Business owners, listen up – you can save the planet and turn a profit
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Business owners, listen up – you can save the planet and turn a profit

THE BUSINESS case for making our economy more sustainable is clear.

Globally, transitioning to a circular economy – where materials are reused, re-manufactured or recycled – could significantly reduce carbon emissions and deliver over US$1 trillion in material cost savings by 2025.

The benefits for Asia and the Pacific would be huge. But to make this happen, the region needs to reconcile its need for economic growth with its ambition for sustainable business.

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Today, the way we consume is wasteful. We extract resources, use them to produce goods and services, often wastefully, and then sell them and discard them.

However, resources can only stretch so far.

By 2050, the global population will reach 10 billion. In the next decade, 2.5 billion new middle-class consumers will enter the fray.

If we are to meet their demands and protect the planet, we must disconnect prosperity and well-being from inefficient resource use and extraction. We must create a circular economy, making the shift to extending product lifetimes, reusing and recycling in order to turn waste into wealth.

These imperatives underpin the 5th Green Industry Conference held in Bangkok last week, hosted by the United Nations Industrial Development Organisation (UNIDO) in partnership with the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP) and the Royal Thai government.

High-level policymakers, captains of industry and scientists gathered to discuss solutions on how to engineer waste and pollution out of our economy, keep products and materials in use for longer and regenerate the natural system in which we live.

The goal is to embed sustainability into the industries we depend on for our jobs, prosperity, and well-being.

Action in Asia and the Pacific could make a major difference.

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Sixty percent of the world’s fast-moving consumer goods are manufactured in the region. Five Asia-Pacific countries account for over half of the plastic in the world’s oceans. The region’s material footprint per unit of Gross Domestic Product is twice the world average and the amount of solid waste generated by Asian cities is expected to double by 2025.

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(File) A tourist collects plastic items washed up by the sea at the Ao Phrao Beach, on the island of Ko Samet, Thailand June 9, 2018. Source: Reuters/Jorge Silva

If companies could build circular supply chains to reduce material use and increase the rate of reuse, repair, remanufacturing and recycling – powered by renewable energy – the value of materials could be maximised.

This would cushion businesses, manufacturing industries in particular, from the volatility of commodity prices by decoupling production from finite supplies of primary resources. This is increasingly important as many elements vital for industrial production could become scarce in the coming decades.

With these goals in mind, the United Nations is working with governments and businesses to support innovation and upgrade production technologies to use less materials, energy, and water.

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UNIDO is engaged across industrial sectors, from food production to textiles, from automotive to construction.

Over the past 25 years, its network of Resource Efficient and Cleaner Production Centres has helped thousands of businesses to ‘green’ their processes and their products.

The Global Cleantech initiative has supported entrepreneurs to produce greener building materials.

The Global Network of Sustainable Energy Centres is accelerating industrial renewable energy use.

New business models such as chemical leasing help reduce chemical emissions. And the creation of eco-industrial parks has contributed to the sustainable development of our towns and cities.

In Asia and the Pacific, the UN is intensifying its efforts to reduce and ban single-use plastics. The Platform for Accelerating the Circular Economy is implementing programs to reduce plastic consumption, marine litter and electronic waste, and encourage sustainable procurement practices.

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A shopper in India gives a bag she carried from home to a fruit seller to put her purchases as authorities enforce a ban on single-use plastics. Source: Indranil Mukherjee/AFP

UNESCAP is identifying opportunities in Asian cities to return plastic resources into the production cycle by linking waste pickers in the informal economy with local authorities to recover plastic waste and reduce pollution.

The 5th Green Industry Conference is an opportunity to give scale to these efforts. The gap between our ambition for sustainability and many business practices is significant. It’s essential for best practice to be shared, common approaches coordinated, and success stories replicated.

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We need to learn from each other’s businesses to innovate, sharpen our rules and increase consumer awareness. Let’s step up our efforts to build a circular economy in Asia and the Pacific.

By Li Yong, Director General of the United Nations Industrial Development Organisation (UNIDO), and Hong Joo Hahm, Deputy Executive Secretary and Officer-in-Charge of the United Nations Economic and Social Commission for Asia and the Pacific (ESCAP).

This piece was first published at Policy Forum, Asia and the Pacific’s platform for public policy analysis and opinion.