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 Sustainable Development
Sustainable Development Strategies
1997-2000
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 IC-SD Strategy 1997-Innovation
3.2 Innovation
3.2.1 Innovative Tools and PracticesEnvironmental challenges increasingly affect the competitiveness of many industries, not only in terms of clean-up and pollution-control costs but also in the marketplace. Consumers are demanding certain performance standards (e.g. European concerns about the clearcutting of Canadian forest areas have led to product boycotts in some markets). As well, the financial community, worried about long-term environmental liabilities, has begun to exert pressure on business to improve its environmental performance (e.g. cleaning up contaminated sites and wastes). Many companies are adopting business approaches that improve both their economic and environmental performance. They are doing so largely in response to increasing environmental pressures and the growing recognition that medium-and long-term business success is inextricably linked to resource and environmental constraints. The transformation to a knowledge-based economy - one in which information, new technologies and applications are the agents of growth - creates new opportunities for companies to improve their environmental and business performance. Over the past two decades, business has made considerable progress in integrating environmental concerns at the operational and technical level. While this has been driven largely by efforts to reduce risks and cut costs associated with discrete environmental pressures and regulations, it also reflects an emerging and growing business environmental ethic. The achievements made in pollution prevention demonstrate a strong business commitment to environmental stewardship and have saved companies millions of dollars as well as contributed to the development of the environmental industry. A related trend is emerging in which companies are shifting away from shorter-term, discrete, risk-reduction and cost-saving approaches to ones based on the longer-term strategic advantages that stem from continuously pursuing excellence in economic and environmental performance. More and more companies are realizing that the application of business and technology strategies to environmental pressures and sustainable development could in fact translate into profitability. In pushing beyond "greening" to the broader concept of sustainability, these firms are moving toward pollution prevention and product stewardship. Some are advancing even further through long-term strategic planning and investment in products, processes, technologies and approaches that are expected to generate revenue and increase market share. One multinational chemical firm, for example, has committed itself to seeking growth through sustainability by shifting the technology base of its agriculture business from bulk chemicals to biotechnology. Another has become a major shareholder in a Canadian company specializing in fuel-cell technology. Leading companies in Canada and abroad are embracing the concept of "eco-efficiency" - that is, producing more valuable products or services using fewer material and energy inputs, and creating less pollution. Developed by the World Business Council for Sustainable Development (WBCSD)4, eco-efficiency is a way of operationalizing sustainable development from a business perspective, and many WBCSD members pursue it as a key competitive strategy. Growing evidence suggests that good eco-efficiency performance contributes to stronger business performance. For example, the UNI Storebrand Scudder Stevens Environmental Value Fund has developed a sustainability index based on the WBCSD elements of eco-efficiency. Its analysis of the world's top 500 companies shows a significant positive correlation between good eco-efficiency performance and superior economic performance as measured by annual rate of return.
The WBCSD maintains that the business benefits associated with eco-efficiency are inherent in the concept itself - that is, by "producing more from less" companies not only minimize environment-related costs but improve overall productivity. Eco-efficiency may also help companies gain market share by compelling them to become more innovative in their business practices and in the goods and services they produce. Finally, as businesses strive to become more eco-efficient, they demand more goods and services from producers of eco-efficient technologies. This emergence of niche markets - at home and abroad - provides opportunities for innovative small- and medium-sized Canadian companies that supply environmental technologies and services. Eco-efficiency provides a management framework within which companies can set operational sustainable development goals and select the appropriate mix of tools to achieve them. These tools include science-based environmental risk assessments, pollution prevention, environmental management systems, "green" accounting practices and lifecycle analysis. For example, the emerging importance of climate change as both an environmental and trade issue highlights the need to develop and implement environmentally effective and profitable solutions. Environmental management systems (EMS) are another comprehensive and widely recognized tool for improving environmental protection. The International Organization for Standardization (ISO) has finalized its 14000 series of standards for EMS and related auditing practices. Based on the principle of continuous improvement, these standards help companies prepare systematic policies and procedures for managing environmental risks. They cover topics such as setting goals and objectives, reporting and monitoring, employee training, product lifecycles and evaluating risk. Canadian companies are expected to face growing pressure from customers and regulators to adopt ISO 14000-consistent standards. Particularly vulnerable are companies seeking access to markets in Europe, where ISO certification is quickly becoming a requirement of doing business. Companies seeking to demonstrate their commitment to environmental responsibility while adding value to their products, may find it useful to draw on sustainable development concepts such as eco-efficiency to set goals and measure progress within an EMS framework. An EMS can be an important part of a company's drive for eco-efficiency. Industry Canada's Role A number of Canadian industrial sectors have shown leadership in developing innovative approaches to the management of environmental issues. Industry Canada will continue to actively encourage and support leading business practices and endeavours such as the Canadian Chemical Producers' Association's voluntary stewardship program, Responsible Care®, the Whitehorse Mining Initiative and the Canadian Standards Association's Sustainable Forest Management Standard. Other sectors such as pulp and paper and electrical utilities are also developing similar approaches. At the same time, Industry Canada recognizes that not all sectors and firms are prepared to lead. Those who innovate less quickly may, in the longer term, undermine their own competitiveness. Industry Canada will continue to work with public- and private-sector partners to develop appropriate accountability mechanisms that will help to protect the environment.
The development of innovative tools and practices in partnership with industry supports the department's "reasoned advocacy" role. As more companies use approaches such as eco-efficiency and other measures to improve their business and environmental performance, governments will experience less pressure to intervene to control pollutants.
3.2.2 Technology Development and DiffusionThrough the development, diffusion and application of new products, services and processes, innovation can lead to improved productivity, enhanced market opportunities, increased employment, improved quality of life and reduced stress on the environment. An evolving innovation system that nurtures the links among wealth, job creation, quality of life, the environment and the advancement of knowledge is central to encouraging the innovation that contributes to sustainable development. Such a system involves innovation at the local, regional and national levels. The sources of innovation - such as manufacturers, engineering companies and academic research establishments - form a key part of Canada's innovation system.
Another important element of Canada's innovation system is the network of strategic alliances of science and technology organizations. These alliances facilitate the development, diffusion and transfer of knowledge and technologies that promote sustainable development, both within the country and between Canada and other nations. The international transfer of knowledge and technology, coupled with the unprecedented international mobility of capital, makes Canadian producers and consumers part of a truly global economy. To take advantage of this situation - and the resultant increased access to foreign markets Canada, like many industrialized nations, will focus on improving its technology development capabilities by fostering a more effective, efficient innovation system. New foreign markets will open up for Canadian companies selling technologies that promote sustainable development, while domestic producers and consumers will have increased opportunities to use the knowledge and technologies obtained from other countries. Technologies to Promote Sustainable Development As Canada moves toward a knowledge-based, sustainable economy, the technological approaches used by firms to enhance their environmental and business performance will shift from using traditional remediation or "end-of-pipe" pollution control and treatment technologies to incorporating pollution-prevention technologies into the redesign of industrial processes, practices and products. The shift will be gradual as new facilities are constructed and existing ones are upgraded or replaced. For companies seeking to improve their environmental performance but unable to invest in large-scale process changes, pollution control will remain an important option. Pollution control and treatment - Canada is a leader in several technologies and processes to control and clean up pollution and waste, particularly with respect to water. One firm, for example, is experiencing strong demand for its membrane-based products for cleaning wastewater. This technology is also proving to be a cost-effective way to desalinate sea water. A second firm's ultraviolet radiation treatment of wastewater is another Canadian success story. Canada has also developed expertise in the bioremediation of toxic wastes, the treatment of sludge and its conversion to oil, and the continuous monitoring of emissions and effluent. Pollution prevention technologies - Canadian companies are increasingly investing in pollution prevention technologies as opposed to conventional end-of-pipe technologies. It is no longer sufficient to simply capture and treat contaminants. Leading companies consider pollutants as an indicator of inefficiency and are taking steps to eliminate their pollution by optimizing their production processes. As well, the pace of innovation in the area of clean-production processes, particularly in manufacturing, is accelerating. One multinational company, for example, has voluntarily undertaken pollution-prevention initiatives at nine of its plants. All of the initiatives resulted in environmental improvements and some have financially paid for themselves. In other areas, such as film processing, carpets and plastics, companies have developed technologies which prevent pollution through off-site recycling. Several industries are also taking a strong product stewardship role that, in turn, stimulates innovations in product re-design. Choices made early in the design process can reduce material and energy inputs and eliminate toxic residues or disposal problems. Examples include "clean car" technologies, CFC-free refrigerators, biodegradable plastics and energy-efficient light fixtures. Eco-industrial parks can contribute significantly to pollution prevention. Based on the principles of natural ecosystems, these parks have evolved in such a way that a number of companies are reusing and recycling the by-products of each other's production processes. This, along with sharing common transportation and utility systems, allows firms in these parks to reduce or avoid creating waste by-products and to become more eco-efficient. "Enabling" technologies - Industrial sectors can apply and adapt technologies to enable new activities that lead to economic and environmental benefits. For example, biotechnology can enhance the productivity and sustainability of commercial tree species, contributing to more sustainable forestry practices. As well, fuel production from biomass such as corn-based ethanol, can create new market opportunities and help reduce reliance on non-renewable energy sources. Information and telecommunications technologies can enable business and consumers to develop ways to increase the efficiency and reduce the environmental impact of their activities. For example, computer-assisted design and manufacturing systems increase the efficiency of production processes while reducing waste through more sophisticated "green design" techniques. The development and diffusion of pollution control, pollution prevention and enabling technologies are critical to sustainable development. Already a leader in pollution control, Canada is moving more aggressively into the development of pollution-prevention technologies and the cross-sectoral diffusion of enabling technologies. Often, where development strengths exist, opportunities for broader diffusion coincide. Industry Canada plans to strengthen its efforts to facilitate the diffusion of such technologies. By focussing on understanding and promoting the "enabling effect" of these technologies and identifying the barriers to their diffusion, the department will be better equipped to promote their use.
Industry Canada's Role Industry Canada's technology mandate is to accelerate sustainable economic growth and job creation in an increasingly competitive, knowledge-based economy through the encouragement of technology development, diffusion and application. The federal government's Science and Technology Strategy for the New Century (the S&T; Strategy) highlights the importance of scientific and technological innovation for advancing sustainable development. Industry Canada will build on the S&T; Strategy to extend technology policies and activities so that more firms use advanced technology more effectively.5 The federal S&T; Strategy stresses the need for a more effective, integrated system for innovation in Canada. The effectiveness and efficiency of the innovation system depends not only on its capacity to access and produce new knowledge and technologies, but also to distribute the information quickly and practically. Industry Canada, in partnership with other departments and stakeholders, can act as a catalyst for institutional and systemic changes that will enhance the capacity of the Canadian innovation system to produce and distribute new knowledge and technologies that promote sustainable development.
The generation and flow of new knowledge and technologies will enable the development of innovative solutions to mitigate or eliminate environmental degradation, as well as contribute to economic and social improvements. Industry Canada plays an important role in promoting the development and diffusion of these technologies. It does so through several discrete, yet related, initiatives. Technology Partnerships Canada (TPC) - is an innovative investment fund to encourage the commercialization of research and development (R&D;) leading to technologies that will contribute to sustainable development. In addition to aerospace and defence technologies, TPC will support environmental and "enabling" technologies such as biotechnology, selected information and communication technologies, and advanced materials and manufacturing technologies. For example, TPC is investing in the Pulp and Paper Research Institute's five-year R&D; program on closed-cycle technologies to prevent pollution and eliminate the need for end-of-pipe effluent treatment. CANARIE (Canadian Network for the Advancement of Research, Industry and Education) - includes the promotion of partnerships with firms involved in environmental research. For example, two Canadian companies are working together to design and implement a nationwide data-handling system to ensure timely, uniform air pollution monitoring. They will send the data via the Internet to industry, regulatory bodies and research groups. Canadian Health Information System (CHIS) - Industry Canada will provide support for a National Advisory Council on the Canadian Health Information System, and conduct other activities aimed at stimulating industrial development opportunities in health informatics and telehealth. National Biotechnology Strategy (NBS) - Current efforts concentrate on more fully understanding the links between biotechnology and sustainable development and on creating the appropriate business climate for the commercialization and diffusion of biotechnology. Industry Canada is currently working with other departments to formulate a broadened National Biotechnology Strategy. Industry Canada will undertake more work with the private sector to facilitate the development of innovative technologies that promote sustainable development. It is currently exploring opportunities to identify how environmental pressures will shape future market demands and how this could influence technology needs. An important contribution in this area are the "technology roadmaps," which the department and the private sector are creating together. These roadmaps identify the critical technologies (many of which contribute to sustainable development), technical skills and core competencies that an industry will require to meet future market demands. The Technology Roadmap for Canadian Forest Operations, for example, highlights the fact that technological innovation is the key method by which environmental challenges may be addressed. Industry Canada uses the Information Highway as one way to electronically provide information on clean-production and enabling technologies. Strategis gives industry an electronic window into departmental activities, including those related to technology and sustainable development. Canadian Environmental Solutions (CES) is a multimedia product, available on diskette, CD-ROM and Strategis, which identifies some 1500 Canadian solutions to more than 2000 environmental problems. A special information section on Traditional Environmental Knowledge was incorporated into the CES CD-ROM by Aboriginal Business Canada (ABC). The department also worked with other federal and provincial departments, institutions and environmental industry associations to create the Internet-based Virtual Office which gives users single-window access to the information and services these organizations provide. Industry Canada also continues to promote growth in the information technologies and telecommunications industries through such programs as SchoolNet Digital Collections, the Community Access Program (CAP) and Student Connection. These programs address both the economic and social dimension of sustainable development. For example, SchoolNet Digital Collections gives Canadians aged 15 to 30 entrepreneurial and technology-based job experience in converting collections of materials into digital form for display on SchoolNet. The program helps young Canadians acquire the skills demanded in the knowledge-based economy and gain work experience. It also provides users with wider access to Canadian material of public interest via the Information Highway, and demonstrates the economic benefits of digitization.
4 The WBCSD is a coalition of 120 multinational corporations from 33 countries, representing more than 20 major industrial sectors. 5 In 1997, the federal government announced the 800-million Canada Foundation for Innovation which supports commitments under the S&T; Strategy. The Foundation will provide funding to upgrade and modernize university and hospital research infrastructures in the areas of science, health engineering and the environment.
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| Created: 2005-06-23 Updated: 2005-11-15 |
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Important Notices |
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Build sustainable development considerations more systematically into Sector Competitiveness Frameworks for all sectors.