RESOURCE MANUAL Manufacturing Knowledge & Skills for Sustainability Part 1 Guideline Brief GUIDELINE COMPETENCY STANDARDS FOR SUSTAINABILITY ISBN : 0 85590 826 2 June 2007 Acknowledgements Funding provided by: New South Wales Department of Environment and Climate Change (DECC NSW) Prepared by: National Centre for Sustainability (NCS) at Swinburne University of Technology Author: Dory Russell, NCS Swinburne Project Management: Tomi Winfree, NCS Swinburne Project steering committee: Frouke de Reuver, DECC NSW Linda Condon, NCS Swinburne Bob Paton, Manufacturing Skills Australia Kim Peterson, TAFE NSW Design: Simon Francis, Ministry of Motion Research: Cydoni Younie Photographs Swinburne Press, National Centre for Sustainability and Unlimited Photos To Go: http://unlimited.photostogo.com The content of this publication is provided for education purposes only. No claim is made as to the accuracy or the authenticity of the content. The information in this publication is proved on the basis that all persons accessing it undertake responsibility for assessing the relevance and accuracy of its content. No responsibility is taken for any information or services which may appear on any linked websites. If using any information provided in this manual, please ensure proper acknowledgement is noted. Neither, the New South Wales Department of Environment and Climate Change nor the National Centre for Sustainability at Swinburne University of Technology, accepts any liability to any person for the information or advice (or the use of such information or advice) which is proved in this publication or incorporated into it by reference. If you believe that information of any kind in this publication is an infringement of copyright, in material in which you either own copyright or are authorised to exercise the rights of a copyright owner, then please advise us by contacting the National Centre of Sustainability at Swinburne University of Technology at http://[email protected] Part1- Guideline Brief Contents 1.1. Executive Summary 01 1.2. Competency Standards for Sustainability 1.2.1. Target audience – Guideline Brief 03 1.2.2. Contextualisation 04 1.2.3. Purpose of the competency standards for sustainability 06 02 1.3. Sustainability and the manufacturing sector 07 1.3.1. Sustainability – a global issue 07 1.3.2. The impact of the manufacturing sector 08 1.4. The business case for sustainability 1.4.1. 13 Sustainable solutions are innovative solutions 13 1.4.2. The triple bottom line 14 1.4.3. Shareholders’ recognition of sustainability 17 1.4.4. Green options providing an economic advantage 17 Cost savings through sustainable workplace practices 18 Environmental regulation turned into a business advantage 19 The competitive edge offered by sustainable business 19 1.4.5. 1.4.6. 1.4.7. 1.5. Identifying industry specific impacts 1.5.1. Overview of an Environmental Improvement Program Environmental impacts of metals 1.5.2. 1.5.3. 1.5.4. 1.5.5. 21 21 and engineering industries 22 Environmental impacts of the textile industry 23 Environmental impacts of furniture manufacturing industries 24 Environmental impacts of dry cleaning industries 25 III Guideline Brief Sustainability defined: “…using, conserving and enhancing the community’s resources so that ecological processes, on which life depends, are maintained and the total quality of life, now and in the future, can be maintained.” Australia’s National Strategy for Ecologically Sustainable Development (1992) “...development that meets the needs of the present without compromising the ability of future generations to meet their own needs.” Brundtland Report “Our Common Future” (1987) IV Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University 2007 Guideline Brief 1.1. 2007 Executive Summary In response to a growing need for providing learners with knowledge and skills for sustainable workplace practice, the Manufacturing Skills Council (Manufacturing Skills Australia) imported the Guideline Competency Standards for Sustainability in 2006. They have been submitted to the Commonwealth Department of Education, Science and Training for endorsement by the National Quality Council for inclusion in the Competitive Manufacturing Training Package. The relevant competitive manufacturing units of competency are: MCMT272A Participate in environmentally sustainable work practices MCMT472A Implement and monitor environmen tally sustainable work practices MCMT672A Develop workplace policy and procedures for sustainability The material in this manual is designed to facilitate teaching and learning of those competencies in formal vocational training and education settings as well as on the job. This manual comprises: 1. A Guideline Brief for training providers, curriculum develop ers, consultants and other stakeholders who are seeking to provide training for sustainable manufacturing industry practice. This section includes a business case for sustain ability, showing the many and increasingly recognised ben efits that can be achieved through sustainable industry practices and “greener” products. Guideline Brief 2007 2. A Teacher / Mentor Guide to assist the delivery of the Com petency Standards for Sustainability in the Competitive Manufacturing Training Package. This section includes ma terial for assessment of the competency standards and pro fessional development materials. 3. A Learner Guide for students, apprentices, trainees and on- the-job learners who are undertaking the competency standards. All sections contain numerous links where readers can refer to more sector-specific information. The role of vocational training and education is not only to teach existing work practices but also to prepare learners for the workplace of the future. The sustainability units will facilitate learners’ understanding of the environmental impact of their workplace and provide the knowledge and skills to minimise that impact. At the higher Australian Qualifications Framework (AQF) levels, the units can equip learners with the skills to seek out and develop more sustainable solutions for work practices and systems, making a major contribution to a business’s innovation and risk management strategies. 1.2. Competency Standards for Sustainability A set of Guideline Competency Standards for Sustainability (GCSS) were developed in response to the growing need for vocational training and education to accommodate the new knowledge, skills and attitudes required in the ecologically sustainable workplace of the future. The standards can be used to meet the requirements outlined in the DEST Training Package Developers Handbook (Legislation section). They also address actions described in a number of national strategies dealing with education for Australia’s sustainable future including Australia’s National Strategy for Ecologically Sustainable Development (1992) and the National Greenhouse Strategy (1998), and the United Nations International Decade of Education for Sustainable Development (2005-2014) in which the Australian government is committed to participate.1 The GCSS were officially “noted” by the National Training Quality Council in May 2005. They are located on the National Centre for Sustainabil- Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 ity Resource Bank2, and are available to be imported into Training Packages. Since then, the Manufacturing Skills Council (Manufacturing Skills Australia) imported the GCSS in 2006; these units have been submitted to the Department of Education, Science and Training (DEST) for endorsement by the National Quality Council for inclusion in the Competitive Manufacturing Training Package. The relevant competitive manufacturing units of competency are: MCMT272A Participate in environmentally sustainable work practices MCMT472A Implement and monitor environmen- tally sustainable work practices MCMT672A Develop workplace policy and proce dures for sustainability The material in this set of resources is designed to facilitate teaching and learning of those competencies in formal educational settings as well as on the job. 1.2.1 Target audience – guideline brief The target audience for this document includes: • • curriculum developers, program designers, regis tered training organisations (RTOs) and workplace training managers making training content deci sions consultants, customers and other stake holders seeking to provide training for sustainable manufacturing industry practices • trainers and mentors seeking background informa tion to assist delivery of sustainability competencies through Training Packages into which they have been customised. Guideline Brief 2007 1.2.2 Contextualisation The qualifications can be delivered in a variety of ways. Because sustainability in the workplace includes aspects of quality principles, change management, process analysis, teamwork effective communications, continuous improvement principles, mistake proofing and occupational health and safety (OHS), delivery might be integrated with other units of competency dealing with these matters. This approach will allow learners to cover more units in a shorter time as well as demonstrate how sustainability principles interrelate, and are applicable, across all work activities. For example, one of the Competitive Manufacturing level II systems units that could be delivered in conjunction with the MCMT272A would be: Unit: MCM200A Apply competitive manufacturing pratices Element Performance Criteria 1. Focus on the basic competitive manufacturing concepts 1.3 Identify value contribtions along the chain 2. Improve the product/ process value 1.4 Recommend methods of increasing own contribution to the value chain 2.3 Identify things which do not contribute to customer benefits/features 2.4 Recommend methods for increasing features/ benefits 3. Use competitive manufacturing tools 3.1 Select appropriate tools for the job/process 3.2 Apply tool to the job/ process 3.3 Monitor the job/process and make adjustments to improve in accordance with procedures Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 MCMT272A Participate in environmentally sutainable practices Could be delivered in conjunction with MCMT272A Where value contributions are identified in terms of increased efficiency in resource use: learner to analyse own resource use and recommend ways to reduce resource waste as a way of increasing their own contribution to the value chain. Waste of resource is identified as not contributing to customer benefits/ features and learner recognises own contribution in identifying and reporting resource waste and other environmental risks and recommending improvements. EMS, cleaner production tools or similar are applied as tools for improvements with monitoring undertaken and making improvements as described in the sustainability unit. Guideline Brief 2007 More details on the integration of units at different levels can be found in the Teacher - Mentor Guide (Part 2 of this manual). Customisation Advice, which provides details on the structure of the qualifications when importing them into specific Training Packages, is supplied with the GCSS and available at the Swinburne National Centre for Sustainability Resource Bank. 3 1.2.3 Purpose of competency standards for sustainability Within Australia and across the globe, proactive industries are setting a trend in sustainable development and triple bottom line policy implementation. Recognising, among other benefits, the marketing opportunities to be gained, these industries are initiating strategies that exceed legislative compliance in terms of their environmental performance. As this recognition is transformed into action, vocational training and education are seeking to accommodate the new knowledge, skills and attitudes required in the ecologically sustainable workplace of the future. The role of vocational training and education is not only to teach existing work practices but also to prepare learners for the workplace of the future. The sustainability units will facilitate learners’ understanding of the environmental impact of their workplace and provide the knowledge and skills to minimise that impact. At the higher AQF levels, they can equip learners with the skills to seek out and develop more sustainable solutions to work practices and systems, making a major contribution to a business’s innovation and risk management strategies. Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 1.3Sustainability and the manufacturing sector 1.3.1 Sustainability – a global issue One of the key acknowledgements that have emerged from current interest in sustainability is that environmental threats know no borders. Cyanide and metal by-products from the Australian-owned Aurul goldmine in Romania in 2000, for example, found their way into a creek adjoining the mine and then into a tributary of the Tisza, the second largest river in Hungary. From there, the toxic material travelled 550km from its source via the Danube River winding its way through Serbia, Romania, Bulgaria, the former Yugoslavia and into the Black Sea. The cyanide killed all life in the Tisza and caused immeasurable environmental and economic damage in the lower Danube basin.4 While the geographical isolation of Australia provides some immunity from the environmental errors or negligence occurring in neighbouring countries, other environmental challenges, such as the possible impacts of the greenhouse effect, can touch the entire global community, regardless of proximity. While some countries may be affected less than others, possible indirect impacts (e.g. environmental refugees,5 ) suggest that this is an issue for everyone to be concerned about. Therefore, environmental issues are at once global, national and local. The key sustainability issues facing Australia today might be summarised as impacts in the areas of air quality, water quality, natural resource supply, land, wildlife, noise and cultural and natural heritage. The manufacturing sector impacts more significantly in some of these areas than in others, for example, air quality with implications such as the greenhouse effect and air polluting emissions. Factsheet 1 summarises some of the key sustainability issues facing Australia and the world today and indicates the role of manufacturing in those impacts. The table links to other factsheets in the Resource Toolkit that provide more information about what manufacturers can do to reduce impacts. It should be noted that implications to manufacturing resulting from sustainability issues include the perception of the wider community. The expectation that enterprises and industries generally take responsibility for the impacts of their operations on the environment has sharpened in recent years and a perception exists in some quarters that much of the inequity in the distribution of global resources is the “fault” of industrial corporations. Guideline Brief 2007 While there is a strong and favourable argument for the global benefits of industry generally, there is pressure on all industries to be seen to be doing the right thing. This has given rise to the “corporate responsibility” movement in which the world’s larger and largest environmental impacting enterprises appear to be leading. For example, revegetation techniques have been greatly researched, advanced and improved by the efforts of the mining sector to minimise the impacts on land and wildlife of mining operations. Corporate responsibility sits in the intersection of the environmental, social and economic health circles of the “triple bottom line” concept described in section 1.4.2. Through taking a responsible corporate approach, industry generally has the potential to play an exemplary and enormously valuable role in taking us into a more sustainable future and a better world. This can be undertaken within a small, local community or for global corporations it can be on a global scale. An industry steered in an honourable direction can achieve faster and more far-reaching change than any number of small environmental groups and individuals. 1.3.2 The impact of the manufacturing sector Most manufacturing processes will have a range of environmental impacts, not least of which involves the use of non-renewable resources. The concept of “embodied resources” acknowledges that a product is made up of not just the tangible material we see and feel in the final product; the embodied energy also includes all the resources that went into mining (growing and harvesting), processing, manufacturing, transporting and distribution and marketing of the product before it reaches the customer. See Factsheet 4. Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 Australia’s “State of the Environment” Report is produced every five years, the most recent having been published in December 2006.6 A similar report is produced for each individual state. The following data is sourced from Australia’s State of the Environment Report, 2006: Australian electricity comsumption (PJ) • Electricity consumption has been steadily increas ing. The rate of growth in electricity consumption is also expanding, from an increase of 1.9% in 2001–02, to 3.4% in 2002–03 and 5.0% in 2003–04. 880 860 840 820 800 780 760 740 1999-00 2000-01 2001-02 2002-03 2003-04 Australia’s electricity consumption – source ABARE 2005 PJ (petajoules) • The sectors of highest energy use are road transport and industry generally, which uses gas, electricity and petroleum energy sources with very little record of alternative energy use yet showing though the data. Guideline Brief 2007 • Rising fuel prices have significance for manufactur ing enterprises with flow on effects to the costs of producing and distributing products. The following table shows quarterly average prices for fuel in Australia’s capital cities from 1982 to 2006. Note: From 1994, figures are for unleaded petrol. Leaded petrol is approximately 2 cents per litre more expen sive. Price Per litre (Cents) 140 120 100 80 60 40 20 0 1982 1985 1988 1991 1994 1997 2000 2003 2006 Quarterly average prices for fuel in Australia’s capital cities from 1982 to 2006. Note: From 1994, figures are for unleaded petrol. Leaded petrol is approximately 2 cents per litre more expensive. 10 Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 • Greenhouse gas. The largest and fastest growing source of greenhouse gas emissions in Australia is the energy sector, contributing 68.6% of Australia’s net emissions. Much of the total can be attributed to the stationary energy subsector (the main source, at 49.6% of net emissions) and the road transportation subsector (12.5% of net national emissions). 500 400 300 200 100 0 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 Million tonnes CO 2 3 600 Stationary Transport Fugitive Industrial process Agriculture Waste Land use, land use change and forestry 11 Guideline Brief 2007 While industrial processes, which include manufacturing, show only a small impact in the graph, the importance of both transport and the production of electricity (high greenhouse gas emitters) to manufacturing implicates the sector in the total emissions. 12 • Landfill data continues to show the commercial and industrial sector as having the greatest impact in most states. Examples from the manufacting sector demonstrate great potential for the recycling and reuse of waste materials. (See “Sustainabity tools for manufacturers” in the Resource Toolkit). • Strategies for the capture, treatment and use of storm water are poorly developed. Urban stormwater from the many hard surfaces in cities is essentially not used, even though thearea of the combined “catchment” is equivalent to that of most urban water supply catchments. Use of rainwater tanks increased 15% from 1994 to 2004 in the household sector only. Potential for rainwater capture by manufacturers, many boasting huge roof catchment areas, has yet to be explored and exploited. Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 1.4The business case for sustainability There are numerous programs designed specifically to assist manufacturing industries to reduce their environmental impacts. Most of them recognise the primary goal of enterprise as being both to maintain and to increase productivity and profit. For this reason, many of the programs provide mechanisms to help enterprises and sectors of industry weigh up and prioritise the most cost beneficial technologies and practices. An organisation can approach sustainability from a basis of product, process or practice, or all three. Life cycle analysis and eco-design principles, for example, deal with improving the efficiency and sustainability of products. An organisation that improves the sustainability or “eco-friendliness” of its product will gain a valuable advantage in a market that increasingly seeks verification of a product’s “harmlessness.” On the other hand, an organisation that focuses on reducing waste – energy, water, solid and liquid waste, gaseous emissions – through the manufacturing process will benefit from the cost savings that result from the more efficient use of resources. 1.4.1 Sustainable solutions are innovative solutions Jon Pepe 2nd year Swinburne UniversityIndustrial Design 2005 Café Lounge Materials- mild steel frame with fabric remnants for fashion/ upholstery industries Innovation is accepted as one of the most important factors stimulating economic and employment growth in Australia and sustainability appears increasingly as a key element of corporate innovation strategies. A recent study of innovation in Australia by the Business Council of Australia asserts that contemporary business thinking has “moved well beyond the idea that the only objective of corporate strategy is to increase shareholder value in the short term. Sustainability and social responsibility have emerged as key business drivers.” Examples include the following: • Manufacturing company, DuPont,8 sees innovtion as creating commercially successful products, processes, or services that contribute to sustainable growth and a smaller “environmental footprint”. 13 Guideline Brief 2007 • Qantas sees the application of new aircraft technol ogies which can improve not only the economics of the business and the customer experience but also reduce the environmental impact through more efficient aerodynamics and engines as a fundamental aspect of driving competitive advan tage. • The Toyota Earth Charter provides a comprehensive approach to global environmental improvement through the full lifecycle of Toyota’s operations. The Charter describes four principles to guide the devel opment of Toyota Australia’s environmental policies: contribution towards a prosperous 21st century, pur suit of environmental technologies, voluntary ac tions and working in co-operation with society. The report also highlights the importance of education and training in providing people with the capabilities to contribute to business innovation success. It shows that innovation requires not only strong technical skills in the workforce but also those associated with communication, teamwork, problem solving, ongoing learning, creativity, cultural understanding, entrepreneurship and leadership. Sustainability programs provide an ideal vehicle through which to develop these skills. They are skills of particular value when seeking to reduce environmental impacts in an industrial setting where many of these impacts do not have immediately obvious solutions. Many of the sustainable manufacturing industry programs and tools listed in Part 4 of this guide facilitate and encourage precisely those skills. Returns on investment for manufacturing industries undertaking training have been cited as up to 1,277% (Huntsman Chemical Manufacturing – savings in Workcover premiums). 9 1.4.2 The triple bottom line Natural resources are vital to economic activity. The balance of natural resources is also vital to the health of individuals and the environment. The increasing realisation of the mutual interdependence between the economy, the environment and social well-being is driving society’s discourse on sustainability. Where the bottom line for business has traditionally been mea- 14 Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 sured as a dollar value, a variety of forces have started a demand for a triple bottom line measure to be applied to productivity. This includes the measurement of an enterprise’s effect on the health of the environment and society as well as keeping an eye on the profit margin. To fully integrate triple bottom line attitudes and behaviours into our culture, economists and business people should be educated in environmental issues and impacts, environmentalists should be educated in economic principles and practices and both should be aware of the inter-relation of these disciplines with the well being of the society in which they operate. For example: Fresh, unpolluted air and waterways, Preservation of natural resources Biodiversity maintained Environmental health For example: Social health Corporate responsibility, integrity and accountability for all aspects Economic health For example: For example: Environmentally sustainable work practices, Environmentally sustainable products, Green purchasing policy Fair pay and conditions, “Family friendly” workplaces, Honest staff communications OHS precautions 15 Guideline Brief 2007 From an economic point of view, this means balancing the social benefits of “green” practices and regulations with their costs. This balance is increasingly possible, taking into account regulation, evolving technology and economic considerations. There are abundant examples of industries that have adopted environmental sustainable initiatives as part of their ongoing innovation strategies for business growth and found them astonishingly successful. Examples of industries making public statements about their recognition of the need for sustainability and their commitment to it include: 16 • • The 25 industry associations that have signed a three-year, voluntary agreement with the Common wealth Government, publicly committing to eco-effi ciency initiatives, including the Western Australia Chamber of Commerce and the Australian Paper Industry Council. Initiatives include reporting on the eco-efficiency performance of their member companies, development and monitoring of appro priate eco-efficiency indicators and trialing or devel oping Environment Management Systems, or Envi ronmental Accounting. • Holden Australia11 has an environmental policy that focuses on emissions and waste to landfill and all GM Holden facilities are independently certified to the environmental quality standard ISO 14001. As part of this certification, GM Holden must demon strate it is managing environmental risks to prevent both point source and fugitive emissions. It must also set continuous improvement targets to reduce impacts on the environment. BP Australia acknowledged in 1997 the need to take action to reduce greenhouse gas emissions, and set a target to reduce emissions from the organisation’s operations to 10% below 1990 levels by 2010. This was achieved nine years ahead of schedule, and in doing so, added US$650 million value to BP’s global business. BP has set out number of other tar gets and initiatives to reduce environmental impacts. Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 1.4.3 Shareholders’ recognition of sustainability As a result of heightened concerns in the broad community with environmental issues, occupational health and safety and ethical standards Socially Responsible Investment (SRI) funds are increasingly popular in Australia. An estimated $1.9 billion has been invested in socially responsible companies by Australian managed investment schemes and superannuation funds. An 86% increase in SRI was measured between 2000–2001. Investment in SRI is expected to continue to increase in line with the growing perception on the part of Australian investors that funds can be invested in a socially responsible manner without sacrificing financial performance.12 This trend will prove beneficial for industries that can boast sustainable products and practices. The annual review for the Dow Jones Sustainability Indexes undertaken in September 200613 shows that companies are getting increasingly educated about the specific sustainability risks and opportunities in their sector and continuously move beyond general aspects of sustainability. Climate change reportedly continues to attract increased attention, with more companies recognising that climate change will have a major impact on their future operations and product offering. 1.4.4 Green options providing economic advantages Companies that have sought and found less impacting practices in the production of their goods are often rewarded with significant cost savings as well as being provided with a positive marketing spin. For example, paper company, Norske-Skog Australasia, which supplies 70% of Australia’s newsprint, reduced energy use and cost by one fifth when it began substituting new fibre with recycled fibre in its processes. Kwinana industrial area in Western Australia is recognised internationally for its contributions to industrial efficiency.14 A complex resource exchange network involving at least 28 heavy industries in the Kwinana industrial strip resulted in 106 resource interactions between neighbouring industries in 2002, rising from just 27 in 1990. Research shows the potential for a further 104 interactions. Waste exchange allows, for example, sulphur – a by-product of oil refining – to become a useful input to agricultural fertiliser, thereby reducing waste treatment and disposal costs for the enterprise producing the waste. 17 Guideline Brief 2007 1.4.5 Cost savings through sustainable workplace practices Reviewing workplace practices to eliminate waste of raw materials, energy and water, and reduce solid and liquid waste has the potential to reduce significant costs to business. Immediate savings can be had by simply ensuring that all machinery and appliances are effectively maintained to optimise efficiency and that all staff are versed in efficient practices – switching off lights, reporting water leakages, separating recyclables etc. In some cases, workplace practice that enhances the sustainability of a workplace may add costs – such as recycling in areas where it is still cheaper to landfill material, for example. However, such costs are often easily offset by the adoption of other sustainable practices that save money, such as energy savings or discovering that a material formerly thought of as a waste product is actually a profit-making resource. Masterfoods in Ballarat, Victoria, which produces 3000 tonnes of chocolate and confectionery per year, embarked on a waste reduction program in 2002 after noting rapidly increasing waste volumes and associated costs. Within 12 months of initiating the program, waste was reduced by 50% and recycling of solid and sludge wastes increased from 30% in 2002 to 85% in 2005. Large quantities of waste food which were originally disposed, at significant cost, to landfill now supplies a market for animal feed. A similar program applied to water conservation resulted in annual water consumption dropping from 182 megalitres in 2001 to 117 megalitres in 2005. The company continues to look for opportunities for improvement, further reductions in waste and the associated cost savings. 18 Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 1.4.6 Environmental regulation turned into a business advantages Adapting to regulatory imperatives can reinforce both a company’s supply tactics and demand tactics. Compliance with regulations can lower production costs and provide opportunity for increased sales through green products. For example, at the time of debate over the Montreal Protocol on protection of stratospheric ozone, chemical companies DuPont and ICI were major producers of ozone-destroying chlorofluorocarbons (CFCs) and held patents on costly CFC substitutes. Dupont and ICI eventually supported the Montreal Protocol, which not only advanced a legitimate environmental interest in protecting the ozone layer but also wiped out the market for commodity CFCs – thus increasing the value of the companies’ alternative technologies.15 1.4.7 The competitive edge offered by sustainable business Chairman Ray Anderson of US-based Interface Flor carpets16 saw a huge cost savings and a major business opportunity in redesigning carpet so that it could be hired, rather than bought, replaced in worn areas rather than completely replaced and totally recycled at the end of its life instead of being sent to the landfill. In realising his vision, Anderson’s company has achieved a 35% reduction in waste materials and a competitive product that allows consumers to turn their carpet into a tax-deductible expense instead of a capital expenditure. From another perspective, sustainable manufacturing and design may provide the efficiencies in Australian operations required to compete with the huge industrial growth currently occurring in China. Forecast to achieve economic growth of 7% per year for the near future, and to surpass Germany as the world’s third largest economy by 2008, China is now the third largest producer of cars globally – 1.8 million new cars were added to China’s roads last year. Moreover, there are also indications that China is increasingly recognising that its incredible growth will not be sustained if social and environmental factors are ignored. The government has designated 10 “model environment cities” including the development of sustainable industry parks. Over 60% of the participating Chinese companies in a survey by Global Environmental Strategies indicated that environmental sustainability was a matter of social commitment.17 China is also keen to reduce its energy use, with ambitious targets of doubling the amount of renewable energy used to 15% by 2020.18 19 Guideline Brief 2007 As long as this trend is sustained, Australian manufacturers are facing a global market where green and sustainable manufacturing is a key competitive factor. Linked to these developments is the opportunity for Australian manufacturers to take a leading role in meeting the rapidly growing market for alternative technology components. 20 Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 1.5Identifying industry specific impacts 1.5.1 Overview of an Environmental Improvement Program Most environmental improvement programs follow a fundamental framework that might be summarised as follows: Step 1 Planning and organising. Who will be involved and where do we start? This may include: • obtaining shareholder and management commitment • organising / participating in a work team • setting objectives Step 2 Assessment What are the current impacts in the workplace/ of the product? This may include: • collecting existing data (e.g. waste disposal, water and energy costs) • obtaining preliminary feedback from workers on the front line • developing a material flow assessment Step 3 Generating options What are our options for improvement? This may include: • undertaking detailed assessments: (waste, energy and environ mental audits) • identifying options for improvement • evaluating options (technical, economic, social and environmen tal feasibility) • production of an action plan and targets Step 4 Implementing the plan How do we make the changes happen? This may include: • identification of stakeholders, roles and responsibilities • a communication plan – giving and receiving feedback • an induction program • a training program • monitoring and documentation Step 5 Reviewing the program How are we going? This may include: • evaluating progress against targets • extrapolating all effects (e.g. dollars saved, waste diverted) • acknowledging achievements • setting new targets • planning for continuous improvement 21 Guideline Brief 2007 The process can be revisited in a cyclical manner to tackle new issues and set new objectives, actions and targets as each set of objectives is accomplished. Although specific environmental impacts and possibilities for improvement will vary widely between enterprises, the framework follows the basic Quality “Plan, Do, Check, Act” principles that can be adapted to situations as diverse as an office or a factory floor. Overview of environmental impacts on specific manufacturing industries The following section deals with specific subsections of the manufacturing sector. It provides an overview of the main environmental impacts for each sector. More information on impacts in these industries and for improvement can be found in Part 4 – Resource Toolkit. 1.5.2 Environmental impacts of metals and engineering industries There are a wide range of activities undertaken in metals and engineering industries. Environmental impacts at some of them include: 22 • fluid wastes such as cleaning and cooling chemicals and other metalworking fluids • acid and alkaline wastes • solvent wastes • abrasive wastes • foundry sand waste Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 • paint overspray • high energy usage • particulate and dust emissions • stormwater, waste and groundwater issues noise. • 1.5.3 Environmental impacts of the textile industry A large proportion of the environmental issues affecting the textile industry are related to the use and discharge of water during the manufacturing stage. Washings from dyeing and rinsing operations may produce hot, alkaline, highly saline, odorous and highly coloured effluent. Other environmental issues requiring consideration are: • energy usage • chemical usage • stormwater • solid waste • emissions 23 Guideline Brief 2007 • contaminated land • noise • hazardous materials • groundwater and other environmental issues particular to the location of a facility. 1.5.4 Environmental impacts of furniture manufacturing industries The furniture manufacturing industry can be broken in to three main areas: furniture design, furniture making and furniture finishing. It is estimated that 70% of a product’s environmental impact is determined at the design stage.19 Product developers or, in this case, furniture designers are in a key position to influence and reduce the impacts at both the selection of materials used and production as well as at the end-of-life stage of the product. Impacts of this sector include: 24 • dust and chemical emissions to air and water • energy use and greenhouse gas issues • materials waste through over specification and over designing • use of non-renewable materials • disposal issues associated with synthetic materials. Manufacturing Knowledge and Skills for Sustainability Resource Manual Department of Environment and Climate Change NSW National Centre for Sustainability at Swinburne University Guideline Brief 2007 1.5.5 Environmental impacts of dry cleaning industries The dry cleaning operations industry comprises enterprises engaged in the cleaning of clothes and other fabric dry cleaning services, including cleaning, pressing and finishing. There are many different dry cleaning processes and technologies that are used within the industry, but no matter the cleaning method chosen by the professional cleaner, it affects the environment, human health, business profits, increased compliance regulations and the cleanliness and appearance of the clothes. Impacts of this industry include: • air quality issues resulting from solvent laden vapors and odors, greenhouse gas issues resulting from en ergy and transport use • hazardous waste from the use of chemical such as perchlorethylene tradewaste water • • high water and energy use. For further information on environmental impacts and improvement opportunities for these industry sectors, see Part 4 the Resource Toolkit. 25
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