SECTION V(a)

Sustainable Consumption And Production - Tools And Techniques

Trainers Notes: Display Slide Va-1, Sustainable Consumption and Production Tools
and Techniues!"
This section discusses some of the tools and techniques that can help companies
move toward sustainable consumption and production. It also outlines some of the policy
tools that governments can use to help encourage companies to move in this direction.
This section is not intended to provide an exhaustive review of economic and policy
options available to the private and public sectors. Rather, the purpose is to acquaint
participants with some of the most useful tools and techniques and to put them in a larger
context.
Trainers Notes: Display Slide Va-#, Demateriali$ation!"
In some way, each of the tools and techniques described is intended to help
achieve one of two goals: demateriali$ation or consumption optimi$ation.
Demateriali$ation focuses on functionality, rather than just product design, to address
customers needs. This approach increases economic efficiency because it involves
trac!ing the throughput of materials and energy in industrial and consumption processes.
"uccessful demateriali#ation may involve the substitution of a product with a service
$%product service systems&' or a significant increase in resource productivity resulting
from product or service redesign $e.g., %(esign for the )nvironment&'.
Trainers Notes: Display Slide Va-%, Consumption &ptimi$ation!"
Consumption optimi$ation see!s to ma!e patterns of consumption meet consumer
demands more sustainably. In *+),s view, optimi#ed consumption patterns will not
just be e''icient and di''erent. They will also reflect consumption that is
conscious $i.e., see!s to improve quality of life' and appropriate $i.e., at the right level'.
Trainers Notes: Display Slide Va-(, Companies Potential )reas o' *mpro+ement!"
I. SC/SP Techniques for Companies
In order to ma!e its consumption and-or production patterns more sustainable, a
company can see! to ma!e improvements in three areas: processes, products and
services, and systems.
Trainers Notes: Display Slide ,a--, Tools and Techniues 'or Process *mpro+ement!"
.. ,rocess Improvement
Tools and techniques to ma!e processes more sustainable include: /leaner
,roduction .ssessments, eco0efficiency strategies, sustainable procurement practices, and
supply chain management.
/leaner ,roduction .ssessments help facilities assess the efficiency and
environmental impact of their operations. /leaner production is a preventive
strategy that aims at promoting the use and development of cleaner
processes, products and services. (uring an assessment, the process material
balance is studied, and appropriate measures are proposed to reduce or prevent
loss of materials. /leaner ,roduction .ssessments are often divided into four
phases: ,lanning and 1rgani#ation, .ssessment ,rocedure, 2easibility .nalysis,
and Implementation and /ontinuation ,hase.
.or more in'ormation:
http:--www.uneptie.org-pc-pc-tools-cleanerproduction.htm
%)co0efficiency& is a term coined by the 3orld 4usiness /ouncil on "ustainable
(evelopment in 5667. It refers to the %delivery of competitively priced goods and
services that satisfy human needs and bring quality of life, while progressively
reducing ecological impacts and resource intensity throughout the life cycle, to a
level at least in line with the earth8s estimated carrying capacity.& "everal leading
institutions have argued that a reduction in the use of materials by a quantifiable
eco0efficiency factor $e.g., a factor of 9 or a factor of 5:' will put society on the
path to sustainability. This technological solution will certainly improve resource
efficiency, but it will not suffice to fix the fundamental problem. 2irst, overall
consumption is rising too much and offsetting gains from eco0efficiency
improvements. Indeed, in some instances, increased efficiency has actually
stimulated increased consumption $%rebound effect %'. "econd, eco0efficiency
addresses resource efficiency but not resource distribution. It therefore fails to
provide any remedy for the inequities in current consumption patterns.
.or more in'ormation:
http:--www.uneptie.org-pc-cp-understanding;cp-related;concepts.htm
4usinesses are consumers as well as producers. 4y incorporating environmental
criteria into their existing procurement policies, companies can ta!e a significant
step toward ma!ing their operations more sustainable. In many cases, %greener&
products and services wor! as well and cost the same. The purchase and use of
environmentally preferable products can: reduce regulatory liability, improve
wor!er safety, and lower disposal costs< save money $especially if they conserve
energy or water'< and create less waste and are more cost0effective in the long run
than disposable or single0use products. The *+),0I.,"1 ,roduct /riteria
(atabase is a web0based international directory for environmentally sustainable
procurement. It contains listings of environmentally sustainable purchasing
initiatives, with a focus on product specific criteria. ,articipating bodies range
from +=18s and international organi#ations to local and national governments.
.or more in'ormation:
http:--www.uneptie.org-pc-sustain-design-gplin!s.htm $*+),0I.,"1 ,roduct
/riteria (atabase'
http:--www.swmcb.org-),,=-5;5.htm $)nvironmentally ,referable ,urchasing
=uide, "tate of >innesota $*.".''
. company may have the opportunity to influence one of its suppliers to provide a
product or service that has a reduced environmental impact. This is !nown as
%supply chain management.& )xamples of supply chain management include
screening suppliers for environmental performance, wor!ing collaboratively with
them on green design initiatives, and providing training and information to build
suppliers8 environmental management capacity. In the *nited "tates, automobile
manufacturers have already ta!en steps to %green& their supply chain by requiring
their suppliers to meet certain environmental performance standards. ?i!ewise,
the 3))) (irective will require manufacturers of electronic equipment to meet
certain environmental criteria in order to sell their products in the )uropean
*nion.
.or more in'ormation:
http:--www.uneptie.org-pc-pc-tools-supplychain.htm
Trainers Notes: Display Slide Va-,, Tools and Techniues 'or Product/Ser+ice
*mpro+ement!"
4. ,roduct-"ervice Improvement
Tools and techniques to ma!e products and services more sustainable include:
?ife /ycle >anagement, )co0design, )co0labeling, and ,roduct "ervice "ystems.
?ife /ycle >anagement is an integrated framewor! of concepts, techniques, and
procedures to address environmental, economic, technological and social aspects
of products and organi#ations to achieve continuous environmental improvement
from a life cycle perspective. In .pril 7::7, *+), and the "ociety of
)nvironmental Toxicology and /hemistry $")T./' launched the ?ife /ycle
Initiative, for which the overall objective is to develop and disseminate practical
tools for evaluating the opportunities, ris!s, and trade0offs associated with
products over their entire life cycle to achieve sustainable development. This
includes the propagation of the !nowledge of existing bodies on life cycle
approaches and the stimulation of multidisciplinary scientific wor!. 1ne of the
aims of the Initiative is to foster the use of life cycle assessment and life cycle
management.
.or more in'ormation:
http:--www.unep.or.jp-search;dtie-query.asp
lcm0unepwor!shop0copenhagen.pdf
@)co0design@ or @(esign for )nvironment@ $(f)' refers to the systematic
incorporation of environmental factors at the design or development stage. )co0
design can ta!e several forms: product improvements, product redesign, and
product function and system innovations. 3hile eco0design usually focuses on
the environmental optimi#ation of existing products, "ustainable ,roduct (esign
or @(esign for "ustainability@ $(f"' see!s to move beyond eco0design and change
underlying patterns of production and consumption.
.or more in'ormation:
http:--www.uneptie.org->edia-review-vol7:no507-vol7:no507.htmAabstractB
$%)codesign: . ,romising .pproach to "ustainable ,roduction and
/onsumption,& *ndustry and 0n+ironment, vol. 7: $*+),', no. 507 $abstract''
)co0labels are labels intended to provide relevant and accurate environmental
information on products and services as a means to promote environmentally
sustainable consumption and production. )xamples include =ermanys 4lue
.ngel and "candinavias +ordic "wan. It is generally understood that eco0labels
help consumers to ma!e environmentally aware choices. .t the same time, eco0
labels have the potential to assist businesses in equally important ways, by:
0 ,roviding industries with an environmental mar!eting tool,
0 /reating mar!ets for environmentally preferable goods,
0 ,roviding guidance for product development and design, and
0 "timulating more sustainable production processes.
$1)/( 3or!shop, 7::5'.
.or more in'ormation:
http:--www.oecd.org-env
http:--www.uneptie.org-pc-sustain-design-gplin!s.htm
,roduct "ervice "ystems describe developing a mar!etable mix of products
and services that are jointly capable of fulfilling a clients need 0 with less
environmental impact. In essence, ," systems have the potential to remove the
lin! between economic growth and environmental impacts by decoupling wealth
creation from the need to use more and more natural resources and energy and its
resulting pollution effects. The increasing number of service industries, $e.g.,
information technology' is one very visible indicator of changes underway.
.or more in'ormation:
http:--www.uneptie.org-pc-sustain-design-pss.htm
Trainers Notes: Display Slide Va-1, Tools and Techniues 'or Systems *mpro+ement!"
/. "ystems Improvement
Tools and techniques to ma!e systems more sustainable include: )nvironmental
>anagement "ystems and multista!eholder involvement.
.n )nvironmental >anagement "ystem $)>"' is a method of incorporating
environmental care throughout the corporate structure. )>" includes strategic
planning activities, the organisational structure and implementation of the
environmental policy as an integral part of the manufacturing process. It is a
useful tool to implement in order to comply with legislation, address sta!eholder
pressure and improve corporate image and raise awareness of environmental
issues. )>" is a problem0identification and problem0solving tool, based on the
concept of continual improvement, that can be implemented in an organi#ation in
many different ways, depending on the sector of activity the needs perceived by
management. In particular, standards for )>" have been developed by the
International 1rganisation for "tandardisation $I"1' and by the )uropean
/ommission C )co0>anagement and .udit "cheme $)>."'.
.or more in'ormation:
http:--www.uneptie.org-pc-pc-tools-ems.htm

Trainers Notes: Display Slide Va-2, Policy *nstruments to 0ncoura3e *mplementation
o' SC/SP Tools and Techniues!"
II. Policy Tools for Governments
=overnments can use a wide range of policy tools to encourage companies to
adopt more sustainable practices. These tools vary in their degree of aggressiveness,
from compulsory requirements to voluntary initiatives. This section reviews four
categories of policy instruments that can be used to encourage "/-",: legal
$enforcement0based', financial $incentive0oriented', social $voluntary', and internal
$government0oriented'.
Trainers Notes: Display Slide Va-4, 5e3al *nstruments!"
.. ?egal Instruments
?egal instruments impose mandatory requirements and sanctions for
noncompliance. ,otential legal instruments include: consumer protection laws $including
product standards and liability schemes', mandatory reporting-information disclosure
requirements, and )xtended ,roducer Responsibility $%),R&' mechanisms.
In general, consumer protection laws have been designed to minimi#e the possible
ris!s to a consumer that might be associated with purchasing or using a product or
service $product standards' and to provide a mechanism to compensate for any
harm arising from such purchase or use $liability schemes'. Traditionally,
consumer protection schemes have not addressed the other ris!s that a product
may pose $e.g., to the environment'. +or have they required disclosure of
information about characteristics that are %invisible& in the final good $e.g.,
production process and waste management'. $1)/( 3or!shop, 7::5' In 5666,
an international consortium of +=1s sought to incorporate elements on
sustainable consumption into the *nited +ations =uidelines for /onsumer
,rotection, which is intended to help national governments develop appropriate
policies and laws. These expanded =uidelines have the potential to help countries
craft legal framewor!s that promote sustainability. Dowever, a global
governmental study conducted by *+), and /onsumers International in 7::7
determined that many countries are not aware of the sections of the =uidelines
that pertain to sustainability.
.or more in'ormation:
http:--www.uneptie.org $*+),, Trac6in3 Pro3ress: *mplementin3 Sustainable
Consumption Policies, 7::7'
http:--www.consumersinternational.org
>andatory reporting-information disclosure schemes require companies to report
on their use and-or release of chemicals. The Toxics Release Inventory in the
*nited "tates is an example of a successful program that has brought a significant
body of industrial chemical use data into the public eye. 1ther examples of
government programs include ,ollution Release and Transfer Registers in
/anada, .ustralia and the *E< mandatory environmental reporting in (enmar!<
and the ,R1,)R initiative in Indonesia.
.or more in'ormation:
http:--www.uneptie.org-pc-cp-understanding;cp-cp;policies.htm
http:--www.epa.gov $for TRI program information'
)xtended ,roducer Responsibility $),R' is a policy approach in which producers
accept significant responsibility 0 financial and-or physical 0 for the treatment or
disposal of products. The extension of producer responsibility $),R' to the post0
consumer phase of a product gives governments a new policy option to address
the growing problems of waste. The two distinguishing features of ),R policies
are: the shifting of responsibility upstream to the producer, and the provision of
incentives for producers to include environmental considerations in the design of
their products. ),R aims at ma!ing environmental improvements throughout the
life cycle of a product by ma!ing the manufacturer responsible for various aspects
of the product8s life cycle. This could include the ta!e0bac!, recycling and final
disposal of the product. )xamples include =ermanys 566F /losed "ubstance
/ycle and 3aste >anagement .ct and the )uropean *nions 3))) (irective
requiring ta!ebac! of electronics products.

.or more in'ormation:
http:--www.uneptie.org-pc-cp-understanding;cp-cp;policies.htm
www.oecd.org-env $),R =uidance >anual for =overnments'
Trainers Notes: Display Slide Va-17, .inancial *nstruments!"
4. 2inancial Instruments
/urrently, the mar!et sends economic signals that favor unsustainable patterns
$e.g., discarding and replacing products rather than repairing them'. =overnments can
correct these mar!et signals with financial incentives that help ma!e the price structure
for goods and services internali#e the environmental costs and benefits associated with
their production, use, and disposal. 2inancial instruments that can provide incentives to
adopt more sustainable practices include: taxes and credits, subsidies, and tariffs.
%)co0tax& strategies are designed to encourage environmentally beneficial
behavior $e.g., development of renewable energy sources' or discourage practices
with an adverse environmental impact $e.g., use of fossil fuels'. There have been
numerous successful examples of eco0tax strategies in industrially developed and
developing countries. The drawbac! to an eco0tax strategy is its potential to cause
producers to move to another jurisdiction with a different regulatory approach.
.or more in'ormation:
http:--hdr.undp.org-reports-global-566G-en- $*+(,, 8uman De+elopment 9eport
1442: Consumption 'or 8uman De+elopment'
In theory, subsidies aim to increase the supply of a social good. In practice,
subsidies on energy, agriculture, roads and water cause environmental $and social'
harm. The global cost of these subsidies is estimated at HI::06:: billion a year.
Removing water subsidies would reduce world water use by 7:0J:K $up to B:K
in parts of .sia'. $*+(, Duman (evelopment Report, 566G'
.or more in'ormation:
http:--hdr.undp.org-reports-global-566G-en-
Trade policies can prompt environmentally preferable changes. . prime example
is the %greening& of the Indian textile industry in response to a =erman ban on a#o
dyes. $II)(, *nloc!ing Trade 1pportunities, 566I' In some cases, however,
sovereign nations attempts to promote sustainability through their own regulatory
schemes may be challenged as %covert protectionism& under international trade
laws. *nder the +orth .merican 2ree Trade .greement, for example, *.".
chemical manufacturers have challenged pesticide use restrictions adopted by the
province of Luebec, /anada. "imilarly, a Eorean economic incentive introduced
to encourage smaller cars by taxing engine si#e was removed after pressure from
*.". auto producers wanting to sustain exports.
.or more in'ormation:
http:--hdr.undp.org-reports-global-566G-en-
http:--www.iied.org-smg-pubs-unloc!.html $II)(, :nloc6in3 Trade
&pportunities, 566I'
Trainers Notes: Display Slide Va-11, Social ;Voluntary< *nstruments!"
/. "ocial Instruments
"ocial instruments are ones that the government can use to encourage voluntary
action by the general public or by business and industry. ,otential social instruments
include: awareness raising campaigns, education and training initiatives, eco0labeling
schemes, sector0based initiatives, and rewards for voluntary information disclosure.
/.5. =eneral ,ublic
Information is a potentially effective tool for empowering consumers to act in
favor of the environment. Improved access to quality information can enhance public
environmental awareness and give the public the opportunity to ta!e account of
environmental concerns in their everyday decisions. $1)/( 3or!shop, 7::5,
4ac!ground ,aper'
There are several drawbac!s to a strategy that relies too heavily on information
provision, however. 2irst, it is not clear to what extent information actually affects
consumer behavior. 3ith regard to environmental actions, in particular, numerous studies
have documented large gaps between !nowledge and action. "econd, in an age of
Internet0enabled %information overload,& many people may be resistant to additional
messages. Third, government are not always seen as credible providers of information.
2or many consumers, +=1s are a more credible channel of communication. $1)/(
3or!shop, 7::5, 4ac!ground ,aper'
The majority of the successful awareness0raising campaigns to promote
sustainability have originated in the non0profit sector $e.g., *+),s .dvertising
Industry Initiative, =lobal .ction ,lan Internationals Dousehold )co0Team
Initiative'. Met there are several good examples of public0sector efforts to raise
awareness of the environmental impacts of consumption and production. In the
+etherlands, for example, several government agencies have collaborated with
one another and with the retail sector to promote %sustainable do0it0yourself&
project to encourage the purchase of environmentally friendly home repair
products. In +orway, the national government has funded an +=1 to conduct
educational outreach to households around sustainable consumption.
)co0labels are intended to help consumers ma!e environmentally aware choices.
Met the public does not necessarily trust the information provided by an eco0label
about whether a product or service is environmentally preferable. $/onsumers
International, 566G' This s!epticism is due to several factors: the proliferation of
environmental labels< the wide variation in what they claim $ranging from specific
attributes to a products life cycle impacts'< the vagueness of claims such as
%natural& or %environmentally friendly<& and the lac! of third0party verification of
many claims. ,otential roles for government with respect to eco0labels include:
administering an eco0label program< monitoring private eco0labels $and enforcing
consumer protection laws'< providing or requiring third0party verification for
private eco0labels< or ma!ing the criteria used in different eco0labeling schemes
more transparent. 3eb0based databases that see! to fulfill the latter goal are
administered by the /onsumers *nion, a *.". +=1, and by *+),.
=overnments can promote the integration of sustainability into education and
training in several ways. 2irst, governments can educate the public through the
use of hot lines, web sites, and software programs to help consumers and
businesses measure their environmental impact. The drawbac! of this approach,
however, is that it relies on citi#ens who possess the appropriate technology
$telephone, computer' to display initiative in see!ing out information. "econd,
governments can see! to integrate sustainability elements into school curricula
and professional training. Dowever, successful education for sustainable
consumption is resource0intensive: it requires a %whole government& approach
with cooperation among ministries, departments, agencies. $1)/(, 5666' Third,
governments can convene or at least support roundtables and networ!s such as the
sustainable consumption and production roundtables sponsored by *+),.
.or more in'ormation:
http:--www.eco0labels.org- $/onsumers *nion'
http:--www.uneptie.org-pc-sustain-design-gplin!s.htm
http:--www.oecd.org-env
/.7. 4usiness and Industry
=overnments can also use information0based strategies to encourage voluntary
action by business and industry. )xamples of information0based strategies include:
promoting the adoption of targeted, high0profile demonstration projects, to showcase the
techniques and cost0saving opportunities associated with sustainable production and
consumption< publishing and disseminating relevant case studies< and encouraging
voluntary disclosure of information on environmental performance.
"ector0based initiatives allow governments to devote resources to industries with
significant environmental impacts. They facilitate the dissemination of best
practices and foster improvements in industry norms.
,rograms to encourage voluntary information disclosure are becoming more and
more common. "ome programs, such as the *.". )nvironmental ,erformance
Trac!, reward participating companies with improved public recognition, access
to governmental technical assistance, and regulatory flexibility. Industry favors
voluntary approaches because they provide more flexibility to the private sector
than do other policy instruments such as taxes Dowever, the environmental
effectiveness of the voluntary approaches is unclear, effective monitoring is often
lac!ing, and transaction costs can be considerable. $1)/(, 7:::'
.or more in'ormation:
http:--www.uneptie.org-pc-cp-library-catalogue-industry;sectors.htm
http:--www.uneptie.org-pc-cp-understanding;cp-cp;policies.htm
http:--www.uneptie.org->edia-review-archives.htm $*+),, %Noluntary
Initiatives,& *ndustry and 0n+ironment, vol. 75, no. 507'
Trainers Notes: Display Slide Va-1#, *nternal ;=o+ernment-&riented< *nstruments!"
(. Internal Instruments
Internal instruments are ones that a government can use to promote sustainability
by changing its own practices or policies. "uch instruments include: sustainable public
procurement, and integrated product policy adoption.
"ustainable public procurement is a potentially powerful instrument to leverage
change in mar!ets because government spending accounts for approximately 5BK
of consumption worldwide. The inclusion of sustainable development principles
in procurement practices is already a reality in a number of countries such as
/anada, the +etherlands, +orway, *nited "tates and "outh .frica. The
experiences in these countries indicate that incorporating sustainable production
and consumption considerations into public purchasing is not only a viable option,
but also helps to develop sustainable mar!ets. "ome barriers identified include: a
lac! of transparent, clear and homogeneous procurement procedures, the need to
train purchasers< a resistance to change< and the lac! of a clear @sustainable
product@ definition.
.or more in'ormation:
http:--www.uneptie.org-pc-sustain-design-green0bac!ground.htm

Integrated ,roduct ,olicy $I,,' is a policy that is developing primarily in )urope,
where the )uropean *nion has published a =reen ,aper on the topic. I,, see!s to
minimi#e the environmental impact of a product by loo!ing at all phases of a
products life0cycle and ta!ing action where it is most effective. . variety of tools
C both voluntary and mandatory Ccan be used to achieve this objective. These
include measures such as economic instruments, substance bans, voluntary
agreements, environmental labeling and product design guidelines. I,, can be
viewed as an umbrella for product0oriented government initiatives, whereas ?ife
/ycle >anagement $?/>' is the umbrella within an individual company or
organi#ation for product0oriented environmental management.
.or more in'ormation:
http://europa.eu.int/comm/environment/ipp/integratedpp.htm
http://www.uneptie.org/pc/sustain/reports/C!/lcm"unepwor#shop"
copenhagen.pdf
E)M R)2)R)+/)" .+( R)"1*R/)":
/onsumers International, =reen =uidance: 8o> Consumer &r3anisations Can =i+e
?etter )d+ice on Puttin3 Sustainable Consumption into Practice, 566G.
II)(, :nloc6in3 Trade &pportunities, 566I.
1)/(, 0ducation and 5earnin3 'or Sustainable Consumption, Oune 5666.
0000000, 9eport o' the &0CD @or6shop on *n'ormation and Consumer Decision-Aa6in3
'or Sustainable Consumption, 5F05I Oanuary 7::5.
0000000, Voluntary )pproaches 'or 0n+ironmental Policy: )n )ssessment, 7:::.
*+(,, 8uman De+elopment 9eport 1442: Consumption 'or 8uman De+elopment.
*+),, Consumption &pportunities, 7::5.
0000000, Trac6in3 Pro3ress: *mplementin3 Sustainable Consumption Policies, 7::7.