United Nations Environment Programme / Division of Technology, Industry and Economics

Profiting fromProfiting fromCleaner ProductionCleaner Production

CompaniesCompanies

2

I. Cleaner Production Competitive Advantages Definition Hidden Costs of Waste Parallel Concepts

II. Case Study

III. Role of Companies

IV. For More Information

3

Cleaner ProductionCleaner Production

Competitive AdvantagesCompetitive Advantages

Cleaner Production helps companies: Increase productivity Reduce production costs Use resources more efficiently Produce safer and better products

and services Reduce levels of pollution and risk Comply with Environmental Management

Systems and get ISO 14000 certified Improve company image

4

Cleaner Production Cleaner Production

DefinitionDefinition

A preventive environmental strategy applied to processes, products and services to:

Increase overall efficiency and productivity

Improve business opportunities Reduce human and environmental risk

5

Cleaner ProductionCleaner Production

Hidden Costs of WasteHidden Costs of Waste

Treatment & disposalTreatment & disposal

Company imageCompany imageLiabilityLiability

Natural resourcesNatural resources

Non-compliance Non-compliance Human resourcesHuman resources

6

Cleaner ProductionCleaner Production

Parallel ConceptsParallel Concepts

Pollution Pollution Prevention Prevention

(P2)(P2) Eco-efficiencyEco-efficiencyGreen Green

ProductivityProductivity

Waste MinimizationWaste Minimization

7

I. Cleaner Production

II. Case Study MET Foundry, Inc. Sand Waste Sand Reclamation Results

III. Role of Companies

IV. For More Information

8

Case StudyCase Study MET Foundry, Inc.MET Foundry, Inc.

MET Foundry, Inc. produces electric motor components from iron and steel.

During production, iron is melted and poured into moulds.

Only 30% of sand used in moulds is recycled.

9

Case StudyCase Study

Sand WasteSand Waste

Sand contains phenolic resin which upon disposal contaminates soil and groundwater. The process also generates dust which contributes to air pollution.

0

20

40

60

80

100 30% recycled sand30% recycled sand

70% unrecycled 70% unrecycled sandsand

contaminationcontamination

10

Case StudyCase Study Sand ReclamationSand Reclamation

MET Foundry adds a sand reclamation process that allows the company to recycle approximately 80% of used sand.

0

20

40

60

80

100 80% recycled sand80% recycled sand

20% unrecycled 20% unrecycled sandsand

11

Case StudyCase Study ResultsResultsThe sand reclamation process helps MET Foundry reduce sand consumption and pollution levels.

Air pollution from dust reduced by 22 tonnes/year

Sand consumption reduced by 710 tonnes/year

Payback period: 1 year

Annual savings: $20,580

Initial investment: $20,730

12

I. Cleaner Production

II. Case Study

III. Role of Companies

Misconceptions

Realities

Actions

IV. For More Information

13

Role of CompaniesRole of Companies MisconceptionsMisconceptions

Cleaner Production is difficult and expensive to implement

Cleaner Production is technologically complicated and applies mostly to large companies

Cleaner Production requires specialized skills and expertise

14

Role of CompaniesRole of Companies RealitiesRealities

Cleaner Production: Makes companies more profitable Improves products and services Lowers risk Improves company image

Emphasis on environmentally sound investments and sustainable development

Makes companies more attractive as clients for banks due to: Improved cash flow Rapid return on capital or operating investments

15

Role of CompaniesRole of Companies ActionsActions

Apply good housekeeping

Change technology or equipment

Redesign products

Modify or control processes

Substitute input materials

Recycle or reuse materials

Produce useful by-products

16

I. Cleaner Production

II. Case Study

III. Role of Companies

IV. For More Information

17

For More InformationFor More Information

UNEP DTIE Cleaner Production www.uneptie.org/cp

UNEP DTIE Cleaner Production Financing www.financingcp.org

United Nations Industrial Development Organization www.unido.org

Sustainable Alternatives Network (SANet) www.SustainableAlternatives.net