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.

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: % material efficiency: % water efficiency: % * 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: kWh/a (= 11%) Savings in cost per year: EUR Investment: EUR ROI: 210 % CO 2 reduction per year: 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: kWh/a (= 27 %) Savings in cost per year: EUR Investment: EUR ROI: 151% CO 2 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: kWh/a (= 44 %) Savings in cost per year: EUR Investment: EUR 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: 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)