Our world is deeply interconnected. Whether we focus on the networks created by our digital technologies, or on the careful balance created by Mother Nature in the symbiosis between all forms of life, it is clear that we are part of a web. The future depends on us contributing to that web in a sustainable manner.
This is precisely what the United Nations Industrial Development Organization (UNIDO) aims to do by establishing eco-industrial parks. I first came across the concept when I worked for UNIDO many years ago. The parks are one of UNIDO’s contribution to the United Nations’ Sustainable Development Goals and are a step closer to a sustainable future.
What is an eco-industrial park?
According to UNIDO: “An eco-industrial park is a community of businesses located on a common property in which businesses seek to achieve enhanced environmental, economic and social performance through collaboration in managing environmental and resource issues.” Essentially, an eco-industrial park moves beyond the concept of an industrial park to account for climate change and the increased need for sustainability. The aim is to achieve industrial symbiosis and move one step closer to the circular economy.
Key components of an eco-industrial park include:
– Park management performance, which includes monitoring the park, as well as planning and zoning.
– Environmental performance, which includes monitoring energy consumption, waste management, the natural environment and climate resilience, and the use of materials.
– Social performance, which includes community outreach and dialogue, and social infrastructure.
– Economic performance, which focuses on generating employment and creating economic value.
What are the benefits of an eco-industrial park?
In a world where the economy is defined by competition, it can be difficult to imagine the benefits of a landscape shared symbiotically among multiple stakeholders. But UNIDO’s Global Assessment of Eco-Industrial Parks in Developing and Emerging Countries proves that the benefits are manifold:
- Environmental benefits – Eco-industrial parks operate according to the concept of industrial symbiosis, which allows the parks to generate environmental benefits on a large scale. These parks have been shown to reduce CO2 emissions, water wastage, water consumption, the generation of hazardous waste and much more. They also encourage green spaces around and within the park, and the recycling of waste materials.
- Economic benefits – Eco-industrial parks encourage both direct and indirect employment opportunities. The sharing of resources leads to significant savings for the parks’ partners, allowing them competitive advantages in the wider economy. Partners may also receive benefits for participating in such parks, such as higher foreign investment and access to investment capital. Moreover, there are several indirect economic benefits, such as the upgrading of skills through collaboration, technology transfer and a better brand image.
- Social benefits – While eco-industrial parks are primarily created for economic and environmental reasons, there are also social benefits. These benefits – by-products of the social infrastructure created – can be very important in emerging economies. They include the creation of facilities such as schools, clinics, pharmacies and residential units. Such parks can also provide services such as vocational training and awareness outreach.
Real-life examples
One of the first examples of an eco-industrial park is Kalundborg Symbiosis, which is located in Kalundborg, Denmark. The partners of this park came together in the 1960s, before the term ‘industrial symbiosis’ was coined. Their aim was to combat shrinking resources and an increase in commodity prices by working together to exchange materials, water and energy streams between partners. Since then, Kalundborg Symbiosis has evolved organically, with companies collaborating on business projects that have increased revenue and making decisions together.
Today, the numbers speak for themselves. The companies save over €24 million per year between them, and achieve over €14 million in socio-economic benefits. The park converted a coal power station to biomass, reducing 635,000 tonnes of CO2 equivalents. And there are more environmental benefits in terms of energy and water consumption.
Today, eco-industrial parks are seen as a response to our environmental problem: they provide a way to be both focused on economic value and environmental conservation. In emerging economies, the cost savings and environmental benefits of these parks can have a huge impact. For example, Ulsan Mipo and Onsan Industrial Park, an eco-industrial park in South Korea, is home to 1,000 companies. Firms have invested $520 million in energy efficiency and other eco-friendly measures, and have estimated savings of $554 million. These companies reduced their CO2 emissions in 2015–2016 by 665,712 tons, as well as reusing 79,357 tons of water. And there are several such examples.
What can we take from this?
Moving to an eco-industrial park may not be feasible for many businesses right now. But, there is still much we can learn from the model. Partnering up with nearby businesses, thinking about how we use our location and finding new environmentally conscious ways of working with suppliers can all have a big influence on a company’s environmental impact.
Pursuing environmental sustainability, and Corporate Social Responsibility generally, throughout the supply chain is not only good for the planet – it’s good for business. Starbucks’ 1,252% share price increase over a 10-year period is an example of how embracing these ideals can result in enormous business growth.
But to succeed there has to be genuine top leadership commitment to creating and promoting a supply chain wide culture of sustainability. Though challenging, there is ample evidence from around the world that it can be done.
To find out more about how your company can move towards reducing its carbon footprint through its procurement strategy, get in touch with our Managing Director, Armand Brevig, today.
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