Chapter I -3 :Quality of the Environment in Japan 1997

Chapter III : Promotion of Fundamental Environmental Efforts

3. Efforts for a New Environment Economy Relationship

The business and government sectors have a large share in the nation's economic activities, and therefore exert a major influence on the environment. As a result, It is important for the business and government sectors not only to comply with environmental regulations, but also to take the initiative and implement voluntary and active efforts for conservation.

Voluntary Efforts of Companies
Companies are profit seeking organisations and it has sometimes been said that their own goals cannot co-exist with accepting the economic burden of environmental conservation work. However, this kind of belief has to be questioned on a fundamental level. Today's environmental problems are of such a scope and nature that they threaten the life support base of human beings. This means that companies cannot continue to exist unless they make voluntary and positive efforts for environmental conservation. Environmentally caring action is a necessary condition for the continued survival of companies.

Environmental Management and Its System of Operation
In order for companies to work to achieve environmental goals, it is important for managers to conduct induction, persuasion, and education, and also make continuous efforts for improvement. This method is called environmental management, and the system in an organisation for environmental management is called an environmental management system.
There has been a move towards uniform standardisation of environmental management and its systems. In September 1996, ISO14001 was issued and by March 1997, more than 200business entities had received ISO14001 certificates.

Conceptual Chart of the ISO14001 Environmental Management System
Figure

Source: Environment Agency

Meaning of Voluntary Efforts
In Japan, many companies are making voluntary efforts under the auspices of business and industrial organisations, and are playing an important role in the environmental conservation effort.
Voluntary efforts in conservation, however, have certain problems.

1)
Voluntary efforts, by themselves, do not always achieve socially desirable standards when it comes to implementing environmental measures.
2)
Although companies that make an effort have the benefit of having the good environment that results from their conservation activities and the costs that they borne in these conservation efforts, third parties who do not bear any cost also can enjoy the same sound environment. This is called "the free-ride problem," where companies that implement environmental conservation measures stand at an economically disadvantageous position to their competitors who do not.

However, these problems do not reduce the importance of making voluntary efforts. To solve today's environmental problems, it is necessary to have voluntary effects supplemented by various other tools such as regulations and economic measures.

Promotion of Eco-Business (Environmental Industry)
Eco-business is a form of business that provides products and services with reduced environmental load, or which provides technologies or systems for conservation. The growth of eco-business is encouraged in the Basic Environment Plan. In addition, "The Action Plan for Economic Structure Reform," which was approved at a Cabinet Meeting in December 1996, also expects that there will be a further growth in the eco-business sector.
However, eco-business is always in competition with ordinary products/services, and is not necessarily profitable. For instance, fine quality paper made from virgin pulp is cheaper than recycled paper. Under these circumstances, in order for eco-business to secure a certain market level, it is important to raise consumers' environmental awareness, and the co-operation of government and local governments will also play an important role in helping eco-business establish a viable market share.

Status of Eco-Business
Figure Figure

Source: 1996 Survey on Environment Friendly Corporate Activities

Trends in Prices of Fine Quality Paper and Recycled Paper
Figure

Notes:
1. Prices are based on data for the Tokyo area supplied by the Nippon Keizai Shimbun.
2. Recycled paper is made from shimbun waste paper pulp.

Source: Environment Agency

Government's Leading Action Plan in Conservation Efforts
The public sector accounts for a significant share in the nation's economic activities. Therefore, if the Government acts with environmental concern, the environmental load can be reduced significantly.
In June 1995, "The Action Plan for Greening Government Operations" based on the Basic Environment Law, was approved at a Cabinet Meeting. In this plan, numerical goals are set up to the year 2000, and progress reports are compiled each year and made public.

Achieved Figures against Numerical Goals of the Leading Action Plan in 1995 (for the Whole Government)

ItemsStatus of achievements for the year 1995Numerical goals set by the Japanese Government to be achieved in the year 2000Supplementary information
Amount of paper use 31,066 t Under 31,066 t Control within present limits
Amount of virgin pulp use 17,311 t Approx. under 13,800 t 80% of the present levels of use
Percentage of low pollution official cars 0.1% Increase current figures by approx. 10%
Power use (offices) 123 kWh/m2 Approx. under 110 kWh/m2 Below 90% of the current official use
Waste use (offices) 1.9 m3/m2 Approx. 1.7 m3/m2 Below 90% of the present use
Fuel use for official carsPetrol 16,570 kl Approx. under 14,900 kl Under 90% of the present use
Light oil 3,791 kl Approx. under 3,400 kl Under 90% of the present use
Other fuelsCrude oil 346,509 kl Approx. under 34,600 kl 10% of current use
Kerosene 73,229 kl Approx. under 7,300 kl 10% of current use
Town area gas 91.963 million m3 Approx. 9.2 million m3 reduction 10% of current use
Propane gas 24.094 million m3 Approx. 2.2 million m3 reduction 10% of current use
Amount of waste (offices) 175,151 t Approx. under 131,300 t Under 75% of the present use
Amount of burnable waste (offices) 110,581 t Approx. under 77,400 t Under 70% of the present use

Note: The 2000 goals may be changed due to formulation of office action plans.

Source: Environment Agency

According to data from the Environment Agency, in 1995, the amount of paper used in the Agency's headquarters had been reduced by about 15% compared with previous years. This came as a result of measures such as the promotion of double-sided photocopies.

Quantity of Paper Used at the Environment Agency's Headquarters (Unit: kg)

Average between
1992-1994
1995Increase/
decrease
Photocopy paper 82,247 69,825 -15.1%
Drafting/ruled paper 548 402 -26.6%
Office envelopes 1,899 2,251 -18.6%
Computer paper 181 41 -77.4%
Total 84,874 72,519 -14.6%

Source: Environment Agency

Leading Efforts of Local Governments
There are also various leading efforts being made by local governments. In January 1997, Kita Kyushu City hosted the "Summit Conference for 12 Metropolitan Cities on Environmental Issues," and Kanagawa Prefecture held the "International Workshop on Local Initiatives for Sustainable Cities - Towards the Establishment of the 20% Club." Positive actions of local governments have been observed and further efforts are expected.

Efforts by Other Nations (Greening of Government)
The OECD meeting held in February 1996, recommended that governments should take account of environmental care in all of their activities. Following this meeting, the OECD Environmental Policy Committee held the "International Conference on Government Procurement." in Switzerland in February 1997. In this conference, reports on leading efforts were collected from each country.
Also, in other countries, a greening of the government is being undertaken. In Holland, based on the National Environmental Policy Plan (NEPP), the following efforts are being made. 1) The establishment of an environmental management system in all the government ministries and agencies, and 2) Emphasis on environmental care in government procurement.
Moreover, in the United States and Denmark, positive efforts such as environmentally sound government procurement and waste control are being made.