Green Entrepreneurship. Oliver Ortis, Green Jobs Specialist, Green Jobs in Asia Project, ILO Indonesia Office Jakarta

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1 Green Entrepreneurship Oliver Ortis, Green Jobs Specialist, Green Jobs in Asia Project, ILO Indonesia Office Jakarta

2 Green Entrepreneurship Agenda What is a Green Enterprise? Green Standards Assure long term sustainability through green practices and decent work Environmental Impact Assessment Green Marketing Case studies

3 The two defining challenges of the 21 st century Averting dangerous climate change and protecting life-support on earth Creating jobs, decent work, well-being and dignity for the excluded

4 Enterprise An enterprise is an economic organization that produces and exchanges commodities to make financial profit. An enterprise can be founded by a single individual or a group of individuals. An enterprise mainly deals with two things, commodities and cash, which constantly flow between suppliers enterprises suppliers thus forming two flows:

5 Enterprise Commodity flow: purchase a commodity from the market (equipments, raw materials or a service) and sell a commodity (products or services) to the market Cash flow: cash outflow (cost of raw materials, rent, staff salaries) and cash inflow (sale of goods).

6 Types of Enterprises All kinds can be(come) green enterprises Trading enterprise Service enterprise Manufacturing enterprise Agriculture and forestry enterprises Other distinctions Social enterprise Classification by customer

7 Green Enterprise Green businesses adopt principles, policies, and practices that improve the quality of life for their customers, their employees, the communities in which they operate and the environment. The goal of a green business is to make a profit while minimizing its environmental footprint and contributing to environmental protection. Basically all kinds of enterprises can be green.

8 Green Business Approach Commitment How the entrepreneur commits to continuously reduce the impact of the business to environment and bring more benefits to society. Understanding How the entrepreneur understands the impact of every aspect of the business to the environment and society. Improvement Action plan and commitment to improve the environmental standards of the business. Communication Always communicate the environmental impact of the business to staff and society.

9 Decent Work Productive work Fair income Security in the workplace Social protection Personal development Social integration, Participation Equality of opportunity and treatment for all women and men

10 Green Jobs Green Jobs can be defined as the employment created in economic sectors and activities, which reduces their environmental impact and ultimately brings it down to levels that are sustainable. Green Jobs = Decent Work + Environmental Sustainability

11 Green Supply Chain Flow of a good or services from the initial producer to the final consumer. The inbound and outbound side constantly affect the business within this supply chain. Green supply chain management: Design, planning, execution, control, and monitoring of supply chain activities. Creating net value, building a competitive infrastructure, improve logistics, synchronizing supply with demand. Guaranteeing green compliance throughout the supply chain. Measuring performance in an economic sector.

12 Green Supply Chain Choose partners in your supply chain, which also follow green principles. Choose green suppliers and green distribution channels. Ensure that the origins of products can be traced and products are produced, processed and handled in a sustainable way througout the supply chain. Ensure green procurement, source locally. Raw Materials Production Distribution Retail

13 Green Standards Green Operational Standards Cover the green management and operations of a business (energy, water, waste and resource management, etc.) Green Competency Standards Cover the green skills of the human resources in the business (how to safe energy, how manage the waste sustainably, etc.) Green Product Standards Cover the green features of the product (raw materials, carbon footprint, production process etc.)

14 Eco-Labels

15 Green Standards Why are green standards and certification important? Comparability across regions and countries. Facilitation of management and product handling across the supply chain. Easy identification of green by consumers, demanded by consumers. Basis for certification.

16 Green Standards and Certification Standards and certification are mostly voluntary and can be set by Governments, Supragovernmental Organizations (e.g. ASEAN, EU), International Organizations (e.g.iso, Global Ecolabelling Network), Industry Associations, private companies Classification: First-, Second- and Third Party Standardisation/Certification

17 Green Operational Standards Recycling and Waste Reduction Energy and Water Conservation Pollution prevention Green procurement Reduce Reuse Recycle Upcycle Separate waste Dispose in a suitable way Save heat and electricity use Save water use Use efficient euqipment Use only when needed Source from renewable energy sources Use low emission equipment Operate efficiently Produre envionmentally sustainable and local materials/products Choose suppliers based on sustainabe principles Green distribution Green after sales service Decent Work Avoid transport to long distances Use the most sustainable method of transport Choose distributors based on sustainabe principles Avoid transport to long distances Use the most sustainable method of transport Choose distributors based on sustainabe principles Productive work Fair income Security in the workplace Social protection Personal development Social integration, Participation Equality of opportunity and treatment for all women and men

18 Green Product Standards Examples First Party Standard/Certification: Standars set by an organization for itself Second Party Standard/Certification: Standards set by an industry: Energy Star, Sustainable Forestry Initiative, Fair Trade Third Party Standard/Certification: Standards set by independent standardization body: e.g. ISO Standards, Control Union Certification

19 Green Competency Standards Examples National Competency Standards for Eco- Tourguides Competency Standards for Green Homestays, etc.

20 Environmental Impact Assessment The environment consist of: Non-living physical elements (water, air and soil) Living organisms (plants and animals) Social components (people and interactions between them) Internal and external environment. All businesses, even green businesses have an impact on the environment one way or the other. For a green businesses it is an imperative to eliminate or minimize all negative impacts as far as possible and mitigate the negative effects.

21 Environmental Impact Assessment Internal use and external use Basic EIA method to evaluate the possible impact of the business on the environment. Check the legal regulations on whether your business must submit a full EIA. Identify any pollutants which might be created by your business (Water pollution, solid waste pollution, air pollution, land pollution, noise pollution). Provide measures to mitigate any negative impacts.

22 Green Marketing 5Ps Product Price Place Promotion People

23 Green Product Sustainable raw material procurement. Use recycled materials. Green production processes. Low carbon footprint. Green Feature: contributes to the conservation of the environment

24 Green Distribution Transport device low in GHG and other hazardous emissions Low per item carbon footprint. Choose an energy efficient building for your outlets.

25 Green Promotion Communicate the green features of your products and your business. Eco-Labeling. Minimize resource intense promotion (e.g. Printed materials)

26 Green People Recruit staff with a basic environmental and social concern. Train your staff continuously on green principles. Have your staff live the green principles. Have your staff communicate the business green principles to the outside (to customers, partners, public..)

27 Green Pricing Include external costs into your pricing and internalize them. Take into account in your budget fair salaries to your employees, fair payments to your suppliers and a budget for CSR.

28 Case Studies Energy Tourism Food and Agriculture Waste Management Creative Industry

29 Case study Energy: Biogas USP Clean and affordable energy and green waste solution Green features Reduction of direct GHG emissions from manure Reduction of dependency on non-renewable energy sources Local manufacture and employment creation

30 Case Study Tourism: Green Guesthouse USP Sustainable Village Tourism Green Features Local Employment and community involvement Local sourcing Tourist and locals education on environmental protection and local culture Preservation activities

31 Case Study Food and Agriculture: Organic Rice Farming USP Chemical Free and Healthy Rice Green features No use of chemical fertilizers, pesticides and seeds No soil contamination No water contamination Preserving cultivation techniques (crop rotation..) Minimization of use of heavy equipment

32 Case Study Waste: Waste Management Trainings USP Provide knowledge about sustainable waste management Green Features Educate communities and companies Show how to Reduce, Reuse and Recycle Raise green awareness Support clean environment

33 Case Study Creative Industry: Recycled Jeans Bags USP Fashionable, affordable, functional and envrionmentally sustainable bags Green Features Using recycled raw material Helping waste reduction Providing local employment

34 Thank You

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