Transcript Environmental Export Council

The WEC Supply Chain
Management Partnership
John Mizroch
President & CEO
World Environment Center
World Environment Center
Mission
The World Environment Center advances sustainable development
by encouraging environmental leadership, helping improve
environmental, health and safety practices worldwide, and
fostering the efficient use of natural resources to protect the
global environment.
WEC was founded in 1974 as an independent, non-profit, nonadvocacy organization with a grant from the United Nations
Environment Programme (UNEP).
WEC Board of Directors
Mr. James C. Lime
Chairman
Pfizer, Inc.
Mr. Walt Rosenberg
Hewlett-Packard
Mr. J. David Runnalls
IISD
Ing. Armando Garcia Segovia
Cemex, S.A.
Mr. Karl F. Schmidt
Johnson & Johnson
Dr. Dieter Hubl
Schering AG
Mr. Samuel L. Smolik
Shell Chemical
Prof. Nicholas Robinson
Secretary & Treasurer
Pace Univ. School of Law
Ms. Elizabeth A. Lowery
General Motors Corp.
Mr. Barry Worthington
USEA
Mr. Wayne S. Balta
IBM Corporation
Mr. Stephen W. Raab
InterGen Energy, Inc.
Mr. Daniel Gagnier
Alcan Aluminum Ltd.
Mr. Achim Steiner
IUCN
Fis. Sergio Reyes-Lujan
Instituto Mexicano del
Petroleo
Dr. Bernard Tramier
Vice Chairman
TotalFinaElf
World Environment Center
Programs
Three core programs through which the Center
supports its Mission:
 International Environment Forum (IEF)
 WEC Gold Medal Award (GMA)
 Capacity Building for the Environment (CBE)
Capacity Building for the
Environment Programs
Criteria for Selection:
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High Visibility
High Impact
Beneficial to Our Members
Promote Sustainable Development
Importance of SMEs
In Mexico, micro, small, and mediumsized enterprises
• comprise approximately 99% of the private
sector
• generate 80% of employment and
• produce 50% of GDP.
Importance of SMEs – 2
• In Brazil, SMEs cover 79% of nonagricultural employment.
• In Vietnam, SMEs make up 96% of
total enterprises and contribute 26%
of the GDP.
Importance of SMEs – 3
• SMEs typically account for 50%
or more of GDP in developed
market economies and and the
more advanced transition
countries.
CP and Sustainable Development
History and Background
 The 1992 Rio Summit provided impetus for the use of
Cleaner Production as a strategy for implementing
sustainable development objectives.
 In the 1990s, public institutions, including USAID,
UNIDO, and the Swiss Government, spent hundred of
millions of dollars to establish Cleaner Production
Centers (CPCs) in developing countries.
 These CPCs represent existing, albeit underutilized,
resources that can assist with project implementation.
The Rise of Corporate Global Power
KEY FINDINGS:
 Of the 100 largest economies in the world, 51 are corporations;
(based on a comparison of corporate sales and country GDPs).
 The Top 200 corporations’ combined sales are bigger than the
combined economies of all countries minus the biggest 10.
 The Top 200s’ combined sales are 18 times the size of the
combined annual income of the 1.2 billion people (24 percent
of the total world population) living in “severe” poverty.
 General Motors - the world’s biggest corporation is ranked
23rd and is bigger than the economies of Denmark, Norway,
Poland or Saudi Arabia.
Source: Institute for Policy Studies, December 2000
WEC Participating Companies
Abbot Laboratories
Aventis SA
Alcan
Alcoa
Amerada Hess
AstraZeneca
AT&T
Beiersdorf AG
Black & Decker
Boehringer Ingelheim
Bristol-Myers Squibb
Cargill
Cemex
ChevronTexaco
Citigroup
Dow Chemical
Eastman Kodak
F. Hoffmann-La Roche
General Motors
GlaxoSmithKline
Hewlett-Packard
IBM
Inco Ltd.
InterGen Energy Inc.
Johnson & Johnson
Johnson Controls
Limited Brands
Merck
Merrill Lynch
Motorola
Novartis
Occidental
Otto
Pemex
Pfizer Inc.
Phillips Electronics
N.V.
Ricoh Corporation
Schering AG
Schlumberger Ltd.
S.C. Johnson & Co.
Syngenta International
Total
The Old Model
Demonstration Projects: more than 1000 demonstration projects
across a wide variety of industrial sectors have been
undertaken.
Roundtables and Partnerships: Cleaner Production roundtables
have been established worldwide to facilitate discussion and
the exchange of information and know-how among
professionals; numerous innovative partnerships have also
been established.
Training Programs: Cleaner Production courses, training
programs (including train-the-trainer programs), and higher
education programs have proliferated around the globe.
The Old Model – 2
Journals and Websites: numerous journals and
websites dedicated to Cleaner Production concepts
and information exchange have been established.
Cleaner Production Centers: Perhaps the most notable
efforts to promote Cleaner Production in
developing and transitional economies have been
those of Cleaner Production and pollution
prevention centers established by a number of
large-scale publicly-funded programs.
The Old Model – 3
Cleaner Production Centers designed to offer the
following basic services:
• awareness raising
• training
• technical assistance
• advice on financing
• information dissemination
• policy advice
Old vs. New Model
Financial Burden
Old Model
USAID – Larger Burden
Private Sector – Small Burden
SMEs – Little or No Burden
New Model
USAID – Small Burden
Private Sector – Moderate Burden
SMEs – Larger Burden
Global Potential for Leveraging the
Partnership
It is estimated that the 100 largest
multinational corporations in Mexico,
together with their first, second, and third tier
suppliers account for more than 70% of all
industrial production for export.
13 countries in the developing world account
for 90% of all developing country exports.
Est. Size of Some Supplier Bases
• Hewlett-Packard: 52,000
• Motorola: 36,000
• Ford, GM, DaimlerChrysler, Renault,
Nissan, and Peugeot-Citroen: 150,000
(~25,000 each)
WEC Supply Chain Management
Partnership
What Is the Initiative?
To promote the adoption of Environmental
Management Systems and Cleaner Production
techniques among Small and Medium Sized
Enterprises (SMEs) that supply major
multinationals in developing countries
The Partnership
United States Agency for International
Development
World Environment Center
Multinational Corporations
Governments and International Organizations
Technical and Academic Institutes
Suppliers
Roles & Responsibilities
WEC/PA
 Serve as catalyst
 Develop relationships
 Provide technical assistance and
training
 Provide support and follow-up
Roles & Responsibilities – 2
WEC/PA (continued)
 Provide case studies and tools
 Corporations are not monolithic
entities; they have stove-piped
divisions that often lack effective
communication – WEC/PA keep
corporate partners focused and
communications flowing
Roles & Responsibilities – 3
USAID, Other Government Agencies
and International Organizations
 Provide seed funding
 Serve as a catalysts
 Develop policies and approaches that
support and promote these private
sector initiatives
Roles & Responsibilities – 4
Multinationals
 Develop policies for suppliers
 Identify suppliers for participation
 Appoint local managers
 Provide oversight and management
 Provide technical assistance
Roles & Responsibilities – 5
Suppliers
 Select, plan, and execute projects
 Fund projects
 Report periodically to client
(multinational)
Roles & Responsibilities – 6
Local Technical Partners
 Provide training
 Provide technical support
Pilot Partnership Programs
Underway
Mexico
 Johnson & Johnson
 Alcoa
Brazil
 Dow Chemical
 Johnson & Johnson
China
 General Motors
Pfizer, Intel and others have expressed interest
Next Steps
 Encourage multinationals to adopt
model for all suppliers in country
 Encourage multinationals to migrate
program throughout company
(worldwide)
Next Steps – 2
 Encourage participating multinationals to assume
a global leadership role
 Develop in-country partnerships involving industry
associations, leadership companies, government
agencies and international organizations in order
to promote widespread dissemination of the model