International Symposium on International Symposium on Indicators of Sustainable Indicators of Sustainable DevelopmentDevelopment

Moving Beyond Principles : Moving Beyond Principles : Making Sustainability Making Sustainability

OperationalOperational

by: Mr Chandran Nairby: Mr Chandran NairChairman, ERM Asia-PacificChairman, ERM Asia-Pacific

1-2 December 2000, Taipei1-2 December 2000, Taipei

IntroductionIntroduction

• Sustainability is a Sustainability is a MUSTMUST not an not an OPTIONOPTION

• Concern for TomorrowConcern for Tomorrow

• Beyond Pollution Control StrategiesBeyond Pollution Control Strategies

• Making decisions today which do not reduce the Making decisions today which do not reduce the options for tomorrowoptions for tomorrow

• Taiwan - decisions taken in last two decadesTaiwan - decisions taken in last two decades

Forces Shaping the FutureForces Shaping the Future

Economic

Environment

Social

Technological

PoliticalGOVERNMENT

Sustainable Development ….Sustainable Development ….

• A process requiring changes in:A process requiring changes in:– Exploitation of resourcesExploitation of resources

– Direction of investmentsDirection of investments

– Orientation of technologyOrientation of technology

– Institutional policies and structuresInstitutional policies and structures

• Consistent with future as well as present needsConsistent with future as well as present needs

(Brundtland Commission)(Brundtland Commission)

Consistency: Shape of Consistency: Shape of development and development and environmentenvironment

Shape of Shape of Economic Economic DevelopmentDevelopment

Future Quality Future Quality of the of the EnvironmentEnvironment

Government Government Policy and Policy and PlanningPlanning

Big Picture PerspectiveBig Picture Perspective

• EcologyEcology - living within the bounds of the- living within the bounds of the

ecological life system-preservingecological life system-preserving

environmental “capital”environmental “capital”

• EconomicEconomic - acting now for long-term viability of- acting now for long-term viability of

markets and resourcesmarkets and resources

- strategies which reduce cost- strategies which reduce cost

- trade-offs, understanding timescale- trade-offs, understanding timescale

• MoralMoral - genuine concerns for tomorrow in- genuine concerns for tomorrow in

present day decision makingpresent day decision making

- behavioural changes- behavioural changes

Economics vs EcologyEconomics vs Ecology

Economist assume the future will be much like the Economist assume the future will be much like the past. Since markets and technology have avoided past. Since markets and technology have avoided catastrophe in the past, we can count on them to do catastrophe in the past, we can count on them to do the same in the future.the same in the future.

Ecologist believe they see unique problems in the Ecologist believe they see unique problems in the future, which will demand solutions outside the future, which will demand solutions outside the capacity of our present market mechanism. Ecologists capacity of our present market mechanism. Ecologists are worried about irreversibilities.are worried about irreversibilities.

Why care?Why care?

• International Commitments, Agenda 21International Commitments, Agenda 21“Governments... should adopt a national strategy for “Governments... should adopt a national strategy for sustainable development... This strategy should sustainable development... This strategy should build upon and harmonise the various sectoral, build upon and harmonise the various sectoral, economic, social and environmental policies and economic, social and environmental policies and plans that are operating in the country... Its goal plans that are operating in the country... Its goal should be to ensure socially responsible economic should be to ensure socially responsible economic development while protecting the resource base and development while protecting the resource base and the environment for the benefit of future the environment for the benefit of future generations.”generations.”

• Sustainability is at the heart of economic planning, Sustainability is at the heart of economic planning, not simply environmental protectionnot simply environmental protection

Why care?Why care?

• Consensus that improvements in the quality of life Consensus that improvements in the quality of life need to accompany improvements in economic need to accompany improvements in economic well-being and growthwell-being and growth

• Environmental controls in themselves will not Environmental controls in themselves will not prevent further deterioration: growth in causes and prevent further deterioration: growth in causes and sources of pollution offset attempts to control sources of pollution offset attempts to control emissions and manage wasteemissions and manage waste

• Increasingly the underlying causes of the reduction Increasingly the underlying causes of the reduction in quality of life are the policies and actions of in quality of life are the policies and actions of government and industrygovernment and industry

Sustainability: A Balancing Sustainability: A Balancing ActAct

EconomicEconomic

SocialSocial

EnvironmentEnvironment

Sustainable Economy: the Sustainable Economy: the needs of the playersneeds of the players

• Industry:Industry: secure markets, less uncertainty, secure markets, less uncertainty, financial returnfinancial return

• Financial Institutions:Financial Institutions: financial return, financial return, management of risks, long-term viabilitymanagement of risks, long-term viability

• Neighbours, employees:Neighbours, employees: employment, economic employment, economic viability, share in responsibilityviability, share in responsibility

• Regulators:Regulators: achievement of agreed targets, achievement of agreed targets, responsibility, disclosureresponsibility, disclosure

• Policy makers:Policy makers: development of agreed goals and development of agreed goals and targets and joint problem-solvingtargets and joint problem-solving

Sustainability for BusinessSustainability for BusinessAdvantageAdvantage

• Move beyond controlling industrial pollutionMove beyond controlling industrial pollution• Issue is: How can increasing demands for Issue is: How can increasing demands for

infrastructure and transportation (goods and infrastructure and transportation (goods and services) be met in a way that minimises their services) be met in a way that minimises their resource use and environmental impactsresource use and environmental impacts

• Business is being watched by Government, Business is being watched by Government, consumers, employees and other stakeholdersconsumers, employees and other stakeholders

• Re-shape goods and services, alter process to Re-shape goods and services, alter process to meet quality of life demandsmeet quality of life demands

Some general principles for Some general principles for the private sectorthe private sector

• Open dialogue earlier: explain your needs and Open dialogue earlier: explain your needs and concernsconcerns

• Give evidence of a responsible attitude: implement Give evidence of a responsible attitude: implement policy and procedures and disclosure progresspolicy and procedures and disclosure progress

• Seek to share the problem: lay out the market Seek to share the problem: lay out the market trade, employment and economic effectstrade, employment and economic effects

• Management of ‘sustainability’ is an irreversible Management of ‘sustainability’ is an irreversible trend that will affect every aspect of business and trend that will affect every aspect of business and will deliver competitive advantagewill deliver competitive advantage

IndividualsIndividuals

• Government and businesses can influence societal Government and businesses can influence societal behaviourbehaviour

• Lifestyle changes, realistic for policy makersLifestyle changes, realistic for policy makers

- Achievable without undue recourse to- Achievable without undue recourse to

regulationsregulations

- Acceptable without the need for full public- Acceptable without the need for full public

understanding of environmental understanding of environmental technicalitiestechnicalities

- Attractive, with no perceived decline in- Attractive, with no perceived decline in

standards of livingstandards of living

Strategy FrameworkStrategy Framework

• Identify short - medium - long term goalsIdentify short - medium - long term goals

• Agree targets for goals, not too ambitious initially, set Agree targets for goals, not too ambitious initially, set interim targetsinterim targets

• Integration of sectoral policiesIntegration of sectoral policies

• Demonstrate results by actions, measure and monitorDemonstrate results by actions, measure and monitor

Framework for NegotiationFramework for Negotiation

StrategyStrategy

• Must be:Must be:

Economically acceptableEconomically acceptable

Technically credibleTechnically credible

Socially acceptableSocially acceptable

• Take account ofTake account of

Interest of all, for the good of allInterest of all, for the good of all

Implementing SustainabilityImplementing Sustainability

• Stakeholders are:Stakeholders are:

Government, Businesses, IndividualsGovernment, Businesses, Individuals

• Tools Needed:Tools Needed:

Goals - set directionGoals - set direction

Targets - specific destinationTargets - specific destination

Initiatives - choosing the routeInitiatives - choosing the route

Tools for ImplementationTools for Implementation

• A journey not a destinationA journey not a destination

• Manage tensions between:Manage tensions between:

Present and FuturePresent and Future

Need and DemandNeed and Demand

Equity and EfficiencyEquity and Efficiency

Growth and DevelopmentGrowth and Development

Fact and ValuesFact and Values

Public and PrivatePublic and Private

Incentives and ControlsIncentives and Controls

Amenity and NecessityAmenity and Necessity

Tools for ImplementationTools for Implementation

• Take account of views of allTake account of views of all

• Establish long-term goalsEstablish long-term goals

• Set interim, achievable targetSet interim, achievable target

• Agree on strategy and agree on responsibility of the Agree on strategy and agree on responsibility of the players involved to meet targetsplayers involved to meet targets

• Measure and monitor progressMeasure and monitor progress

• Flexible, revise the targets or revise actions as Flexible, revise the targets or revise actions as required required

Arriving at Workable Arriving at Workable SolutionsSolutions

• Must be implementableMust be implementable

• Understand causes and effectsUnderstand causes and effects

• Built through political processBuilt through political process

• Dependent on consensusDependent on consensus

• Political will is essentialPolitical will is essential

• Societal “buy-in” - ecological, economic, moralSocietal “buy-in” - ecological, economic, moral

Hong Kong Study: ObjectivesHong Kong Study: Objectives

• Defining “sustainability” for Hong KongDefining “sustainability” for Hong Kong• Developing guiding values, indicatorsDeveloping guiding values, indicators• Striking a balance: economic, social, Striking a balance: economic, social,

environmental needsenvironmental needs• Tools for decision making : Sustainable Tools for decision making : Sustainable

Development SystemDevelopment System• Widest possible public participationWidest possible public participation

Delivering Hong Kong’s FutureDelivering Hong Kong’s Future

SusDev 21 Products and SusDev 21 Products and ResultsResults

• Tools to facilitate decision making. (SDS)Tools to facilitate decision making. (SDS)

• Facilitate evaluation of sustainability.Facilitate evaluation of sustainability.

• Raising awareness of public and stakeholders.Raising awareness of public and stakeholders.

• Institutional mechanism for integrated, cross-Institutional mechanism for integrated, cross-sectoral decision making.sectoral decision making.

Building consensus, better forward planningBuilding consensus, better forward planning

Guiding Principles: Guiding Principles: CoverageCoverage

- Economy- Economy - Mobility- Mobility

- Society & Social- Society & Social - Natural Resources- Natural Resources

InfrastructureInfrastructure

- Environmental Quality- Environmental Quality - Biodiversity- Biodiversity

- Health & Hygiene- Health & Hygiene - Cultural Vibrancy- Cultural Vibrancy

Indicators CriteriaIndicators Criteria

• RepresentativeRepresentative

• Scientifically validScientifically valid

• Simple and easy to interpretSimple and easy to interpret

• Show trends over timeShow trends over time

• Early warning about irreversible trendsEarly warning about irreversible trends

• Sensitive to change Sensitive to change

• Readily available dataReadily available data

• PredictablePredictable

• Have a target level or guideline for comparisonHave a target level or guideline for comparison

Guiding PrinciplesGuiding PrinciplesNatural ResourcesNatural Resources

Hong Kong should promote the sustainable Hong Kong should promote the sustainable use of natural resources through improving use of natural resources through improving consumption efficiency, minimising the use of consumption efficiency, minimising the use of non-renewable resources and re-using, non-renewable resources and re-using, recycling waste and recovering energy from recycling waste and recovering energy from wastes.wastes.

IndicatorsIndicatorsNatural ResourcesNatural Resources

• Consumption of energy per unit of output ($ GDP).Consumption of energy per unit of output ($ GDP).• Quantity of municipal solid waste, public fill and Quantity of municipal solid waste, public fill and

C&D waste requiring final disposal per capita.C&D waste requiring final disposal per capita.• The total remaining landfill capacity (by volume).The total remaining landfill capacity (by volume).• Volume of freshwater supplied per capita.Volume of freshwater supplied per capita.• Percentage of demand met by locally-derived Percentage of demand met by locally-derived

freshwater resources.freshwater resources.• Area of countryside.Area of countryside.

Guiding PrinciplesGuiding PrinciplesMobilityMobility

Hong Kong should provide safe, accessible and Hong Kong should provide safe, accessible and efficient transport systems and pedestrian efficient transport systems and pedestrian facilities along with an efficient transport network facilities along with an efficient transport network for the movement of goods and facilitation of for the movement of goods and facilitation of services for the community.services for the community.

IndicatorsIndicatorsMobilityMobility

• Average Travel Distances; the unit of such a Average Travel Distances; the unit of such a measure is passenger distance travelled, ie the measure is passenger distance travelled, ie the distance in kilometres travelled by passengers to distance in kilometres travelled by passengers to get to work by all major groups of transport modes.get to work by all major groups of transport modes.

• Average Network Speed, ie the average network Average Network Speed, ie the average network speed of travel across all major groups of transport speed of travel across all major groups of transport modes both public and private and which reflects modes both public and private and which reflects the proportion of passenger use (calculated as total the proportion of passenger use (calculated as total passenger kilometres divided by total passenger passenger kilometres divided by total passenger hours).hours).

• The cost of freight transport; the cost of charges The cost of freight transport; the cost of charges and operating costs as a percentage of GDP.and operating costs as a percentage of GDP.

Sustainable Development Sustainable Development SystemSystem

Tool to help with the integration of Tool to help with the integration of decision-making and comprising:decision-making and comprising:

• Computerised and non-computerised functionsComputerised and non-computerised functions• Computerised: GIS and Decision Support SystemComputerised: GIS and Decision Support System• Non-computerised: Worksheets for scenario testingNon-computerised: Worksheets for scenario testing• Institutional arrangements: Single most important Institutional arrangements: Single most important

outcomeoutcome

SDS: Early Awareness SDS: Early Awareness SystemSystem

• Does not require chain of scientific evidence before Does not require chain of scientific evidence before a recommendation is made or action takena recommendation is made or action taken

• Requires a capacity for database management for Requires a capacity for database management for useful informationuseful information

• Primer, provides step-by-step guide using scenarios Primer, provides step-by-step guide using scenarios to improve the quality of decision makingto improve the quality of decision making

Operational and Strategic AwarenessOperational and Strategic Awareness

NOT AN EXPERT SYSTEMNOT AN EXPERT SYSTEM

Institutional Strengthening - Institutional Strengthening - Why?Why?

• Facilitate a single visionFacilitate a single vision• Compelling Ministries/Department to develop Compelling Ministries/Department to develop

long term strategieslong term strategies• Stronger message, framework for Stronger message, framework for

communicating Government decisionscommunicating Government decisions• Early flagging of key concerns through Early flagging of key concerns through

coordinated use of toolscoordinated use of tools• Avoid bureaucratic tussles, efficiency gainsAvoid bureaucratic tussles, efficiency gains• Reinforcing accountability at all levelsReinforcing accountability at all levels

Institutional NeedsInstitutional Needs

• Long-term commitmentLong-term commitment

• Effective and efficient co-ordination and Effective and efficient co-ordination and integration of all decision makingintegration of all decision making

• Balancing of the interests of different sectorsBalancing of the interests of different sectors

• Clear strategy with priorities identifiedClear strategy with priorities identified

Institutional Selection Institutional Selection CriteriaCriteria

• Promote accountabilityPromote accountability

• Generate commitmentGenerate commitment

• Ensure well informed decision makingEnsure well informed decision making

• Encourage integration, communication and co-Encourage integration, communication and co-operationoperation

• Avoid redtapeAvoid redtape

• Effective monitoring and reportingEffective monitoring and reporting

• Politically acceptablePolitically acceptable

Institutional ArrangementsInstitutional Arrangements

• Focus is on changes in Government structures Focus is on changes in Government structures and institutionsand institutions

• Provide confidence in the processProvide confidence in the process

• Beyond exhortation, advocacyBeyond exhortation, advocacy

• Understand political pressureUnderstand political pressure

Operationalise SustainabilityOperationalise Sustainability

InstrumentsInstruments

• Ensuring policy integrationEnsuring policy integration

• Reshaping economic incentives (taxes etc)Reshaping economic incentives (taxes etc)

• Transferring of responsibility to actors (liability etc)Transferring of responsibility to actors (liability etc)

• Providing frameworks for negotiationProviding frameworks for negotiation

• Rewarding publicity and disclosureRewarding publicity and disclosure

Political ObjectivesPolitical Objectives

• agree to clear goals and guiding principles;agree to clear goals and guiding principles;

• set measurable targets (e.g.. quantitative emissions set measurable targets (e.g.. quantitative emissions reduction);reduction);

• demonstrate responsibility for action;demonstrate responsibility for action;

• develop appropriate action plans and tools to develop appropriate action plans and tools to implement them;implement them;

• measure progress and provide feedback to all actions; measure progress and provide feedback to all actions; andand

• re-evaluate and modify goals as necessary.re-evaluate and modify goals as necessary.

The principles of sustainability represent important The principles of sustainability represent important political objectives. Managing sustainability requires political objectives. Managing sustainability requires decision makers at all levels to:decision makers at all levels to:

BarriersBarriers

It is also realistic to acknowledge that there are It is also realistic to acknowledge that there are barriers to encouraging today’s decision-makers, barriers to encouraging today’s decision-makers, politicians and voters to pay today to protect the politicians and voters to pay today to protect the future. Whilst the rhetoric of moral fairness or equity future. Whilst the rhetoric of moral fairness or equity between generations is voiced by many, it usually between generations is voiced by many, it usually falters when confronted with self-interest. It requires falters when confronted with self-interest. It requires institutional and policy adjustments to begin affecting institutional and policy adjustments to begin affecting change in how decisions are made by Government, change in how decisions are made by Government, corporations and individuals.corporations and individuals.

ChallengesChallenges

• Securing public supportSecuring public support

• Build consensus around political objectivesBuild consensus around political objectives

• Promoting sound understanding of SD within Promoting sound understanding of SD within Government and IndustryGovernment and Industry

• Overcoming resistance to changeOvercoming resistance to change

• Fostering an enabling environment in GovernmentFostering an enabling environment in Government

SustainabilitySustainability(Beyond Principles)(Beyond Principles)

Political ObjectivesPolitical Objectives

Managing TensionsManaging Tensions

Building ConsensusBuilding Consensus

Catering for self interestCatering for self interest

Choices only, no absolutesChoices only, no absolutes

Doing More with LessDoing More with Less