It is smart business sense to be green

The Star

By THEAN LEE CHENG and ELAINE ANG


starbiz@thestar.com.my

According to an expert on corporate responsibility (CR) and sustainable development, Paul Hohnen of Amsterdam, it is a general belief that breaching environmental laws does not affect a company’s stock market price. Well, not yet.


He gave palm oil prices as an example. The prices of palm oil are not affected by accusations of deforestation. It is the same with petroleum prices, which have shown no concern about global warming.

Concerns for the environment have now become a trend with governments willing to enact laws and regulations towards greening the environment. Therefore as a result more and more businesses are changing the way business is done. Unilever, a major user of palm oil, has been cutting ties with suppliers that are associated with illegal deforestation and is now committed to double the amount of certified sustainable palm oil it uses.

It was quoted that big retailers such as Tesco, Metro and Wal-Mart are also actively setting higher environmental and human rights standards for their suppliers. They’re doing it because they understand there is no future in being seen as unsustainable and because it makes good business sense now. They are creating a new business model where sustainability is being integrated into the product.

“Companies that aren’t green, or who can’t measure and report their impacts, risk losing out on global supply chain access,” says Hohnen.

“Going green is smart management,” says Hohnen.

By going green, a company achieves several things at the same time.

• First, it reduces the time wasted on brand management. In a world increasingly more sensitive about the impacts of climate change, air pollution and environmental damage, companies with poor performance can expect to spend more time defending themselves to regulators, investors and the media. Consider Exxon, which is still dealing with the consequences of the Exxon Valdez oil spill.

• Second, smarter use of raw materials and energy, leads to producing less wastage which often lead to quick improvements to net profits. The motto “make more by using less” has been adopted successfully by big chemical companies like BASF, Bayer and Dow.

• Third is the market share. For many specialists, “green industry” is seen as the next IT revolution in terms of market growth and opportunities. Some assessments show that the global market for green products and services is more than 500 billion Euros a year and growing.

Many of the world’s biggest companies, like Siemens, Philips and GE, are busy positioning themselves for the “green industrial revolution”.

• Last but not least adopting green technology leads to innovation. Making things with less or making them in different ways stimulates companies with rethink through their business model. This stimulates technological competitiveness.

In turn, this appeals to young graduates, investors and regulators. In the energy sector, it’s been notable that most of the new energy innovations are coming from non-traditional players.

Manufacturers of solar panels and wind turbines have enjoyed some of the fastest growth rates in the sector, helped by subsidies and positive profile. Chinese companies have been quick to exploit the potential of innovation for growing new markets.

Doing Something Green

Instead of sending my delicate silks to the cleaners to be dry cleaned with poisonous petroleum based solvents, I thought I should try to hand wash them instead. I had bought a special gentle soap that contains a  colorguard that prevents the colour from running when wet. Well, the reason we send our clothes to the dry cleaners is because the colour runs when washed at home.. I tested my clothes first with a little soap, and voila, the water was clear.It works.So I proceeded to wash and rinse all my clothes I had reserved specially for the cleaners. After washing them, I just let them drip dry in the bathroom. Drip- drying would make ironing easier as there would be less creases.

As the hot whether continues I have no worries.My clothes would dry in no time even when hung in the bathroom.

How one Volcano can put the world to a standstill.

I never imagined that a volcanic eruption in Iceland would affect my family. Just as my son, Ikmal was enjoying his 3 week sojourn in Paris, England and Dublin; Eyjafjallajokull chooses to violently gush out its contents. Ikmal is now patiently (I hope) waiting for his flight back to Bangalore, India from London. He is stranded in Dublin as Ireland closes all its airspace. I am praying that he would not be too late for his new academic year which started this week.


My other son, Afif in Sheffield, seems oblivious of all the fuss. He spent the weekend playing football in the Leeds-Bradford games, organized by his fellow Malaysian university students in the UK. I am praying that both of them would not be affected by the finely pulverized lava thrown out by a volcano eruption as it is said to consist mostly of molten silica. This translates that the volcanic ash consists of fine glass particles. Maybe the ash has not fallen where they are.

They say that the eruption of Iceland's Eyjafjallajokull on Tuesday, April 13 2010, is not as great and powerful as major eruptions like Mount St. Helens in 1980, which released 1.5 million metric tons of sulfur dioxide into the atmosphere, or the catastrophe of Krakatoa in Indonesia in 1883, which killed more than 40,000 people and was felt for months later around the world. During Eyjafjallajokull, by contrast, there have been no deaths; only about 800 living in the vicinity were evacuated.

But Eyjafjallajokull's eruption created a major airline disaster initially in Europe. Somehow, the calamity’s effects spread like wildfire around the world; the world being a global village it now is. The standstill in Europe causes a travel backlog elsewhere from Tokyo to Toronto, as airlines cancelled flights to Europe as European governments close their air space. The reason was they were scared that the 7-mile-high plume of volcanic gases and silicate ash which has spread across much of Europe, would be sucked into an aircraft’s engine and transmission system and cause it to stall.

Shutting down the continent's airspace and grounding thousands of flights was expensive and inconvenient, as millions are stranded across the globe; but it was far preferable to having planes falling out of the sky. And while the economic toll of such disasters may be rising, huge death tolls are far less common.

As Eyjafjallajokull is still spewing ash clouds, it is not known how long the effect of the explosion will linger.

The transport disruption, particularly across the Atlantic, comes as the industry is said to have started to recover from the worldwide recession, with business and international travel slowly picking up.

European airlines were already suffering from the slow pace of economic recovery there. Even before the latest crisis, the International Air Transport Association had projected that the industry would lose $2.8 billion this year, down from last year’s loss of $9.4 billion.

Eyjafjallajokull was unknown before April 13th. From now on it would be stated in history as the volcanic eruption that caused the world transportation system to go haywire and may make some airlines bankrupt. Ironically, land transport operators have been having a field day trying to bring stranded travelers back on their itinerary track.

As I write this, I am happy to note that the airspace in Scotland, Northern Ireland and parts of northern England is due to reopen on Tuesday, 20th April.

Restrictions to airspace above the rest of England and Wales could be lifted later on Tuesday.

Meanwhile, Germany, France and Belgium have also said they will begin to reopen airspace from Tuesday.

My son, Ikmal will get to resume his studies sooner than I thought. Thank God.


P.S:

Ikmal arrived safely in Bangalore from London on 25th April,2010. He is thankful to the volcano for letting him extend his vacation to one month!

The GreenHouse Effect

The Earth receives energy from the Sun in the form of electromagnetic radiation. Most of the radiation is in the visible spectrum which is of a shorter wavelength. The visible light with solar energy passes through the gases in the atmosphere without much effect. The longer wavelength infrared radiation on reaching Earth is reflected back to space and get trapped in the atmosphere.

The gases in the atmosphere absorb some of the infrared radiation and reflect some back to earth.

The contributing gases in the atmosphere that add to global warming are methane, nitrous oxide, carbon dioxide, water vapour and chlorofluorocarbons (CFCs) from aerosols. These gases are also called Greenhouse gases (GHG). Of these gases, the concentration of carbon dioxide is the most being more than 60%. The CFCs although making up only about 10% of the total greenhouse gases (GHG) has the most capacity to absorb the infrared rays.Methane makes 25%  of the (GHG) but absorbs 20-30% of the infrared rays.

These gases keep the Earth warm enough to support life by preventing the heat from the solar radiation. They absorb the radiation and re radiate back to Earth and prevent the trapped gases from escaping back to Space.

Under natural circumstances that is good as it provides necessary heat for living things to survive. However due to high concentrations of these gases from man’s activities (vehicular emissions, industrial effluents, agricultural activities and other human activities), more gases are trapped in the atmosphere.

The extra heat cause the Earth to heat up as it increases the Earth’s surface temperature. This is what is called Global Warming.

It is harmful to the environment as it changes the climatic patterns and threaten the very existence of life on Earth.

Global Warming Closer to Home

For the past three months, the weather has been unbelievably hot. During my trip up north in February, I noticed that the leaves of the trees lining the highway in the northern states of Kedah and Penang has shrivelled. The drought was being felt very badly.

We are a bit luckier where we live. As it is within the water catchment area, rain falls more frequently. However the evening rains are often accompanied by thunderstorms because the temperature rises in the morning and afternoon to about 40 degrees. The rain would reduce the ambient temperature and make life more bearable. If it doesn't rain, then the nights would be stifling hot.

Fans and air conditioners sell like hot cakes during the hot weather. I have to admit that I too need the aircon in order to sleep well. It is like the chicken or the egg. The hotter the weather, the more energy is used to cool down, leading to even hotter weather.

No one needs the hot water heater anymore when you can just turn the tap and the water that you get is already hot. Imagine you have to wait for the water to cool down before taking your shower!

Tory Green Proposals

The London Daily Telegraph on 24th Nov 2009 reported that the opposition Conservative Party or Tories as they are called are proposing a coupon or voucher incentive to encourage households to recycle. These vouchers could be claimed from Marks and Spencer and Tesco. It was expected that claims up to GBP130 could be accumulated by a household per year.


It is estimated that these incentives could encourage households to recycle and the national recycling rates will increase by at least 30 per cent annually.

If more people were to recycle, there will less pressure on the landfills as less rubbish will be created and dumped. Councils would spend less on filling up the landfills and thus the money saved on landfill taxes could go to finance the claim vouchers.

The recycling plan is part of several green measures that also include:

* cutting carbon emissions in Britain by 10 per cent within a year

* creating the country’s first ‘green investment bank’

* introducing Green ISAs, encouraging investment in green technologies

* making Whitehall energy consumption ‘transparent’.

The Conservatives have carried out a pilot scheme in the Tory-led council areas of Windsor and Maidenhead where recycling points are set up where the vouchers can be redeemed online and spent at hundreds of local shops.

The points are then uploaded onto a computer database which can be accessed by residents to collect and redeem the points. It has enabled residents to earn a maximum of £130 per year in vouchers and discounts.

At the moment, 37 per cent of household waste in England and Wales is recycled, up from just 7.5 per cent in 1996. But landfill taxes levied by the Government are still set to rise from £40 a tonne to £70 a tonne in the next three years.

The Conservative plans to increase recycling rates are likely to be welcomed by many Councils that fear facing swinging European Union fines if they the number of landfills are not reduced.

The ‘green’ bank would consolidate public funds that is divided across a number of current Government climate change initiatives. It would also bring in private sector funds which would be used to create jobs, encourage innovations and encourage companies to invest in Britain.

Green ISAs (Individual Savings Accounts) will also be used to encourage members of the public to invest in green technologies.

Under the new green Tory plans, details would also be published online of the energy consumption of every Whitehall department so that the public can hold ministers and civil servants to account for their carbon footprint.

Let us see how far the Conservatives' proposals will be taken by the Labour government and implemented.

When Less is Best

Thursday's Daily  Telegraph says it well. It is not something new.

Studies have shown that we can save the planet by consuming less and by cutting on our wastes. We are to go back and do as our forefathers did. Eat less meat and reduce, reuse and recycle.

The report by the UK Government agency in charge of cutting waste, WRAP (Waste and Resources Action Programme), pointed out that one third of what we throw can still be used. So they are suggesting that we do not buy new things but rent them because by doing so, less goods are manufactured and thrown in landfill, therefore cutting greenhouse gas emissions. Being thrifty always helps, especially when times are bad.

Items that you can rent include tableware, gardening tools, new electronic gadgets, ski equipment, clothes, telephones and cars.

It was reported that the UK Government is committed to cutting greenhouse gas emissions by a third by 2020. The research found that better use of resources, by cutting down on packaging and boosting recycling - as well as consumer lifestyle changes - could cut 254 million tonnes or up to 10 per cent of that target over the next ten years.

Changing consumer behaviour is going to be very challenging for any society. A lot has to be done to educate society that you can reduce greenhouse gases simply by using less and consuming resources more efficiently.

So eat less meat, wear used clothes and reduce,  reuse and recycle whatever and whenever you can.

Green Incentives in 2010 budget

Green is the way to go for the Malaysian government! The new budget tabled by the Finance Minister who is also the Prime Minister on Friday offers the following incentives to promote green technology:

• Stamp duty exemption for buyers of buildings with Green Building Index certificates
• Tax exemption equivalent to the additional capital expenditure to obtain Green Building Index certificates from Oct 24 this year to Dec 31, 2014
• RM1.5 billion soft loan for companies using green technology
• RM20 million to intensify awareness on green activities
• Putrajaya and Cyberjaya to be developed as pioneer townships in green technology 

I think the budget is good for starters. It should spur developers to build environment friendly residential homes and offices. Entrepreneurs will now be encouraged to create more sustainable businesses.

So folks in Putrajaya and Cyberjaya, buckle up!You must be ready to set the trend and become green pioneers in the Green Revolution.

Climate Change: More political will needed

London newspaper, the Daily Telegraph environmental correspondent, Louise Gray reported that scientists agreed that if the emission of greenhouse gases could be halved by 2050, then the world temperature rises would be below the dangerous level of two degrees C (3.6 degrees F).


 A WWF report found that this will require a "green industrial revolution" by 2014, with heavy investment in green technology involving low carbon emissions and away from the use of fossil fuels. Green technology would include the utilization of  wind, solar, nuclear and clean coal.

It will also mean switching to electric cars and improving energy efficiency by insulating our homes and wasting less electricity.


The above warning comes as ministers and officials from around the world meet in London this week for the Major Economies Forum. The MEF was set up by President Obama to give ministers an opportunity to solve difficult issues before the world meets in Copenhagen in December to agree a new deal on climate change.

More pressure will be put on rich countries, including the US, to sign up to legally-binding targets to cut carbon emissions. Innovative new measures are to be formulated to reduce deforestation, including plans to pay poorer countries not to chop down trees.

The WWF said both rich and poor countries need to start investing in renewable energy and encouraging behaviour change among citizens in order to meet the targets.


Downing Street is also concerned that there is no agreement on how to finance a climate change package in developing countries.

British Prime Minister Gordon Brown was quoted in the Guardian today warning that floods and droughts would be a normal occurence unless governments speed up negotiations on climate change before vital talks in Copenhagen in December.The prime minister will deliver his warning to a meeting of environment ministers brought together under the umbrella of the Major Economies Forum. The 17 countries in the forum are responsible for 80% of greenhouse gas emissions.
It was pointed out that India was ready to set itself non-binding targets for cutting carbon emissions, while China said it would curb the growth of its emissions by a "notable margin" by 2020, without much specified figures.

The US special envoy for climate change, Todd Stern, said developing economies must boost their efforts to curb emissions, warning it was "certainly possible" that no deal would be agreed in Copenhagen."What we need to have happen is for China and India and Brazil and South Africa and others to be willing to take what they're doing, boost it up some, and then be willing to put it into an international agreement," he said.

(Note that efforts to be made by the US is not mentioned. It is the US that had not ratified the previous protocols to reduce carbon emissions).Developing countries on the other hand place the blame on the developed countries for failure to reduce carbon emissions and the blame game continues at the expense of Mother Earth.If these situation persists, then not much progress is expected in Copenhagen.

In Malaysia, as in many other developing countries, generally the average man in the street is not very concerned about climatic change. Attitudes have to be changed if we were to save the earth from further destruction. Although there is already a Green Technology Ministry, a Ministry to deal with climate change has not been formed.Apart from the small tremors felt when there is an earthquake in Sumatra, Indonesia and heavy rain when Manila is hit by typhoons; Malaysians do not connect these events as consequences of climate change.

Carrefour joins the bandwagon to reduce the use of plastic bags

CARREFOUR has now joined in the 'Say No to Plastic Bags' campaign. (See report). It recently launched a 100 day countdown to end free distribution of plastic bags at the checkout counters of its newest outlet in Bandar Tun Hussein Onn, Cheras. Maya Karin, Malaysia's popular award winning film actress and nature lover, was invited to witness the launching.

The campaign hopes to save the Irrawaddy River dolphins that are often sighted along the coasts of Sarawak and Sabah.

Carrefour, in collaboration with the Malaysian Nature Society (MNS), will help raise awareness to protect the dolphins as their natural habitat had been seriously jeopardised by plastic bags.

An exhibition has been put up to educate customers into adopting a new habit of reusing their green shopping bags.

Maya Karin was positive that in 100 days, the Carrefour store will further reduce its environmental footprint once there is no more free distribution of plastic bags.

“I will follow up very closely on the efforts and will even step in to speak to the customers about the importance of cutting back on plastic bags,” said Maya after the launch.

According to Carrefour Malaysia’s marketing and communications director Low Ngai Yuen, Carrefour Malaysia has allocated eight eco-friendly checkout lanes at the new store, that prioritise customers who have chosen to reuse their shopping bags.

Well, this campagn should last more than 100 days to save the dolphins as Malaysians need more time to change their ways. Perhaps, Carrefour will save the turtles next.