United Nations Environment Programme / Division of Technology, Industry and Economics Profiting from Cleaner Production Companies

2 I.Cleaner Production Competitive Advantages Definition Hidden Costs of Waste Parallel Concepts II.Case Study III.Role of Companies IV.For More Information

3 Cleaner Production Competitive Advantages Cleaner Production helps companies: Increase productivity Reduce production costs Use resources more efficiently Produce safer and better products and services Reduce levels of pollution and risk Comply with Environmental Management Systems and get ISO certified Improve company image

4 Cleaner Production Definition A preventive environmental strategy applied to processes, products and services to: Increase overall efficiency and productivity Improve business opportunities Reduce human and environmental risk

5 Cleaner Production Hidden Costs of Waste Treatment & disposal Company image Liability Natural resources Non-compliance Human resources

6 Cleaner Production Parallel Concepts Pollution Prevention (P2) Eco-efficiency Green Productivity Waste Minimization

7 I.Cleaner Production II. Case Study MET Foundry, Inc. Sand Waste Sand Reclamation Results III.Role of Companies IV.For More Information

8 Case Study MET Foundry, Inc. MET Foundry, Inc. produces electric motor components from iron and steel. During production, iron is melted and poured into moulds. Only 30% of sand used in moulds is recycled.

9 Case Study Sand Waste Sand contains phenolic resin which upon disposal contaminates soil and groundwater. The process also generates dust which contributes to air pollution. 30% recycled sand 70% unrecycled sand sand contamination

10 Case Study Sand Reclamation MET Foundry adds a sand reclamation process that allows the company to recycle approximately 80% of used sand. 80% recycled sand 20% unrecycled sand sand

11 Case Study Results The sand reclamation process helps MET Foundry reduce sand consumption and pollution levels. Air pollution from dust reduced by 22 tonnes/year Sand consumption reduced by 710 tonnes/year Payback period: 1 year Annual savings: $20,580 Initial investment: $20,730

12 I.Cleaner Production II.Case Study III.Role of Companies Misconceptions Realities Actions IV.For More Information

13 Role of Companies Misconceptions Cleaner Production is difficult and expensive to implement Cleaner Production is technologically complicated and applies mostly to large companies Cleaner Production requires specialized skills and expertise

14 Role of Companies Realities Cleaner Production: Makes companies more profitable Improves products and services Lowers risk Improves company image  Emphasis on environmentally sound investments and sustainable development Makes companies more attractive as clients for banks due to:  Improved cash flow  Rapid return on capital or operating investments

15 Role of Companies Actions Apply good housekeeping Change technology or equipment Redesign products Modify or control processes Substitute input materials Recycle or reuse materials Produce useful by-products

16 I.Cleaner Production II.Case Study III.Role of Companies IV.For More Information

17 For More Information UNEP DTIE Cleaner Production UNEP DTIE Cleaner Production Financing United Nations Industrial Development Organization Sustainable Alternatives Network (SANet)