Green Business from the perspective of

Workshop on Developing a Green Business Support Strategy for Ukrainian Private Business Organizations

Donetsk, 7-8 October 2010

Herbert Köpnick, B.A.U.M.-Senior Advisor, Munich

Who is B.A.U.M. ?• B.A.U.M. = Bundesdeutscher Arbeitskreis für

Umweltbewusstes Management (German Environmental Business Organization)

• Germany’s and Europe’s largest non-governmen-tal environmental business initiative

• Founded by a group of Hamburg entrepreneurs in 1984

• About 500 companies of all sizes and from all sectors have joined B.A.U.M.

• www.baumev.de

What we do

• Provide information about green business, sustainability, climate protection etc.

• Offer strategic consulting in these areas• Organize platforms for networking and

dialogue between the business community and state bodies

• Conduct media-oriented campaigns to promote the idea of green business

Green Businesswhat does it mean?

Green companiesand

Green markets

Green Companies

• Have a green corporate policy• Practice green management beyond the law• Set targets in energy and resource efficiency• Produce environmental and climate-friendly

products• Use the opportunities of the new green

markets

Why become a green company ?

Because• It can save a lot of money and reduce external

dependence• It makes a company more competitive on

international markets• To protect the environment is a corporate

responsibility• It improves the image of a company• Only green companies have an economic future

Less can be more

• Less energy saves money• Less raw materials save money• Less water consumption saves money• Less waste saves money• Less land consumption saves money and protects the environment.

That’s eco-efficiency. That’s quite simple!

Eco-efficiency as win-win-solution

Possible savings through measures that pay off:*

• energy efficiency: 20 - 40%• material efficiency: 20 - 30%• water efficiency: 20 - 40%

* German price level

Savings by improving energy efficiency *

• Compressed air: 50 %• Electric motors: 15 %• Pumps: 15 %• Lighting: 80%• Heating and hot water 30-80%• Combined heat and power 40%• IT 20-50% *B.A.U.M. experiences

Best Practice 1: Integrated energy management

• Company: Daimler AG, Mercedes-Benz factory, Stuttgart• Industry: Automotive Manufacturer • Optimization measures: - Information and continuous integration of factory employees - Increase of coolant temperature and replacement of chillers - Use of additional sources for heat recovery - Optimization of ventilation and lighting systems• Energy savings per year: 182.000.000 kWh/a (= 11%)• Savings in cost per year: EUR 9.600.000• Investment: EUR 4.565.000 • ROI: 210 %• CO2 reduction per year: 70.000 tons

Best Practice 2: Compressed air system

• Company: MÜLHEIM PIPECOATINGS GmbH, Mülheim• Industry: Metal products manufacturing• Optimization measures:

- Energy-efficient air-drying by combining refrigeration and adsorption

- Cold recovery from the compressed air system- Energy optimized pneumatic control

• Energy savings per year: 806.200 kWh/a (= 27 %)• Savings in cost per year: EUR 92.000• Investment: EUR 61.000• ROI: 151%• CO2 reduction per year: 501 tons

Best Practice 3: Green IT

• Company: Host Europe GmbH, Cologne, Germany• Industry: IT – Hosting Provider• Optimization measures: (Data center) - Cold aisle containment

- Insert of free cooling- Increase of the intake temperature for the air conditioner- Optimization of the hardware utilization

• Energy savings per year: 8.500.000 kWh/a (= 44 %)• Savings in cost per year: EUR 500.000 • Investment: EUR 1.500.000• ROI: 33 %

Green Markets

“The markets of the future are green”

(Prince Hassan of Jordan, former President of the Club of Rome)

Green Lead Markets *

• Environmentally friendly power generation• Energy efficiency• Material efficiency• Waste management and recycling• Sustainable water management• Sustainable mobility * According to Roland Berger Strategy Consultants “GreenTech-Study”, 2009

Market volume 2007 *in EUR billion

• Global market volume: 1.400 • Energy efficiency: 538 • Sustainable water management: 361 • Sustainable mobility: 200 • Environmentally friendly power: 155 • Material efficiency: 94 • Waste management and recycling: 35

* According to Roland Berger Strategy Consultants “GreenTech-Study”, 2009

Market volume projected*in EUR billion

• 2007: EUR 1,400 billion

• 2010: EUR 1,650 billion

• 2020: EUR 3,100 billion

* According to Roland Berger Strategy Consultants “GreenTech-Study”, 2009

GreenTech markets in Ukraine *

• Energy/Climate protection 119 billion EUR

• Waste management 831 million EUR

• Water management 600 million EUR * Source: Austrian Society for Environment and Technology – OGUT, 2006

Green BusinessPolitical instruments

• Regulatory law- Laws- Regulations- Directives

• Economic instruments- Taxes and duties- Tax brakes and subsidies- Tradable emission allowances

• Voluntary instruments- Information - Advice and Support- Cooperation agreements

Green BusinessVoluntary instruments

• Information about content, opportunities and benefits of Green Business

• Advice and supportfor implementation of green production and products and participation in green markets

• Cooperation between business organizations and state bodies

Green BusinessSupport tools

• Information centres• Seminars and Workshops• Green Guidelines• Pool of consultants• Environment Cluster• Voluntary agreements (Environmental Pact)• Working groups (Round Tables)

Environmental Pact of Bavaria

A volantary agreement between the Bavarian State Government and the Bavarian Business

Community to promote Green Business

Environmental Pact of BavariaSignatures

Environmental Pact of Bavaria

• Expresses the common responsibility of State and Industry to maintain the natural basic living conditions through pre- ventive action and beyond legal requirements in force,

• Promotes the idea of green business and the principle of eco-efficiency with a wide range of support instruments

• Has created a trusting atmosphere between Bavarian state bodies and Bavarian business community with all its compa-nies and organisations,

• Is a driving force for new approaches, methods and topics directed towards a green economy and a sustainable develop-ment in Bavaria.

Environmental Pact of BavariaResults

• 3 umbrella business organizations with 180 mem-ber organizations and 5,500 single companies are members

• About 4,000 certified environmental manage-ment systems

• 40% less energy than the average• More than 2,000 companies networking in the

Environment Cluster• High per capita income (EUR 34,400)• Low per capita CO2 emissions (6.5 t)