Green Business Case
Studies in Asia
Yang, Si Eun
Graduate School of
International Studies,
Korea University
2nd Training of Trainers Capacity Development Seminar29 March – 1 April, 2010
Seoul, Republic of Korea
Contents
Part I. Mainstream Business
- Cleaner Production: Sharp Corporation
- Green Products: Samsung Electronics
Part II. Pro-Poor Green Business
- Rural Electrification: Sunlabob
- Green Loan: Xac Bank
Part I.
Mainstream
Business
Cleaner Production
• A leading manufacturer of
photovoltaic power systems
and electronic appliances
• operates 38 plants in more
than 20 countries worldwide
• To improve environmental
performance Sharp
established a system to
develop environmentally
sustainable Green Factories
based on Green Factory
Guidleine.
Green Factory Guidelines
■10 Key Areas
1) greenhouse gases
2) energy
3) waste
4) resources
5) chemical substances
6) the atmosphere, waste and soil
7) harmony with nature
8) harmony with the community
9) environmental awareness
10) information disclosure
■ Based on these guidelines Sharp set
unique quantified environmental performance criteria
■ SGF Quantified Environmental Performance Criteria
and Assessment Weighting in Japan
■SGF II System
Beginning of fiscal 2008, Sharpe
launched SGF II, a new initiative for
plants in Japan that have attained
SGF certification
■ SGF II Quantified Environmental Performance
Criteria and Assessment Weighting in Japan
※Total score is 200point including previous SGF criteria
-
SGF II adds an assessment of “soft” aspects to the previous initiative such
as the know-how to maintain and upgrade environmental equipment.
Achievement
■ Since Sharp Corporation has launched this in-house
certification activity in 2003, 16 plants out of 38
worldwide were certified as a Green Factories and 21
plants were certified as being a Super Green Factory.
■ Curbing Green house gasses emitted in 2008
■ Improved in minimizing and recycling waste
■ Improved in water recycling
■ Amount of Sharp Group’s Greenhouse Gas Emission
In fiscal 2008 reduced
total GHGs emission
by 6%.
• Partly due to Japanese
economic recession
• However, effort by SGF
/ SGFII and installation of
PFCs emission abatement
system are major
contributors.
•
•
•
10% reduction in amount of waste etc. discharged by the Sharp Group(Japan
& overseas)
achieved Zero discharge in landfill in 8 consecutive year in 2008
Valuable resources recovered from waste at 10 plants in Japan expanded by
31% compared to the previous fiscal year, while the total amount of waste
discharged decreased by 16%
• The amount of water used by the Sharp group in fiscal 2008 decreased by
11% over the previous fiscal year, thanks to increase in recycling water and
decrease in production volume
Greening Products
Samsung Electronics
■ Founded in 1969 in Korea, Samsung Electronics Co., Ltd. manufactures
and sells a wide variety of electronic products, communication
devices, and semiconductors.
■ The company has responded to the challenges of climate change and
environmental degradation by taking green management policy as
one of its CSR initiative
■ Green management principles: greening of; management, products,
processes, the workplace, and communities.
Greening Product?
■ Samsung Electronics defines greening
products as “minimizing environmental
impacts throughout the product
development, manufacturing, usage, and
disposal stages”
■ Geening of products can also play an
important role in promoting a carbon-lean
and low energy lifestyle amongst consumers
by reducing CO2 emissions emitted by using
the products.
How to Greening Products?
■ life cycle assessments (LCA)
■ eco-design assessment systems
■ eco-friendly supply chains
■ hazardous material regulation response systems
■ extended end-of-life product disposal capacity
■ Extended Producer Responsibility (EPR) systems
Achievements
•
Acquired environmental certifications in major global markets
•
six environmental certifications from Republic of Korea (EDP),
China, U.S. (EPEAT), Germany (Blue Angel), Sweden (TCO) and the
EU (Eco-Power) covering 1,900 models in seven product groups;
printers, PCs, monitors, TVs, DVDs, refrigerators, and washing
machines.
•
The largest number of certifications ever won by a single
electronic company in the world
Eco-Products
LED TV
Energy Saving
-↓energy consumption by 43% ( 183W→105W ) ,
- ↓ remaining power by 86% ( 0.7W→0.1W )
☞ ↓ carbon emission by 38.1 kg annually
( equivalent of planting 14 fine tree )
Resource Efficiency
-↓ 6.3% in weight ( 24kg→22.5kg ), depth 70.4%( 9.8cm→2.9cm )
-↓ package volume by 31%
-
(↑Load efficiency by 43%, 203EA → 291EA)
Material Safety
- Non VOC(VOC : Volatile Organic Compounds) and Mercury employed
- employ an LED back light unit (existing products contain Hg 77mg )
- free of six hazardous materials regulated by EU standards in the
production process
[ UN46B7000WF ]
Application of environment-friendly
packaging material for 42inch PDP-TV
• development of folding stand of PDP TV is an idea for package
material reduction and cost saving
• Fold the stand as following picture at packaging time for
minimize its depth and unfold the stand when TV is installed.
[ Before]
[ After ]
Exterior Size of Package
• Halved its depth of previous
model. (Previous : 455mm,
Improved : 228mm)
• Efficiency : ↓ 66% distribution
cost from Korea to LA, U.S.A.
∵ the number of lightened TV has
risen from 104 to 312 in container
with 40ft-HC loaded weight.
[ Comparison of external package size reduction ]
Cushion Volume
• The weight of 503g of cushion reduced in comparison
to the previous one.
(Previous : 986g → Improved : 483g)
Improved model Previous model
[ Case 1 ]
Improved model Previous model
[ Case 2 ]
Corrugated cardboard usage
• 0.9775m2 of corrugated cardboard usage is reduced based on
outer box.
[ Before]
[ After ]
Part II.
Pro-Poor Green Business
Renewable Energy – solar rechargeable lantern
Sunlabob
■ Founded: 2001
■ Activities: Full service energy provider selling
hardware and energy services in remote regions
where there is no access to grid electricity.
■ Size: Has installed over 5,600 systems in 450 villages
across Lao PDR
■ Location: Headquarters in Lao PDR, operations
across Southeast Asia and growing number in Africa
What Needs Were There?
■ Although 58% of Lao
population has access to
grid electricity this is
concentrated in cities
and town area.
■ High dependency on
Kerosene lamps for
lightening
- Respiratory disease
- Fire potential
-Cheap
-Easily maintained
Needs for
Alternative
Energy Resources
Solution?
Solar Energy
■
■
■
■
Cost competitive
No need to worry about rising fuel price
Cheap in long-term
Environmental friendly energy
Solar Rechargeable Lantern
•Last 10-20hrs depending on
battery and globe selected
•Simple to repair: Simple
construction and readily
available familiar components
•Manufactured/Assembled on
site by local staff/ Utilize as
much as possible local
material
•Can be used as ceiling lamp
or can be set on the table
Solar Lantern Recharge Station
■ Located in center of village for easy access
■ operated by village entrepreneurs under the franchise agreement with Sunlabob
■ can recharge 24 to 144 lanterns depending on the size of the solar array and battery
station
Achieve Economies of scale
Offer affordable recharging fee for village household
What are the Benefits?
■ Extra income generation using night time
■ Reliable and regular income for village
technicians / village entrepreneurs
■ Green job creation
■ Electricity supply in off-grid rural area
■ Less environmental impact
⇒ Rural Development and Poverty Alleviation
⇒ Improved Resilience and Capacity to Adapt
Climate Change
Green Loan – poverty alleviation
• Founded in 1998
• Activities: providing financial products and
services including microfinancing
• Size & Location: : forth largest commercial
bank in Mongolia with a nationwide network
of 77 branches and is headquartered in
Ulaanbaatar.
What Needs Were There?
In Ulaanbaatar 70 % of population lives in a ger, a traditional
Mongolian dwelling made of a wooden frame covered by layers of
wool felt.
What Needs Were There?
• Average winter temperatures: -20℃
• Households in ger-districts consume an average of 5 tons
of coal and 1.5 tons of wood per year.
 Pollution levels in the city during the winter season are on
average over twenty times higher than those of summer
 The poorest 20 % of the city’s population spends as much
as 40 % of their monthly income roughly a $140 a month
on coal and wood for heating.
 cuts in nutrition and health budgets
Xac Bank’s Eco Product Program
■offering low interest loans to make eco products financially
accessible to the residents of the Ger District
■ 3 types of green loans for personal consumption
 energy efficient stoves,
 ger covers
 energy efficient fuel
■ The loan products were developed in conjunction with
Financierings-Maatschappij voor Ontwikkelingslanden (FMO),
the entrepreneurial development bank of the Netherlands.
Energy Efficient
Stoves
■ Introduced a loan product for
the stove of 2 years duration
with zero down payment and
an annual interest rate of 17%
■ Stoves were developed and
tested by GTZ
■ a type of brick similar to that
found in a pottery kiln and are
designed to circulate and
retain heat for longer periods
than traditional stoves.
 reduces fuel consumption by
more than 60%/month
 helps to reduce a family’s air
pollution
Ger Covers
•large insulating blankets
composed of three separate layers
that wrap the entire outside of the
ger.
•designed by the UNDP but is
produced locally in Mongolia
helps to keep heat within the ger
results in a 50% reduction in fuel burned/m
Energy Efficient Fue
•loan to buy fuel from producers who
create efficient fuels from things like
compacted sawdust and gasified coal.
•more expensive than traditional fuels but
have less of a negative impact on the
environment by burning longer and
producing less carbon output.
 price difference between clean fuels and
brown coal is made up through clients
using less fuel to achieve the same heating
results
Carbon Revenues
■ Energy efficient products that the Bank is promoting are
standardized the amount of their carbon emissions can easily be
calculated
 it enables aggregate carbon offsets from the program to be sold
on the voluntary carbon market
■ In October 2009 bank finalized a Carbon Purchase Agreement
with Micro Energy Credits (MEC), a social enterprise which links
microfinance institutions to the carbon markets.
 additional revenue from carbon offsetting
 become the first micro-finance institution in the Northern
Hemisphere to generate carbon revenues.
 The revenue earned from carbon offsets can now be used for
further loans or other socially or environmentally beneficial
products.
What are the Benefits?
■ provides affordable means for low income
households to lower their fuel costs,
■ reduce air pollution and greenhouse gas emissions
from heating and cooking,
■ Allow them to stay warm during the long winter
season.
The bank has become a showcase of green business
practices by earning revenue from the carbon
markets while improving the lives of the poor.
Q&A
Thank You!!
Yang, Si Eun
Graduate School of International Studies, Korea University
Sieun.yang7@gmail.com