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Green Business from the perspective of

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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. ?
• B.A.U.M. = Bundesdeutscher Arbeitskreis für
  Umweltbewusstes 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 Business
what does it mean?


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
• It can save a lot of money and reduce external
  dependence
• It makes a company more competitive on
  international markets
• To protect the environment is a corporate
  responsibility
• It improves the image of a company
• Only green companies have an economic future
             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-efficiency
                as win-win-solution
Possible savings through measures that pay off:*

• energy efficiency: 20 - 40%
• material efficiency: 20 - 30%
• water efficiency: 20 - 40%

* German price level
                   Savings
        by improving energy efficiency *
•   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: EUR 61.000
• 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: EUR 500.000
• Investment: EUR 1.500.000
• 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

* According to Roland 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       billion EUR

• Waste management                             831       million EUR

• Water management                             600       million EUR

* Source: Austrian Society for Environment and Technology – OGUT, 2006
                 Green Business
            Political instruments
• Regulatory law
 - Laws
 - Regulations
 - Directives
• Economic instruments
 - Taxes and duties
 - Tax brakes and subsidies
 - Tradable emission allowances
• Voluntary instruments
 - Information
 - Advice and Support
 - Cooperation agreements
                Green Business
           Voluntary instruments
• Information
 about content, opportunities and benefits of Green Business
• Advice and support
 for implementation of green production and products and
 participation in green markets
• Cooperation
 between business organizations and state bodies
               Green Business
                Support 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 between the Bavarian
 State Government and the Bavarian Business
    Community to promote Green Business
Environmental Pact of Bavaria
          Signatures
      Environmental Pact of 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 Pact of Bavaria
                    Results
• 3 umbrella business organizations with 180 mem-
  ber organizations and 5,500 single companies are
  members
• About 4,000 certified environmental manage-
  ment systems
• 40% less energy than the average
• More than 2,000 companies networking in the
  Environment Cluster
• High per capita income (EUR 34,400)
• Low per capita CO2 emissions (6.5 t)

				
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