Friday, July 17, 2009

Executive Unawareness of Environmental Impacts

Most companies hire consultants to do their environmental programs for them. On the other hand they hire ad agencies or PR companies to promote publicity campaigns, while executives are just willing to pay as long as the proposal looks good on paper and does not affect the traditional bottomline.

In emerging economies, the choices for environmental consultants or PR agencies are still quite limited and more often than not, we rarely encounter agencies who are specialized for green campaigns since the market is very limited. Such contractors work mutually exclusive from each other.

In the west, to ensure truth in green advertising, the use of life-cycle assessment for environmental claims is undertaken (http://blog.green-consultancy.com/2009/03/26/no-room-for-greenwash-in-advertising/). The use of such environmental impact assessment methodologies have not yet taken off in the developing world since it is too costly and few experts know about the significance of such methodology in the EIA process. People still think that the process is heavily technical but product LCA can easily be done by following the simplified framework of of ISO 14040, however it takes time. A couple of years ago, I did some research on the use of ISO 14040 in application to the specifications and guidelines of ISO14001 with the proper guidelines and safeguards, any layman who is familiar with their jobs and products can do it, but it will take some time and a lot references on data of the actual environmental impacts. I'll try to make a simplified outline and post it next time.

Oftentimes, we work for frustrated executives whose time lines are not in line with achieving sustainable development. They always want the quick fix solution, like the picture I posted above, they see compliance problems as if they are mere cracks on the wall that just needs a little dab of putty and paint and anyway so far no company has totally closed business due to non-compliance with environmental standards. Anyway, national and local regulatory agencies greenwash themselves, right?

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Thursday, July 16, 2009

Fast Food in the Third World

For most of my life in the developing world, fast food has been a luxury item for the rest of the population. For most families in Metro Manila, getting everyone to eat together inside a fast food outlet on a Sunday after mass is oftentimes the only luxury an average family could afford. In lower income communities, this could happen rarely in the course of the year. The opposite is true in the developing world, with a fast-paced life, fast food became a source of convenience and the consumption rate is faster.


This condition is never a reason for fast food companies to become less socially and environmentally responsible once they operate in the context of a third world economy where monitoring of environmental standards is much more lenient. However, the core structure that made a fast food successful is in terms of speed, quality food and low price is the structure that makes it unsustainable since it utilizes so much resources and produces too much wastes within the course of its life cycle.


The current trend in developing countries had been returning to community-based lifestyles where the supply chain is limited among local producers and benefits are reaped by local consumers. In doing so, the impacts of products are not magnified. Community-based fast food had always been the practice in the Third World where street vendors with minimal impacts on the supply chain, using local produce and serving local produce had been in existence for ages. Yes, street vendors do have impacts on the environment and even on public health but the magnitude of its environmental impacts is only a fraction of what is expected from a major fast food chain.


It will be very difficult for fast food companies to let go of the western standard and revert back to the community-based approach to doing business, it has to become a long and steady process and like the American Auto Industry, the fast food is still in its learning stages when it comes to sustainability, lesson as an industry is never to say that you already have a PhD when you are still grappling with the hormonal changes of middle school that's a blatant lie and in terms of environmental efforts you basically call that greenwash.


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Wednesday, July 15, 2009

Greening of Business in Developing Countries

I got myself a copy of this book sometime in 2005. I didn't buy it from a bookstore or the UNRISD or other publishing house, I found it on Booksale at the basement of SM Manila. I bought the book for 200 pesos (around US$4) way below its actual value since it is a used copy (I checked at Amazon, a new copy is US$99!). Probably, someone from the first world found his or her copy insignificant given the market context of the developed world and decided to donate it. Luckily, someone in the Third World found it...that lucky person was me at a time when I was struggling in financing my graduate studies.

Richard Welford's article Disturbing Development laid a framework of how corporations should act towards achieving sustainable development. According to the article, policy areas and tools for sustainable development must not be simply limited to the physical environment but also other factors such as empowerment, economics, ethics, equity and education.

Fast forward three years later and working in the fast food industry, being quite young and being subordinate to a number of senior consultants with massive years working for the industry, none of my suggestions seemed to go beyond the meeting table. It is still difficult for people to drop their corporate biases and the current system in terms of regulatory guidance for the fast food does not enable the industry to follow a path towards sustainable development because "permitting" is still the core issue. Performance is equated with permits. On the other hand suggestions from civil society groups do not fall in the right context, just awkwardly inserted in an undefined environmental policy.

If any of my former colleagues are reading this, I'm very happy to lend you my copy as long as you return it and change your paradigms. Establish a good framework and please stop committing greenwash by posting ads that are unvalidated.

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