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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. ?.
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Green Business from the perspective of Workshop on Developing a Green Business Support Strategy for Ukrainian Private Business OrganizationsDonetsk, 7-8 October 2010 Herbert Köpnick, B.A.U.M.-Senior Advisor, Munich
Who is B.A.U.M.? • B.A.U.M. = BundesdeutscherArbeitskreisfürUmweltbewusstes 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 Businesswhatdoesitmean? Green companies and 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 • Itcan save a lotofmoneyandreduceexternaldependence • Itmakes a companymorecompetitive on international markets • Toprotecttheenvironmentis a corporateresponsibility • Itimprovestheimageof a company • Onlygreencompanieshave an economicfuture
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-efficiencyaswin-win-solution Possible savings through measures that pay off:* • energy efficiency: 20 - 40% • material efficiency: 20 - 30% • water efficiency: 20 - 40% * German price level
Savingsbyimprovingenergyefficiency * • 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: EUR61.000 • 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: EUR500.000 • Investment: EUR1.500.000 • 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 * AccordingtoRoland 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 billionEUR • Waste management 831 millionEUR • Water management 600 million EUR * Source: Austrian Society for Environment and Technology – OGUT, 2006
Green BusinessPolitical instruments • Regulatorylaw- Laws- Regulations- Directives • Economicinstruments- Taxesandduties- Tax brakesandsubsidies- Tradableemissionallowances • Voluntaryinstruments- Information - Adviceand Support- Cooperationagreements
Green BusinessVoluntaryinstruments • 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 betweenthe Bavarian State Governmentandthe Bavarian Business Community to promote Green Business
Environmental Pactof 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 Pactof BavariaResults • 3 umbrellabusinessorganizationswith 180 mem-berorganizationsand 5,500 singlecompaniesaremembers • About 4,000 certified environmental manage-mentsystems • 40% lessenergythantheaverage • More than 2,000 companiesnetworking in the Environment Cluster • High per capitaincome (EUR 34,400) • Low per capita CO2 emissions (6.5 t)