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International Symposium on
Indicators of Sustainable
Development
Moving Beyond Principles :
Making Sustainability
Operational
by: Mr Chandran Nair
Chairman, ERM Asia-Pacific
1-2 December 2000, Taipei
Introduction
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Sustainability is a MUST not an OPTION
Concern for Tomorrow
Beyond Pollution Control Strategies
Making decisions today which do not reduce the
options for tomorrow
• Taiwan - decisions taken in last two decades
Forces Shaping the Future
Political
GOVERNMENT
Economic
Social
Technological
Environment
Sustainable Development ….
• A process requiring changes in:
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Exploitation of resources
Direction of investments
Orientation of technology
Institutional policies and structures
• Consistent with future as well as present needs
(Brundtland Commission)
Consistency: Shape of
development and environment
Shape of
Economic
Development
Government
Policy and
Planning
Future Quality
of the
Environment
Big Picture Perspective
• Ecology
- living within the bounds of the
ecological life system-preserving
environmental “capital”
• Economic - acting now for long-term viability of
markets and resources
- strategies which reduce cost
- trade-offs, understanding timescale
• Moral
- genuine concerns for tomorrow in
present day decision making
- behavioural changes
Economics vs Ecology
Economist assume the future will be much like the
past. Since markets and technology have avoided
catastrophe in the past, we can count on them to do
the same in the future.
Ecologist believe they see unique problems in the
future, which will demand solutions outside the
capacity of our present market mechanism. Ecologists
are worried about irreversibilities.
Why care?
• International Commitments, Agenda 21
“Governments... should adopt a national
strategy for sustainable development... This strategy
should build upon and harmonise the various
sectoral, economic, social and environmental
policies and plans that are operating in the country...
Its goal should be to ensure socially responsible
economic development while protecting the
resource base and the environment for the benefit
of future generations.”
• Sustainability is at the heart of economic planning,
not simply environmental protection
Why care?
• Consensus that improvements in the quality of life
need to accompany improvements in economic
well-being and growth
• Environmental controls in themselves will not
prevent further deterioration: growth in causes and
sources of pollution offset attempts to control
emissions and manage waste
• Increasingly the underlying causes of the reduction
in quality of life are the policies and actions of
government and industry
Sustainability: A Balancing Act
Social
Economic
Environment
Sustainable Economy: the needs
of the players
• Industry: secure markets, less uncertainty,
financial return
• Financial Institutions: financial return,
management of risks, long-term viability
• Neighbours, employees: employment, economic
viability, share in responsibility
• Regulators: achievement of agreed targets,
responsibility, disclosure
• Policy makers: development of agreed goals and
targets and joint problem-solving
Sustainability for Business
Advantage
• Move beyond controlling industrial pollution
• Issue is: How can increasing demands for
infrastructure and transportation (goods and
services) be met in a way that minimises their
resource use and environmental impacts
• Business is being watched by Government,
consumers, employees and other stakeholders
• Re-shape goods and services, alter process to
meet quality of life demands
Some general principles for the
private sector
• Open dialogue earlier: explain your needs and
concerns
• Give evidence of a responsible attitude: implement
policy and procedures and disclosure progress
• Seek to share the problem: lay out the market
trade, employment and economic effects
• Management of ‘sustainability’ is an irreversible
trend that will affect every aspect of business and
will deliver competitive advantage
Individuals
• Government and businesses can influence societal
behaviour
• Lifestyle changes, realistic for policy makers
- Achievable without undue recourse to
regulations
- Acceptable without the need for full public
understanding of environmental technicalities
- Attractive, with no perceived decline in
standards of living
Strategy Framework
• Identify short - medium - long term goals
• Agree targets for goals, not too ambitious initially, set
interim targets
• Integration of sectoral policies
• Demonstrate results by actions, measure and
monitor
Framework for Negotiation
Strategy
• Must be:
Economically acceptable
Technically credible
Socially acceptable
• Take account of
Interest of all, for the good of all
Implementing Sustainability
• Stakeholders are:
Government, Businesses, Individuals
• Tools Needed:
Goals - set direction
Targets - specific destination
Initiatives - choosing the route
Tools for Implementation
• A journey not a destination
• Manage tensions between:
Present and Future
Need and Demand
Equity and Efficiency
Growth and Development
Fact and Values
Public and Private
Incentives and Controls
Amenity and Necessity
Tools for Implementation
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Take account of views of all
Establish long-term goals
Set interim, achievable target
Agree on strategy and agree on responsibility of the
players involved to meet targets
• Measure and monitor progress
• Flexible, revise the targets or revise actions as
required
Arriving at Workable Solutions
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Must be implementable
Understand causes and effects
Built through political process
Dependent on consensus
Political will is essential
Societal “buy-in” - ecological, economic, moral
Hong Kong Study: Objectives
• Defining “sustainability” for Hong Kong
• Developing guiding values, indicators
• Striking a balance: economic, social,
environmental needs
• Tools for decision making : Sustainable
Development System
• Widest possible public participation
Delivering Hong Kong’s Future
SusDev 21 Products and Results
• Tools to facilitate decision making. (SDS)
• Facilitate evaluation of sustainability.
• Raising awareness of public and stakeholders.
• Institutional mechanism for integrated, crosssectoral decision making.
Building consensus, better forward planning
Guiding Principles: Coverage
- Economy
- Mobility
- Society & Social
Infrastructure
- Natural Resources
- Environmental Quality
- Biodiversity
- Health & Hygiene
- Cultural Vibrancy
Indicators Criteria
• Representative
• Scientifically valid
• Simple and easy to interpret
• Show trends over time
• Early warning about irreversible trends
• Sensitive to change
• Readily available data
• Predictable
• Have a target level or guideline for comparison
Guiding Principles
Natural Resources
Hong Kong should promote the sustainable
use of natural resources through improving
consumption efficiency, minimising the use of
non-renewable resources and re-using,
recycling waste and recovering energy from
wastes.
Indicators
Natural Resources
• Consumption of energy per unit of output ($ GDP).
• Quantity of municipal solid waste, public fill and
C&D waste requiring final disposal per capita.
• The total remaining landfill capacity (by volume).
• Volume of freshwater supplied per capita.
• Percentage of demand met by locally-derived
freshwater resources.
• Area of countryside.
Guiding Principles
Mobility
Hong Kong should provide safe, accessible and
efficient transport systems and pedestrian
facilities along with an efficient transport network
for the movement of goods and facilitation of
services for the community.
Indicators
Mobility
• Average Travel Distances; the unit of such a
measure is passenger distance travelled, ie the
distance in kilometres travelled by passengers to
get to work by all major groups of transport modes.
• Average Network Speed, ie the average network
speed of travel across all major groups of transport
modes both public and private and which reflects
the proportion of passenger use (calculated as total
passenger kilometres divided by total passenger
hours).
• The cost of freight transport; the cost of charges
and operating costs as a percentage of GDP.
Sustainable Development
System
Tool to help with the integration of
decision-making and comprising:
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Computerised and non-computerised functions
Computerised: GIS and Decision Support System
Non-computerised: Worksheets for scenario testing
Institutional arrangements: Single most important
outcome
SDS: Early Awareness System
• Does not require chain of scientific evidence before
a recommendation is made or action taken
• Requires a capacity for database management for
useful information
• Primer, provides step-by-step guide using scenarios
to improve the quality of decision making
Operational and Strategic Awareness
NOT AN EXPERT SYSTEM
Institutional Strengthening - Why?
• Facilitate a single vision
• Compelling Ministries/Department to develop
long term strategies
• Stronger message, framework for
communicating Government decisions
• Early flagging of key concerns through
coordinated use of tools
• Avoid bureaucratic tussles, efficiency gains
• Reinforcing accountability at all levels
Institutional Needs
• Long-term commitment
• Effective and efficient co-ordination and
integration of all decision making
• Balancing of the interests of different sectors
• Clear strategy with priorities identified
Institutional Selection Criteria
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Promote accountability
Generate commitment
Ensure well informed decision making
Encourage integration, communication and cooperation
• Avoid redtape
• Effective monitoring and reporting
• Politically acceptable
Institutional Arrangements
• Focus is on changes in Government structures
and institutions
• Provide confidence in the process
• Beyond exhortation, advocacy
• Understand political pressure
Operationalise Sustainability
Instruments
• Ensuring policy integration
• Reshaping economic incentives (taxes etc)
• Transferring of responsibility to actors (liability etc)
• Providing frameworks for negotiation
• Rewarding publicity and disclosure
Political Objectives
The principles of sustainability represent important
political objectives. Managing sustainability requires
decision makers at all levels to:
• agree to clear goals and guiding principles;
• set measurable targets (e.g.. quantitative emissions
reduction);
• demonstrate responsibility for action;
• develop appropriate action plans and tools to
implement them;
• measure progress and provide feedback to all actions;
and
• re-evaluate and modify goals as necessary.
Barriers
It is also realistic to acknowledge that there are
barriers to encouraging today’s decision-makers,
politicians and voters to pay today to protect the
future. Whilst the rhetoric of moral fairness or equity
between generations is voiced by many, it usually
falters when confronted with self-interest. It requires
institutional and policy adjustments to begin affecting
change in how decisions are made by Government,
corporations and individuals.
Challenges
• Securing public support
• Build consensus around political objectives
• Promoting sound understanding of SD within
Government and Industry
• Overcoming resistance to change
• Fostering an enabling environment in Government
Sustainability
(Beyond Principles)
Political Objectives
Managing Tensions
Building Consensus
Catering for self interest
Choices only, no absolutes
Doing More with Less