[PB] Eco Efficiency {01}

[Magyartoto Tersiawan]

Eco – Efficiency Business Link to Sustainable Development Eco-efficiency and Sustainable Development Eco-efficiency is the business response to the challenge of sustainable development-that is, meeting "the needs of the present without jeopardizing the needs of future generations". Its stresses : increasing resource productivity so that more is obtained from less energy and raw material input creating new goods and services that increase costumer value while maintaining or reducing environmental impacts. Economic development is the best response to this challenge-but we need a new kind of development that follows the seven guidelines of eco-efficiency : reduce the material intensity of goods and services reduce the intensity of goods and services reduce toxic dispersion enhance material recyclability maximize sustainable use of renewable resources extend product durability increase the service intensity of products. Business that do this will create bottom line benefits from : creating new products and services that meet the aspirations of most of the world’s consumer for prosperity and a clean and healthy environment reducing the costs and liabilities associated with resource consumption, waste, and end of pipe pollution control (which are likely to rise as a result of environmental taxes and other measures) Eco-efficiency is the most practical means of achieving these benefits because : it is a management philosophy that links with other business ideas such as total quality management and strategic collaboration it contributes to the sense of purpose and shared values that are central to achieving business excellence. Eco-efficiency is already creating great benefit to business and society but there is more to be done if its full potential is to be unleashed : business needs to develop better ways of measuring Eco-efficiency and pay greater attention to the issues of sustainable consumption government and society can develop more incentives-and removing disincentives-for Eco-efficient action capital markets can become more aware of the links between Eco-efficiency and long term shareholder value Eco-efficiency and the Bottom Line Social expectations of corporate environmental performance-and the costs of poor performance-are constantly rising. So any bottom line benefits have to be judged against tomorrow’s as well as today’s standards. These benefits fall into five main categories : reducing the current costs of poor environmental performance through waste minimization and other measures reducing potential future costs of poor environmental performance reducing costs of capital increased market share and improved or protected market opportunities enhanced image There are two, complementary, means of achieving these benefits : the defensive means is to reduce current and future environmental costs through measures such as waste minimisation initiatives and screening of capital investments and products. The creative means is to develop an "Eco-efficient mindset" and see every environmental problem as an unmet need effective processes and innovative products and fill it. The key features of such a mindset are : an emphasis on performance that meets genuine needs rather than products alone deriving competitive advantage from consideration of the entire product life cycle a recognition that Eco-efficiency is more a process than a once-and-for all objective integrating sustainability into their overall business so that it forms a core competence external collaboration to gain information, influence debates, and identify business opportunities. Defining and Measuring Eco-Efficiency Eco-efficiency is reached by the delivery of the competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing environmental impacts and resource intensity throughout the life cycle, to a level at least in line with the earth’s estimated carrying capacity. The definition has five core themes : an emphasis on service a focus on needs and quality of life consideration of the entire product life cycle a recognition of limits to Eco-capacity, and a process view Seven dimensions of Eco-efficiency Practical experience of implementing these themes suggest that there are seven key dimension that every business should be taking into account when developing products, introducing process changes, or taking other actions with environmental implications. They are : Reduce the material intensity of goods and services Reduce the energy intensity of goods and services Reduce toxic dispersion Enhance material recyclability Maximize sustainable use of renewable resources Extend product durability Increase the service intensity of goods and services.     ~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~ DANA MITRA LINGKUNGAN {Friends of the Environment Fund} Pusat Niaga Duta Mas Fatmawati, Blok B1/12 Jl. RS. 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