Green Economies Dialogue Sessions Held in Japan and Brazil

Published on April 18, 2012

At the Tokyo dialogue (L-R): Hiroyuki Tezuka (JFE Steel Co.), Prof. James Sweeney (Stanford University), Hanni Rosenbaum (BIAC), Amb. Kenji Hiramatsu (Japanese foreign ministry), Norine Kennedy (USCIB), Brian Flannery (ExxonMobil [ret]).

The Green Economies Dialogue, an innovative effort launched by USCIB to spur discussion and consensus around green growth policies in the run-up to this June’s UN Rio+20 conference, rolled into two more national capitals in April.

Working closely with BIAC, the Business and Industry Advisory Committee to the OECD, and its network, as it has in previous dialogue sessions, USCIB organized high-level discussions among business and other stakeholders in Tokyo on April 4, hosted by Keidanren, and in Brasilia on April 16, hosted by the Brazilian industry federation CNI.

The objective of the Green Economy Dialogue (www.green-dialogue.org) is to foster a productive approach to greener growth, with due recognition for both opportunities and challenges. In particular, it is intended to increase dialogue before, during and after the Rio+20 conference, by engaging the private sector and informing international policy discussions. In addition, the project involves commissioning a number of peer-reviewed, academic papers on various aspects of green growth and the green economy, to be published in the journal Energy Economics just prior to Rio+20.

At the Brasilia dialogue, Brian Flannery listens as Shelley Carneiro (CNI) makes a point.

The Tokyo Dialogue, which took place at Keidanren’s headquarters, brought together over 80 participants from international business and government, as well as key academic experts, in a constructive discussion on opportunities and challenges in realizing a green economy. The conference highlighted a series of business initiatives that make a pro-active contribution to sustainable development, including on the role of innovation and technology in building a sustainable society on a global scale.

A prominent part of the discussion was the improvement of energy efficiency as well as the development and global deployment of innovative technologies to promote a low-carbon society. The meeting also highlighted promising approaches to foster more efficient use of resources, the role of sustainable consumption and production, the importance of involving consumers as well as public-private partnerships, highlighting both challenges and opportunities for the business community.

The Brasilia day-long dialogue session, hosted by CNI, engaged over 70 participants from Brazil along with international participation from government, industry, academia and the UN. Sessions focused on green growth issues of importance to Brazil and developing countries, including: perspectives on the upcoming Rio +20 Conference, green growth in emerging, developing countries, sustainable use of tropical forests, and implications of a low-carbon economy for food, fuels and forests.

USCIB and the partners and sponsors of the Green Economies Dialogue project are planning outreach and further discussions during the Rio+20 events in June. The Dialogue project will also publish its peer-reviewed academic “Green perspectives” papers in the journal Energy Economics contemporaneous with Rio+20.

For further information, please contact Kira Yevtukhova (kyevtukhova@uscib.org).

Staff Contact: Norine Kennedy

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APEC Regulators Forum Looks at Challenges Faced by Manufacturers

Published on April 13, 2012

USCIB members took part in a panel discussion at the APEC (Asia-Pacific Economic Cooperation) Regulators Forum on March 30 in Singapore, drawing attention to some of the challenges manufacturers face in many countries with respect to chemicals regulation, which is having an increasing impact on downstream users of chemicals.

For the past several years the APEC Chemical Dialogue has discussed how best to contribute to APEC’s overarching goals of trade liberalization and business facilitation throughout the Asia-Pacific region.

Moderating the discussion and speaking on behalf of USCIB was Sophia Danenberg (Boeing)¸ who said the panel was intended to gauge the interest of APEC economies on this topic and elicit thoughts for next steps, if any, for region-wide action.

The discussion was productive, with a consensus among participants that regulating chemicals in articles is a complicated matter, and that further discussion on the topic is needed. It revolved around how various industries are dealing with the need to communicate substances in articles along the supply chain.

Timo Unger (Hyundai) described how complex supply chain communication can be for the automotive industry. A single vehicle, he said, can contain hundreds of thousands of articles, most of which are pre-manufactured, which makes understanding what substances they contain and communicating that information throughout the supply chain a major challenge. As a result, auto companies have created an international database for original equipment manufacturers to manage environmentally relevant aspects of the different parts used in vehicles.

Andrea Fava (Intel), representing the Information Technology Industry Council, shared the electronics industry’s experiences and approach to materials declaration. She said the industry has its own database on material declaration, which is meant to harmonize requirements across the supply chain and improve economic efficiencies. Komei Kimura (Japanese Environmental Management Association for Industry) noted a joint article management consortium established in 2006 by 17 member companies across various industries to develop a system for exchanging information on chemicals in articles across various supply chains.

Matthew Gredley, from the Australian health department, gave a regulator’s perspective on the challenges faced in obtaining information about chemicals in articles. He specifically noted the Australian government’s assessment of diethylhexyl phthalate, a plasticizer used in industrial and consumer products, and the challenges that Australia had in obtaining information on the level of that chemical in articles.

It is clear that both industry and APEC member economies share the goal of the sound management of chemicals throughout their life-cycles. There is a need to share and have access to relevant information regarding the chemicals in articles for a variety of reasons, including to allow economies to assess and mitigate risks to human health and the environment, enable industry to demonstrate compliance to regulatory requirements and inform environmentally conscious design.

Furthermore, while information sharing is crucial, a balanced approach is required that recognizes and respects the important concept of intellectual property and protection of confidential information, as well as consumers need to know.

Staff contact: Helen Medina

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Hague Meeting Maps Out Private Sector’s Role Ahead of Rio+20

Published on April 11, 2012

Business and industry has the expertise and tools to accelerate progress toward a green economy

The International Chamber of Commerce (ICC) provided business input for the UN’s upcoming Rio+20 Conference at a two-day consultation in The Hague, the Netherlands, with the aim of further mapping out the private sector’s role in the transition to a green economy.

Some 300 business people, government and non-governmental organization representatives, attended this Business and Industry Consultation with Government and Civil Society, organized by the government of the Netherlands, the UN Department of Economic and Social Affairs (UNDESA) and the Business Action for Sustainable Development (BASD).

Through ICC, USCIB members and other business participants have been shaping recommendations ahead of the Rio+20 UN Conference on Sustainable Development in Rio de Janeiro, Brazil, on June 20-22.

In a parallel effort, USCIB members and other stakeholders are actively involved in the Green Economies Dialogue initiative, which was launched last year to provide a forum for discussion of green growth topics among multiple stakeholders in the lead-up to Rio+20. Dialogue sessions have been held in Washington, Paris and Beijing, and two additional sessions were scheduled to take place this month in Tokyo and Brasilia. USCIB members are invited to contact Kira Yevtukhova (kyevtukhova@uscib.org) for additional information.

At the Hague meeting, ICC outlined the requirements to accelerate progress toward a green economy and presented its 10 Conditions for a Transition toward a Green Economy and its voluntary code for companies, the ICC Business Charter for Sustainable Development. The ICC Business Charter, is already being used by thousands of large and small companies around the world as the basis for sound environmental management.

Click here to read more on ICC’s website.

Staff Contact: Norine Kennedy

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USCIB China Mission Focuses on Green Growth

Published on April 3, 2012

Jianmei Feng of General Electric, co-chair of USCIB’s China Committee, addresses the Green Economies Dialogue session; USCIB President and CEO Peter Robinson is at right.

USCIB members and staff were in China last month in a visit that focused on green growth topics and engaged with USCIB members in-country.

A highlight of the visit, which was led by USCIB President and CEO Peter M. Robinson and USCIB China Committee Co-Chair Tad Ferris (Holland and Knight), was a session of USCIB’s Green Economies Dialogue initiative that included Chinese business and government representatives.

Also involved in the mission were Jianmei Feng, the China-based co-chair of the China Committee, Justine Badimon, USCIB’s manager of China and APEC affairs, and Anna Zhang, USCIB’s director of Carnet claims administration.

USCIB launched the Green Economies Dialogue initiative last year to provide a forum for discussion of green growth topics among multiple stakeholders in the lead-up to the UN’s Rio+20 conference and beyond. In addition to Beijing, dialogue sessions have been held in Washington and Paris, and two additional sessions are planned for April in Tokyo and Brasilia.

At the headquarters of the China Chamber of International Commerce (CCOIC), ICC’s China affiliate. L-R: USCIB China Committee Co-Chair Tad Ferris (Holland and Knight), Nicole Wang (CCOIC), CCOIC Deputy Secretary General Lin Shunjie, USCIB President and CEO Peter Robinson, Justine Badimon (USCIB).

The Beijing Dialogue, jointly organized with USCIB’s China Committee and with strong input from the Business and Industry Advisory Committee to the OECD, assessed conditions to promote a greener economy in China, key opportunities for industry to enhance China’s efforts, and issues related to competitiveness in global markets. The meeting also served as a platform to discuss areas for improvement and cooperation within the private sector, and private/public partnerships.

The event was highlighted by a keynote address from Zhou Hongchun, one of the Chinese government’s leading advisors and experts on green industry development policy, including structural adjustment, “circular economy” promotion, and industrial energy efficiency. The event also featured a panel of industry experts and representatives, including Joerg Wuttke (BASF), chair of BIAC’s China Committee.

USCIB representatives also took advantage of the visit to meet with representatives of the China Chamber of International Commerce (CCOIC), our Chinese sister organization in the International Chamber of Commerce and the ATA Carnet system, which enables duty-free, tax-free temporary exports to some 80 countries and customs territories around the world.

For more information about the upcoming Green Economies Dialogue sessions, please contact Kira Yevtukhova (kyevtukhova@uscib.org).

Staff contact: Justine Badimon and Norine Kennedy

More on USCIB’s China Committee

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Green Economies Dialogue website

Private Sector Role in Sustainable Development Grows Stronger Ahead of Rio Summit

Published on March 30, 2012

Representatives of governments, business and other stakeholders gathered in New York to discuss sustainable development.

Only a few months prior to the UN’s Rio+20 conference in June, some 100 representatives of governments, business and other stakeholders gathered in New York for a high-level dialogue on the business case for sustainable development.

The meeting was hosted by a business coalition of the International Chamber of Commerce, the World Business Council for Sustainable Development and the United Nations Global Compact, in partnership with the governments of Barbados, Benin, the Netherlands and Vietnam.

USCIB was represented by Norine Kennedy, vice president for environment and energy.

The dialogue took place during the third Intersessional Meeting of UN Conference on Sustainable Development. It provided a platform to discuss issues of vital importance to the private sector in advance of Rio+20 and explore the role of business in fostering inclusive green growth. Companies around the world have placed sustainability at the top of their agendas, realizing the growing significance and urgency of global environmental, social and economic challenges. Using science and technology to stimulate innovation and investment for green growth, the private sector is contributing substantially to sustainable development.

“As Rio+20 focuses on greening growth and advancing implementation, bringing business to the table is indispensable,” said USCIB’s Kennedy. “We regard a recognized role for business as a necessary element of a successful outcome of the UN conference.”

USCIB members are actively involved in the Green Economies Dialogue initiative, which was launched last year to provide a forum for discussion of green growth topics among multiple stakeholders in the lead-up to Rio+20. Dialogue sessions have been held in Washington, Paris and Beijing, and two additional sessions are planned for April in Tokyo and Brasilia. USCIB members are invited to contact Kira Yevtukhova (kyevtukhova@uscib.org) for additional information.

Read more about the New York meeting on ICC’s website.

Staff contact: Norine Kennedy

More on USCIB’s Environment Committee

Green Economies Dialogue website

Case Study 1: Business and Supply Chain Linkages

Published on March 30, 2012

The Problem

Efforts by government to force companies to monitor all levels of their supply chains are impractical and do not account for social and political injustices.

Business has responded by proactively establishing privatized labor inspection systems to monitor supply chains to ensure compliance with codes of conduct pass but past the first tier (direct suppliers), efforts are impractical.

In Uzbekistan, it is reported that during harvest cotton is picked by minors, a government supported action that forcibly withdraws children from school to work the fields. Despite efforts by business to boycott the purchase of Uzbek cotton on the world market, it remains a purchased commodity by unreputable suppliers. Once purchased the tainted cotton makes its way into the supply chain of many final products.

USCIB Speaks Out

At the United Nations

USCIB worked with its members to collaborate with John Ruggie, UN special representative to ensure that U.S business needs be represented within the adopted “UN Guiding Principles for Business and Human Rights resulting in principles being accepted that recognize governments need to work in conjunction with business to find ways in which to address the complicated challenges facing multinational companies, not to put the burden solely on business community.

At the OECD

When revisions to the OECD Guidelines on Multinational Enterprises threatened to change the nature of the guidelines by holding companies accountable for all injustices found within their supply chains, USCIB, working in conjunction with BIAC, successfully advocated for consistency with the UN Principles which reinforce the standard that suppliers are responsible for their own impacts and the burden cannot be transferred.

At the ILO and IOE

USCIB Business efforts to address human rights issues including forced labor, child labor and human trafficking in labor markets provide short term relief when weak governments fail to enforce human rights laws already on the books. In support of the business community, USCIB through the IOE and ILO have supported cases brought against the Uzbek government with regards to the forced child labor cases occurring annually during harvest season. The ILO commissioned a group to observe and report on the injustices within the Uzbek labor system.

Join us.

EU-Style Chemicals Regulation Being Pushed in Various Forums

Published on March 12, 2012

On March 7 in Baltimore, Helen Medina, USCIB’s director of life sciences and product policy, took part in the annual GlobalChem conference, speaking on a panel on “Regulating Chemicals in Products/Articles.” For over 20 years, GlobalChem has provided a forum for discussion of the U.S. Toxic Substances Control Act, equivalent international regulations, and emerging issues and trends in the product stewardship arena.

The panel focused on the increasing pressure for U.S. manufacturers, importers and exporters to meet applicable governmental reporting requirements (including the European Union’s REACH effort), as well as content restrictions such as state chemical-specific laws in the U.S. and the EU’s Restriction of Hazardous Substances (RoHS II) initiative, without knowing fully what chemicals their suppliers have used in making the products they purchase and those used in making or selling their own products. In addition to Medina, the other panelists were Mike Irwin (Procter & Gamble), Andrea Fava (Intel) and Ernie Rosenberg (American Cleaning Institute).

Panelists reviewed increased government reporting requirements and content restrictions, as well as compliance through supply-chain management, and identified the challenges and solutions for companies selling products that incorporate chemicals or components supplied by others. USCIB’s Medina spoke about how the regulation and information-sharing about chemicals in articles are unfolding in the international arena. She described the specific obligations EU REACH sets out for manufacturers of articles, and she called attention to South Korea’s efforts to introduce REACH-style.

Medina also described how the UN efforts, including the Strategic Approach to International Chemicals Management (SAICM) initiative, are addressing chemicals in products and providing a platform for some to call for increased sharing of environmental information. She warned of the spread of REACH-like approaches outside the EU, the use of SAICM as a platform to facilitate this, and the potential “perfect storm” brewing in various multilateral forums – from June’s Rio+20 conference to the International Conference on Chemicals and Chemicals Management – to validate the inclusion of REACH-style measures in an international treaty built on the SAICM initiative. Medina said the time is now for business to engage with governments in the run-up to Rio+20 and in SAICM discussions in order to shape desired outcomes.

Staff contact: Helen Medina

More on USCIB’s Product Policy Working Group

Supreme Court Weighs Corporate Liability in Controversial Human Rights Cases

Published on March 5, 2012

On February 28, the Supreme Court heard oral arguments in Kiobel v. Royal Dutch Petroleum, a landmark case and the culmination of a long line of litigation under a 200 year-old U.S. statute, with potentially major consequences for U.S. multinationals doing business abroad.

The statute in question is the Alien Tort Statute of 1789 (ATS), which was enacted in the early days after the adoption of the Constitution so as to offer non-U.S. citizens the opportunity to be heard in federal court for claims involving very specific crimes against the “Laws of Nations,” as international law was then known. At the time, it was understood that these crimes would concern either acts of piracy or violations of the rights of diplomats and government officials on state business.

This previously dormant statute has taken on new life in recent years as an umbrella vehicle for securing redress across borders and crimes. In light of this, USCIB has actively filed amicus briefs over the years to limit its reach and scope as was intended by its drafters. Accordingly, USCIB filed a brief in the Supreme Court in Kiobel in support of USCIB member Shell Petroleum, Inc., the respondents in this litigation.

In Kiobel, Nigerian nationals who were subjected to human rights violations by the Nigerian government sued Shell Petroleum and others in U.S. court, arguing that these companies “aided and abetted” the human rights abuses committed by the Nigerian government pursuant to the ATS. The Second Circuit ruled that corporations cannot be held liable under the ATS as could individuals, and that there was no precedent for such corporate liability in international law. The issue of corporate liability was appealed to the Supreme Court.

The last time the Court decided an ATS case was in 2004 in Sosa v. Alvarez-Machain, but that case did not squarely address the issue of corporate liability, leaving many unanswered questions and a trail of litigation in its wake. Specifically, the Supreme Court concluded in Sosa that the scope of the ATS should be limited, but then went on to note that federal courts “may recognize” private tort claims for violations of international law. This allowance for judicial discretion in this area of the law “opened the door” to a flood of litigation in recent years, and USCIB has filed in many of these cases along with similarly interested trade associations and affiliates.

The USCIB brief in Kiobel attempts to gain clarity for our members doing business in foreign markets and often unstable political situations. While those who commit human rights violations around the globe should be held accountable for their actions, USCIB’s brief argues, as does Shell, that there is no precedent in international law for holding corporate entities liable as an individual wrongdoer. Furthermore, the USCIB brief elaborates on the “aiding and abetting” aspect of the ATS, agreeing with Justice Leval in the Second Circuit that the standard should be “purpose” rather than “knowledge.” There is, sadly, much unrest in the world and American companies and courts should not be looked to as a solution for redress for the crimes of others simply because they happen to be “in the wrong place at the wrong time.” USCIB does not seek to encourage “forum shopping.” As Justice Stephen Breyer noted during oral arguments, “There is no U.S. Supreme Court of the world.”

It is difficult to anticipate the outcome of the case, as the oral arguments were sprinkled with earnest questions and concerns and commentary from both sides of the issue and from most all of the Justices. Regardless, it is USCIB’s hope that this decision will afford companies that do business abroad in the most tenuous of environments some certainty as to where they might have to confront court actions and by whom, thereby informing future business decisions.

Note: The Justices were expected to issue their ruling before the conclusion of the Court’s current session in June. But in an unusual move, on March 5 they put the case over to the next term, and invited lawyers for both sides to present additional arguments related to whether the ATS permits suits for violations of international law occurring outside the United States. USCIB is considering filing a new amicus brief and will relay additional information to members shortly.

Green Economies Dialogue to Hold Sessions in China Japan and Brazil

Published on March 2, 2012

Last year USCIB, through the United States Council Foundation, joined with a range of partners to launch the Green Economies Dialogue project, an initiative aimed at fostering international consensus on the essential elements of successful green growth strategies.

The initiative encompasses a series of workshops (“dialogues”) to engage the private sector and inform international policy discussions leading up to the UN Conference on Sustainable Development (Rio+20) in June. An additional component of the Green Economies Dialogue project is the commissioning of more than a dozen peer-reviewed research papers to be published in the journal Environmental Economics prior to Rio+20.

Following successful Green Economies Dialogue sessions in Washington, D.C. and Paris last fall, USCIB and its partner organizations – including BIAC, the Japanese employers group Keidanren, Brazil’s CNI business federation, and a dozen sponsors – are gearing up for three additional Dialogues in China, Japan, and Brazil this month and next.

Additional information on each Green Economies Dialogue sessions:

Beijing Dialogue (March 21): Organized jointly with USCIB’s China Committee, the Beijing Dialogue will assess conditions to promote a greener economy in China, key opportunities for members of industry in this area to enhance China’s efforts, and issues related to competitiveness in global markets. The meeting will also serve as a platform to discuss areas for improvement and cooperation within the private sector, and private/public partnerships. For more information, please contact Justine Badimon, USCIB’s manager for China, APEC and EU affairs (jbadimon@uscib.org).

Tokyo Dialogue (April 4): Jointly hosted by BIAC and Keidanren, the Tokyo Dialogue will build on topics discussed at previous Green Economies Dialogue sessions in Washington, Paris and Beijing, including low-carbon development and resource efficiency, with a focus on Japanese and regional priorities and experiences. For more information regarding this meeting, please contact Norine Kennedy, vice president for energy and environmental affairs (nkennedy@uscib.org).

Brasilia Dialogue (April 16-17): Hosted by CNI, the Brasilia Dialogue will draw upon all previous Green Economies Dialogue sessions, with a focus on green growth in emerging and developing countries, sustainable use of tropical forests, and low-carbon development in Brazil and the region. The meeting will be a day-long event on April 16, with possible for additional meetingsonApril 17. For more information regarding this meeting, please contact Norine Kennedy (nkennedy@uscib.org).

For more information on the Green Economy Dialogue Project, please visit the project website at www.green-dialogue.org.

Staff Contact: Norine Kennedy

More on USCIB’s Environment Committee

Global Business Calls for Accelerated Joint Action for Green Growth

Published on March 1, 2012

Executives from the International Chamber of Commerce, part of USCIB’s global network, have put forward principles for a transition toward a green economy at several ministerial roundtables and multi-stakeholder dialogues in Nairobi to provide input to the Rio+20 UN Conference on Sustainable Development in June 2012.

Environment ministers and senior policymakers from more than 80 countries assembled for the 2012 United Nations Environment Program (UNEP) Special Session of the Governing Council/Global Ministerial Environment Forum and Global Major Groups and Stakeholders Forum, which took place February 17-22.

Held in conjunction with UNEP’s 40th anniversary celebration, the meetings set out to prepare input on a range of issues, including a green and inclusive green economy, options to strengthen international sustainable development governance, sustainable consumption and production, and several industry-specific topics such as chemicals and waste.

“Business is an important contributor to sustainable development such as through science and technology that lead to innovations and investments for green growth,” Martina Bianchini, chair of the ICC Task Force on Green Economy and vice president, EU government affairs and public policy with The Dow Chemical Company, told a ministerial roundtable and forum.

“It will be crucial to ‘green’ all sectors in all countries and to advance resource efficiency and life cycle approaches,” Ms Bianchini said at the event, which was attended by UNEP Executive Director Achim Steiner.