Environmental awareness high among TNCs, Benchmark Survey finds

UN Chronicle, Dec, 1991

The survey was undertaken at the request of the Economic and Social Council (resolution 1990/71) as part of preparations for the 1992 UN Conference on Environment and Development (UNCED). The study-known as the "Benchmark Corporate Environmental Survey"--attempts to gauge the current state of corporate environmental management, with a view to documenting the most advanced practices as models for companies with no programmes yet in place.

The survey asked chief executive officers of 794 TNCs, with sales of over $1 billion, to list which five of the nine environmental themes on the UNCED agenda were of most immediate concern to them. Twenty per cent--163 firms--responded, a good rate of return given the acknowledged "high political contentiousness surrounding the issues of environment and development", UNCTC reported

Air quality leads list

Of the nine UNCED themes, atmospheric protection was considered the most important by the largest number of respondents. The majority reported that company-wide policies went beyond those required by national air pollution legislation. More than a third stated that they undertook research and development for the reduction of greenhouse gases.

The question of environmentally sound management of toxic substances and hazardous wastes was also high on the list. A third reported educating their workforce or surrounding communities on the safe handling of such substances.

Also included in the top five were protection of human health, protection of freshwater supplies and protection and management of land resources. The remaining themes were conservation of biological diversity, environmentally sound management of biotechnology, protection of the oceans and improvement of the environment of the urban and rural poor.

Greening of the TNCs?

Despite the high level of environmental consciousness reported by TNCs, the Centre warned against using survey statistics to support too rosy a conclusion about the greening of the international corporate landscape.

For one thing, the survey dealt with corporate policies and and plans as reported by the companies themselves; it made no attempt to assess the degree to which their claims were actually carried out.

For another, generalizations beyond the sample were considered dangerous, as TNCs with a strong environmental record were more likely to respond to the questionnaire than those with a weak record.

The survey also threw some light on grey areas in the overall picture. Two thirds of the respondents reported emitting nitrogen oxides, one third generating dioxins and a minority continuing to manufacture goods containing chlorofluorocarbons (CFCs) which damage the ozone layer.

The survey also identified 34 corporate activities with potential for serious detrimental environmental effects. The respondents admitted involvement in an average of 8.3 such activities.

Recommendations

The results of the Benchmark Survey and recommendations based on its findings were published by the UNCTC in a series of five booklets released at the UNCED preparatory meeting in Geneva in August. Among recommendations pertinent to the atmosphere were: increase international cooperation so that TNCs are better informed of the impact of their operations on the greenhouse phenomenon; include TNCs in the consultative process for climate change; and treat dioxins and PCBs as international, not just local pollution problems.

Other recommendations were: transnational affiliates in developing countries should handle toxic wastes according to the same rules as in developed countries; the international community should stress the importance of clean surface water, the source of most drinking water in developing countries; TNCs should create safety zones around their facilities to lessen the potential impact of accidents; priority status should be given to protecting the oceans from landbased pollution sources; TNCs should sponsor programmes to save wetlands and rainforests to protect biodiversity; and TNCs should help develop a code of conduct on biotechnology.

The Centre stressed the need to reduce differences in environmental rules and regulations, and noted respondents' interest in a strong UN role in setting international guidelines. More than half of them did not use current international guidelines and many were unaware of their existence.