

The Concept of ‘Sustainable Enterprise’



Maintaining, as a sustainable enterprise in the North, direct relations with one or more enterprises in developing countries, with which there is cooperation or which are supported in their sustainable industrial development. Through co-development both enterprises in the North and in the South can learn from each other. A sustainable enterprise can also work on problems that are abundant in developing countries, for which those countries have found solutions of their own, which either can be improved, or which can serve as a source of inspiration for improvements or new solutions to problems in the North.

Resources, selection, level and pace •

Avoidance of the use of material and energy resources, by using knowledge, skills, human power, talents, and individual or collective social activities and services.



Expressing awareness of the extent of the past and current input, use and environmental impacts of the resources concerned and of the requirement to make use of those already derived and those still available, while drawing lessons for the future from past resource use impacts.



Demonstrating the intention to make use of the inherent environmental properties of resources and their potential contribution to the reduction and prevention of global environmental problems, poverty and under development.



Showing commitment to contribute to a fundamentally lower level of resource use. The prevailing unsustainable levels of production and consumption lead to resource depletion, pollution and environmental degradation beyond replacement and repair. The unrestricted level of resource use of the industrialised world and the historic huge inequality in the distribution of resources between industrialised and developing countries must be changed in order to realise a compensation for the past inequalities and a future fair use of resources throughout the world.



Realisation of a slower pace in the use of natural resources. It is not only the level but also the pace of resource use that must change. A slowing down of the use of resources will lead to less depletion and less pollution per unit of time. This can be realised by designing longlife systems, structures and products, by prolonging their use and by designing multi-generation usage possibilities for various subsequent usage and function stages. Thus, cascading by design can be realised. The use pace will also increase if consumers make longer use of their material goods, and if they can and do maintain, repair, and recondition them. Another way to reduce the pace of resource use is to prevent dispersion and dissipation of resources. Less leakage from the overall material use cycle can lead to a longer use of the resources present in the social metabolism.



Reformulating the input composition of society’s use of resources, towards a more sustainable metabolism for both industry, organisations and households. A sustainable enterprise not only contributes to an overall reduction but also considers the impact of the resources concerned. The resources that mostly contribute to depletion, a high resource use level and

15

Design for Sustainable Development

also much pollution and environmental degradation, should be reduced with priority. This means that the use of resources which are very material intensive, because their use implies the production of large quantities or volumes of materials and energy, must be reduced first. Also resources that speed the pace of resource usage should be reduced. This is not only an issue of prevention of waste and emissions, or an issue of reduction of pollution and toxicity. It is also is a matter of general resource use quality with sustainability in mind. It involves the sustainable aspects of resource use cycles. •

Using materials and substances that have already been extracted for preference, in ways that take the most sustainable advantage from their inherent and remaining potential. This concerns an intensive use of materials that have already been derived from nature and that are directly available, or will become available in future, as they are present in existing structures, products and waste materials. In the industrialised world these are the culturally available secondary physical structures, products and materials in their local settings. This, of course, involves a detailed policy for system, structure, and product reuse and recycling, as an additional consideration after optimal and prolonged use.



Using primary natural resources. The sustainable enterprise will base its production on those that are naturally available, locally, on and near the site where the enterprise has been built. These resources concern local ecosystems, ecosystem functions and components. This includes natural phenomena in all their variability, to which the sustainable enterprise is adapted, including the use of the air (wind, pressure, temperature, humidity), the sun (light and heat), water (in the ground, at the surface or rain), and other geophysical and biological conditions and combinations thereof.



Linking to natural processes and integrating the production process with the surrounding ecosystem, the sustainable enterprise can benefit from its natural conditions and ecosystem functions. By studying nature, inspiration can be obtained for the production process of the enterprise, for example with regard to the use of substances, materials and structures, but also concerning energy conversion and storage. Ecosystems and their components are extremely complex systems and subsystems, in which very sophisticated solutions, processes and constructions can be found that can provide insights in the sustainable use of materials and resources and in the way sustainable production and consumption systems can be organised.



Considering ways in which the influence upon ecosystems can be reduced and changed in order to make it more compatible with ecosystem characteristics and conditions. Some sustainable enterprises may have as a central objective to restore, enrich and build ecosystems, or they may set the conditions for longer term positive natural development. Others may consider it their main task to promote sustainable development. They do research on, advise on and stimulate implementation of sustainable development. In doing so they will try to follow a sustainable process and use technical and organisational means that are as sustainable as achievable.

16

The Concept of ‘Sustainable Enterprise’

Several of the above model components would also apply to SMEs. Size and main activity will determine the ways in which they are likely to be affected or stimulated by the drive for sustainability. Below, a rough classification is presented of various sustainable SME types.

Classification of sustainable SMEs Among the terms used in referring to organisations which are concerned with environmental issues are: ‘environmental’, ‘green’, ‘eco-efficient’ and ‘sustainable’. These terms are often defined and interpreted in different ways. For example, an ‘environmental’ company may be one having in place a sound environmental policy intended to reduce the impact of its processes and products throughout the life cycles of its products. But it may also simply be a company which collects and treats waste materials. A European report defined eco-businesses as: ‘companies that produce technologies, goods and services to measure, prevent, limit or correct environmental damage to water, air or soil, as well as problems related to waste, noise and eco-systems.’ (European Report, 1997). One definition of a ‘green business’ is: ‘... one which works towards a cleaner environment, reduced use of natural resources, production of high quality food, and which utilises an environmentally sound means of production.’ (Eco-village information, 1996). The World Business Council for Sustainable Development (WBCSD, 1997) believes that an ‘eco-efficient company’ is one which strives to: • • • • • • •

reduce the material intensity of its goods and services; reduce the energy intensity of its goods and services; reduce its dispersion of any toxic materials; enhance the recyclability of its materials; maximise the sustainable use of renewable resources; extend the durability of its products; increase the service intensity of its goods and services.

According to Robert Ayres a more sustainable enterprise would be one that would go beyond the present thinking related to pollution prevention and eco-efficiency. In his opinion it has to move towards providing a service, instead of selling a product: ‘In other words it has to move towards internalising its use of materials or taking them back after use.’ (Green Management, 1996). Some authors, considering the transition of companies towards sustainability, have proposed a series of stages by which companies become progressively more environmentally conscious and reduce their impact on the natural environment. Suggested stages are eg ‘reactive’, ‘pro-active’ and ‘innovative’, or ‘reactive’, ‘receptive’, ‘constructive’ and ‘pro-active’. Young and Rikhardsson have presented a company development path starting with a ‘reactive’ strategy, developing into a ‘proactive’ strategy and from there on moving on towards a ‘sustainable’ strategy. The latter stages demand a broader definition of performance and a greater number of indicators to adequately monitor company progress. They add that although environmental performance is a necessary ingredient in the transformation process towards sustainability, there are other dimensions

17

Design for Sustainable Development

such as equity and futurity which are crucial to achieving the goal of sustainability. Therefore, improving environmental performance is not enough to achieve sustainability (Young, 1996). Others, however, argue that such stage models are insufficient. A possibility might be a classification where a large number of desirable characteristics are gathered and companies are then rated by the extend to which these categories are present. This would be done without grouping such criteria into stages or assuming that they be achieved in any particular order. Schaefer and Harvey recommend that future research use broader, multidimensional theoretical frameworks, incorporating more detailed study of the institutional pressures and internal conditions and processes which shape individual companies’ environmental strategy (Schaefer, 1998). The list below presents an exploratory classification of sustainable SMEs based on the considerations presented in the previous sections. The examples which were presented in Chapter 4 are SMEs which aim at fulfilling elementary needs through one or more of the following suggested characteristics or combinations of characteristics. Type of system produced: • • •

conservation and enrichment of existing ecosystems; setting the conditions for the natural development of new ecosystems; research, promotion and support of existing inherently sustainable enterprises.

Type of service provided: •



research, promotion and implementation of: – the concept of sustainable development; – sustainable production and consumption; – sustainable product development; – sustainable services; – sustainable processes; communal, joint, shared, successive use of products and services (through LETS, public, community or neighbourhood ownership, leasing).

Type of product produced: • • • • • • •

drinking water and its transport and storage products; sustainably produced food and beverage; sustainably produced natural medicine; sustainably produced naturally coloured clothing and textiles; sustainably produced and renewable material resources based solar products such as solar cookers, ovens, dryers, stills, coolers, climate controllers, and kitchens; human communication (‘oral media’); human powered vehicles.

Type of process used: • •

18

ecosystem function-based; integrated biosystem based;

The Concept of ‘Sustainable Enterprise’

• • • • •

sustainable resources and energy integrated; solar energy driven; biomass driven; natural enzyme and micro-organism driven; human power driven.

Type or resource system used: • • •

sustainable use of natural ecosystems; sustainable use of integrated biosystems; sustainable use of natural phenomena.

Type of resources used: • • • •

integration of sustainable use of renewable material resources, renewable energy, human power; sustainable use of the sun; sustainable use of renewable material resources; sustainable use of human power.

Type of products and services used: •

those of other sustainable enterprises, thus forming sustainable networks, sustainable industries, sustainable communities and sustainable regions.

Natural and urban SMEs The sustainable enterprise will initially try to meet elementary needs without using any material or energy resources, or by using as few sustainable resources as possible. Those that are nevertheless required are sustainably derived from the direct natural conditions. This concerns the input of material, energy and information (natural ideas) from the ecosystem to which the enterprise belongs. Of course this input must be used within the sustainable limits of what the ecosystem can provide (using a quantity which is less or equal to the annual yield; making use of natural phenomena without seriously affecting them; making use of natural water and returning the water in a quality that is within the absorption capacity of the ecosystem). This is the sustainable and conditional use of ambient resources for production (building, working conditions, input, process and product). It is the concept of ‘natural SMEs’. Many such SMEs exist around the world. They can be considered the inherently sustainable small enterprises. If the local resources are not sufficient, then an input is required from another enterprise in an ecosystem or in material cultural conditions that are more appropriate to provide the resource s u s t a i n a b l y. On a larger scale, eco-communities, eco-regions or eco-zones can exchange resources, products and services, creating a direct link between the prevailing ecosystems in certain locations and areas and the type of processes, products, systems and services involved.

19

Design for Sustainable Development

Thus, in areas where the ecosystem is the dominant factor, SMEs can use local resources, resources from elsewhere and combinations of the two. Whereas in areas where the cultural and material surroundings are more important and the resource situation is quite different, ‘urban SMEs’ will function (EFILWC, 1997). There also, of course, ambient resources exist, such as energy and material flows (sun, wind, water) and gradients (light/dark, cold/warm, high/low). But the availability of concentrated and diffuse material systems, structures and products here presents quite a difference. Not only is the availability of importance, but also the inherent qualities of the materials involved and the qualities that have been added through their production and construction. In addition to that, the material, ecosystem and geological history of the materials involved is of importance. Fundamental resource qualities may still be available such as in constructions entirely made from renewable resources, or constructions made from non-renewable resources only. Such characteristics will direct the potential further use of the materials involved. As much waste and emissions have already been caused in the early phases of the material life cycle of such structures, it is important to make use of their present properties at the highest possible value level of usage, for as long as possible, while leaving open any options for future diverse subsequent levels of usage generations.

Resource use by sustainable SMEs The first principle of a sustainable SME is that it should constantly focus on understanding the needs it intends to meet and on finding ever better alternatives for meeting them. A sustainable SME will give priority to non-material ways of meeting needs. If that is not possible, it will concentrate on methods that involve the least possible material input. Thus, sustainable service-oriented SMEs will take the lead in the quest for sustainability (Elsen, 1997). An SME, if it was not established with the objective of sustainability in the first place, should be based on a concept that seeks to reduce significantly its current or potential, direct and indirect material and energy requirements and throughput. Ideally, the sustainable SME should not use material or energy, but should concentrate on vision, knowledge, ideas, experience and information, and focus on the practical realisation of sustainable development. A sustainable SME should be devoted to the fulfilment of elementary needs which it will try to meet in ways that have the least possible environmental impact and the highest possible economic and social yield. If material and energy resources are required, priority should be given to material and energy sources that have already been created by human action, and structures and products that have already been derived from natural resources. Only when these structures and products are still functioning should other, virgin natural resources be used. This involves a precise knowledge of what the organisation wishes to achieve, and of the material and energy means naturally available. A well-informed selection should take place, based on information on the intrinsic properties of the natural resources involved. These intrinsic properties, such as the biodegradability of renewable materials, can often be of importance throughout the material life cycle concerned, eg from harvest to compost or biogass. Also the unique properties or

20

The Concept of ‘Sustainable Enterprise’

combinations of properties of the resource, such as the plant, clay or metal, should be harnessed and used to their full potential. This is referred to as ‘total resource recovery’, ‘multi-functional’ or ‘whole crop’ use. The location of the resource, the natural conditions and the ecosystems present in the direct vicinity of the SME and their sustainable availability, should form the basis of the manufacturing process and production of the SME. After careful selection and full use of the resource properties, full use of the resource potential is achieved by finding ways to prolong the life of the product. This involves intensive, multiple, joint, successive and communal work, which in turn requires social, organisational and logistical skills. A further consideration is to prolong the use of the resource at many other subsequent and hierarchical levels, which is called ‘resource cascading’. It is especially important that cascading, reuse or recycling of the object or material is ‘designed in’ to the total resource application rather than included accidentally, or as one of the last considerations. Finally, some materials can also produce energy, compost or minerals (for example to support new production steps, soil improvement, or agricultural production) thus closing the cycle of natural CO2 and those of the natural mineral cycles. Thus, natural resource use by a sustainable SME will follow a sequence of priorities. For example, when looking at renewable energy and renewable material resources and combinations of them, the sequence would be: •

human power;



solar energy stored and available in natural ecosystems, as biomass, climate, weather or other physical conditions and processes;



natural solar energy: solar light and heat without conversion;



renewable energy systems such as integrated biosystems;



conversion of solar light and heat into electricity or into chemical or biomass energy;



annual surplus - pioneering ecosystems that are abundant (for example, grass);



fruits from mature ecosystems;



yields from human made production ecosystems.

Sustainability promoting firms As was indicated in the exploratory classification of sustainable SMEs, such SMEs should be supporting, forming and stimulating sustainable networks, sustainable industries, sustainable communities and sustainable regions. Such strategies are strongly advocated in The Sustainabili ty Promoting Firm, (Sutton, 1998): ‘Nine key actions that need to be taken by a sustainability-promoting firm are: •

Goal: to take on the timely achievement of global and local sustainability as one of its top goals and as a significant area of organisational opportunity.

21

Design for Sustainable Development



Customer service: to ensure that when products (including services) and production processes are developed or modified to meet the needs of the active users that they are also designed to serve the needs of the local community, people globally, future generations and nature.



Management: to implement an environmental management system that enables the organisation to help society achieve sustainability in a timely fashion, for example, through the use of leapfrog pioneering strategies.



Market: to take action to maximise the market for products that contribute to sustainability and as far as possible favour the servicing of other firms and final users that are making a positive contribution to the achievement of sustainability.



Products: to change product offerings - to foster sustainability.



Operations: to change the way activities are carried out or the way production is undertaken to foster sustainability.



Proliferation: to promote the spread of the sustainability-seeking approach generally: through the private, public and community sectors and up and down the supply chain.



Cooperation: to cooperate with other sustainability-seeking organisations.



Society’s rules & structures: to work to change society’s rules-of-the-game and structures including the standardised system frameworks for products, so that they favour the achievement of sustainability.

If sustainability-seeking organisations proliferate, then the chance of achieving sustainability will switch from vanishingly small to virtually certain.’

The societal context of sustainable SMEs Sustainable production is inextricably linked with sustainable consumption. A sustainable SME should be part of a network of similar SMEs and also should function within ecological and communal systems, organisations and infrastructures that are sustainable. Thus SMEs would be part of a sustainable community which works actively and cooperatively to achieve an economic basis that is not just environmentally friendly, but that provides the community on a dependable long term basis, with the resources to achieve social and environmental sustainability. A sustainable community is part of a society in which the benefits of the economy are equitably distributed, in which every member can participate fully, and which promotes the wellbeing of all its members and their ability to realise their full human potential. The sustainable community also aims to achieve protection and enhancement of all natural systems, and conservation of resources, using the principle of full cost accounting (Richardson, 1994). Sustainable SMEs can also be found in eco-villages for which the Global Eco-village Network (GEN) has been established (GAIA Trust, 1996), (G.E.N., 1998). An important part of GEN’s strategy is the promotion of sustainable technologies. Its long term vision is to provide sustainable jobs in eco-villages by technology exchange and cooperation. Three criteria have emerged in assessing appropriate technologies for eco-villages, over and above commercial viability.

22

The Concept of ‘Sustainable Enterprise’

They are: ecological sustainability, human scale with decentralised production, and allowance for a non-stressful, meditative life-style. Local governments can share experiences in the activities and publications of the International Council for Local Environmental Initiatives (ICLEI, 1995). This is an international network of 280 municipalities which was established in 1990 at a world congress at the United Nations in New York in order to introduce innovative environmental management concepts aimed at improving global environmental conditions (EPE, 1998). The subject of sustainable cities has also been addressed by the European Sustainable Cities & Towns campaign and also in a number of international meetings and publications by the European Foundation for the Improvement of Living and Working Conditions, (EFILWC, 1997). Sustainability at the regional level has been dealt in Austria, in Islands of sustainability (Moser, 1993), while the closely related concept of bio-regionalism is discussed in Serhus, 1997, and Stevenson, 1998. Thus the newly emerging sustainable societal context is stimulating the debate on sustainable lifestyles (VROM, 1993), (SustainAbility, 1995), (EcoTeam, 1995), (Rensvik, 1996), on sustainable households (VROM, 1995), (European Union, 1998) and on sustainable consumption (IOCU, 1993), (Hurtado, 1994), (Sustainable Consumption, 1994, 1995), (OECD, 1995), (American Dream, 1995), (Friends of the Earth), (IIED, 1997), (Consumers International, 1997), (WBCSD). While the Internet already provides evidence for the prediction that a very important role will be played by international virtual organisations in future. The growing number of new international network orientated organisations also indicates the vitality and the dynamics of the change towards sustainable production and consumption (Benjamin, 1998).

23

24

Chapter 3

Sustainable SME Programmes and Projects

In Activities in Favour of SMEs and the Craft Sector the European Commission presents an overview of the ways in which it assists SMEs. These activities are broadly divided into those that improve and simplify the business environment, particularly with SMEs in mind, and specific programmes or support measures for SMEs. EC assistance is intended to improve the chances of SMEs remaining in business and growing, as well as to provide an environment in which the creation of new SMEs is encouraged. The report refers to the Environment Fifth Action programme, the Environmental Management and Audit Scheme (EMAS), volatile organic compounds, the Euromanagement-Environment pilot action, the Eco-Management Guide, and the LIFE programme (European Commission, 1998). In this chapter the focus is on some programmes and projects that have a more specific concern for sustainability, from both within and outside Europe.

Fifth RTD Framework programme (1998-2002) The Fifth Framework programme of the European Commission covers the entire Community research effort over the next five years. One of its thematic programmes concerns the promotion of innovation and encouragement of participation of SMEs. One of the subjects in the programme is ‘Eco-efficient processes’, the goal of which is to minimise full life-cycle impacts on the environment, taking account of all essential elements of the industrial system ranging from extraction through production to waste management, with emphasis on resource intensive processes. Another related subject is ‘organisation of production and work’. RTD priorities here are the study of human, organisational, socio-economic and regulatory determinants for a smooth transition of enterprises towards efficient and sustainable production and consumption; new deci-

25

Design for Sustainable Development

sion-making tools and new approaches to the management of change and human resources; studies on the impact and acceptance of new business ideas and new industrial production patterns, compatible with the concept of sustainability (EU-RTD, 1998).

PREPARE Within the framework of EUREKA-EUROENVIRON a working group called ‘PREPARE’ (PReventative Environmental Protection AppRoaches in Europe) is concerned with research. The working group is a EU-wide network of experts and industry representatives involved in demonstration projects and research and development on cleaner production in industry. The PREPARE network was commissioned by DG III (B5) of the European Commission to carry out the project Environmental Best Practices in SMEs (EBP) pilot program (1997-1998). Its overall objective is to perform a pilot project on implementation of EBP, using a selection of dissemination mechanisms, in a number of SMEs in selected sectors and selected EU countries. One of the project’s purposes was to ensure that a forum of representatives from EU Member States should become active in actual dissemination of information on environmental best practices. (http://www.io.tudelft.nl/research/mpo/prepare/network.htm).

LIFE LIFE is a financial instrument of the European Commission which was created in 1992. Its purpose is to provide support, through co-financing, for SMEs that wish to undertake pilot demonstration projects linked to the environment. The LIFE programme is the major component of a special regulation of the European Community the purpose of which is to contribute to the development and implementation of Community environmental policy legislation. LIFE concerns, among other issues, clean technology demonstration projects. For 1995 one of the priority themes was to promote sustainable development. In project selection, small business are given priority over large firms (LIFE, 1996).

EkoDesign EkoDesign Sweden was initiated in 1997 by the Stiftelsen Svensk Industridesign, with the support of Nutek, the Ministry for the Environment and the Ministry of Economic Affairs. Its aim is to support environment-oriented product development by SMEs in Sweden. It involves giving help and advice by industrial designers and environmental specialists to SMEs. It is expected to reduce costs and to stimulate innovation, thus improving the competitive position of SMEs. A broad reference group with representatives from various Swedish organisations monitors the progress and results of the project (Svensk Industridesign, 1997).

26

Sustainable SME Programmes and Projects

‘Health and environment are good business’ The Confederation of Norwegian Business and Industry organised a project Health and Environment are Good Business (1995-1996), in which 60 small enterprises took part. The aim was to simplify the procedures for integrating Health, Environment and Safety (HES) efforts into the daily operations of small enterprises and to show that HES efforts are profitable. One of the conclusions of the project was that practical routines and documentation must be formulated in such a way that they promote development and improvements. Cooperation with key regulatory authorities has been important for reaching consensus on the choice of simple, practical working methods, reduced documentation requirements and a more understandable use of language (Foss, 1997).

Green SMEs The concept of industrial ecology is used as a framework for environmental performance of SMEs in Norway in the green SMEs project at Western Norway Research Institute. The main goal of the project is to identify existing and future environmental challenges for rural SMEs. The knowledge obtained is transferred to enterprises to make them more compatible with the principles of sustainable development. Some observations were that the environmental impact of the individual firm is strongly determined by the type of product chain the enterprise is part of. Most of the SMEs are tightly connected with other companies which make up a production network. The most critical environmental issues for rural SMEs, Andersen concludes, are not the emissions from the individual industrial facility, but rather the external challenges facing the business. The product being produced, the distribution of raw materials and products, and the production chains the firm are part of, are becoming increasingly important for the rural SMEs (Andersen, 1997)

Better Business programme The Better Business programme is a joint initiative in the United Kingdom by the NatWest Group and the World Wide Fund For Nature, particularly designed to help SMEs to contribute to the achievement of sustainable development. This includes the development of a series of ‘toolkits’ which are designed to improve business performance and bring about environmental and financial benefits. The toolkits will be based on case studies and simple but practical action guides. (http://www.natwestgroup.com/bus_main.html#LBA), (NatWest Group, 1977).

EMAGE The East Midlands Advisory Group on the Environment (EMAGE) has the mission of ensuring that enhanced environmental performance and competitiveness are integral to business culture and economic activity. The goal of EMAGE is to deliver to 100 SMEs in the manufacturing sec-

27

Design for Sustainable Development

tor, the necessary technology transfer to significantly improve their environmental performance (Nottingham Business School, 1997).

EET programme The Dutch Programme on Economy, Ecology and Technology (EET) aims to provide multi-year support to sustainable technological developments. The starting point of the programme is the belief that the tension between economic growth and ecological sustainability can be reduced by developing new technologies. The programme provides financial support to ambitious, multiyear plans of co operating enterprises and knowledge institutions. It is a joint initiative of the Ministries of Economic Affairs and Education, Culture and Science. The project stand out because of its fundamentally new approach to environmental problems and the excellent economic prospects for the products and production processes it aims to develop. In the Dutch policy report on Environment and Economics, the EET programme is repeatedly referred to in order to give content to the concept of sustainable economic development. The EET programme office is located in Utrecht, The Netherlands.

EcoDesign project EcoDesign is a new design for environment project concerning environmental design for SMEs commissioned by the Dutch government from the Dutch Network Innovation Centres (ICs). The ICs are experienced in consultancy for SMEs in the field of product development and new business development. EcoDesign has been carried out in two phases, a strategic and an operational phase. Twenty-three experienced and specially trained IC advisors started the first phase of the project in February 1995, auditing 100 companies with the objective of assessing the ways in which environmental aspects are integrated in their practice (EcoDesign, 1996) (Hartman, 1997, 1998), (Böttcher, 1998).

VITO The Flemish Institute for Technological Research (VITO) in Belgium organised a project for SMEs aimed at assessment of their capability to implement ecodesign and to reach a significant improvement of the environmental performance of their products. Six companies participated in the project, three of which developed an alternative product concept that was significantly more environment friendly. VITO have begun to develop a tool to assess the potential of companies to implement ecodesign that focuses on internal and external company factors and on the selected product.

PREPARE-Steiermark-ÖKOPROFIT Several case studies into cleaner production have been carried out under the programme Preventive Environmental Protection Approaches in Europe in Steiermark, Austria and the ÖKOPROF-

28

Sustainable SME Programmes and Projects

IT initiative in the city of Graz. In the ÖKOPROFIT programme, which was mainly directed at SMEs, some 30 companies contributed their experiences with regard to integrated environmental management (Schnitzer, 1996).

IDRC The Canadian IDRC have initiated a programme called: Small, Medium, Micro-enterprise Innovation and Technology (SMMEIT), among the objectives of which are: –

creation of jobs and revenue generation in developing countries;



efficient use of natural resources and pollution prevention strategies at industry/company level;



the development and improvement of competitiveness and environmental performance of SMEs through access to new and/or cleaner technologies.

The programme studies ways to increase SMMEs competitiveness, productivity, and environmental efficiency and their capacity to generate employment in Africa, the Middle East, Latin America and the Caribbean (http://www.idrc.ca/).

Solutions to pollution The Australia New South Wales Environment Protection Agency has undertaken a pilot project to promote environmental activities in small businesses in the city of Nowra. Waste minimisation and storm water pollution were two specific areas of focus for the study. Eighty different businesses were reviewed. The majority employed less than 10 people and all employed less than 100 people. The project indicated that businesses by making small improvements could realise significant overall environmental improvements (Cleaner Production, 1995).

Target Zero project In New Zealand the Target Zero project is a multi-company project that was initiated by the country’s major power generator and wholesaler, the Electricity Corporation of New Zealand. It involves a mixed group of companies that are representative of nationally significant sectors. It is using the ‘club’ approach, a major feature of which is the facilitated interaction between companies during a training programme and via club meetings for the duration of the project. One of the conclusions was that group work, particularly involving interaction between people from different companies, appears to be important. Participants also value opportunities to practice what they have been taught, using real information. These responses, according to Lesley Stone of the University of Auckland, reflect a need for social and self-reinforcement, respectively. Preliminary results indicated that cleaner production education could potentially benefit from the incorporation of socio-psychological factors into programme development and implementation (Stone, 1997).

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Design for Sustainable Development

SME forum SME Forum presents a Regional Management Training project which is executed by management training institutions and the Inter-American Development Bank. The recipients are training institutions and small and medium-sized enterprises. The objectives of the project are to: – – – –

promote sustainable market driven solutions to management training for SMEs test new methodologies and products in management training and sustainable development leverage public/private sector resources necessary to create and disseminate successful models on environmentally sustainable solutions, and to foster creation of a network of management and sustainable development training providers throughout the region and to encourage mutual learning and collective innovation for SMEs.

This project would assist management training institutions throughout Latin America in the design and dissemination of successful approaches in management training and sustainable development for SMEs. To meet its objectives the project would consist of two components: demonstration projects, and dissemination of successful approaches. (http://www.lanic.utexas. edu/pyme/eng/background/).

DESIRE In March 1993, the Energy and Environment Branch of the United Nations Industrial Development Organisation (UNIDO), in close cooperation with the Indian National Productivity Council and several other industrial organisations, initiated a cleaner production demonstration project targeting small scale industries in India called DESIRE (DEmonstrations in Small Industries for Reducing wastE) (Cleaner Production, 1995). The objectives of the project included: – – – –

30

demonstration of cleaner production opportunities and benefits development of a methodology that can be used across sectors identification of obstacles and incentives development of cleaner production policies.

Chapter 4

Examples of Sustainable SME Practice

SME practice and renewable energy Fruits of the Nile, Uganda: solar fruit drying Experience in Uganda and Kenya shows that the private sector can help rural people to generate income by introducing solar dryers. One success story began when a FAO/UNDP post harvest programme at Kawanda Research Station in Uganda recommended small scale solar dryers for long term storage and household consumption of fruit and vegetables. It soon found out that rural groups were more interested in solar dryers for income generation than for food security. The Fruits of the Nile company was formed in 1992 to exploit this commercial interest by linking rural producers with the market for dried fruit in Europe. It continued the work of developing and promoting the use of small scale solar dryers by women’s groups and businesses. For an investment of one hundred dollars, a group receives a simple improved solar dryer with instructions for its use and becomes a supplier of the company. Within three years more than fifty groups took up the technology and, in 1995 the company exported more than 40 tons of dried fruit. The dried pineapple, banana and mango produced by the rural women’s groups is transported to a central collection point in Kampala. There it is inspected to ensure that it meets quality standards for colour, aroma and moisture content before being air freighted to a marketing group in the United Kingdom. Business has expanded so rapidly that the women’s groups are starting to worry about their dependence upon the Fruits of the Nile company and its ability to serve them adequately as dried food production increases. Not only are the women’s groups generating significant incomes for themselves,

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the original food security concerns are also being addressed because, when they are not drying for profit, the women are drying vegetables and fruits for home storage and consumption.

Mangoes in drying chambers © UNEP-WG-SPD

Another group, the Matinyani Women’s Development Group in Kenya use solar dryers to dry mangoes. The dryers are made using quarter inch plate glass with Styrofoam between layers of wood for insulation. A sheet of galvanised iron on the floor inside the dryers enables temperatures of 60° to be maintained.The women prepare mangoes by slicing them, then spreading the slices on trays which are placed in the drying chamber for six hours in direct sunlight. Every two hours the dryer is rotated on a pivot to face the sun and the lower tray is swapped with the top one, ensuring even drying. Typically 30 kilograms of wet fruit produces three kilograms of dried fruit. The moisture content of the dried fruit is 20% and there is no alteration of the content of vitamins A and C.

Drying chambers © UNEP-WG-SPD

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Tray with dried mango © UNEP-WG-SPD

In thirteen weeks each of the women in the group earns 6,000 Kshs to supplement their income. Fruit is sold to Nairobi and Mombasa. Demand is high and there are export orders for one ton of dried mangoes a day to London. Women also make small solar dryers from mud for home use. They are used to dry mangoes and prevent vitamin C deficiency and scabies among their children in the drought period which lasts from May to December. The obvious conclusion from these projects is that the successful introduction of modern solar dryers depends upon their ability to generate income for their users. People are less interested in green house gas emissions and desertification than they are in more immediate things such as their own standard of living, whether the technology works and is reliable, and whether it will enable them to send their children to school or buy a cassette recorder. No matter how good it looks on drawing boards in the North, any solar technology which fails to address these needs is unlikely to be adopted in the South. Sources: ‘A modern solar drier success story’, Way Beyond, Passive use of the sun, Vol. I, Issue 3, UNEP-WGSPD, University of Amsterdam, 1997, pp. 40-41. UNEP-WG-SPD Product Examples Database, http://unep.frw.uva.nl

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ULOG Gruppe, Switzerland: solar box cookers

Solar box cooker © ULOG Gruppe

The ULOG group has existed since 1984, but its activities really began in 1980 when Ulrich Oehler, a development engineer, and his wife Lisel returned from a six year stay in Botswana. While working for a German Non-Governmental Organisation (NGO) there, they had learned about solar box cookers. They immediately wanted to spread the idea to the local population who suffered from a lack of firewood. Their enthusiasm was met with resistance as the local people did not want to try a new way of cooking not accepted in the industrialised countries. After their return to Switzerland they started to promote the use in Europe of the solar oven and other related low cost solar equipment such as food dryers and simple central heating. Now the group has grown into a network of 12 people, who work independently but in close cooperation.

In Europe the activities of the ULOG group are concentrated mainly in Germany. It has an office in Basle and a workshop in Neuchatel, Switzerland and Freiburg, Germany. All three locations cater for people interested in solar cookers for private use as well as those interested in transferring the technology to another country. As their products are not protected by patents, the ULOG group sells and distributes the plans for their solar equipment and encourages others to build their own. ULOG has developed various types of solar oven to meet the different requirements of tropical and non-tropical countries. The two types - tropical solar cookers and as nontropical cookers - are available as portable Solar basket and box cooker © ULOG Gruppe models, or with legs, and in standard and family sizes. The ovens are made of wood, plywood, window-glass and off-set plating (cheaper and more environment friendly than aluminium sheeting which can also be used). Their products are sold in Europe for use or as partly assembled kits. The ULOG group holds daily courses where people can learn how to make solar ovens or dryers

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by assembling a kit. More than 7,500 Swiss households currently have a solar oven. The solar cookers are not exported from Europe on principle. The position of ULOG group is that local producers of solar cookers, of which there are already several, should be given the chance to sell their own (whatever the model), and new carpenters should be trained. Every few months in response to requests ULOG group members go overseas to show people how to construct and use solar cookers. The ULOG group claims that, once users have been educated about the potential of the solar oven, adapting local cooking habits is relatively easy. Arguments that particularly convinced users were the money saved by using a solar oven in regions where the fuel price is high, and the time saved where fuel is scarce. However, the solar oven is and remains complemenCooking in the Solar Kitchen © ULOG Gruppe tary to other ways of cooking. The question of social acceptance is essential. ULOG group emphasises that any activity which affects the private sphere of a person needs to be initiated with respect and care - cooking habits are very personal aspects of daily life. In most poorer countries, however, even locally produced cookers using cheap materials are too expensive for the majority of the population. Therefore ULOG seeks to find sponsors to subsidise solar cookers and to install simple credit systems. ULOG’s most successful cooker projects are in Burkina Faso, Sudan, and Senegal. Several hundred solar cookers have been built in these countries, not only by ULOG but by other groups as well. The ULOG group is aware of the responsibility of its activities and encourages longer term projects providing support for producers and especially users. A ULOG member, Wolfgang Scheffler, has developed the ‘Solar Hybrid Community Kitchen’ with a cooking facility that uses a seven square metre solar reflector and between 47 and 170 flat glass mirrors to concentrate the rays of the sun through a window in the wall of the kitchen building onto a 200 litre cooking pot. It is ideal for communities of up to several hundred people, such as hostels, hospitals, prisons and monasteries. Scheffler’s solar kitchens are based on locally available materials and construction techniques. They have a much more noticeable effect on deforestation rates than individual solar ovens and large quantities of wood can be saved. Sources: ‘Solar cooking in Switzerland - use of cookers in Africa and India’, http://www.kaapeli.fi/~tep/ulog.html Scheffler, W., ‘Community Solar Cookers Using Scheffler Reflectors’, CADDET Renewable Energy Newsletter, June 1997, pp. 20-22.

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Luigjes Zonne Energie BV, The Netherlands: solar collector integrated with gas boiler Luigjes Zonne Energie has developed a solar-gas combination unit consisting of a solar collector and a central heating gas boiler. Solar and fossil energy are integrated in one system which can provide hot water for heating and domestic use. The solar collector is connected through a closed water circuit to the boiler which allows water heated by the sun to exchange heat with the water in the boiler, thus reducing the gas heating needed to reach the required temperature. The central heating boiler combines relatively low energy consumption with clean combustion. In addition, the central heating boiler was presented as guaranteeing a high level of hot water comfort and as an economically sound investment. In 1996, the Dutch corporation ATAG acquired a 67% majority share in LZE and an agreement was signed for them to work together on the large scale application of solar energy for central heating and hot water supply in homes. The signing of the agreement marked a breakthrough in the application of solar energy. It was considered to be an important step forward in the area of energy-efficient heating in the Netherlands and its neighbouring countries. The combination of solar energy with a central heating boiler was unique in the world and the unit was far ahead of the existing central heating boilers with regard to emissions, comfort and use of solar energy. ATAG therefore saw excellent opportunities to market the product on a large scale, not only in the Netherlands, but also in Germany, Switzerland, Austria and Italy. By 1995 over 14,000 solar boilers were operating in the Netherlands, more than half of which had been supplied by LZE. The aim of substantially increasing that number in the next few years was in full accordance with Dutch government policy (outlined in the Third Energy Memorandum) that, in 25 years, more than 10 percent of energy consumed should be derived from renewable resources. It was expected that subsidies would be used to open up the consumer market for solar energy products. According to ATAG, by installing the solar-gas combination unit in newly built homes, the achievement of a more strict energy performance standard is attainable. ATAG also anticipate that an ‘ecotax’ would ensure that consumers focus more attention on their energy consumption, which in turn would promote the use of solar energy systems in the market for replacement central heating and hot water equipment. ATAG have made an urgent appeal to the Ministry of Economic Affairs to step-up the ecotax in the next few years. More recently, solar-gas combinations have been developed with even higher efficiencies than the one described above. The use of solar thermal energy has good prospects, not only in Southern but also in Western Europe and even Eastern Europe, as is illustrated by the case-study of George Atanassov in Bulgaria. By substantial reduction of the levels of production and consumption in industrialised countries, integrated systems will become increasingly attractive. Total (or near total) independence of fossil energy resource use could be achieved by utilising:

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Examples of Sustainable SME Practice

ATAG-Luigjes solar-gas combination unit © ATAG Verwarming

• • • •

passive solar energy principles (location, orientation, natural use of radiation and ventilation, use of daylight, material choice, structure and construction); the principles of solar energy collection and storage; heating using biogass, and new and ingenious architectural solutions.

In this way, solar living could easily become a popular way of life in the next century. Sources: ‘Breakthrough in the application of solar energy’, http://www.atagholding.com/english/lze.htm Atanassov, G., Prospects of solar thermal energy in the residential sector of Eastern Europe (casestudy Bulgaria), M.Sc. Thesis E.E. 254, IHE, Delft, October 1996. Weenen, H. van: ‘Sun Play - Sustainable Way ?’, Way Beyond, Passive use of the sun, Vol. I, Issue 3, UNEP-WG-SPD, University of Amsterdam, 1997, pp. 8-11. Day, C., ‘Let in the daylight’, Eco Design, Vol. V, No. 3, 1997, pp. 8-9. Graaf, J. de, Overdiep, J., and Borghols, W., ‘Rendement zonnegascombi verbeterd’. Energie- en Milieuspectrum, Nr. 1/2, jan./febr. 1998, pp. 26-27.

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Development Alternatives and DESI Power, India: biomass power plant in Orchha

Biomass gasifier at Orchha © DESI Power

Development Alternatives and Decentralised E n e rgy Systems India Pvt. Ltd. (DESI Power) of New Delhi have developed a recycled paper production facility in Orchha, Madhya Pradesh, in the North of India, for the production of hand made paper with an energy supply based on biomass gasification. On the basis of experience in a similar previous project near Delhi, and in view of the growing paper market in India, Development Alternatives have developed a standardised paper mill. The objective of the project was to provide a model for the numerous other villages where poor people must be supplied with work and energy. The project is a good example of how to create new employment possibilities in a social and environmentallyfriendly way. It also demonstrates that such facilities can be totally self-supporting.

Another objective of the project was to provide work for local people in Madhya Pradesh. In the beginning about 25 jobs were created for women and young unemployed people from the villages in the neighbourhood. Traditional crafts were encouraged and the elementary needs of many families were met. In the final stage, a total of about 100 people at all levels will be employed. Of these, at least seventy percent will come from the surrounding area. People from outside will only be employed for technical maintenance and management. Fifty percent of the workforce in paper production will be local women who will be trained to do the job. Some 300 jobs will be generated as an Lifting of paper © DESI Power indirect consequence of the project. Local farmers can plant part of the required biomass and improve their income by selling it to the paper producer. Other raw materials are textile wastes and waste paper.

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The energy requirements of the project are supplied by using environmentally friendly, renewable resources (biomass) to produce gas for the generation of electricity and process heat. Dry and chopped biomass such as plants, agricultural wastes, corn-cobs, coconuts, cotton plants, etc, can be gasified in a biomass gassifier (produced by NETPRO, Renewable Energy, India). The bulk of the biomass used in Orchha consists of a Sizing of hand-made paper © DESI Power water weed which grows abundantly in canals and streams nearby. Two harvests of the fast growing weed per year yield 600 tons of dried biomass, more than enough to meet the company’s average requirement of one ton per day. The cut biomass is delivered at the plants side by the villagers and then sun-dried. The resulting gas is then washed, purified and led into a diesel aggregate that generates electricity. Waste heat from this machine is used to dry the paper through a heat exchanger. Energy is also available for other purposes such as lighting and drying of biomass during the rainy season. The annual sale of 200 tons of handmade paper renders the unit self-supporting and the establishment of an information and training centre provides new employment opportunities. It is also a place where people can get advice and support in setting up small private enterprises. The Orchha experience has established the technical as well as economic viability of commercial operation of decentralised power Range of products © DESI Power plants based on locally available resources. It has also provided an experience for the financial packaging and the operational and financial management of such plants. The plant has demonstrated that the local population can be trained to operate and maintain such units. DESI Power plans to replicate this experience at other locations around Orchha and different regions in the country. In a commercial demonstration phase, 20 such plants in clusters of four or five units will be set up in various parts of the country. The optimum number of units per cluster may be about ten, with a total installed capacity of about 1 MW. Initially the plants installed will be based on gasification technology. Subsequently, other locally available renewable resources of energy would also be considered. Sources: FREND, Projektbericht. Biomasse-Kraftwerk für die Energieversorgung einer Anlage zur Herstellung von handgeschöpftem Papier in Indien, Genossenschaft FREND, Fund for Renewable Energy Decentralised, Seuzach, Switzerland, 1996. Kohli, S., and Gupta, R., Commercialisation of Power generation from Biomass, Development Alternatives Newsletter, Vol. 7, No. 12, December 1997.

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Design for Sustainable Development

BayGen, South-Africa: Freeplay® radio - solar option FPR2S Motivated by a BBC documentary on AIDS in Africa which indicated that poor communications were the biggest barrier to health education, inventor Trevor Baylis wanted to find a way to improve the information flow. His assessment was that the real obstacle was batteries and he came up with the idea for a wind-up radio. It resulted in the South African venture BayGen which produces the Freeplay® Radio, assembled largely by a work force of disabled people. The BayGen® Power Group was founded with the vision of creating products which will enhance the lives of the many currently disadvantaged people in the developing world. At the core of its mission is a commitment to contribute to the communities in which it conducts its business while striving towards the wider vision of serving mankind through improved access to information. The Freeplay® Radio is powered by a generator driven by a replaceable spring which BayGen claims will last for over 6,500 hours. The radio covers AM, FM and short-wave frequencies and never needs batter ies. To operate the radio one first winds the spring. Turning the handle for about 20 seconds provides approximately 40 minutes of playing time before a rewind is needed. Thus, human energy is harnessed as the winding handle is turned and then transformed into an electrical current and stored to power the radio. The wind-up radio is completely independent of external electrical or battery power. The radio is housed in a rugged black plastic cabinet and Freeplay® Radio © Bay Gen is claimed to be the first ever high volume fully recyclable radio which does not use a battery power source. It is advertised as paying for itself in just over a year with the savings on batteries, long lasting, economical, easy and fun to use. The Freeplay® Radio, as The Times newspaper reported in England, ‘will do more to bring information, education, and social progress to dark areas of the developing world than any other device for a generation.’ The invention won the BBC Design Award in 1996 and has gained wide exposure in the press and TV. Hundreds of thousands of Freeplay® Radios are now in use. This global acclaim has led

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Examples of Sustainable SME Practice

‘Self-powered lantern’ © BayGen

to the development of a second generation of Freeplay® Radio FPR, offering extended playtime of up to an hour. The success has resulted in a commitment by the BayGen® Power Group to bring a range of new Personal Power Generation® products to market. This company is now backed by research and development resources. BayGen will soon introduce a new version of the radio, the Freeplay® Radio FPR2S. Although the basic shape of the current radio has been retained, the rear casing has been redesigned to incorporate a solar cell which is connected to the power management system. This allows automatic integration between solar and spring energy. This radio may be operated exclusively by spring energy or exclusively by the solar cell if sunlight permits. The radio will also mix the two energy sources if required. The wind-up principle has tremendous possibilities as a non-polluting, inexpensive and renewable energy source. Baylis is now working with companies such as General Electric and Apple to develop and mass produce lap-top computers and mobile telephones that run on the clockwork principle. A self-powered lantern is already in production. The concept, however is not yet fully developed with respect to its sustainable potential. Contextual development of the product, using locally available materials, skills and technologies, should be stimulated. Thus, capacity building will be realised and people will learn to develop the technology and find even better ways to apply it to fulfil their own needs, on the basis of their own priorities. The concepts involved are a powerful stimulus and an inspiration to explore further the use of combinations of human power, solar energy and renewable materials to meet elementary needs in local and potentially sustainable SMEs. Sources: BayGen® Power Group, Cape Town, South Africa. Web-site: Http://www.tldm.org/Products/BayGen/ Chick, A., ‘The ‘Freeplay’ radio’, The Journal of Sustainable Product Design, Issue 1, April 1997, pp. 53-56.

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Design for Sustainable Development

Wheels Within Wheels Limited, United Kingdom: human-powered vehicles Increasing motoring costs, appalling traffic congestion and concern over damage being done to the environment inspired Rob Brock to design the BROX Zero Emission Vehicle. He saw that traditional pedal-powered load carriers from the East such as rickshaws have their limitations, so he set out to apply western technology to produce a modern load carrier which could be pedalled by unskilled riders. Thus, the BROX was designed to combine the economic and environmental advantages of a bicycle with the stability and load carrying capacity of four wheels. It is ideal for short journeys and local deliveries. A number of different bodies can be mounted on the standard chassis to form a van, pick-up, courier or passenger vehicle. Altogether, a BROX is versatile and a practical alternative to a motor vehicle. The most important advantage of the BROX bicycle is that it is human-powered. There is no need to fill it up with petrol or diesel fuel. Moreover, the recumbent driving position of a BROX is up to 25% more efficient then a bicycle, so it goes further (or carries more weight) for the same amount of expended energy. It actually takes less effort to drive a BROX than it does to walk. Because of the modular body design a BROX carries almost anything in addition to the driver: commercial goods, adult or child passengers, shopping, garden waste, furniture and many other awkward or bulky loads. To further increase its potential the BROX has some extra features. The Terrain Following System allows it to be driven up and down kerbs and handle road camber and surface irregularities. It also allows a BROX to be driven over rough ground. It has a fourwheeled braking system, and an articulating ‘Radlast’ courier and supply service © Radlast facility which keeps all four wheels firmly on the ground. This can be demonstrated by riding down flights of steps. The BROX has a user friendly disengageable clutch which allows the driver to change up and down to any gear whilst stationary. Thus the driver can get away to a smooth start without the enormous effort which it takes to start traditional load carriers. The Manchester company, Limited Resources, uses the BROX to transport organic food. Radlast, a company in Cologne run by Stephan Thonett, uses a BROX and two metre long trailer to move loads of up to 300 kilograms. In Rotterdam the company Cycle-Logic is engaged in the further development of the BROX concept. Rob Brock observes that the future of business in the city centre is really changing. Much courier work has been replaced by electronic transfer of original material (such as artwork and layouts) and so the demand for cycle couriers will not increase or will at least level-off, but the end-product (brochures, calendars, printed matter) still has to be

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Examples of Sustainable SME Practice

delivered and cannot be electronically mailed. This is where the BROX comes in, carrying loads that are too large or heavy for a cycle but too small for a car or van. Stephan Thonett does a lot of work for printing companies. He can move bulky and awkward loads on his BROX and trailer that would not be able to be moved by car. He used to ‘Radlast’ transports up to 300kg. © Radlast use a bike and trailer, but in reality bicycles were not designed to pull (or stop) heavy loads on a trailer. The BROX makes the job practical, viable and sustainable. His customers like the modern and eco-friendly image that the BROX also has (and the trailer and bike combination didn’t). He calculates his charges by charging for his energy expenditure (weight over distance, divided by energy). If cars had to do this, Rob Brock argues, people would soon see that they were not sustainable. Rob Brock regards the BROX as a van without an engine, and far less complicated. It is the ideal delivery vehicle for distances under five kilometres. Part of the company’s mission statement is to break the dependency on motorised traffic, and they would be very happy if the vehicle was regarded as a mainstream transport option

Group cycling with the BROX bicycle © UNEP-WG-SPD Source: Rob Brock

Sources: http://unep.frw.uva.nl http://homepages.strath.ac.uk/-cjbs23/brox.html R. Brock, personal communications.

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SME practice and renewable materials Pacific Green Furniture Co. LTD, Fiji Islands: palm wood furniture Pacific Green is a small company on the Fiji Islands in the South Pacific which processes palm trees into furniture and other interior products. However, before the first palm furniture could be manufactured, new techniques of wood working had to be developed. The expert world gave the pilot project little chance and the technical barriers seemed insurmountable. But Bruce Clay from Australia didn’t give up. After four years of research he came to Fiji to try to use the wood of the palm trees. Special techniques and machines were developed and the result was palm wood furniture which was suitable for export. Some luxury hotels began to buy it, as it suited their tropical style and saved the import of otherwise expensive furniture, and a market for palm wood furniture also emerged in Europe. Because of its characteristic colour and structure palm wood competes with other valuable tropical woods such as mahogany. Apart from its palm wood products, Pacific Green’s manufacturing technology also got exported. Where palms grow, companies such as Pacific Green could be established. By 1994, companies in the Philippines, Indonesia, and Tanzania, had already begun production. The techniques developed present a thoroughly practical alternative to using wood from rain forests. Palm trees are a relatively fast growing renewable resource of wood which only have to be felled when they reach the limit of their growth after 60 years. In 1994 the area of palm reserve lying fallow was 200 million square metres, and the annual sustainably available volume of palm wood was 40 million cubic metres. Thus it is a large natural resource which is currently under exploited. An estimated 10 million acres of palm trees exist around the world. Palm nuts provide copra which, until the turn of the century, was more important than fossil oil. Copra was used to manufacture soap and other cosmetics and also for edible oil, margarine and frying-fat. Up until the middle of this century it was an important export from many tropical countries. However, as the chemical industry mainly used crude oil for its products, the demand for copra steadily declined. As a consequence, enormous areas of plantation lie fallow, and it was estimated in 1994 that about a third of the cultivated area was no Coconut tree at beach, Benin © UNEP-WG-SPD longer used. Palms are being felled in massive numbers to make place for other profit

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Examples of Sustainable SME Practice

Furniture from palm wood © Pacific Green Furniture Co.

yielding useful plants. The wood of the stems is left to rot or is burned because it is considered inferior, being too hard and fibrous. Also, the fibre density varies strongly between the bark and the core so that planks from the stem are of variable wood quality. However, an increasing demand for biodegradable washing detergents has made tensides based on coconut and palm oil popular. Unfortunately the demand for the biodegradable oil has a social and environmental price in the form of very low wages, high health risks and high environmental impacts in palm plantations. Tropical wood is felled and pesticides and fertilisers are used to cultivate palm trees for coconut and palm oil. The coconut palm tree, because of its survival capability, its richness of nutrients and its many possible uses, is among the most astonishing creations of nature. The coconut gives fat and proteins, the juice of the green nut is a refreshing drink and coconut milk is made from the mature nut by pressing the lining. The remains of the pressing can serve as feedstock. The palm is a source of materials for building and craft. The fibres of the leaves are used for ropes, sails and mats and also as an energy source. The shells of the nuts are used as containers or as fuel. Even the burned bark is used as fertiliser. There is nothing from the palm tree that cannot be used. Weissbach calls it the perfect recycling product from nature. Hamed-El-Mously considers the uses of palm secondary products as an eloquent example of local innovation. His Centre for Development of Small-Scale Industries has also developed palm furniture, but in this case they used the midribs of the leaves rather than the trunks of the trees. Sources: Weissbach, U., ‘Renaissance der Kokospalme’, GLOBUS, 7/94, pp. 26-29. Taffin, G. de, Le Cocotier. Le technicien d’agriculture tropical, 25, Paris, 1993. Faltin, S., and Ohlenhof, P., ‘Das Kokos-Gewäsch’, Die Zeit, Nr. 38, 17. September 1993, p.53. El-Mously, H., ‘The rediscovery of local raw materials: new opportunities for developing countries’,

UNEP Industry and Environment, January-June 1997, pp. 19-20.

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Design for Sustainable Development

Kambium, Germany: kitchen manufacturing In 1989 Angelika von Proff-Kesseler and Christoph Gehrt developed an idea for a new company based upon a holistic vision. Their objective was to create an economically successful enterprise whose activities would have the smallest possible burden upon the environment and, in addition, give every customer acquaintance with the ideas behind the company. The Kambium Möbelwerkstätte furniture workshop was built in 1991. A green roof, rainwater usage, heat storage, and rooms flooded with daylight provided minimal energy requirements and a healthy, comfortable indoor climate at a competitive building cost. The company has its own electricity supply through a 100 kW windmill and two heat/power engines, thus reducing CO2 emission and saving the company money. The waste heat from the generators, which run on natural gas, is used for wood drying and space heating. Ideally the generators would be fuelled by wood-gas, if a suitable wood-gas generator were available, enabling Kambium to transform its wood waste into valuable electric power plus waste heat. Kambium started manufacturing of massive wood kitchens in 1992, employing 11 people. In 1996, 36 employees, of which seven are interns, manufactured more than 150 kitchens. By using CAD-CAM techniques, traditional wood working became economical again. Environmental conservation at Kambium is reflected in its selection of raw materials. Normally no plastics are used; composites are excluded and, besides wood, the main raw materials used are granite, stainless steel, glass, linoleum and ceramics. Kambium kitchens are not varnished or plated, but rather oiled using natural oil. The oil protects the wood against water and mechanical impact. In principle, after ten or fifteen years, Kambium can give the kitchen a complete maintenance treatment. Kambium considers itself an enterprise within a region and for that region. It supplies its products only within a limited circle around its manufacturing facility. Moreover, Kambium seeks to derive its resources, raw materials, parts and other products as much as possible from that region. The kitchens are planned at Kambium and supplied directly to the customer without any intermediate shop so the company is always directly at the service of the customer. The costs saved facilitate the production of high quality products through traditional manufacture. The life expectancy of their kitchens is claimed by Kambium to be ‘theoretically eternal’. Part of the holistic concept is to manufacture a kitchen with maximum use/value, which means it has a long life, it is repair friendly and the design connects the buyer to their kitchen for their whole life. The Kambium supply radius is limited to 100 kilometres, which avoids unnecessary transport and transport packaging. Kambium considers that service and repair by a small company can only be economically realised on a regional scale and they believe that for products such as provisions and furniture, distribution and transport often reduce price advantages, which is then reflected in the quality. Such products could often be produced by small, regional companies that have their roots in the region and its peculiarities and specialities which contribute to the specific attractiveness of a product.

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Kambium kitchen manufacturing site © Kambium

Kambium considers its practice as a new standard, as ‘point zero’. If its standards appear to be high this is because by paying attention to the resources and the longevity of its products, it reduces the need for recycling. If products are not packaged, package regulations don’t apply. If electricity is hardly required, interest in nuclear power isn’t necessary. Cost effectiveness and transparency have become of interest to all employees who are encouraged to formulate new ideas and proposals and participate actively in company processes and actions. Sources: Schmidt-Bleek, F., and Tischner, U., Produktentwicklung, Schriftenreihe des Wirtschaftförderungsinstituts, 270, Wien, Österreich, 1996, p. 123. Meier, H.-G., Öko-Audit und Ressourcenmanagement in einer Möbelwerkstatt’. Kambium, Lindlar, Germany, 1998.

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The Martin Guitar Company, USA: certified wood guitar C.F. Martin & Co. is proud to announce the introduction of the SWD certified wood guitar, the first certified wood model ever offered by Martin. This guitar represents the culmination of years of research, prototyping, testing, and vendor development. The SWD model is already being received with tremendous enthusiasm in the marketplace. The combination of great tone, attractive appointments, extremely good value, and positive environmental impact, has yielded more than 400 orders for the model within weeks of its introduction. Seventy-three percent of the wood utilised in the construction of the SWD Certified Wood model are harvested from well-managed forests independently certified by the Rain Forest Alliance’s “Smart Wood” programme and Scientific Certification Systems, which both operate in accordance with the rules of the industry’s governing body, The Forest Stewardship Council (FSC). These woods originate from certified forests that have been independently evaluated to ensure that they meet internationally recognised environmental, social and economic standards. Certified cherry is utilised for the back, sides, neck, and interior blocks of the SWD model. Cherry has a warm natural beauty, especially when combined with Martin’s traditional dark staining. As a tonewood, cherry yields a strong, projective, and balanced sound, with many of the best attributes of the more traditional guitar woods like rosewood, koa and mahogany. It is interesting to note that in the 1800’s, cherry was marketed under the trade name of ‘American mahogany’. The interior ribbon lining is crafted from certified basswood. Basswood, long prized by woodcarvers for its ability to hold delicate detail, also has a history with musical instrument-making, being one of the primary woods of choice for the linings in violins. The finger board and bridge for the SWD model utilise certified katalox (pronounced cat-ahlosh) a relatively unknown but durable Mexican hardwood with properties quite similar to ebony. Katalox is a dark cocoa brown colour, it is relatively devoid of grain lines, and has a very fine texture, making it an excellent choice for both the finger board and the bridge. Certified hard maple is utilised for the bridge support plate on the underside of the top.

Detail of SWD Certified Wood Guitar © C.F. Martin & Co., Inc.

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Quarter sawn Sitka spruce is used for both the soundboard and the internal bracing of the SWD model. The logs from which this wood comes were destined to become pulpwood, for baby diapers, but were

Examples of Sustainable SME Practice

reclaimed instead specifically for the SWD guitar project. Although this spruce is not certified, Martin is pursuing certification of spruce through the various vendors that supply guitar tops to the music industry.

SWD Certified Wood Guitar © C.F. Martin & Co., Inc.

Martin has been actively involved in alternative woods since 1990. The programme embraced the judicious and responsible use of traditional natural materials and encouraged the introduction of alternative wood species. A Martin commissioned consumer focus group led to the introduction and widespread acceptance of guitars utilising structurally sound woods with natural cosmetic characteristics formerly considered unacceptable. Martin has also developed numerous alternative wood guitars for industrywide exhibitions intended to educate consumers and provide direction for the company and industry. The company recognises C.I.T.E.S. (Convention on the International Trade of Endangered Species) as the governing authority on endangered species and closely follows their directives. More r e c e n t l y, Martin provided assistance to S o u n d Wood, a project of Fauna & Flora International, and the Oxford Forestry Institute at the University of Oxford in the U.K. in their research of the methods and practices of the trade in rosewood from India.

By undergoing assessment and achieving SmartWood chain-of-custody certification in November 1997, the company has committed itself to the aggressive exploration of the viability of utilising certified wood sources. It is Martin’s hope that the SWD model and project will serve to educate consumers about some of the environmental issues surrounding wood usage on musical instruments and lead to future Martin Certified Wood models, thus helping to insure the responsible use of our valuable wood resources. Source: C.F. Martin & Co., Inc. http://www.mguitar.com

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Natural Cotton Colours Inc., USA: naturally coloured cottons for machine spinning The founder and president of Natural Cotton Colours, Inc., Sally Fox, is the originator of naturally coloured cottons for machine spinning. She began an extensive research and development programme in 1982 after having worked for a cotton breeder. She was attracted by some of the natural brown coloured cottons. The fibre of this cotton, however, was significantly shorter, weaker and thinner than that of the commercial white varieties, and therefore difficult to spin. The programme was initiated to select and cultivate plants for coloured cotton with improved fibre and other characteristics that could be grown organically. Sally selected the best possible quality of brown cottons. Using traditional plant cultivation techniques and organic farming practices she developed several unique varieties. In succeeding years she planted the best of the yield and designed and spun a series of unique yarns from her naturally coloured cottons. The first Foxfibre® was sold in 1989 and Natural Cotton Colours, Inc. was formed. Sally Fox with naturally coloured cotton © Natural Cotton Colours. Photo: Cary S. Wolinsky

The advantages of naturally coloured cottons are that they eliminate the need for dyeing and finishing processes that are detrimental to the environment. The brown colours are also more fire resistant than white cotton. Foxfibre® darkens with washing, providing the consumer with a long lasting product. Sally Fox has four plant variety protection Certificates for her naturally coloured cottons which, in addition to browns, she now grows in reds and greens. Her invention has led to the establishment of two successful companies, Vreseis, Ltd. and Natural Cotton Colours, both operating in Arizona. On the farming side, Sally Fox is personally dedicated to a sustainable approach to agriculture. All of the cotton from her plant breeding nursery is certified organic. In addition to being grown for fibre and colour quality, FoxFibre® was bred for pest resistance, facilitating organic production. Although changes in farming practices took many years, the farmers who are now growing the cotton have adopted organic methods. Sally Fox claims that her goal to develop organic methods that are suitable for large scale production of FoxFibre® has been achieved. The FoxFibre® has the ability to reduce the generation of waste and the use of pesticides associated with the production and manufacturing of conventional white cottons. Due to relatively low yields per acre and the research and development overhead, the cost of current FoxFibre® varieties is higher than traditional white cotton. However, this does not mean

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that the finished textile product will be expensive. The costs of dyeing cotton can be very high both economically and environmentally, especially in countries with strict pollution standards. In the US, it costs approximately two dollars a pound to dye a dark brown yarn. This includes the actual cost of dye stuff, energy, water and toxic dye waste disposal. This expense is completely Naturally coloured cotton © UNEP-WG-SPD eliminated when using FoxFibre® and even with higher initial cost of the fibre, the resulting yarn is comparable. Avoidance of pesticide use and savings in dyeing and bleaching present environmental and cost advantage. It is therefore evident that using currently available FoxFibre® varieties for brown yarns makes both ecological and economical sense. The company is currently introducing a third generation of varieties which have greatly improved fibre qualities, colour and yields. The company expects that, in the near term, much improved fibre qualities and yields - some equivalent to the best commercial white varieties - will be available. In the longer term, more of nature’s colours will be available in the FoxFibre® line. Natural Cotton Colours, Inc.® anticipates that the cost advantage will Foxfibre sweater © UNEP-WG-SPD improve still further in the future when new and improved varieties of FoxFibre® with higher yields and superior fibre qualities become available. Another advantage of their product is that new mills can be established in places where abundant water and energy are not available. Sources: http://www.foxfibre.com/cotton/ncci.html http://www.foxfibre.com/cotton/vreseis.html http://www.unep.frw.uva.nl http://w3.mit.edu/invent/www/inventorsA-H/fox.html

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HempFlax, The Netherlands: fibre hemp products Hemp is a plant from which many different products can be manufactured such as textiles, paper, soap and paints. Hemp has a very long history, especially as a source of fibre. Until the late 18th century it was an imported crop in England, as its tough fibres made it a valuable raw material for rope, textiles and paper. But it was displaced by other fibres, cotton in particular, following the introduction of a machine for separating the cotton seeds from their surrounding fibres. In the Netherlands fibre hemp as a source for fibre, seeds and oil was one of the most important agricultural crops and it remained important in Eastern Europe and in Asia. Now interest in the plant is clearly reviving in Europe and the HempFlax company is a sign of this new interest. Hemp varieties that have been bred for their fibre or seed qualities contain neglectable quantities of THC, known from soft drugs. An enormous variety of Hemp fibre and oil application options exists. HempFlax have reintroduced fibre hemp as an agricultural crop in the Netherlands. It is an environmentally friendly and sustainable rotation crop which is grown without pesticides or fertiliser and its vigorous growth is hardly affected by weeds or drought. About 100 days after sowing the crop is three metres high and the yield is between five and ten tons per acre. The HempFlax company is currently establishing an integral hemp production chain, Harvesting machine © HempFlax b.v. creating opportunities to manufacture sustainable products using modern technology at competitive prices. HempFlax began testing fibre hemp in 1994 on an area of 140 acres. The chain from seed to paper proved to be promising and the production area was expanded. The company HempFlax Akkerbouw VOF was established to develop hemp cultivation and mechanised harvesting. The most important new development has been a new hemp harvesting machine which mows the crop and cuts the stems into 60 centimetre lengths. In 1995, 980 acres of fibre hemp were cultivated and harvested in cooperation with more them 100 farmers. In 1996 the cultivation area was further expanded to 1,250 acres. The HempFlax manufacturing plant is located in the centre of the cultivation area. The total production area of The Netherlands and Germany combined is currently 2,000 acres and in Austria the planned area for 1997 was 1,000 acres. HempFlax have independently developed a machine for the processing of hemp fibre-bearing stems and the non-fibrous plant material. The non-fibrous material is sold as horse bedding and building materials based on hemp fibre, such as insulation material and decorative plaster window frames and doors, are being developed. Modern design products made with a wood mould press can be produced to order. The fibres are processed into a resource for the paper and textile industry, providing those industries with new opportunities. In cooperation with its partners, HempFlax

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will continue to develop agroindustrial products and a varied package of products will emerge using the various parts of the hemp plant. Through control over the whole production chain, an optimal utilisation of the renewable resource is expected to be realised. In addition, the products concerned can be reused. The longest fibres can be used for high quality fabProducts from Hemp fibre © HempFlax b.v. rics, leaving the shorter fibres which make excellent feedstock for pulping. In addition, textiles can be processed into paper, which can in turn can be transformed into building material, and after that into yet other products (a good example of ‘cascading’). Thus HempFlax intends to meet increasing future needs for renewable products which it says are required for a sustainable future. Clearly hemp has much potential, especially in local production for local needs. Thus, for example, paper may in future be local paper. Another promising use for hemp is in the new ‘biocomposite’ materials which consist of a matrix (a bio-polymer such as starch) combined with a fibre (hemp, flax, or ramee) for reinforcement. Gradually, hemp is becoming a first choice natural fibre, as a multipurpose plant with an enormous potential in combination with other natural plants, fibres and substances.

Products from Hemp core material © HempFlax b.v.

Sources: ‘Old fibre gets set for renaissance’, New Scientist, No. 1991, 19 August 1995. Röthig, I., ‘Hosen aus Hanf’, WirtschaftsWoche, Nr. 15, 6.4.1995, pp. 105- 108. ‘Hanf’, Oekoforum, 3/97 Nawaro, Nachwachsende Rohstoffe, pp. 4-5. Fraanje, P.J., ‘Cascading of renewable resources hemp and reed’, Industrial Crops and Products, 6 (1997), 202-212.

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Vision Paper, USA: kenaf processing, pulping and paper making Tom Rymsza discovered that substituting fast growing kenaf for wood as the raw material for paper making could he save trees and reduce the use of toxic chemicals, and made a commitment to create both the product and the demand. He founded and became president of Vision Paper after facing tremendous obstacles in the commercialisation of tree free kenaf paper. Despite these barriers he created a kenaf processing, pulping and paper making infrastructure which generated a range of high quality kenaf paper at the rate of 1,000 tons per year. Rymsza also created an environment driven consumer market for kenaf paper that in May 1996 was selling at a substantial premium over conventional wood pulp paper. This has thus become a prime example, as EverGreen states, of how total commitment, determination and persistence can conquer even the most daunting obstacles facing commercialisation of new uses of agricultural products. The kenaf plant (Hibiscus cannabinus L.) is a warm season annual closely related to cotton and okra. It can be used as a domestic supply of cordage fibre in the manufacture of rope, twine, carpet backing and jute. In the fifties, kenaf was identified as a promising fibre source for paper pulp. Kenaf fibres have been processed into high quality newsprint. Although kenaf is usually considered a fibre crop, research indicates that it has a high protein content and therefore is a valuable livestock feed. Other kenaf applications are fibre products, textiles, building materials (particle boards) and absorbents. With respect to the future for kenaf paper, Rymsza anticipates that farmers will grow all the kenaf he needs since as an alternative to corn, wheat, soybeans or grain sorg h u m , quick growing kenaf generates equal or greater profit with fewer risks and lower production costs. A traditional wood pulp paper mill can convert to using kenaf with a reduced use of chemicals and energy which lowers cost and creates a cleaner flow of mill Kenaf plants for tree free paper © Vision Paper waste water. According to EverGreen, a substantial number of consumers has been willing to pay more to produce four colour brochures, newsletters, greeting cards, wine labels and even complete books on the tree-free, chlorine-free, acid-free kenaf paper that Rymsza’s company has produced since October 1992. Thus, uncertainties about both supply and demand have been answered positively thanks to the entrepreneurial risks he has taken. Investors in the tradi-

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tional paper making industry have become more willing to finance his idea of building a $50 million kenaf pulp mill. Rymsza is confident that building a pulp mill that is specifically designed for kenaf will enable him to sell kenaf paper at the same price as wood pulp paper. The production costs will drop as processing lower-lignin and naturally brighter kenaf requires less energy and less chemical use. However, building the kenaf mill has been a struggle because, with a new crop such as kenaf there are a number of unknown factors which present a high degree of risk to investors. These factors include the farmer’s willingness and ability to produce the crop, the manufacturing processes to convert it to products, and the acceptance of the product by the market. The major difficulty was to challenge a giant industry; the pulp and paper industry based on trees. Reflecting upon other new crops and new uses - which are long term projects - Rymsza expects that they could fit into niches that are not dominated by major players. He warns that it is necessary to provide accurate information, to substantiate claims and to understand that the message must be repeated many times before people can truly understand it. New uses and new crops will integrate themselves step by step over time as they increase their market share. Sources: NUC, ‘The Kenaf Story’, EverGreen , 6/96, http://ag.arizona.edu/OALS/NUC/EG/EG-2/Kenaf.html (May 24, 1996) Kenaf OnLine Newsletter, http://sunsite.unc.edu/pub/academic/agriculture/sustainable_agriculture/ Rural-

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Design for Sustainable Development

AURO Pflanzenchemie GmbH, Germany: natural paints and varnishes AURO Pflanzenchemie GmbH produces natural paints. The production is based on the principles of ‘Soft Chemistry’. Accordingly, a substantial part of the production does not take place in the company itself but rather in nature; by the solar driven synthesis processes in the plants. AURO then uses these renewable resources with relatively little energy supply, in simple, transparent processes, without any environmentally problematic wastes. AURO states that the natural paints thus produced can in due course flow back into the ecological cycles without any residues.

Flax plants produce linseed oil © AURO GmbH

The company was funded in Braunschweig in 1983 by the chemist Hermann Fischer. His philosophy was to take a holistic view of all of the production stages and to avoid the use of non-renewable resources. The company won several environmental prizes. The paints and varnishes of AURO are mainly based on plant and mineral resources and therefore have a special position in the chemical industry sector. By considering holistically the origination and harvesting of resources up to the disposal, not only of the Natural raw materials © AURO GmbH production specific wastes, but also of the materials with which the products have been treated, AURO have proved that ecological basic principles and economic practice can be successfully combined. The cornerstones of company policy are to refrain from the use of petrochemical resources which will become depleted; to base process input on biogenic renewable and mineral resources; and to try to derive human friendly substances from nature and process them using ‘Soft Chem-

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istry’. Responsible social and environmental policy is the starting point for any further development of AURO’s successful approach.

Organic paints © AURO GmbH

AURO provides full information about the resources used in their products, which it says is important for people with allergies. Their main resource is linseed oil which is derived from linseed grown in the area surrounding the factory. Most of the linseed is grown biologically by farmers who have steady contracts with the company.

The system of AURO’s internal waste water treatment plant is claimed to be very innovative. Production waste is separated into solids and liquids and can either be composted or discharged with rainwater. The degradability of the solid components has been assessed and confirmed and research indicated that the wastes do not contain any harmful substances. AURO’s ‘Environment Declaration 1997’ emphasises the environmental guidelines of the company and provides clarification of their environmental management system. Environmental management, AURO states, begins long before the production of the product involved. Even in the earliest stages of product development basic ecological questions are asked. These not only take into account issues such as the social and individual meaning of the product, but also its short, medium and long term effect on the user, society and the environment. AURO has a very special position within the chemical industry. The company feels that it has proved that ecological practice is not contrary to economic success and that they have lived up to their ‘Environment Declaration’. Sources: ‘AURO Pflanzenchemie’, Deutsche Stan dard Vorbildliche Umweltberichte, Arcum Verlag, Cologne, 1997, pp. 24-25. ‘Biological surface treatment’ © AURO GmbH AURO Naturfarben, Umwelterklärung 1997, Braunschweig, 1997.

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SME practice and sustainable services Agrofair BV, The Netherlands: Oké Max-Havelaar banana trade In November 1996, after three years of preparation, the ‘fair trade’ Max-Havelaar banana ‘Oké’ was introduced to the market in the Netherlands. The banana producers involved in Ghana and Ecuador have taken measures to make their production process more humane and environment friendly. Their bananas compete in quality with the major brands. The market introduction had been professionally organised by Solidaridad, a Dutch organisation. The Dutch market was to serve as a test market for the entire of Europe. The objective was that, if the market concept succeeded, the European Union would be forced to take the concept of sustainability seriously. The introduction of the ‘sustainable’ banana would provide a fresh stimulus in the market to the MaxHavelaar idea of getting fair prices for small farmers in developing countries (already applied to coffee and chocolate products). In addition to getting a fair price, Solidaridad’s intention was Fair trade of Oké-banana © Solidaridad to involve producer organisations in marketing the product. For this purpose, Agrofair BV was set up, a joint venture of banana importers and maturers. Its participants jointly control it and share in its profits, tremendously improving their social position in the process. The Oké banana with the Max-Havelaar quality label is highly esteemed and expected to cost about the same as the market leader, the Chiquita banana. At the same time, the producers are expected to receive a substantial financial yield. However, in the end, consumer choice will decide on the success of the scheme.

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The ten social and environmental criteria implemented for the Max-Havelaar banana were: 1. 2. 3. 4. 5. 6. 7. 8. 9. 10

Free trade unions and the right to have collective work negotiations. Freedom from discrimination and equal pay. No forced labour or child labour. Basic social conditions for plantation workers. Safe and healthy working conditions Protection of natural areas. Prevention of water pollution. Documenting, monitoring and reduction of the use of pesticides. Documenting, monitoring and reduction of the use of fertiliser. Monitoring, reduction and composting of waste.

In March 1997, Switzerland also introduced the Oké banana with the Max-Havelaar quality label and it became an even bigger success than in the Netherlands, as 11% of the Swiss consumers bought the bananas. Afterwards, Belgium and Denmark followed this example. In Ecuador, the Max-Havelaar partner is a group of producers consisting of independent farmers who have organised themselves as a cooperation. In Ghana, the partner is a plantation, a private enterprise with large scale banana cultivation. Specific arrangements have been made with these partners with regard to working conditions and the environment, to ensure that the profit is well invested. Thus the Max-Havelaar venture shows how the costs of social improvement and environmental concern can be realised through a fair price for the product. Sources: Roozen, N., ‘De kroon op het werk. Eerste Max-Havelaarbananen in de winkels’, Solidaridad-Blad, Jaargang 12, nummer 3, 1996, pp. 3-5. ‘Oké-banaan de grens over’, Solidaridad-Blad, Jaargang 13, 1997, p. 8.

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Allford Hall Monaghan & Morris Architects, United Kingdom: sustainable school In April 1997, the Design Council in London and Essex County Council ran an international competition to assemble an innovative team that would design and build a sustainable primary school. The primary school and its associated play areas would eventually be for 360 pupils. Both partners were committed to devising a new approach to brief development and this formed the starting point for a tracking process which will lead to the development of a teaching/learning framework and a design model capable of replication by others commissioning school buildings. The process will produce: • •

• •

a design model for local education authorities which will be a practical ‘best practice’ model for the methodology by which teams, involved in designing a school, can work together; a teaching framework to be used in higher education, which will help improve the understanding of the opportunities and constraints faced by those designing a school, in particular addressing issues of sustainability; a working audit of a real design process to improve knowledge and understanding of how teams work together; an example of best practice in designing a sustainable school.

The objective was to form a design team which consisted of a range of specialists from different disciplines; environmental engineering, educational psychology, environmental learning, art, landscape, etc, in order to maximise the benefits of multidisciplinary team. In June 1997, Essex County Council and the Design Council announced the selection of Allford Hall Monaghan & Morris (A.H.M.M.) as winners of the competition. The winning team led by A.H.M.M. include Atelier Ten (Environmental Engineers), Atelier One (structural Engineers), Jonathan Watkins (Landscape architects), Cook and Butler (Quantity Surveyors) and artists, Kovats and Hartley.

Artist impression of sustainable school © Allford Hall Monaghan Morris Architects

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The main ideas embodied in the A.H.M.M. scheme for the sustainable school are: • Efficient use of space: the form of the school is roughly triangular, a shape not too far removed from the ideal but impractical circle which would give the minimum perimeter for the maximum contained area. The design also manages to save on the overall space requirement.

Sustainable school front sight © Allford Hall Monaghan Morris Architects









• •

Orientation: Atelier Ten ran a dynamic simulation program and found that the school was fairly insensitive to its orientation shifting between south-east and south-west. Proper insulation would prove to be much more important. Sustainable materials: the team has been auditing various materials and making the ‘greenest choices’ where possible, although all the decisions have to be tempered by the need to stay within a standard Essex school budget. Simplicity of services: low-tech is considered to be clever tech. The philosophy is to keep it simple. The building will be naturally ventilated. The option of mechanical ventilation with heat recovery was rejected because the short length of the school day meant the cost of putting in fans could not be justified. Respecting the ‘earth’: the aim is to produce as little disruption of the greenfield site as possible. This is reflected in the design of the foundations, the way the building is positioned to minimise earth moving, and the relatively compact area which will suffer disturbance. Flexibility: with a limited budget the flexibility must be realised cost effectively. Construction methods: specifying construction techniques and supervising the process.

The building will be very much a response to a particular site, yet Essex is also hoping to learn from it about designing and building sustainable schools. In many ways, it is the processes and ideas embodied in the building that are as important as the building itself. Sources: Sustainable School. Information, Design Council, London, February 1998. Slavid, R., ‘What is sustainability?’, The Architects’ Journal, 5 February 1998, p.44.

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Design for Sustainable Development

Ecomat, USA: water-based cleaning of clothing Diane Weiser, a real estate agent in New York, discovered that there was a need for a laundrette in the Upper West Side neighbourhood. She found out that ninety-nine percent of dry cleaning and washing materials were based on toxic chemicals. She wanted to avoid the use of chlorinated solvents such as perchloroethylene, common in the dry cleaning of clothing and materials, which potentially affects the health of workers, people in houses near dry cleaning shops and customers and pollutes the environment. Therefore she decided to find a way to provide dry cleaning services in an environmentally friendly way, without the organochlorine emissions or waste. Advertising that they would not use any toxic chemicals, especially chlorine, Diane Weiser began her company - now called Ecomat - in April 1992, and it was a success. The management was astonished by the response. It was just a very small enterprise that hadn’t begun to anticipate the demand. The neighbourhood apparently chose to support a business that had made a strong environmental commitment. However, the shift from chlorine to waterbased cleaning was not simple. We i s e r worked closely with the Fashion Institute on research, and her company installed an Aqua Clean machine, a Swedish-built Electrolux product produced by Aqua Clean Systems. The process Ecomat uses is called ‘wet cleaning’. Ecomat first treats spots on clothing with non-toxic soap fabric cleaners, paying close attention to those parts of clothing where most of the dirt can be found. They claim to use eco-safe soaps, usually with a collagen of lanolin base. They steam at high Ecomat Cleaners & Laundromats © Ecomat, Inc. pressure, and then dry in a humidity-controlled dryer. Temperatures vary, according to the fabrics and the computer programme. Some garments are washed entirely by hand. Thus, 80% of what comes in can easily be handled, especially the leisure wear that currently dominates much of American fashion. Ecomat offers complete garment care for all types of garments using none of the toxic chemicals associated with traditional dry cleaners or commercial laundries. Ecomat claims to offer an alternative process that appeals to the environmentally concerned consumers while providing beautifully finished garments equal to any with none of the noxious odour or residual chemicals left on the garment by cleaners or laundries using conventional equipment and products. Ecomat’s process is called ‘Ecoclean’ and is presented as using the latest in technology and nontoxic soaps and surfactants. Many Ecomat locations offer self-serve laundromats with energyefficient washers and dryers that use less water and soap than conventional equipment.They also provide the equipment so that the franchisee can offer ‘wash, dry & fold’ service to their Ecoclean customers.

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Ecomat presents its locations as being modern, clean, convenient and fun. By highlighting their dedication to the environment, and by becoming highly profitable, they will encourage other businesses to understand the financial benefits of operating in a socially and environmentally responsible manner. The prices of Ecomat are competitive with other, more traditional dry cleaners. Ecomat opened more stores in Manhattan and started to develop their own label: Professionally Wet Clean Only. The most challenging Energy-efficient washers and dryers © Ecomat, Inc. aspect of their business has been to manage their growth. Many people from all over the country inquired about franchise opportunities. Even an association, the Neighbourhood Cleaners Association (NCA), offers to help others and actively teach those who want to learn about water-based cleaning. The company wants to develop strategic relationships with employees, franchisees, suppliers, environmental organisations, government agencies, the press and the public in general, in order to continue its mission to provide an extraordinary customer service, value and quality. Currently, already hundreds of locations exist. A similar system is being produce by JLA, a laundry and cleaning equipment manufacturer in the United Kingdom. In 1998 Ecomat presented a master franchise for The Netherlands. ‘Wash, dry & fold service’ © Ecomat, Inc.

Sources: http://www.ecomat.com/welcome/mission.html (03 March 1998) http://www.ecomat.com/bus_eth.html ‘New wet-cleaning launch’, Greenpeace Business, April/May 1996, p. 3.

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Design for Sustainable Development

CITYgogo, Belgium: taxi-cycle for inner city areas The V.Z.W. De Taxifiets was established in Gent in 1983 as a student initiative when the Green Cyclists got permission from the city to provide taxi cycle transport services. It rapidly proved a success and not just with tourists. Although it ceased as a student concern after a trial period, it is now back operating under the name CITYgogo. Since January 1991, ten taxi-cycles have been operating in and around the city centre. When Gent announced its mobility plan to make the inner city pleasant and car-free from November 1997, operators Toon van den Bossche and Koen van Olmen, revived their successful scheme from 1983. They were delighted with the idea of a car free city centre which would turn the taxicycle into fully fledged alternative to public transport and motorised taxi services. A proposal was drawn up and approved and, in July 1997, their Human Powered Vehicles (HPVs) rolled into action on the streets of Gent as Europe’s first ever HPV taxi service.

Taxi cycle © CITYgogo

From morning till midnight, 10 four wheelers, or ‘quadricycles’ ride in the centre of the city to collect customers. Many tourists use the service, of course, to enjoy a tour. But also regular customers who are on their way to work, a shop or a restaurant use the service. The fee is 60 franks to get in and then 12 franks per minute. Although they don’t have top speed, they do always take the shortest way and therefore often very swiftly reach their destination. In practice these taxis are allowed everywhere, as long as they don’t hinder or endanger other users of the roads. The service provides a great advantage as it transports people along the streets without noise or stench, which is a pleasant and special experience.

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As with a regular cab system, there is a telephone centre which permanently answers all calls and send them to the nearest taxi cycle. During a ride you can always ask the taxicyclist for tourist information as they have all been trained as guides. Thus, the ride may not only be fun, but also informative. As with the trial project in 1983, the current initiative also is a success, especially now that the mobility problem is high on the political agenda. The use of HPV is increasingly popular. Although the taxi-cycle may experience difficulties in cities suff e r i n g from heavy traffic and traffic jams, in cities which discourage car use HPVs are a sustainable alternative to motorised traffic. In order to use human power as efficiently as possible, the quadricycle design involved the use of light weight materials, an optimal transmission and an efficient sitting position for the rider. Tourist service © CITYgogo

CITYgogo is currently mainly a tourist attraction, but it should become more than that, making a place for itself in a range of transport options. At the moment it employs 40 students, but it is also developing the idea of employing people who have previously found it difficult to find jobs. After the pilot project, schemes are planned for Antwerpen, Leuven, Mechelen, Brugge and Aalst. Although the project was going to be subsidised as a ‘social economy’ company starting from January 1998, CITYgogo decided not to wait but took the initiative and started distributing and collecting goods, delivering flowers, clothes from the dry cleaners, medicines and messages, providing courier services and even hiring out the taxi-cycles without a driver. CITYgogo does not make large profits, but once the Gent mobility plan has been implemented, it will be in a good position to exploit the opportunities offered. The company is increasing the number of taxi-cycles to take full advantage of the new situation. Some teething problems with the cycles have now been overcome and the experience gained has presented CITYgogo with the possibility of manufacturing their machines themselves, thus reducing production costs. Source: Baets, Y. de, ‘Een Europese primeur in Gent’, Fietsen Moet Kunnen, Jaargang 6, Nummer 3, oktober 1997, pp. 37-39.

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VTZ, Switzerland: green money VTZ Green Money for the Blue Planet has been a pioneer company in ‘green’ financial services since the early 1990s. The company has specialised in creating and placing environmentally sound environmental products with private and institutional investors. For many conventional types of financial investment they offer their customers green alternatives. The company’s products range from stocks and bonds, life insurance policies, and pension plans to renewable energy installations and real estate. VTZ claims to play a leading role in the area of green venture capital, especially in renewable energy technologies. VTZ is also actively engaged in building up the network of green entrepreneurs and green venture investors in Europe and the United States. It is the view of VTZ that creating a sustainable economy, one that preserves rather than plunders the planet, requires no less than a tremendous shift of capital towards clean technologies, socially responsible businesses, and more efficient utilisation of energy. VTZ wishes to offer investors a wealth of green financial products with a competitive or above average rate of return. VTZ state that green investment has its roots in the movement to promote socially and ethically responsible investment. As a result of concern for the environment, human rights, and employee relations, as well as alarm about production of weapons and the use of nuclear technology, VTZ observed that churches and other institutional investors in the United States increased the volume of social/ethical investment from $40 billion in 1984 to more than $ 600 billion a decade later. According to VTZ a sustainable development approach to investment is quickly gaining ground because it makes both economic and environmental sense. Green capital markets, VTZ write, have also received a push from the insurance industry. The exponential increase in damage caused by natural catastrophes in recent years has alarmed insurance companies around the world. The reinsurers Swiss Re and Munich Re believe this increased damage is associated with a global climate change, largely caused by the growth of CO2 emissions. Stabilising the climate will require a mass-scale switch to renewable energy. Therefore, VTZ conducted a study on renewable energy sources, a market survey that shows a truly gigantic world-wide market potential for renewables. According to VTZ a manager at Southern California Edison even described the potential for solar power in the developing world as “too big to be quantified”. Renewable technologies have a competitive edge over their conventional counterparts in terms of speed of construction, flexibility of size, and independence from centralised electricity networks. The areas of expertise of VTZ, besides the placing and selling of financial products among their investors, are investment services, innovative investment vehicles, and venture capital and corporate finance. The company offers eco-screening and portfolio management and they claim to have developed significant know-how in the area of environmental and social/ethical investment criteria. Some criteria, usually negative ones, find general acceptance, such as refusal to invest in the weapons or nuclear industries and in companies which engage in animal testing, the use of child labour, or racial discrimination. Many positive criteria, however, VTZ consider to be a matter of subjective preference.

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Examples of Sustainable SME Practice

VTZ: ‘Eco-ethical financial products’ © VTZ

VTZ carry out the private placements of stocks and bonds for small and medium-sized green enterprises. They offer environmentally oriented companies a full range of business and consulting services. In selecting firms for the private placement of stocks and bonds on behalf of their investors, VTZ have specialised in renewable energy and energy-efficient technologies. Early in 1997, VTZ launched the Terra Trust Investment AG, the first exchange listed ecological investment trust in Switzerland, which invests in stock-listed and private companies which are well above the current average in terms of sustainable development and which also have a substantial growth potential. Sources: VTZ Profile: Green Money for the Blue Planet, Zürich, Switzerland, 1997. Jones, M., Renewable Energy Sources: Market Survey, VTZ, Zurich 1997.

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Design for Sustainable Development

Triodos Bank N.V., The Netherlands: social bank Triodos Bank N.V. was founded in 1980 in the Netherlands and is a fully-licensed independent bank, owned by public shareholders. The bank has offices in Belgium, the Netherlands and the United Kingdom. It belongs to a widespread network of national and international financial institutions active in the social economy. It is a founding member of INAISE (the International Association of Investors in the Social Economy and of Social Venture Network Europe (SVNE). Triodos Bank considers that shareholders and savers play a vital role in making the bank an instrument of positive change in society. Money deposited with the Triodos Bank provides support for the development of innovative enterprises and community projects and helps to fund environmental initiatives. The bank finances the development of renewable energy sources (solar and wind), organic agriculture, art and culture, protection of the environment and conservation of nature. Triodos Bank also plays an active role in the developing world by providing micro-credit support to SMEs. The bank has always been a financially viable venture itself, and demonstrates that a combination of social and financial criteria can be used for the projects and the businesses which the bank supports as well as for the bank itself. Since 1985 a modest dividend has been paid and capital growth realised. The bank is active in the following areas: • Social economy: innovative businesses, trading, innovative living and working, services and business centres. • Nature and environment: sustainable energy (sun and wind), organic agriculture, environmental technology and nature conservation. • Non-profit and art: education, special needs, health care, nursing care, individual artists and groups. • North-South: development cooperation, fair trade with the South.

Biological agriculture © Triodos Bank N.V.

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Examples of Sustainable SME Practice

Since 1990 the bank has become an active fund manager, both for funds set up by Triodos Bank itself and for third parties, such as charities, donor organisations and the Government. The expertise of the bank in credit appraisal and loan monitoring has proved to be very useful in the area of direct green investments and economic activities in development cooperation. The Triodos Bank now manages: • • •

Biogrond Investment Fund, a fund of about $12 million, which is listed on the Amsterdam Stock Exchange, which invests in land and property to support organic farming. The Wind Fund, an investment fund both in the United Kingdom and the Netherlands of about $12 million investing in single wind turbines and larger wind farms. The Green Investment Fund in the Netherlands has about $15 million, investing in a wide range of green projects and businesses, from organic butchers to eco-offices.

Sustainable energy: wind mill © Triodos Bank N.V.

Dividends from these funds in the Netherlands are not taxed under the Green Ta x Break introduced by the Dutch Tax authorities in 1995. In 1997 the total credit portfolio of the bank grew by 36%. Important factors contributing to this growth, according to Triodos, are the increased attention to responsible entrepreneurship and the favourable economic climate. Many new savers chose the Triodos Bank, it believes, because of the positive choices the bank is making, aimed at innovations and transparency. The direct green investment funds of Triodos realised a substantial growth in 1997. The total fund capital doubled. The board of commissioners and the directors proposed to combine the three green funds to one Triodos Greenfund to be introduced to the Stock Exchange in 1998. Wind energy and biological agriculture will remain spearheads within the investment policy of the new fund. It is expected that these sectors will profit from the scale of the fund. Sources: http://www.triodos.nl/http://www.triodos.com/

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Design for Sustainable Development

Noppes, The Netherlands: Local Exchange Trading System LETS – Local Exchange Trading System – is a collective noun for local exchange and calculation systems on the basis of an alternative currency which can only be used within the system in order to buy or to sell goods and services. The system is concern with creating local money to finance local needs, to create wealth and protect against poverty. This local currency cannot leave the community it serves. It ensures connections by people exchanging skills, goods and services. With this local currency, the community is not affected by fluctuations in the external money supply. For a local currency to work people need to be able to use it alongside conventional money and its design should resolve the three fundamental problems of that money: a local currency should ideally stay within the community it serves, be issued by the people who use it, and exist in sufficient supply to meet the needs of that community. LETS meets these criteria and is also friendly, convenient, cost-effective and secure. It works much like a bank or a building society – everyone has an account, but instead of money transferring from one bank to another, all exchanges are within a single system. At present the LETS is the most advanced local currency in circulation. The focal point of LETS is its book-keeping function and it is not a money creating institution. Local money comes into existence as every participant can, to a certain extent, have a negative account. The main countries using LETS are the United Kingdom, Australia and New Zealand. One important aspect of existing LETS systems is the idealistic and practical background of environmentally conscious consumption and production on a micro-economic level. In ecological terms, LETS aims to further environmentally friendly local transactions, to stimulate local production (minimising transport lines and energy costs), to stimulate repair and product recycling, and to halt unnecessary economic growth by means of an interest free system. Inherently sustainable aspects of LETS include the local character expressed by the direct local relationship between producer and buyer, as a result of which energy and transport costs are reduced. Also product life extension is realised through repair and reuse. Lower purchasing levels of goods result from the common use of tools and facilities. LETS members influence one another with their environmentally friendly behaviour through the LETS system. Environmentally benign products are promoted in some LETS projects. For instance the Noppes project in the Netherlands is working on a project specifically to promote the use of ecologically grown produce. Noppes members can pay part of the price of the produce in the form of a number of ‘Noppes’. Environmentally friendly services are offered, mostly repair and reuse services, which are not viable anymore in the formal economy. Besides these practical services many luxury services are also offered, such as catering and cleaning. In many cases both economic and ecological gains are realised: while gaining spending power and saving money through repairing appliances rather than replacing them, environmental gains are achieved at the same time, as both disposal and purchase are avoided or delayed.

70

Examples of Sustainable SME Practice

Local exchange trading system © Noppes foundation

LETS members are mainly driven by social and economic motives and these form the most important attraction of LETS systems, while environmental considerations play a subordinate role. Many LETS members join the system in reaction to the social trends of individualism, materialism and the business like character of globalisation and society. The Dutch LETS system in Amsterdam is called ‘Noppes’ which means ‘nothing’. Sources: http://unep.frw.uva.nl Promotion of sustainable consumption and cultural patters by means of local exchange systems after the LETS-model (Local Exchange Trading Systems), Dutch Ministry of the Environment, The Hague, 1997. ‘The LETSystem Design Manual’, http://www.gmlets.u-net.com/ Walker, P., and Goldsmith, E., ‘A Currency for Every Community’, The Ecologist, Vol. 28, No.4,

July/August 1998, pp. 216-221.

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Design for Sustainable Development

SME practice on reuse and repair The Intermediate Technology Development Group, UK: APT Appropriate Paper-based Technology (APT) originated in Zimbabwe in the late seventies. Bevill Packer, a sociology lecturer in a College of Education, found himself having to teach art in schools which could not afford to buy paints or brushes, or even suitable paper and pencils, for art. Students and tutor then began a programme called ‘Art That Costs Nothing’ in which they used no-cost materials such as grasses, leaves, reeds and waste paper and cardboard, for creative purposes. Paper and card soon became the most popular ‘Toys that cost nothing’ © Bevill Packer medium. Using imagination and much ingenuity, they soon produced a wide range of articles that were remarkably strong and attractive. Many were made to serve a certain specific purpose in the student’s room or at their school. As each succeeding intake of students tried to emulate the preceding one, the articles became larger and more sophisticated. Eventually in 1981 the first ‘Do-It-Yourself’ desk and stool was produced. Ten were made and loaned to a school for testing. They passed with honours. In 1982, Bevill Packer retired from college as did his wife, an infant school principal. Together they began exploring the possibilities of technology as a productive adult activity. More experimentation was done, and the technology was systemised and called APT. It was adapted and further developed to meet needs in several areas such as home furnishing and equipment, rehabilitation of disabled children, solar cooking and fruit drying, income generating at grass roots level and, for the few, making top quality articles for the high street market and for some customers overseas. In 1989 a local manual was produced. This led to the proliferation of APT to Uganda, Ethiopia, Kenya, South-Africa and overseas to Rumania, Albania and India. What began as the modest retirement activity of two people soon developed into an enterprise far too great for any two voluntary workers to manage. According to Bevill Packer, APT is ‘appropriate’ because all APT articles are designed to serve a useful purpose. It costs virtually nothing and everyone can create APT articles that will give them pleasure. By making wood-like articles from paper waste, APT helps to conserve one of the world’s most precious resources, namely trees. Old,

72

Articles must be attractive © Bevill Packer

Examples of Sustainable SME Practice

APT-based solar cookers © Bevill Packer

unwanted APT articles can be reused by APT or recycled as paper waste. The technology is ‘paper’ based because APT articles are almost one hundred percent paper or card. And it is a ‘technology’ because APT is not a craft for making a certain range of articles, it is a body of knowledge, techniques and devices which can be used to construct products as diverse as dolls and solar cookers, armchairs, early-learning apparatus, baskets and wheel-chairs for the disabled. APT works strictly within four rules which ensure its quality and preserve its unique character: 1. Articles must be strong. Strength is essential for usefulness. Weak articles, especially furniture, are dangerous. APT items are hard-wearing. If protected from rain and damp, APT work is extremely durable. Some original APT stools show no appreciable deterioration despite 15 years of use. APT is, in a way, reconstituting wood, except that APT ‘wood’ cannot crack and is resilient. APT articles are carefully engineered with systems that can support more than normal weight and strain. APT joints, if correctly made, cannot come apart. 2. APT articles must be useful. Every article is designed to serve a useful purpose. In societies where much time is spent securing life’s necessities, few people have the time or interest to make beautiful things that are not useful. 3. APT articles must be attractive. Ancient and traditional art consisted largely of creating useful things that were also beautiful. APT follows in that tradition. The attractiveness of an APT article gives pride to its owner, adds value and helps ensure the item is treated with respect. 4. APT articles must be made from materials that cost nothing. APT was born in a situation where there was no money or conventional materials available for art. It has been adopted and spread mainly by people from low-income groups, thus the no-cost rule is one reason for its popularity. The no-cost rule also gives the technology its special charm. Decorating an article with materials that have been found necessitates creativity. Every APT product is a unique creation. Source: Packer, B., Appropriate Paper-based Technology (APT). A Manual, Intermediate Technology Publications, London, 1995. Also: personal communication.

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Design for Sustainable Development

Kristinsson, The Netherlands: architecture and engineering office The Kristinsson Architecture and Engineering Office was established in 1966 in Deventer by Jón Kristinsson and Riet Reitsema. From the beginning, influenced by reports of the Club of Rome, they have been engaged in sustainable building and have taken the lead in the area of energy-saving building in The Netherlands. The first minimum energy-use houses were built in 1983 in Schiedam. They had a compact heating and ventilation system with heat retrieval and included novel ideas such as thermal-insulated floors and foundations and a gas heater without a pilot flame. The Kristinsson office employs 16 to 18 people and is organised so that every project has a leader and one or more designers who are responsible for the development process. The philosophy of the office is to produce high value, functional and sustainable architecture. An important starting point for its designs are the potential and limitations of the location and the application within that context of the requirements of the building to be realised. In 1997 Kristinsson won the Exergy Competition (organised by major Dutch energy organisations) against forty five other entries with their design for ‘The Energy Roof’. The aim of the competition was to apply the Exergy principle - the optimal utilisation of energy flows - in houses conforming to the requirements of the market. The Energy Roof has a vertically and horizontally turnable combination-solar collector. The parabolic collector, made from triplex with reflecting PMMA-foil, is placed on the top of the roof and aimed at the sun by a year clock. The collector heats water and serves as a rainwater collector while Photo-Voltaic (PV) cells generate electricity and warm air which function as a hybrid heating system. The hot air near the PV cells is removed (which increases their yield), and its heat is transferred through the ventilation system to the building mass which stores it. The hollow foundation piles are filled with water. According to Kristinsson, the techniques applied (seasonal heat storage, balanced ventilation with heat retrieval, and parabolic solar roof panels, etc) are actually already some twenty years old. The Energy Roof design is based on the principle of the reuse cycle: everything you make should be reused as often as possible, and Kristinsson believes that the cycle must be kept closed at all times. For example, the heat from the warm waste water from the bath or the washing machine and the dishwasher is removed by a heat exchanger, and the energy extracted is used to heat water again. However, the cyclic approach has not yet been fully developed in the Energy Roof concept. Rainwater and even other household waste water should also be included in the cycle, with a tank of green algae in or near the house to purify it. Kristinsson predicts that, in about ten years, many houses will have their own waste-water purification. The optimisation of reuse cycles, including waste-water treatment, is an appealing idea as it would make houses autarkic (self-sufficient) objects that can be placed anywhere and that can be replaced without damaging the surroundings and without leaving any traces. This type of building also makes less urban building feasible. It is expected houses based on the Exergy house concept will begin to be built in 1999. Kristinsson is guided in its design work by the ecological surroundings, which they call ‘integral design’. In designing a building they work from the inside towards the outside of a building. The

74

Examples of Sustainable SME Practice

The Energy Roof Design © Kristinsson Architecture and Engineering Office

building should guarantee a good physical living climate, starting from an energy-neutral option which does not use fossil fuels. The integral designer considers a building as the user’s third skin. Only when the relationships between the installations and building materials and the location and the climate have been considered, are other aspects taken into account, such as functional design, strength, stability and so on. Sources: ‘Exergiewoning optimaal woonprofijt’, Oogst Competitie 1997, Projectgroep Exergiewoning, 1997, pp. 8-9. ‘Lichte stedenbouw, of: op weg naar de meterkastloze woning’, Stedebouw en Architectuur, 14e jaargang, No. 11, 1997, pp. 4-5. http://www.ecomarkt.nl/viba/kristinsson/index.html

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Design for Sustainable Development

RUSZ, Austria: repair and service centre The Repair and Service Centre ‘RUSZ’ was opened In March 1998. It carries out the repair, disassembly and reuse of old electrical appliances such as washing machines and dishwashers. A stock of spare parts is collected for future repair work and repaired appliances are sold at affordable prices. After sale, during the warrantee period, RUSZ provides any necessary services. Thus household appliances which had previously been defined as waste are collected, checked, disassembled, reassembled and either reused as second-hand products or have their parts used in other products. In this way, the use and the life of products and parts that still can function is prolonged. Product-use intensity is increased through a leasing system. One important aspect of this project is that it combines a vital labour market issue - the reintegration of long term unemployed people over the age of 45 - with environmental concerns. RUSZ states that 95 percent of all old electrical appliances are thrown on dumps or incinerated without prior treatment. In addition, the combination of product advice before the purchase of a product, repair activities, and disposal advice or rather the return of repairable products through secondhand shops, together offers a comprehensive service to the customers of the Repair and Service Centre. Those customers who are really only interested in the service that an appliance provides rather than possessing it, are provided with the opportunity to hire appliances, which is both an economical and an ecological option. The aim is to occupy economic niches which are not sufficiently catered for or are not considered economically interesting by existing facilities and companies. Repair has locally been promoted through the Vienna Repair Guide which also provides advice on purchasing durable and repairable products.

Washing machine for repair © R.U.S.Z.

76

The Repair and Service Centre cooperates with the municipal authorities. It takes over repairable electrical appliances from the recycling centres, removes any hazardous materials or substances and returns separated non-recyclable parts to the relevant waste routes. The Centre seeks cooperation with existing customer service centres of manufacturers. The advantage of such cooperation

Examples of Sustainable SME Practice

Long-life spare parts © R.U.S.Z.

is that temporary workers of the Repair and Service Centre may finally become employed at a manufacturing plant. The Repair and Service Centre intends to prove that, even in the present economic situation in Austria, substantial steps can be taken towards sustainability. A longer service life and more effective use lead to a reduction in the use of primary resources. Through the example of discarded ‘white goods’ (household appliances such as washing machines, refrigerators and dishwashers) the centre demonstrates that even products that are currently available on the market can have a longer average service life. The aim of the Repair and Service Centre is to promote consumer awareness by providing professional repair and other services, and to motivate producers to design ecological, easy-to-repair products with a long service life. Another goal is to stress that environmental protection and employment are far from being contradictory, and jobs which take account of environmental concerns are more secure than jobs without an ecological basis. Sepp Eisenriegler of RUSZ believes that the current moves towards ecology-based taxes certainly reinforce the position of RUSZ and he expects that washing and dish-washing services may eventually come to be as widely accepted as copier servicing arrangements. Sources: Eisenriegler, S., ‘Reparatur- und Servicecentrum “RUSZ”.’, Waste Magazin, 3/97, pp. 41- 42. Gupfinger, H., ‘Ein Raparaturführer für Wien.’, Waste Magazin, 3/97, pp. 37-38.

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Design for Sustainable Development

Golden Gate, Austria: children’s shoes In 1976, three members of the Wurmsdobler family, building upon a very old tradition of shoemaking, introduced their environmental thinking to the company O. Wurmsdobler GmbH & Co KG, and in 1980 the philosophy of Golden Gate was formulated. The company was formed on the premise that it wanted to manufacture shoes that help people to feel well. Exclusively natural means and finished materials are applied in its manufacturing processes as far as possible, and the protection of people and the environment is always given priority in the selection of resources and production methods. Open and honest information is provided upon request to customers, suppliers and the general public. To Golden Gate, the environment is their life and their efforts are based upon a holistic vision. They accept that synthetic materials can be used along with natural materials, for example synthetic fibre which they use to prolong the life of their shoes instead of cotton fibre. For them, the central question is always whether the company, by using an alternative materials and/or a mix of products, can reduce its burden upon the environment. Themes such as the use of waste materiExchangeable inner sole... © Golden-Gate als, the extinction of plants, inhumane transport of animals, exploitation of the developing world, and the health of the employees and customers play as important a role as questions of durability, repairability, disposability and biodegradability. Golden Gate claims that it is one of the first manufacturers intensively and holistically engaged in the naturally produced shoe manufacture. Although a 100% environmentally friendly shoe cannot be produced, the company has experimented until they reached the limits of what can be achieved. Their research not only concerns the environment, but also people and their health. In addition to the environmental qualities of the shoes, the company uses packaging made from recycled cardboard which has been decorated by special needs people. All of the company’s employees are actively committed to the continual improvement of the environmental friendliness of the product and its production. The inner soles of the Golden Gate shoes are made from home produced leather, avoiding inhumane animal transport. The raw material for the tannery consists of unsalted cow hides. For its

78

Examples of Sustainable SME Practice

...for a multi-generation shoe © Golden-Gate

natural tanning process fruit extracts from (for example) European tara and chestnut are used. The shoe’s inner soles are manufactured from plant-based tanned leather, natural cork from Portugal, and latex from Malaysia. The cork and latex parts are covered with leather and then baked slowly in moulds, like bread. As a result, the latex develops its own natural adhesive properties and no glues are required. No colourants are used. The Golden Gate shoe is very durable. The company was awarded the National Ecodesign Prize of Austria in 1996 for their multi-generation children’s shoe. This type of shoe is mostly made from natural materials, is very robust, and is designed to be worn by a number of generations of children. The inner sole is exchangeable and the shape of the shoes provides space for different children’s feet, so that each child using the shoes can have his or her own inner sole to suit their feet. The quality of the design was also distinguished from the sustainability point-of-view by the resource saving optimisation of the entire production process, including the pre-production phase and the product itself. The multi-generation shoe was considered by the jury to be an excellent example of a product which can go on being used for a long time. Sources: ‘Wettbewerb für Zukunftsfähige Produkte und Lösungen.’, Ecodesign 1996, Vienna, Austria, 1996. Golden Gate O. Wurmsdobler GmbH & CoKG, ‘Produkt Mehrgenerationen- Kinderschuh. INFO-KNOTEN, Dipl.-Ing. Wolfgang Wimmer, TU-Wien. http://www.ecodesign.at/ecodesign

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Design for Sustainable Development

Deep E Company, United States of America: footwear manufacturing Deep E Company is a footwear company that is striving to meet the goals of environmental and social responsibility by reducing the environmental and social impacts of all their activities and operations, including production, marketing, manufacturing or disposal or their factory waste and the product itself at the end of its useful life. Deep E Company is guided by the principles of ecology and sustainable development and strives to manufacture its footwear, apparel and accessories using materials and processes that help to minimise waste, conserve nature and respect the diversity of life on earth.

Rubber tappers in the Amazon forest

Deep E Company’s products are made from renewable resources such as hemp canvas, treetap, and ‘Sustana’ leather. Hemp is stronger than cotton, has twice the abrasion resistance and is naturally resistant to mould and bacteria. Hemp is a renewable resource which doesn’t need toxic agri-chemicals for cultivation. The fibres from the outside covering of the long stalks of the plant are processed and spun into yarns. Hemp grows well with little water and leaves the soil in good condition for other crops. In addition to

80

The view of Deep E is that in order to achieve economic, social and environmental sustainability, it is necessary to understand cultural differences worldwide, the natural limits of our environment, and the effects they may have upon it at all levels, including the current standard of progress as solely a financial measure. Deep E believes that by recognising the power that responsible business has to influence social and environmental change, it is possible to work towards achieving balance among the three E’s ( E c o l o g y, Ethics, and Economics) in the DEEP E Company. Using education as a focal point, the company continually strives to develop a meaningful dialogue with its customers, employees, suppliers, factories, investors, media, and stake-holders, including anyone who is affected directly or indirectly by its activities and products.

Tapping rubber from a tree in the Amazon © Deep E co.

Examples of Sustainable SME Practice

textiles, other important industrial uses for hemp fibre are paper and building materials, which can reduce the demand for wood fibre. Textiles and yarns made from hemp fibres are typically stronger and more durable than other comparable natural fibres. Treetap is a hand-crafted rubberised cotton material made by rubber tappers in the Amazon Basin rain forest. Sustainably harvested latex is tapped from wild rubber trees and Latex being processed © Deep E co. applied to cotton sacks which are then cured and dried to make a durable waterproof material. This then is an appropriate substitute for full grain animal leather for use in the products of Deep E. This sustainably harvested latex from the Amazon gives economic value to an intact forest, allowing rubber tappers to continue their heritage and to stay in the forest rather then becoming forced to move to the city. Deep E is continually seeking ways to minimise the health, safety and environmental impact of its products. This led to the development of ‘Sustana’ leather which is presented as the world’s first true ‘eco-leather’, a unique leather made from the hides of USDA-certified natural cattle. These cattle are raised on pesticide-free food and are free of artificial hormones and antibiotics. Deep E claims that the ‘Sustana’ quality standards meet or exceed those established under the Dutch Ecolabel for footwear and United States of America regulations. Deep E also uses recycled and reprocessed materials from industrial and consumer waste such as c o ffee filters, folders and car tyres. The black outer sole of their ‘Headwaters Hiker’ shoe consists of 45% rubber from used auto- Shoe based on ecology, ethics and economy © Deep E co. mobile tyres. Another shoe part is 35% factory waste which includes rubber and mixed resin plastic waste from footwear factories. Yet another part, a board, is made from rejected office file folders and coffee filters. The shoe box and printed materials are made using post consumer recycled materials and for printed materials soy-based inks are used. Sources: Deep E Company, http://www.envirolink.org/pbn/ http://www.deepeco.com/

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Design for Sustainable Development

Overview of sustainable SME examples and some of their characteristics Sustainable SME Example: - Fruits of the Nile, Uganda - ULOG Gruppe, Switzerland - Luigjes Zonne Energie B.V. - Development Alternatives - BayGen, South Africa - Wheels Within Wheels Ltd. - Pacific Green Furniture Co. - Kambium, Germany - The Martin Guitar Company - Natural Cotton Colours Inc. - HempFlax, The Netherlands - Vision Paper, U.S.A. - AURO Pflanzenchemie - Agrofair, The Netherlands - A.H.M. & M. Architects - Ecomat, U.S.A. - CITYgogo, Belgium - VTZ, Switzerland - Triodos Bank N.V. - Noppes, The Netherlands - Intermed. Tech. Dev. Group - Kristinsson, The Netherlands - R.U.S.Z., Austria - Golden Gate, Austria - Deep E Company, U.S.A.

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Initiative

Values

Function

Renewable

Developing

Motivation

Problems

Delivered

Resources

Countries

Future Potential

FAO/UNDP

Income-

Solar

Solar Energy

Own

Expansion

Food

generation

Drying

Fruit

Activity

Trade

Personal

SaveWood,

Solar

Solar Energy

Reciprocity

Community

Wood Lack-

Time, Costs

Cooking

Local Materials

Participate

Kitchens

SME

Less Fossil

Solar / Gas

Solar Energy

Techniques

Integrated

Efficiency

Dependence

Heating

Integrated

Integration

Systems

NGO

Work/Energy

Production

Biomass

Jointly

Establish

Employ

for the Poor

Energy & Paper

Agr. Waste

Developed

SMEs

Personal

Work for

Solar

Human Power

Production

Contextual

AIDS Education Disabled

Communication

Sun

& Use

Integration

Personal

City Living

Clean City

Human

Rickshaw &

Mainstream

Traffic

Conditions

Transport

Power

New. Tech.

Option

Personal

Save Wood

Furniture &

Palm trees

Alternative

Palm tree

‘New’ source

New Uses

Technology

World-wide

Hardwood

Potential

Personal

Economy &

Long Life

Local Wood

Holistic

Regional

Vision

Environment

Kitchen

Rain, Wind

Vision

Service

Personal

Leisure

Music

Alternative

Certified

New Wood

Responsble

Wood Use

Certified

Woods

Wood Trade

Models

Personal

Organic

Long Life

Natural

Develop

New Mills

Natural

Production

Clothing

Cotton

Concept

& Varieties

SME: Hemp

Sustainable

Multi-purpose

Natural Oil

Cascading

Local Paper

Reintroduce

Crop-Based

Potential

Fibre Crop

of Fibres

Bio-Composites

Personal

Save Trees

Paper

Plant Fibres

Many Fibre

New Crops

Substitute

Less Toxics

Products

for Paper

Products

New Uses

Personal

Health &

Material

Plant Oils

Concept

Substances

Vision

Environment

Longevity

Substances

Emulation

from Nature

NGO

Solidarity

Working

Banana

Marketing

Socially

Fair Share

Conditions

Conditions

Plantation

Access

Improved

Educational

Sustainable

NGO/ Gov.

Education

Model

Solar Energy

Sustainable

Building

Best Practice

‘Green’ Materials Concept

Schools

Personal

Health

Washing

Lanolin-based

Wet Wash-

Expansion

Toxics

Pollution

Cleaning

Soap

Technology

in Europe

Personal

City Living

Transport

Human

Rickshaw

New Option

Car-Free

Conditions

Information

Power

System

& Jobs

SME: Sust.

Environment

Responsible

Renewable

Solar Power

Green Net-

Economy

Venture

Investment

Energy

Market

works

SME: Environm. Support

Financing

Wind Energy

Microcredit

Change

Initiatives

Development

Biol. Agriculture & Trade

Innovation

NGO

Social

Local Book

Skills &

Exchange

Economic &

Alt. Money

Transaction

Keeping

Services

Experience

Ecol. Gain

Transparent

Personal

Pleasure

Technology

Grass/Leaves

Dissemination

Improve &

Art Education

Material costs

for Articles

Paper/Board

Low Costs

Expand

Personal

Self-

Sustainable

Solar Energy

Concept of

Self-Sufficient

Sust. Building

Sufficiency

Architecture

Rainwater

Integration

Houses

NGO

Work &

Repair

Skills &

Exchange

Longer

Reintegrate

Environment

Service

Experience

on Repair

Service

Family

Health &

Shoes

Natural

Natural

Continual

Footwear

Environment

Service

Tanning

Resources

Improvement

SME

Reduce

Responsible

Renewable

Natural

Continual

Responsibility

Impacts

Footwear

Materials

Resources

Improvement

Chapter 5

Access to Sustainable SME Information

Information, relevant to sustainable SMEs is provided by the following organisations and networks. Network-oriented organisations related to sustainable business can be found in the Design for Sustainable Development Networks Directory (Benjamin, 1998).

European Foundation for the Improvement of Living and Working Conditions The European Foundation for the Improvement of Living and Working Conditions has a Web site with a section on sustainability issues. It provides access to a database of network-oriented organisations working towards sustainable production and consumption and covers the results of the Foundation’s project Design for Sustainable Development. The site also presents publications and information on conferences. Information on training and education initiatives will be further developed (http://www.eurofound.ie).

IISD The International Institute for Sustainable Development (IISD), located in Canada, provides high quality information and Internet links through its website (http://www.iisd.ca/linkages/ consume/overview.html). It presents a collection of documentation and links to relevant information material on the issue of sustainable production and consumption. In 1994 it published a Toolkit and a paper on sustainability and competitiveness (Hanson, 1994), (IISD, 1994). Its website contains a separate section on business related subjects. The IISD also has a programme for SMEs called ‘Business Opportunities in Sustainable Technology’. (http://iisd1.iisd.ca/business /small/chap02.html).

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ILO The main objectives of the International Labour Organisation (ILO), the Enterprise and Cooperative Development Department and the International Small Enterprise Programme (ISEP) are the identification and dissemination of best practice and lessons learned to date in the field of SME development; and the development of new and innovative approaches to achieving cost-effectiveness, sustainability and impact in the support of SMEs. ISEP focuses mainly on SMEs in developing countries and countries in transition, but will also work closely with developed countries which are a source of good practices with regard to SME development, and which can often play a key role in North-South enterprise linkages. ISEP has a global action-oriented research and development programme which will identify, analyse and disseminate best practice and lessons learned in both developed, developing and transitional economies with regard to programmes and methodologies to support the development of competitive SMEs able to generate productive quality jobs. It will also develop, test and disseminate standard approaches, packages and guidelines which can be adapted by partner organisations and networks at national and regional levels, building on existing ILO programmes (ILO, 1997).

INEM INEM is the International Network for Environmental Management. It is a global federation of non-profit national and regional industry associations which promote and foster environmental management and sustainable development. In order to promote and implement an integrated approach (known as ‘Cleaner Production’, ‘Waste Minimisation’ or ‘Pollution Prevention’) INEM presents case studies that they hope will serve as an inspiration to companies around the world to adopt an integrated and preventive approach. One of its main goals is to provide support to SMEs. The Main Secretariat of INEM is in Wedel, Germany (INEM, 1997).

O2 Challenge 98 O2 International is an organisation of designers which presents a selection of examples of sustainable business concepts on its Web site. (http://www.hrc.wmin.ac.uk/o2/events/challenge/examples.html).

Sustainable Business Network The Sustainable Business Network (SBN) is a focal point for the environmental business community with comprehensive information and networking options. SBN produces a free online journal, it has a library and it presents business opportunities (http://envirolink.org/sbn/).

Sustainable Investment The EarthEnterprise TM Project’s Sustainable Capital stream is designed to help entrepreneurs obtain investment and financing for their companies. Sustainable investment describes itself as

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‘a new concept, basically an innovative way of reconciling environmental preservation and social responsibility with economic activity and then adding value to all. Sustainable Investment is a sophisticated way of shifting capital to companies (particularly SMEs) that are smart enough to position themselves to create and take advantage of opportunities arising from the new economic paradigm.’ (Enterprise Toolkit TM, 1997).

WBCSD The members of the World Business Council on Sustainable Development (WBCSD) form a global network which promotes good environmental practice. Through the WBCSD companies can share their experience and expertise with others and keep abreast of best practice. Their objective is to realise eco-efficient leadership. The WBCSD is based in Geneva (WBCSD, 1997). On its Web site it presents, among other information, an ‘Eco-efficiency Case Study Collection’ (http://www.wbcsd.ch/eedata/eecshome.htm). This collection was developed in the course of the European Eco-Efficiency Initiative, a WBCSD project in cooperation with European Partners for the Environment and supported by the European Commission’s Directorate III for Industry. The main message of this eco-efficiency initiative is that, if businesses improve their environmental performance, they will be able to realise substantial economic opportunities. Eight criteria of quality have been used to select examples which are valid and convey the message of eco-efficiency to the target audience. Two of the most important criteria are ‘environmental significance and sustainability potential’ and ‘degree of improvement and innovation’. ‘Environmental significance and sustainability potential’ is rated ‘excellent’ when: • • •

long term environmental thinking is evident; increased service intensity shows significant new ways of thinking; new employment and other benefits show significant progress towards sustainable development.

‘Degree of improvement and innovation’ is rated ‘excellent’ when: • • •

environmental goals are achieved by a significant factor (eg Factor 4 or Factor 10 improvement of material use); use is made of a new technology or process which has improved environmental characteristics; the new technology can be licensed or transferred to other firms, especially those in developing countries.

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Chapter 6

Observations and Conclusions

The twenty five examples of sustainable SMEs that have been selected cover the whole range of renewable energy, renewable materials and sustainable services, as well as the SME practice of reuse and repair. In the selections made, the focus was not on SMEs with a particular environmental feature or which have made specific environmental achievements because innumerable examples of such organisations already exist. Rather, the search was for examples which exhibited more of the underlying characteristics of sustainable SMEs. In taking this approach the focus was on the purpose of the SME, the resources used and the products or services delivered. In this chapter some observations will be made and some conclusions drawn from the SME examples in Chapter 4, the model presented in ‘sustainable enterprise: a model’ and the classification of sustainable SMEs. The first question underlying the research in this report was: •

What examples of SME practices and results demonstrating design for sustainable development could be found in current literature, on the World Wide Web, and among international networks and contacts?

The overview table of the SME examples on page 82 indicates for each SME: • • • • •

Initiative and motivation. Values and problems. Product or service delivered. Renewable resources involved. Nature of relationship with developing countries.



Future potential.

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In making the table, information from the Internet has been used, in books, reports, articles, brochures and other information materials in which these SMEs were covered or which they have sent to me. Interviews were not conducted with the SMEs themselves, nor were they asked to present data on the issues involved. The categorisation, therefore, is qualitative and enables the reader to reflect upon the SME examples presented, pick out features that are of interest, and find common themes or similarities. Many of the examples are based on the personal initiative of one or two people who identified an obvious problem, had a good idea or formulated their vision, and then demonstrated a remarkable persistence and dedication in putting their response into practice. Sometimes this was far from straightforward: a technology had to be developed from scratch or a totally new concept had to be introduced. Often, the production system of which they were a part saw them as a threat. The SMEs concerned were committed to provide practical answers to questions such as: How do you: • • • •

• • • • •

transport people by taxi cycle in a city centre which is jammed by cars? produce furniture and other articles from palm wood when everybody says it cannot be done because the wood is too soft? organically grow natural coloured cotton when all the cotton producers use pesticides and fertiliser for the production of chemically bleached cotton? produce paper from plant fibres when everybody believes that it can only be done by felling trees, breaking down their structure and using a lot of energy, chemicals and water to get and bleach the wood fibres? realise a fair price, good working conditions and an improved environment for workers at banana plantations in a developing country? convince customers to whom the smell of a chemical solvent is the sign that their clothes have been properly dry cleaned, that it can also be done using water and soap? convince people that it can be profitable to invest in socially and environmentally responsible enterprises and projects? teach art when proper materials or money are not available and all you can do is use low-cost waste materials? convince companies and institutions that houses can be built for self-sufficiency if all they want is to provide building procedures and standards, water, gas and electricity?

These are typical of the challenges that SMEs are confronted with. However, where others may fail or give up, these sustainable SMEs have managed to persist and survive. In some cases, such as with Luigjes Zonne Energie B.V. and with BayGen, big industry has taken them over. But, although this may secure the main activity of the SME concerned, it may also lead to the watering down of the original concept and values or even to their abandonment. In some cases sustainable SMEs are made more viable when supported and promoted by government action. The desire of the city of Gent for a car-free centre has provided supportive condi-

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tions for the taxi cycle firm CITYgogo. The Dutch policy of making environmental investments financially more attractive has had a very positive effect on the services of companies such as the Triodos bank. The policy of the European Commission to stimulate the industrial use of agricultural crops has had a positive influence on the production and industrial use of Hemp and other multi-purpose plants. The work of the United Nations Environment Programme Working Group on Sustainable Product Development (UNEP-WG-SPD) shows how SMEs can benefit from international co-development with developing countries and how that can be stimulated and realised. It is crucial to observe the way in which inventions, discoveries, and alternatives become embedded and developed in SMEs and thus embedded in society. Several examples consist of an integral system that forms the SME. Thus, an integration of vision, mission, and function is realised in a physical and organisational setting, aimed at social, environmental and economic objectives, involving proper and efficient use of renewable resources, participation of employees, customers and consumers, and clearness and transparency about objectives and practices. This integrated approach can be clearly seen in the case of companies such as Development Alternatives, BayGen, Kambium, AURO Pflanzenchemie, Kristinsson, Golden Gate and the Deep E Company. Several of these SMEs have declared that they are ‘holistic’. They are organised on the basis of a systematic strategy, encompassing and integrating various environmental, social and economic objectives simultaneously. The examples, however, clearly acknowledge the importance of the social whole of which they are part. As the outside system is far from sustainable, the SMEs concerned are confronted with all kinds of barriers and obstacles. The prevailing paradigms for production and consumption systems do not easily accommodate the deviant, imaginative or confrontational practices of sustainable SMEs. The unsustainable system does not welcome sustainable enterprises. Unless social conditions change fundamentally, and unless the level, fabric, system and patterns of production and consumption are made more sustainable, new sustainable SMEs face an uphill struggle. The local or regional context, local economic and social conditions and the local availability of resources and skills, are also important for sustainable SMEs. For example, exploiting the sun’s energy inevitably involves local climatic and weather conditions. A surprising amount can be done with the sun - even solar cooking in Europe. The use of renewable resources may be linked to the locally prevailing ecosystems, as in the practices of HempFlax and AURO Pflanzenchemie. The use of human power for transport is directly related to the availability of an appropriate local infrastructure. And, more broadly, in sustainable architecture local natural conditions are essential to the design and use of houses, schools, and other buildings. Another observation is that although some solutions may seem on the surface to be rather local, their principles may be applied globally, such as the use of plant fibre for paper. Comparing these observations with the list of characteristics in the sustainable SME classification, examples of some SME practices, such as the integral use of ecosystem based processes, integrated biosystem based processes and sustainable resources and energy integrated processes

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have not been found. One reason is that food growing SMEs have not been included in the selection of examples of sustainable SMEs. Another reason is that such processes either are new or are being rediscovered and revived. An example of the interest for this theme is the Internet Conference on Integrated Biosystems (http://home2.swipnet.se/~w-25860/icibs), ( h t t p : / / w w w.ias.unu.edu/vfellow/foo/ibs/index.htm), (http://www. m a m a g a i a . c o m / permaculture.htm). Against this background the issue of sustainable SMEs is not merely one of engagement of the SME sector (James, 1998), of environmental performance (KPMG, 1997) or of eco-efficiency (Karlsson, 1998). According to Jones, it is rather concerned with organisations which are already committed to, and are moving towards sustainability, defined in the most holistic sense, ie actively combining their financial responsibility with their long term environmental and social responsibility. These companies are values led and they require cultural development rather than cultural change to move towards sustainability. In this process for sustainability he argues that stewardship and accountability is owed to society, to communities, to the third world, to future generations and last but not least to employees. Jones concludes that by focusing upon the importance of an explicit values framework within which notions of two way learning, two way accountability, mutual trust and respect for diversity of opinion are encouraged, companies can begin to move towards sustainability (Jones, 1996). Sustainable SMEs are not characterised by traditional environmental performance, by environmental optimisation or even by ‘eco-efficiency’. They are characterised by values, vision and mission that are concerned with quality of life and work, democracy, participation, solidarity, equity, equality and reciprocity. The prevailing perception of environmental performance looks at the way in which company practices meet environmental regulations, management systems and standards. But, although they may be directed to environmental improvement, the main reasoning behind such companies does not necessarily imply policies and strategies which take sustainability into account. Similarly, eco-efficiency may lead to substantial environmental improvements of a company process, but if the process itself or the product concerned is unsustainable by design, making it much more efficient will not change that fundamental characteristic. A natural pesticide still is a pesticide, an eco-efficient car still is a car and in a sustainable school building sustainable education should be given. The performance and efficiency of unsustainable processes, products, systems and services may be tremendously improved, from which the environment will benefit, of course, but they nevertheless remain unsustainable. Issues such as solidarity with people in developing countries, equal distribution of resources, and preparation for the future are still not dealt with. Therefore, while the debate must continue, research must be initiated and practice stimulated on reformulation, restructuring and redesign. It is absolutely essential that totally new and inherently sustainable industrial practice and consumer lifestyles are developed, in order to achieve sustainable production and consumption patterns.

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Human consumption patterns and human development are the central theme of the Human Development Report 1998 (UNDP, 1998). The report states that consumption must be shared, guaranteeing basic needs for all, strengthened by building human capacities; and sustainable, without mortgaging the choices of future generations. The report recommends the development and application of technology and methods that are environmentally sustainable for both poor and affluent consumers. Sustainable growth of consumption and production depends on major advances in cleaner, material-saving, resource-saving and low-cost technologies that meet the requirements of the poor. According to the UNDP, the real issue is not consumption itself but its patterns and effects. Well over a billion people are deprived of basic consumption needs. Underconsumption and human deprivation are not just the lot of poor people in the developing world. More than 100 million people in rich nations suffer a similar fate. The global population is projected to be 9,5 billion in 2050, with more than 8 billion in developing countries. Of the estimated 2,7 million deaths each year from air pollution, 2,2 million are from indoor pollution, and 80% of the victims are rural poor in developing countries. Poor countries need to accelerate their consumption growth, but they need not follow the path taken by the rich and high-growh economies over the past half century. If poor countries can leapfrog in both consumption patterns and production technologies, they can accelerate consumption growth and human development without the huge cost of environmental damage. They can incorporate many of the available technologies that are not only less environmentally damaging, but also clean, such as solar energy, low energy intensive crop production, and cleaner paper technologies. Although globalisation of principally unsustainable production and consumption systems is taking place, there are also trends that focus on the importance and potential of localisation (Norberg-Hodge, 1998), (Stevenson, 1998). At the International Symposium for the Launch of the Human Development Report 1998 in the Hague, the Minister of Culture and Tourism, Mrs Aminata Traore, stated that often local indigenous knowledge has been ignored or put aside in development processes. Some of the above SME examples show that local indigenous knowledge is important everywhere as it is closely linked to the physical and ecosystem conditions concerned, which can be used in a harmonious and sustainable way. The second key question underlying the research in this report was: •

How could this information be made accessible to SMEs and to the social partners?

Although there is a wealth of printed information which is aimed at and relevant to SMEs, information on environmental issues is much less abundant, and that on sustainability and SMEs is even less common. The situation for information on the Internet is not much different. Chapter 5 gives some examples of organisations that provide relevant information.

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Most of the available information, however, concerns general environmental issues, environmental management and environmental standards and is mainly directed to the bigger (multinational) corporations. A request to the World Business Council on Sustainable Development for information on SMEs did not yield any useful result. Information on SMEs and the environment was hard to find on the European Union Internet site and it was not available on sustainable SMEs. The potential of the Internet is, however, tremendous. Many regional, national and international networks on business and sustainability and on sustainable production and consumption already exist (Benjamin, 1998). Information on sustainable SMEs could be made available through national and international SME organisations, via related Web sites of international organisations and also by linking regional and local networks. Similarly the existing Internet sites of each of the social partners could make space available to sustainable SME programmes and projects, nationally or internationally. For the time being, however, the European Foundation for the Improvement of Living and Working Conditions could take the initiative to launch a Web site for sustainable SMEs which could serve as a springboard for other national and international weblinks and new initiatives. Since several organisations have already expressed the importance of making environmental information available to SMEs (IIIEE, 1997), the Foundation could focus on information on sustainable SMEs. In the Netherlands, agriculture is one of the main areas of expertise on sustainability. Particularly striking was one of the results of a PhD study on innovation groups in Dutch agriculture (Horlings, 1997). These groups of farmers, as the researcher found, often have their own interpretation of the concept of sustainability in agriculture, an interpretation that often differs from that of policy makers. According to some of those groups, ‘sustainability’ not only concerns sufficient income for the farmer and a reduction of the environmental burden, but also issues such as managing nature and landscape, creating sufficient agricultural employment, reducing the distance that has grown between the producer and the consumer, and encouraging solidarity with farmers in the Third World. Thus they interpret sustainability in a broad sense, not only focusing on its ecological and economic aspects, but also taking into account its socio-political and cultural dimensions. This reinforces the view that it is among such people – practitioners of sustainability – that a real understanding of the role and functions of sustainable SMEs can be found.

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Part

III’.

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European Foundation for the Improvement of Living and Working Conditions Design for Sustainable Development Luxembourg: Office for Official Publications of the European Communities 1999 – 102 pp. – 21 x 29.7 cm ISBN 92-828-5267-9 Price (excluding VAT) in Luxembourg: ECU 18

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EF/98/64/EN

14 5 4

social partners. The concept of 'sustainable business' presents a new challenge to tomorrow's business leaders. This publication describes this challenge for small and medium-sized enterprises (SMEs), providing ideas and examples to stimulate debate inside and outside Europe. It explores the concept of sustainable enterprise with the help of 25 examples of sustainable SMEs from around the world and also lists some organisations which have been set up to assist SMEs in achieving sustainability. As some of the examples show, it is possible for SMEs to develop a systematic business strategy which simultaneously integrates and realises economic, social and environmental objectives without threatening their viability.

Price (excluding VAT) in Luxembourg: 18 ECU

Design for Sustainable Development – Practical Examples of SMEs

Sustainable production and consumption is an issue of increasing international interest for the

SX-18-98-906-EN-C

Design for Sustainable Development Practical Examples of SMEs

Design for Sustainable Development Practical Examples of SMEs

ISBN 92-828-5267-9

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