Canada and Agenda
21Canada and Agenda
21
CHAPTER 30
Strengthening the Role of Business and Industry
-- George Miller --
George Miller is the President of the Mining Association of Canada. The views expressed in this chapter are those of the author with the input of a number of other stakeholders, and do not necessarily represent the views of the Mining Association of Canada or the Projet de Société.
THE NATURE OF THE PROBLEM
Business and industry have a crucial role in bringing about environmentally sustainable economic development. Private sector economic initiative within a market framework is the chief contributor to the prosperity that makes possible advances in the social and physical well-being of populations.
At the same time, the very prosperity of developed nations, and particularly the discrepancy in terms of prosperity and consumption patterns between the North and the South, is regarded by some as a problem largely attributable to the power of business and the untrammelled operation of trade and market forces. Moreover, many current environmental problems are attributable to industrial and developmental activities that have taken place in the past. In the absence of appropriate scientific knowledge, technology, legal and regulatory frameworks (including enforcement), and enlightened management, industrialization can create environmental impacts that threaten the very prosperity, and well-being that are its goals.
Resolving these contradictions is the important task for business leaders, governments and non-governmental organizations. It is vital to identify paths of economic development that harness and enhance the capacity of business and industry to generate wealth, while providing for improved equity of economic opportunity (across and within nations) and for environmental sustainability. And the task is urgent. Because of the communications explosion, the world economy is inevitably growing ever more integrated and interdependent. Trade and investment flows are multiplying in quantity and diversity. Global economic restructuring is taking place at an unprecedented rate. Our global challenge is to direct this economic change into the optimum path.
PROGRAM AREAS AND OBJECTIVES
Chapter 30 of Agenda 21 is written with a particular focus on business and industry, emphasizing initiatives that originate, or could originate, in that sector. Other chapters of Agenda 21 deal with institutional arrangements, the regulatory and enforcement roles of governments, and many other mechanisms and instruments designed to influence or control the operations of business enterprises in the direction of sustainable development. Accordingly, those chapters should be kept in mind when reading this chapter.
Two program areas are outlined in Chapter 30, along with their corresponding objectives:
(1)Promoting Cleaner Production:
Where production technology and management use resources inefficiently, they create environmental problems, and need to be replaced with technologies, engineering and management practices and know-how that minimize waste throughout the product life cycle. The objective of cleaner production implies striving for optimal efficiencies at every stage of the product life cycle. Chapter 30 suggests that cleaner production technology will make enterprises more competitive.
Objective: Governments, business and industry, including transnational corporations, should aim to increase the efficiency of resource utilization, including increasing the reuse and recycling of residues, and to reduce the quantity of waste discharge perunit of economic output.
Suggested activities include: strengthening partnerships; implementation by governments of economic instruments and normative measures, such as laws, legislations and standards; voluntary private initiatives; internalization of environmental costs into accounting and pricing mechanisms; adoption of codes of conduct and reporting on performance; technological cooperation between enterprises; cooperation with workers and trade unions; improved environmental awareness of employees; increased education and training; and strengthened information dissemination on cleaner production methods.
(2) Promoting Responsible Entrepreneurship
Entrepreneurship, particularly among Small-Medium Enterprises (SMEs), is a potent driving force for innovation, efficiency, rural development and other goals, such as providing opportunities for women. These enterprises can play a useful role in sustainable development.
Objectives: To encourage the concept of stewardship in the management and utilization of natural resources by entrepreneurs; and to increase the number of enterprises that subscribe to and implement sustainable development policies.
Suggested activities include: encouragement of sustainably managed enterprises by regulatory, incentive and administrative means; establishment of venture capital funds for sustainable development projects; training in environmental aspects of entrepreneurship; apprenticeship schemes; worldwide corporate policies on sustainable development; and easy transfer of environmentally sound technology to developing country affiliates.
CANADIAN POSITIONS AT RIO
1.Official Canadian Position
The Preparatory Committee meetings addressed the role of business and industry in the context of the role of major groups. Canada sought to clarify confusion surrounding the definition of NGOs, address a perceived lack of equity in the treatment of different groups, and promote a more balanced portrayal of industry activities and responsibilities.
The federal government worked to ensure that the right to protect the public interest through legal action continues to be the responsibility of governments. Canada also promoted a shift away from what should be done to industry and toward what can be accomplished with and by industry.
In particular, Canada sought to:
place greater emphasis on voluntary actions;
underscore the need for further research into concepts and methodologies to gradually internalize environmental costs in pricing mechanisms; and,
ensure that rights of access and participation apply equally to all major groups.
2.Non-Governmental Organizations
Under United Nations terminology, the definition of NGO has meant any non-governmental group including profit, non-profit, indigenous, labour and other groups. Canadian NGOs strongly advocated the need to recognize and address different types of NGOs. As such, non-profit NGOs supported the need to address the role of business and industry as a separate major group.
In general, NGOs did not develop positions directly related to Chapter 30. However, NGOs were actively involved in lobbying on Agenda 21 chapters which related to the operations of business groups in the direction of sustainable development. Women's groups, in particular, developed positions on a wide range of issues connected to the functions of business and industry. They brought forward positions favouring an International Code of Environmental Conduct for business and industry; undertaking to boycott industries whose practices and products are harmful to the environment and health; promoting recycling; and requiring all states and corporations who produce toxic chemical agents to dispose of toxic wastes domestically.
3.Business and Industry
Business input to UNCED strongly supported the concepts of cleaner production and responsible entrepreneurship and management. Two pre-UNCED conferences, one in Rotterdam in 1991, and one in Rio immediately prior to the Earth Summit, provided opportunities for Canadian business people to advocate stronger measures on the part of business and industry to protect the environment. In addition, business members of the Canadian delegation at UNCED and the Preparatory Committees emphasized the scope that exists throughout Agenda 21 for a balanced mix of government-initiated and industry-initiated measures to pursue the goal of sustainable development.
A record of environmental action by business and industry worldwide (and a collection of best examples, including Canadian examples, for others to follow) was provided by a publication issued by the International Chamber of Commerce in anticipation of UNCED. A further commentary on broad approaches to sustainable development by business was published under the sponsorship of the Business Council for Sustainable Development. The Council, on which two Canadian executives served, was established by Stephan Schmidheiny prior to UNCED on the request of Maurice Strong. Both publications strongly support the themes of Chapter 30.
Canadian business has been a leader in the development of voluntary programs for environmental protection. The Responsible Care program of the Canadian Chemical Producers' Association has been adopted by the world chemical industry. The Canadian Standards Association, with strong industry input, has moved quickly to develop comprehensive standards for environmental management and has recently undertaken to provide the secretariat for a similar project by the International Standards Organization.
4.Indigenous
Indigenous Peoples identified the need for the devlepment of protocols which requires the involvement of Indigenous peoples at all levels of discussion and decision-making since international activities always affect Indigenous Peoples. Under Agenda 21, Indigenous Peoples were to be informed, consulted and allowed to participate at the national level for decision-making. This includes all geographic regimes urban, rural, remote, and isolated areas wherever Indigenous People live.
COMMITMENTS MADE BY CANADIANS AT RIO
1.Legally-Binding Documents
None.
2.Political Pronouncements
None.
3.Alternative NGO Treaties and Kari-Oca
NGO Treaties
At the same time as UNCED, two major international events were also held at Rio. One was the International Non-Governmental Organization Forum (Global Forum). At the Global Forum, 3,100 NGOs discussed a number of matters related to environment and development and produced a parallel set of documents: an NGO Earth Charter and 38 Alternative NGO Treaties.
Although not addressing Chapter 30 specifically, a few of the alternative NGO Treaties created at Rio addressed issues raised in this chapter. These fall under the heading of "Combatting the Predatory Economic System" and include: Treaty on Alternative Economic Models; Treaty on Consumption and Lifestyle; Transnational Corporations (TNCs); Alternative Treaty on Trade and Sustainable Development. For the majority of these treaties, NGO support was expressed by a loose coalition of individuals and groups. Representatives of a number of Canadian non-governmental organizations were involved in designing and supporting them.
Taken together, these treaties strongly attack the "dominant free market/free trade economic system" which is blamed for "today's crises in environment and development". Consumption and lifestyle are to be transformed by the six "R"s of Revalue, Restructure, Redistribute, Reduce, Reuse, and Recycle. NGOs in Rio sought more regulation of TNCs through international mechanisms and offered to collaborate with other sectors of society to build up a countervailing power. Under new rules based on open, participatory democracy, not market forces, international trade would "improve the well being of people while promoting just and environmentally sound development." Moreover, "national health, social and environmental standards should not be considered unfair barriers to trade. When conflicts arise, international agreements should settle them on the basis of maximum protection of the environment." According to this view, the GATT (and its proposed expansion into the Multilateral Trade Organization), works in explicit opposition to the above principles, instead of supporting the broadest deregulation of TNC behaviour. NGOs at the Global Forum agreed to work together with civil society and governments to replace the GATT with an alternative, democratic International Trade Organization (ITO) based on these principles. Other treaties with implications for business and industry dealt with energy, waste, nuclear energy, and climate change.
Kari-Oca
The second alternative forum at Rio was the International Conference on Territory, Environment and Development (the Kari-Oca Conference). The Kari-Oca Conference was held immediately prior to UNCED by and for the world's indigenous peoples. More than 650 indigenous representatives participated in meetings and cultural events during the conference. They developed and adopted a 109-point Indigenous Peoples Earth Charter.
Indigenous members of the Canadian Delegation were involved in the development of the Declaration and Charter and supported its principles.
Among other items in the Charter, the indigenous peoples:
maintained the right to be free from pressures by multinational (transnational) corporations on their lives and lands;
demanded the return of affected lands and the revision of agrarian, mining and forestry policies;
desired a prohibition on deposition of toxic wastes and the mining, testing and dumping of nuclear materials; and,
called for cancellation of concessions and incentives for logging, cattle raising and mining.
DEFICIENCIES, GAPS AND CONSTRAINTS WITHIN CHAPTER 30
No one can refute the primary elements of this chapter. Cleaner production, as well as support and development of the entrepreneurial spirit in business, and especially in SME's, is critical to the development of national and international environmental programs. One of the deficiencies of the chapter, however, seems to be the use of "sustainable" as the term analogous to "cleaner" or "more efficient".
Considerable leeway has been provided for the attainment of these goals which allows Government, Industry and the multinationals flexibility of approach. This is definitely needed; however, a diversity of paths may not provide maximum results for minimum of time and financial commitments.
Highlighting multinational corporations, distinct from business and industry, suggests that they have a major and distinct role to play. Although multinationals, because of their size and global reach, have a substantial part to play in the implementation of the objectives of this chapter, they must also support, in a trickle down fashion, these objectives with their entrepreneurial suppliers and customers.
COMPARISON BETWEEN CURRENT CANADIAN GOVERNMENT POLICY AND COMMITMENTS MADE
The objectives of this chapter are supported in general terms by the federal government through the Green Plan. No formal commitments were made with regard to this chapter by the Canadian government but the tone and direction of the Green Plan aligns very well with the chapter objectives.
CANADIAN ACTIVITIES EVOLVING THROUGH THE SUSTAINABILITY PROCESS
The federal government has programs in place which are consistent with most, if not all, of the recommended activities that fall under federal jurisdiction. While many of these programs are funded from the Green Plan, a number of departments fund initiatives directly. The provincial governments also have programs in place which are consistent with the recommended activities. The concern here is the proliferation of initiatives at all levels with little overall coordination or focus.
Business and industry are tackling many initiatives consistent with the proposed program areas. These initiatives will continue into the future as business and industry pursue the goals of sustainable development. Among these activities are environmental policies or codes of sectoral associations under which the member companies (including Canadian multinationals) undertake to meet best-practice design standards for facilities built in Canada or abroad.
A considerable number of initiatives have evolved, partially as a result of Agenda 21 but primarily in response to current and perceived future needs. Examples of such programs would include:
Federal Government
The movement of the federal and provincial governments toward pollution prevention, and away from regulatory "end of pipe" solutions, has been a major step in the direction of Chapter 30 objectives. It has placed a different focus on assessments for potential pollution problems, and set the stage for tools such as life cycle assessment, full cost pricing and industrial ecology considerations. In some cases, the integration of pollution prevention philosophies has also led to cost savings for industry.
Government of Ontario
The federal and provincial governments are co-operating with industry on joint initiatives in the automotive field -- under the Automotive Manufacturing Pollution Prevention Project -- and the metal finishing industry -- under a pollution prevention agreement. Current discussions are also being held with the dry cleaning industry. As well, discussions are under way on the newly emerging concept of Industrial Ecology (modelling industrial systems after ecological systems), and how it can be incorporated into the industrial environment.
Business and Industry
Business and industry have joined together to support environmental developments. The Canadian Environmental Council (CEC), sponsored by the Canadian Standards Association (CSA) has brought together association presidents, senior government representatives and environmentalists to direct the development of voluntary guidelines for Environmental Management Systems, Environmental Auditing and other initiatives nationally and, internationally -- through the CSA's representation on the International Standards Organization (ISO).
The Canadian Chemical Producers' Association (CCPA) has successfully implemented a leading Responsible Care Program. Under this program, members of the CCPA commit to manage chemical products and operations throughout their life from development to disposal. As of November 1993, more than thirty chemical associations around the world have adopted, or are in the process of adopting, Responsible Care. Additional phases for integration into down line companies and for an independent verification system are also currently under development.
Several major associations led by the Canadian Chamber of Commerce are currently developing a program specifically geared to helping small and medium enterprises (SME) in Canada to develop environmental management systems appropriate to their size.
Attempts are currently under way to develop North American standards on environment and in environmental law, both programs spearheaded by Canadian organizations.
OTHER RELEVANT INTERNATIONAL SUSTAINABILITY-RELATED FORA
International fora that address issues of business and sustainable development include the following:
Business Council on Sustainable Development (BCSD)
The BCSD is a global group of 48 CEOs from major corporations formed to provide a business perspective on sustainable development issues during the UNCED process.
International Chamber of Commerce (ICC)
The ICC is a non-governmental organization serving world business. It has produced a Business Charter for Sustainable Development which includes 16 Principles for Environmental Management.
International Network For Environmental Manaagement (INEM)
The INEM, based in Germany, has been very active in establishing partners globally to provide a unified business approach to environmental integration. The INEM is an organization that attempts to assist businesses to upgrade their environmental management systems. Although it is based in Europe, INEM solicits Canadian members as well.
United Nations Commission on Sustainable Development (CSD)
At UNCED it was recommended that a new high-level Commission for Sustainable Development be created. The Commission will monitor the progress and problems of governments and UN agencies in the implementation of the decisions of Agenda 21 and draw attention to urgent new an emerging issues in sustainable development. The CSD includes business representation.
World Industry Council on the Environment (WICE)
WICE aims to be the voice of world business and sustainable development. It was created in February 1993 and currently includes in its membership CEOs from 90 companies. In October 1993, WICE issued its "Paris Declaration" which clearly outlines business principles on sustainable development.
SUGGESTED READINGS AND INFORMATION SOURCES
Canadian Petroleum Association. Environmental Code of Practice, (Calgary: Canadian Petroleum Association, 1990).
Conklin, David W., Richard C. Hodgson and Eileen D. Watson. Sustainable Development: A
Manager's Handbook, (Ottawa: National Round Table on the Environment and the Economy, 1991).
Government of Canada. Canada's Green Plan, (Ottawa: Environment Canada, 1990).
. Canada's Green Plan and the Earth Summit, (Ottawa: Environment Canada, 1992).
. Canada's National Report: United Nations Conference on Environment and Development Brazil, June 1992, (Ottawa: Environment Canada, 1991).
International Development Research Centre. Agenda 21: Abstracts, Reviews, and Commentaries, (Theodora Carroll-Foster, ed), (Ottawa: IDRC, 1993).
International Institute for Sustainable Development (IISD). Business Strategy for Sustainable Development: Leadership and Accountability for the '90s, (Winnipeg: IISD, 1992).
Keating, Michael. Agenda for Change: A plain language version of Agenda 21 and the other Rio Agreements, (Geneva: Centre for Our Common Future, 1993).
Mining Association of Canada. Guide for Environmental Practice, (Ottawa: Mining Association
of Canada, 1990).
Schmidheiny Stephan with the Business Council on Sustainable Development. Changing Course:
A Global Business Perspective on Development and the Environment, (MIT Press, 1992).
Willums, Jan-Olaf and Uhlrich Goluke. From Ideas to Action: Business and Sustainable
Development, ICC Report on the Greening of Enterprise, (International Environmental Bureau of the International Chamber of Commerce, May 1992)
World Commission on Environment and Development. Our Common Future, (Oxford: Oxford University Press, 1987).
ICC Industry Forum on Environment and Development, Rio de Janeiro, May 27-28, 1992.
Second World Industry Conference on Environmental Management (WICEM II), Rotterdam, 10-12 April, 1991.
Information Sources:
Business Council on National Issues, Royal Bank Centre, 90 Sparks Street, Suite 806, Ottawa, Ontario, K1P 5B4, tel (613) 238-3727, fax (613) 236-8679.
Canadian Chamber of Commerce, 55 Metcalfe Street, Suite 1160, Ottawa, Ontario, K1P 6N4, tel (613) 238-4000, fax (613) 238-7643.
Canadian Chemical Producers Association, 350 Sparks Street, Suite 805, Ottawa, Ontario, K1N 7S8, tel (613) 237-6215, fax (613) 237-4061.
Canadian Electrical Association, 66 Slater Street, Suite 1210, Ottawa, Ontario, K1P 5H1, tel (613) 230-9263, fax (613) 230-9326.
Canadian Manufacturers Association, 130 Albert Street, Suite 302, Ottawa, Ontario, K1P 5G4, tel (613) 233-8423, fax (613) 233-6048.
Canadian Petroleum Products Institute, 275 Slater Street, Suite 1000, Ottawa, Ontario, K1P 5H9, tel (613) 232-3709, fax (613) 236-4280.
Canadian Pulp and Paper Association, 1155 Metcalfe Street, Montreal, Qu‚bec, H3B 4T6, tel (514) 866-6621, fax (514) 866-3035.
Conference Board of Canada, 255 Smyth Road, Ottawa, Ontario, K1H 8M7, tel (613) 526-3280, fax (613) 526-4857.
International Chamber of Commerce, 38, Cours Albert 1er, 75008, Paris, France, tel (33-1) 49-53-28-28, fax (33-1) 42-25-86-63.
International Institute for Sustainable Development, 161 Portage Ave. E., 6th Floor, Winnipeg, Manitoba, R3B 0Y4, tel (204) 958-7700, fax (204) 958-7710.
Mining Association of Canada, Suite 1105, 350 Sparks Street, Ottawa, Ontario, K1R 7S8, tel (613) 233-9391, fax (613) 233-8897.
National Round Table on the Environment and the Economy, Suite 1500, 1 Nicholas Street, Ottawa, Ontario, K1N 7B7, tel (613) 992-7189, fax (613) 992-7385.
World Industry Council on the Environment, 40, Cours Albert 1er, Paris, 75008, Paris, France, tel (33-1) 49-53-28-91, fax (33-1) 49-53-28-89.
Cite as: Projet de société: Canada and Agenda 21.Winnipeg: IISD, 1995. Online. Internet. http://iisd.ca/worldsd/canada/projet/c30.htm.
