Category Archives: Sustainability

The Circular Economy and the Sustainability Agenda

This is excerpt from my latest paper that was accepted by ‘Sustainable Development’ (Wiley).
How to Cite: Camilleri, M.A. (2018). The Circular Economy’s Closed Loop and Product Service Systems for Sustainable Development: A Review and Appraisal. Sustainable Development. Forthcoming.
The Brundtland Report (WCED, 1987) defined sustainable development as; “development that meet the needs of the present without compromising the ability of future generations to meet their own needs” (p. 43). Its underlying assumption is that the world’s physical resources are not finite, therefore, they have to be managed responsibly to sustain future generations. Subsequently, the United Nations (UN) Conference on Environment and Development has put forward Agenda 21 that dedicated a chapter that was focused on unsustainable patterns of production and consumption. This document recommended that the UN’s member states ought to intensify their efforts to reduce the use of scarce resources during production processes, whilst minimising the environmental impacts from generation of waste and pollution (Agenda 21, 1992). In 2002, the UN Report of the World Summit on Sustainable Development also made reference to unsustainable patterns of production and consumption. The UN’s member states were urged to manage their natural resources sustainably and with lower negative environmental impacts; by promoting the conservation and sustainable use of biodiversity and ecosystems, whilst reducing waste (WSSD, 2002, p 13). Moreover, in another resolution, entitled; “The future we want”, the General Assembly at the UN Conference on Sustainable Development has reaffirmed its commitment to implementing green economy policies in the context of sustainable development. The Heads of State and Government or their representatives have agreed to continue promoting the integrated and sustainable management of eco-systems; whilst facilitating their conservation, regeneration and restoration of resources (UNCSD, 2012). Furthermore, during the UN’s General Assembly Resolution of 25 September 2015, entitled; “Transforming our world: the 2030 Agenda for Sustainable Development” the world leaders have agreed to adopt the Sustainable Development Goals that replaced the previous millennium development goals that were established in the year 2000. Specifically, the Sustainable Development Goal (SDG) 12 of the 2030 agenda, namely; “Sustainable Consumption and Production” explained that there is an opportunity for business and industry to reap economic gains through resource and energy efficiencies. It also raised awareness on the use of sustainable infrastructures and urged the UN member states to address air, water and soil pollution to minimise their environmental impact (UNDP, 2015). Moreover, the Paris Climate Agreement (COP 21) and Resolutions 1/5 and 2/7 on chemicals and waste, and 2/8 on sustainable production and consumption, as adopted by the 1st and 2nd sessions of the United Nations Environment Assembly (that was held in Nairobi, Kenya on the 27th June 2014 and the 27th May 2016), are also considered as important policy instruments for many stakeholders, as they have paved the way for the transition toward the circular economy strategy. These intergovernmental policy recommendations on sustainable consumption and production have led to increased regulatory pressures on business and industry toward controlled operations management and environmentally-responsible practices. In 2014, the European Union (EU) Commission anticipated that, “new business models, eco-designs and industrial symbiosis can move the community toward zero-waste; reduce greenhouse emissions and environmental impacts” (EU, 2018). Eventually, in March 2017, the EU Commission and the European Economic and Social Committee organised a Circular Economy Stakeholder Conference, where it reported on the delivery and progress of some of its Action Plan. It also established a Finance Support Platform with the European Investment Bank (EIB) and issued important guidance documents to Member States on the conversion of waste to energy. Other EU Communications on this subject, comprised: “Innovation for a sustainable future – The Eco-innovation Action Plan“; “Building the Single Market for Green Products: Facilitating better information on the environmental performance of products and organisations“; “Green Action Plan for SMEs: enabling SMEs to turn environmental challenges into business opportunities“; “Closing the loop –An EU action plan for the Circular Economy” and the report on its implementation, and “Investing in a smart, innovative and sustainable Industry – A renewed EU Industrial Policy Strategy“, among others (EU, 2017). Recently, the EU commission has adopted a set of measures, including; a “Strategy for Plastics in the Circular Economy” that specified that all plastics packaging will have to be recyclable by 2030; It released a communication on the interface between chemical, product and waste legislation, as it explains how they relate to each other. Moreover, the commission launched a Monitoring Framework that may be used to assess the progress of its member states towards the implementation of the circular economy action plan. This framework is composed of a set of ten key indicators, comprising; 1) EU self-sufficiency for raw materials; 2) Green public procurement; 3a-c) Waste generation; 4) Food waste, 5a-b) Overall recycling rates, 6a-f) Recycling rates for specific waste streams, 7a-b) Contribution of recycled materials to raw materials demand, 8) Trade in recyclable raw materials, 9a-c) Private investments, jobs and gross value added, and 10) Patents. Furthermore, (EU, 2018) published a report on the supply and demand of critical raw materials that are used in mining, landfills, electrical and electronic equipment, batteries, automotive sector, renewable energy, defence industry as well as for chemicals and fertilizers.
References Agenda 21. 1992. United Nations Conference on Environment & Development. Rio de Janerio, Brazil, 3 to 14 June 1992. United Nations Sustainable Development. https://sustainabledevelopment.un.org/content/documents/Agenda21.pdf [6 July 2018]. EU 2017. Council conclusions on eco-innovation: enabling the transition towards a circulareconomy. European Council of the European Union, Brussels, Belgium. http://www.consilium.europa.eu/en/press/press-releases/2017/12/18/council-conclusions-on-eco-innovation-transition-towards-a-circular-economy/#[5th July 2018]. EU 2018. Implementation of the Circular Economy Action Plan. European Commission.  http://ec.europa.eu/environment/circular-economy/index_en.htm[5th July 2018]. UNCSD 2012. The Future We Want – Outcome document. Resolution adopted by the General Assembly on 27 July 2012. United Nations  General Assembly. http://www.un.org/ga/search/view_doc.asp?symbol=A/RES/66/288&Lang=E [25 June 2018]. UNDP 2015. Transforming our World. Resolution adopted by the General Assembly on 25 September 2015. http://www.un.org/en/development/desa/population/migration/generalassembly/docs/globalcompact/A_RES_70_1_E.pdf [25 June 2018]. WSSD 2002. United Nations Report of the World Summit on Sustainable Development. Johannesburg, South Africa, 26 August- 4 September 2002.  http://www.un-documents.net/aconf199-20.pdf [29 June 2018].
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The Way Forward: Corporate Sustainability and Responsibility

An Excerpt from: Camilleri, M.A. (2017). Corporate Sustainability and Responsibility: Creating Value for Business, Society and the Environment. Asian Journal of Sustainability and Social Responsibility 2(1) 59-74. https://link.springer.com/article/10.1186/s41180-017-0016-5

In the past, CSR may have been more associated with corporate philanthropy, stewardship principles, contributions-in-kind toward social and environmental causes, environmental protection, employees’ engagement in community works, volunteerism and pro-bono service among other responsible initiatives. Very often, such altruistic CSR activities may have not resulted in financial performance to the business per se. On the contrary, certain discretionary
expenses in corporate philanthropy could have usurped the businesses’ slack resources (including financial assets, labour and time) without adding much value (in terms of corporate reputation and goodwill) to the businesses. Nevertheless, this research reported that the contemporary discourses on corporate social responsibility are opening new opportunities for the businesses themselves. The academic discourse about CSR is moving away from ‘nice-to
do’ to ‘doing-well-by-doing-good’ mantra. Evidently, the value-based approaches that were discussed in this paper could be considered as guiding principles that will lead tomorrow’s businesses to long term sustainability (in social and economic terms). Debatably, the profit motive (the business case or corporate sustainability concepts) could be linked with the corporate responsibility agenda. This way, the multinational corporations could be better prepared to address their societal and environmental deficits across the globe, whilst adding value to their business.

This review paper has built on the previous theoretical underpinnings of the corporate social responsibility agenda including Stakeholder Management, Corporate Citizenship and Creating Shared Value as it presents the latest Corporate Sustainability and Responsibility perspective. This value-based model reconciles strategic CSR and environmental management with a stakeholder approach to bring long term corporate sustainability, in terms of economic performance for the business, as well as corporate responsibility’s social outcomes. Recently, some international conferences including Humboldt University’s gatherings in 2014 and 2016 have also raised awareness on this proposition. The corporate sustainability and responsibility concept is linked to improvements to the companies’ internal processes including environmental management, human resource management, operations management and marketing (i.e. Corporate Sustainability). At the same time, it raises awareness on the
businesses’ responsible behaviours (i.e. Corporate Responsibility) toward stakeholders including the government, suppliers, customers and the community, among others. The fundamental motivation behind this approach is the view that creating connections between stakeholders in the value chain will open-up unseen opportunities for the competitive advantage of responsible businesses, as illustrated in Figure 1.

cs model

Multinational organizations are under increased pressures from stakeholders (particularly customers and consumer associations) to revisit their numerous processes in their value chain activities. Each stage of the company’s production process, from the supply chain to the transformation of resources could add value to their businesses’ operational costs as they produce end-products. However, the businesses are always expected to be responsible in their internal processes toward their employees or toward their suppliers’ labour force. Therefore, this corporate sustainability and responsibility perspective demands that businesses create economic and societal value by re-aligning their corporate objectives with stakeholder management and environmental responsibility. In sum, corporate sustainability and responsibility may only happen when companies demonstrate their genuine willingness to add corporate responsible dimensions and stakeholder engagement to their value propositions. This occurs when businesses opt for responsible managerial practices that are integral to their overall corporate strategy. These strategic behaviours create opportunities for them to improve the well-being of stakeholders as they reduce negative externalities on the environment. The negative externalities can be eliminated by developing integrated approaches that are driven by ethical and sustainability principles. Very often, multinational businesses are in a position to mitigate risk and to avoid inconveniences to third parties. For instance, major accidents including BP’s Deep Horizon oil spill in 2010, or the collapse of Primark’s Rana Plaza factory in Bangladesh, back in 2013, could have been prevented if the big businesses were responsible beforehand.

In conclusion, the corporate sustainability and responsibility construct is about embedding sustainability and responsibility by seeking out and connecting with the stakeholders’ varied interests. As firms reap profits and grow, there is a possibility that they generate virtuous circlesof positive multiplier effects (Camilleri, 2017). Therefore, corporate sustainability and responsibility can be considered as strategic in its intents and purposes. Indeed, the businesses are capable of being socially and environmentally responsible ‘citizens’ as they are doing well, economically. This theoretical paper has contributed to academic knowledge as it explained the foundations for corporate sustainability and responsibility. Although this concept is still evolving, the debate among academic commentators is slowly but surely raising awareness on responsible managerial practices and on the skills and competences that are needed to deliver strategic results that create value for businesses, society and the environment.

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The Corporations’ Non-Financial Disclosures

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The American Institute of Certified Public Accountants’ Jenkins Report may be considered as one of the major documents that has provided the foundations for non-financial disclosures. Notwithstanding, there were other guidelines that were developed by other non-governmental organizations (NGOs), including; the Global Reporting Initiative, AccountAbility, Accounting for Sustainability (A4S), the World Intellectual Capital Initiative (WICI), the Enhanced Business Reporting Consortium, the CDP (formerly known as the Carbon Disclosure Project), the International Corporate Governance Network, the Sustainability Reporting Standards Board and the Climate Disclosure Standards Board, among others. The International Standards Organization (ISO), Forest Stewardship Council (FSC), Greenpeace, Rainforest Alliance and Home Depot Certifiable, Fair Trade and the US Department of Agriculture’s USDA Organic Labelling, among others, have formulated uncertifiable, multi-stakeholder standards and instruments to support organizations in their CSR communication. In addition, certain listed corporations are adopting Fortune’s reputation index, the KLD Social index or RepTrak (Camilleri, 2017). Such measures require corporate executives to assess the extent to which their organization behaves responsibly towards the environment and the community. Despite the development of these guiding principles and indices, their appropriateness remains doubtful (Camilleri, 2015).

In 2010, the development of ISO 26000 had represented a significant milestone in integrating socially and environmentally responsible behaviors into management processes. ISO 26000 was developed through a participatory multi-stakeholder process as the International Labor Organization (ILO) had established a Memorandum of Understanding (MoU) to ensure that ISO’s social responsibility standard is consistent with its own labor standards. In fact, ISO 26000’s core subject on ‘Labor Practices’ is based on ILOs’ conventions on labor practices, including; Human Resources Development Convention, Occupational Health and Safety Guidelines, Forced Labor Convention, Freedom of Association, Minimum Wage Fixing Recommendation and the Worst Forms of Child Labor Recommendation, among others. Moreover, ISO’s core subject on ‘human rights’ is based on the Universal Declaration of Human Rights (that was adopted by the UN General Assembly in 1948). On the other hand, many academic commentators argue that ISO 26000 has never been considered as a management standard (Camilleri, 2017). The certification requirements have not been incorporated into ISO 26000’s development and reinforcement process, unlike other standards, including ISO 9000 and ISO 14001. Notwithstanding, ISO 14001 belongs to a larger set of ISO 14000 certifications that conform with the European Union’s Eco-Management and Audit Scheme (EMAS).

The European Union (EU) has developed its non-binding guidelines for the non-financial disclosures of large, public-interest entities that engage more than 500 employees (Stubbs and Higgins, 2015; EU, 2014). The European Parliament mandated Directive 2014/95/EU on non-financial reporting; that was subsequently ratified by the European member states. Therefore, large undertakings are expected to disclose material information on their ESG behaviors. These entities are required to explain any deviations from their directive’s recommendations in their annual declaration of conformity, as per the EU’s “Comply or Explain” principle (Camilleri, 2015; EU, 2014). Their non-financial disclosures include topics, such as; social dialogue with stakeholders, information and consultation rights, trade union rights, health and safety and gender equality, among other issues. Moreover, the organizations’ environmental reporting could cover; material disclosures on energy efficiencies, the monitoring of efficiency levels their energy generation capacities, assessments on the co-generation of heating facilities, the use of renewable energy, greenhouse gas emissions, water and air pollution prevention and control from the production and processing of metals, mineral industry, chemical industry, waste management, livestock farming, etc. (Camilleri, 2015). Therefore, large undertakings are expected to bear responsibility for the prevention and reduction of pollution. The EU recommends that the large organizations implement ILO’s Tri-partite Declaration of Principles on Multinational Enterprises and Social Policy, as well as other conventions that promote the fair working conditions of employees. It also makes reference to the OECD Guidelines for Multinational Enterprises, the 10 principles of the UN Global Compact, the UN Guiding Principles on Business and Human Rights, and mentions ISO 26000 Guidance Standard on Social Responsibility (EU, 2014). Following, the EU’s mandate for non-financial reporting, it is expected that 6,000 European public interest entities will be publishing their sustainability reports in 2018, covering financial year 2017-2018 (GRI, 2017).

 


Additional Reading:

Camilleri, M.A (2015). Environmental, Social and Governance Disclosures in Europe. Sustainability Accounting, Management and Policy Journal. 6 (2), 224 – 242. Emerald.  http://www.emeraldinsight.com/doi/abs/10.1108/SAMPJ-10-2014-0065 Download this paper

Camilleri, M.A. (2015). Valuing Stakeholder Engagement and Sustainability Reporting. Corporate Reputation Review, 18 (3), 210-222. Palgrave Macmillan DOI:10.1057/crr.2015.9 http://www.palgrave-journals.com/crr/journal/v18/n3/full/crr20159a.html Download this paper

Camilleri, M.A. (2017). Measuring the corporate managers’ attitudes toward ISO’s social responsibility standard. Total Quality Management & Business Excellence. (forthcoming). http://dx.doi.org/10.1080/14783363.2017.1413344 http://www.tandfonline.com/doi/full/10.1080/14783363.2017.1413344 Download this paper

Camilleri, M.A. (2017). Corporate Sustainability, Social Responsibility and Environmental Management: An Introduction to Theory and Practice with Case Studies. Springer, Heidelberg, Germany. ISBN 978-3-319-46849-5 http://www.springer.com/us/book/9783319468488

CSRWire (2015). Environmental, Social and Governance Reporting in Europe. http://www.csrwire.com/blog/posts/1574-environmental-social-and-governance-disclosures-in-europe

 

 

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Emerald’s must-read textbook for tourism students and practitioners

“Tourism Planning and Destination Marketing” was recently edited by Dr. Mark Anthony Camilleri, Ph.D. (Edinburgh).

This publication is written in an engaging style to entice the curiosity of its readers. It presents all the theory and the empirical studies in a simple and straightforward manner. It reports on the global tourism marketing environments that comprise a wide array of economic, socio-cultural and environmental issues. It also explains how ongoing advances in technology are bringing interesting developments in the tourism industry and its marketing mix.

This authoritative book provides theoretical and empirical insights on different tourism topics, including; destination marketing and branding, sustainable and responsible tourism, tourism technologies, digital marketing, travel distribution and more. It is also relevant to the industry practitioners, including consultants, senior executives and managers who work for destination management organisations, tourism offices, hotels, inbound / outbound tour operators and travel agents, among others.


Preface

The marketing of a destination relies on planning, organisation and the successful execution of strategies and tactics. Therefore, this authoritative book provides students and practitioners with relevant knowledge of tourism planning and destination marketing. The readers of this publication are equipped with a strong pedagogical base as they are presented conceptual discussions as well as empirical studies on different aspects of the travel and tourism industries.

The readers of this book will acquire a good understanding of the tourism marketing environment, destination branding, distribution channels, etourism, as well as relevant details on sustainable and responsible tourism practices, among other topics. They will appreciate that the tourism marketers, including destination management organisations (DMOs) are increasingly using innovative tools, including; digital media and ubiquitous technologies to engage with prospective visitors. Hence, this book also sheds light on contemporary developments in travel, tourism, hospitality, festivals and events.

Chapter 1 introduces the readers to the tourism concept as it describes the travel facilitators and motivators. Afterwards, it explains several aspects of the tourism product, including; the visitors’ accessibility, accommodation, attractions, activities and amenities. It categorises different travel markets; including; adventure tourism, business tourism (including meetings, incentives, conferences and events), culinary tourism, cultural (or heritage) tourism, eco-tourism (or sustainable tourism), educational tourism, health (or medical tourism), religious tourism, rural tourism, seaside tourism, sports tourism, urban (or city) tourism, wine tourism, among other niche areas.

Chapter 2 offers a critical review and analysis of relevant literature on the tourism product’s experiential perspective. The authors suggest that the customers’ experience is affected by cognitive, emotional, relational and sensorial aspects.

Chapter 3 examines Plog’s model of venturesomeness. The author provides a thorough review of 26 studies that have adopted this behavioural model. He maintains that this model could be used to identify the travellers’ psychographic characteristics as he correlates them with the destinations they visit.

Chapter 4 focuses on the coopetition features of tourism destinations. The author held that (competing) tourism service providers, including destination marketing organisations often cooperate to deliver positive customer experiences. In addition, he explained how seasonality and colocation issues can influence specific features of coopetition and collaborative practices in tourism destinations.

Chapter 5 explored the residents’ attitudes towards incoming tourism at Punta del Este, Uruguay. The authors suggest that the respondents were perceiving economic benefits from increased tourism figures. However, the same respondents indicated that they were aware about the socio-cultural costs of tourism.

Chapter 6 appraises the notions of sustainable and responsible tourism. It traces the origins of the concept of sustainable development and includes a critical review of key theoretical underpinnings. The author provides relevant examples of the social, environmental and economic impacts of tourism in vulnerable or sensitive climates.

Chapter 7 investigates the tourists’ experiences of Japan’s Tateyama and Hirakawa rural areas. The author suggests that the tourists’ experience of rural tourism has led them to appreciate the Japanese culture.

Chapter 8 sheds light on the eco-tourism concept. Following a thorough literature review, the authors imply that the service providers ought to identify their visitors’ motivation for eco-tourism destinations.

Chapter 9 clarifies how emerging technologies, including; augmented reality (AR) and virtual reality (VR) are being used in the travel and tourism industries. The authors introduce the readers to the term, “phygital” as they argue that the tourists are seeking physical and virtual experiences. They suggest that AR and VR have the power to blend together the individuals’ perception of real and virtual spaces.

Chapter 10 explains the importance of organising events for destination marketing. The authors suggest that festivals and events can create a positive image of a destination. The destinations’ ongoing activities may lead to economic benefits to tourism operators as well as to the community, at large.

Chapter 11 posits that the destinations marketers ought to formulate their strategies prior to the planning and organising of events. The author contends that the effective management of events relies on stakeholder engagement, attracting sponsorships and the use of interactive media.

Chapter 12 describes Smart Tourism Local Service Systems (S-TLSS) that are intended to facilitate the engagement among various stakeholders. The authors suggest that S-TLSS supports the tourism planning and destination marketing in Caserta, Italy.

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Closing the loop for resource efficiency, sustainable consumption and production: a critical review of the circular economy

Abstract: The circular economy proposition is not a novel concept. However, it has recently stimulated sustainable consumption and production ideas on remanufacturing, refurbishing and recycling of materials. A thorough literature review suggests that the circular economys regenerative systems are intended to minimise industrial waste, emissions, and energy leakages through the creation of long-lasting designs that improve resource efficiencies. In this light, this research critically analyses the circular economys closed loop systems. The findings suggest that this sustainable development model could unleash a new wave of operational improvements and enhanced productivity levels through waste management and the responsible use and reuse of materials in business and industry. In conclusion, this research implies that closed loop and product service systems could result in significant efficiencies in sustainable consumption and production of resources

How to Cite: Camilleri, M.A. (2018). Closing the Loop for Resource Efficiency, Sustainable Consumption and Production: A Critical Review of the Circular Economy. International Journal of Sustainable Development (forthcoming). DOI: 10.1504/IJSD.2018.10012310

Keywords: circular economy; resource efficiency; corporate sustainability; creating shared value; corporate social responsibility; strategic CSR; stakeholder engagement; social responsibility; recycling resources; reusing resources; restoring resources; reducing resources.

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