Green Productivity : APO’s Initiative

K D BhardwajSenior Program OfficerAsian Productivity Organization

What is productivity?What is productivity?

��As an integrated conceptAs an integrated concept

Output x Satisfaction Output x SatisfactionPRODUCTIVITY =PRODUCTIVITY =

Input x Sacrifices Input x Sacrifices

••as objectiveas objec tive Soc ial conc ep t Soc ial conc ep t

••as a mean sas a means T echn ic al con cept Techn ic al c on cept

Three Guiding Principles ofThree Guiding Principles ofProductivity MovementProductivity Movement

�� Principle of Increase in EmploymentPrinciple of Increase in Employment••Improved productivity Improved productivity increases employmentincreases employment

�� Principle of Labor-Management CooperationPrinciple of Labor-Management Cooperation

••In improving productivity, In improving productivity, labor and managementlabor and management

must cooperatemust cooperate in discussing the measures in discussing the measures

�� Principle of Fair DistributionPrinciple of Fair Distribution

•• TheThe fruits fruits of productivity improvement must be of productivity improvement must be

distributed fairlydistributed fairly among among key stakeholderskey stakeholders

Productivity Principles

Multi-Factor Productivity

MULTI - FACTOR PRODUCTIVITY AND GP

Raw materials productivity = Output (value or unit or value added) Raw material used

Labour productivity = Output

number of employees (number of hours worked)

Variables for quantification of GP that can be factored in are:water, energy, materials (chemicals, auxiliaries, packaging etc.),

technology, capital.

Ecological Principles Guiding GP

1. SUSTAINABLE USE OF NATURAL RESOURCES

2. PROTECTION OF ECOLOGICAL BALANCE

3. PROTECT PLANT AND ANIMAL SPECIES AND THEIR

ENVIRONMENT

Relationship between Productivity & Environment

Resource Efficiency & Productivity

GP ensures profitability and enhancesQuality of Life

Green Productivity (GP) is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques, technologies to reduce the environmental impact of organization’s activities, goods and services.

Green Productivity (GP) is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques, technologies to reduce the environmental impact of organization’s activities, goods and services.

Ensures profitability

Enhances Quality of Life

Reduces environmental impact

TRIPLE FOCUS OF GP

Environment(Sustainable Development)

Quality(Voice of Customer )

Profitability(Factor Inputs)

GP

EnvironmentalCompliance

EnvironmentalCompliance

� Pollution Prevention� Source reduction� End-of-pipe controls

� Pollution Prevention� Source reduction� End-of-pipe controls

Integrated people basedapproach

Integrated people basedapproach

� production-environment integration� team work� safe and healthy working conditions.

� production-environment integration� team work� safe and healthy working conditions.

Information drivenimprovement

Information drivenimprovement

� measurement� reporting� disclosure

� measurement� reporting� disclosure

ProductivityimprovementProductivityimprovement

Continuousimprovement cycle

Continuousimprovement cycle

Distinguishing characteristics of GP

Conventional Versus GP Practices

RAW MATERIAL PRODUCTION PROCESS PRODUCT

WASTESGASEOUS

LIQUID

SOLIDTREATMENT &/DISPOSAL

RAW MATERIAL PRODUCTION PROCESS PRODUCT

REMAINDER LESS WASTES

GASEOUS

LIQUID

SOLIDTREATMENT &/DISPOSAL

RECYCLE/

REUSE

BY- PRODUCT

CONVENTIONAL PRACTICES

GP PRACTICES

GREEN PRODUCTIVITY MULTI SECTOR COVERAGE

GREEN PRODUCTIVITYSMEs form the backbone of the production-consumptionprocess. They play a crucial role in the sustainability of

development

Industry(Large

Enterprises)Services CommunityAgriculture

SMEs SMEs SMEs

SMEsSMEsSMEs

GUIDING PRINCIPLES OF GP

� Accountability� Polluter Pays

� Precautionary Approach

� Profitability� Competitive Advantage

� People-Building

ECOLOGICAL PRINCIPLES GUIDING GP

•ACCOUNTABILITY

•POLLUTER PAYS

•PRECAUTIONARY APPROACH

PRODUCTIVITY PRINCIPLES GUIDING GP

•Profitability

� Competitive Advantage

� People-Building

Green Productivity

EXTERNAL FORCES

Green Productivity

External ForcesInternal ForcesGreen Productivity

Green ProductivityRegulations

Customer requirement

ConsumerDemand

Market Opportunities

Market Image

Evolving globaland industrial

standards

Resource Pricing andAvailability

DRIVING FORCES OF GREEN PRODUCTIVITY

Driving Forces of Green Productivity

INTERNAL FORCES

Internal

Efficiency Worker Healthand Safety

GPGP

Consumer

Producer

Sustainable production practices

Sustainable consumption practices

� Increased profitability� lower costs of production� reduced waste treatment anddisposal costs� improved market image� improved worker health and safety

� Increased profitability� lower costs of production� reduced waste treatment anddisposal costs� improved market image� improved worker health and safety

� Superior quality products� improved environmental quality� improved health and safety� better quality of life

� Superior quality products� improved environmental quality� improved health and safety� better quality of life

SOCIETY

SOCIETY

Manifold Benefits of GP

GP GP

SOCIETYSOCIETY

Quality of LifeQuality of Life

BUSINESSBUSINESS

To supply goods and servicesproduced in a

sustainable manner

Products

PUSH DEMAND

for environmental

ly friendly products

PULL ONTHE MARKET

PUSH

to improve resourceefficiency and hence

profitability

GP enhances Quality of Life

About the APO

History:

•Envisioned in the Asian Round Table Productivity Conference held in Tokyo in1959 as a regional intergovernmental organization for productivity

•Established the Asian Productivity Organization (APO) on 11 May 1961

•Celebrates its 50th Anniversary in 2011

We are :

•Non-political•Non-profit•Non-discriminatory

Our members

20 member economies of the Asia-Pacific region

Membership open to countries which are members of the UN Economic and Social Commission for Asia and the Pacific (UNESCAP)

Our Vision and Mission

Roles of APO

APO’s Strategic Directions

Strengthen NPOs and promote the development of small and medium enterprises (SMEs) and communities.

Catalyze innovation-led productivity growth

Promoting Green Productivity

Organizational chart

NPOProjects APO

Secretariat

Membership contributions, special grants

Request, suggestions, Evaluation

Deputation of experts, sponsoring individual-country study mission

Research reports, publications and audio-visual training materials

Industries

Academia

Labor Unions Others

Government

MemberCountries

Sending participantsHosting projects

PlanningOrganiz-

ation

Seminars

SymposiaTrainingCourses

Studymeetings

Surveys

Studymissions

Environment

AgricultureDept.

Administrativeand Finance

Dept.

IndustryDept.

Informationand PublicRelations

Research andPlanning Dept.

AgriculturalOrganization

Projects in Collaboration with NPOs

Dept.Dept.

Three Types

A. Multi

B. Limited

C. Individual