Examples of voluntary and mandatory tools to preserve the environment

Certification schemes and Extended Producer Responsibility

A responsible management of natural resources is a key driver in the path towards sustainable development. When applying this concept to the business world, it is interesting to note how there are both voluntary schemes and mandatory regulations pushing companies into this direction. In this blog post I would like to outline the main characteristics of voluntary sustainability assessments – certification schemes – and then show a mandatory regulation at European level – the WEEE Directive, Waste Electrical and Electronic Equipment.

Certification schemes are voluntary market driven mechanisms used by the companies to reduce their risks and get closer to the sustainability concept. Independent third-party verifiers certify the applying companies that can prove that their products or processes (considering the whole chain of custody) meet the sustainability standards. Without going into details of the certification process, I would like to highlight three aspects that I find noteworthy. These Certification standards often are “forerunners of sustainability” as they rise the threshold above simple compliance to law requirements. It happens that governments and institutions often follow and adapt their regulation, especially if the sustainability standards have a strong credibility because defined through a wide discussion process involving all the stakeholders.

Then, it could be somehow surprising to see that there are sustainability certification schemes basically for each industry sector (also mining, oil and gas…): even if controversial, still it is a positive thing thinking that even these industries can try to improve and have a responsible management because sometimes legislation is not enough to preserve the environment.

Lastly, even if these certifications represent a cost in the short term for the companies (costs to meet the standards, auditors, fees…), when looking at the medium long term time scale they can turn into an investment: both for the company itself (consumers, markets and investors are more and more rewarding these practices) and for the society (at some extent they include externalities therefore future generations can theoretically “save” on conservation or restoration).

Now, for a snapshot of a sustainable mandatory regulation, I would like to mention the WEEE, Waste Electrical and Electronic Equipment Directive. The WEEE Directive 2002/96/EC promotes the collection and recycling of hazardous substances in electrical and electronic equipment, those substances whose use is restricted by the EU legislation (RoHS Directive 2002/95/EC). In force since 2003, it has been recently recasted: the member states now have the obligation to reach the collection targets to 85% of WEEE generated (about 20kg per capita up from 4kg per capita of the previous Directive) ensuring the separate collection of about 10 million tons of hazardous so-called e-waste from 2019. The new Directive also sets stricter documentation rules and clearer measures to try to tackle the illegal export of e-waste to dumping sites in poorer countries (such as the Agbobloshie dumping yard in Accra, Ghana)

This Directive falls within the environmental policy approach of the EPR, Extended Producer Responsibility, according to which governments force manufacturers to internalize the cost of recycling/disposal within the product price, shifting it away from the municipalities: “a producer’s responsibility for a product is extended to the post-consumer stage of a product’s life cycle.” Usually incentives are provided to producers to take into account environmental considerations when designing their products (OECD definition). As highlighted by a recent report by the European Commission EPR schemes can support reaching a more resource efficient society, decreasing the impact of the products on the environment.

These two examples show that even if the path towards sustainability is tough and steep there are voluntary and mandatory tools that can support the ongoing process of having a more responsible management of natural resources.

Comments Off on Examples of voluntary and mandatory tools to preserve the environment / 04 Feb 2014 por guidopreti
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