Environmental policy as a sustainability policy

Environmental marketing research is becoming independent of environmental policy in the area (Leonidou et al. 2009). This study belongs to the applied research area of environmental marketing and this study utilises the environmental management system in EU and its challenges and possibilities via SMEs. Furthermore, this study aims at deeper understanding of ecoproductization and our knowledge of marketing ecophilosophy (Panula 2000). This study highlights the overview of sustainable development in the political language of strength, but its life cycle philosophy has its weaknesses. Because life cycle thinking and analyses are based on the philosophy of damage thinking, and as environmental marketing emphasises positive philosophy, the marketing of ecological products is ineffectual if the message to consumers is how the product is detrimental for the environment. Consequently, marketing holds great importance in this ecoproductization.

In addition, small and medium-sized enterprises are left out in the cold, as the development of environmental management systems have earlier been based on large companies. In other words, marketing becomes impossible if SMEs are required to input just as much resources as large corporations in the creation of ecological credibility through the use of advanced environmental systems. It is vital that SMEs are also taken into consideration. I decided to combine theoretical ecophilosophical thinking in the production of products and offer a new context of sustainable green marketing for managing the marketing of SME products. This study focuses on ecoproductization in small and medium-sized enterprises. Furthermore, we need more growth sustainable business and SME offerings in commercializing the development of ecological productization has remained as an unused resource. The reason why environmental policy is important is that there is a large number of SMEs, which have an effect on employment, but financial resources are largely limited. Therefore, this is very relevant not only with respect to environmental policy, but moreover from the point of view of the economy of society.

The well-known ‘Our Common Future’ report by the World Commission on Environment and Development (WCED) in 1987 emphasizes the possibility for a new era of economic growth, one that must be based on sustainable development policies (Baker et al. 1997). The report deals with sustainable development and the change of politics needed for achieving such. The definition of sustainable development in the report is quite well known and often cited (WCED 1987:1): “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

It comprises two key concepts: the concept of ‘needs’, in particular the essential needs of the world’s poor, and the idea of limitations imposed by the state of technology and social organization on the environment’s ability to meet present and future needs. The WCED report describes sustainable development as a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development and institutional change are all in harmony and enhance both current and future potential to meet human needs and aspirations. Sustainability requires views of human needs and wellbeing that incorporates such non-economic variables as education and health (Dobbelt 2010).

The many reports (WCED 1987, Baker et al. 1997, WSSD 2002, EU 2007b) highlight three key components of sustainable development: environmental protection, economic growth and social equity. In many studies, it is estimated that the world market for environmental

products is expanding and in 2003 it was estimated at over 500 billion euro (European Commission 2007b/European Business Awards 2006). The environment could be conserved and our resource base increased by gradually changing the ways in which we develop and use technology. The WCED report (1987) reflects growing global awareness in the second half of the 20^th century of the enormous environmental problems facing the planet, and of the growing shift towards global environmental action. The same report approaches the environmental and development issues, which were and still are facing the world as one common challenge, to be solved by collective multilateral action rather than through the pursuit of national self-interest. Importantly, it approaches these common concerns with a holistic perspective.

The United Nations World Summit of Sustainable Development (WSSD) was held in Johannesburg in 2002. This summit clarified the ongoing discussion about sustainable development. One topic discussed was changing unsustainable patterns of consumption and production: the summit confirmed to encourage and promote the development of a 10-year framework of programmes in support of regional and national initiatives to accelerate the shift towards sustainable consumption and production to promote social and economic development within the carrying capacity of ecosystems. This could happen by addressing and delinking economic growth and environmental degradation through improving efficiency and sustainability in the use of resources and production processes (WSSD 2002).

To realize these goals, actions on all levels are required, for example, identifying specific tools, policies, measures and assessment mechanisms including, among others, life cycle analysis and national indicators for measuring progress. The Johannesburg Summit also encourages relevant authorities on all levels to take sustainable development considerations into account in decision making, including in national and local development planning, investment in infrastructure, business development and public procurement. The Johannesburg Summit emphasizes concrete actions on international, national and regional levels to achieve sustainable development (WSSD 2002).

According to the Johannesburg World Summit (WSSD 2002), sustainable development is a dynamic process that enables all people to realize their potential, and to improve their quality of life, in a way, which simultaneously protects and enhances the Earth’s life support system. One way to look at global consumption is to look at the Footprint performance.

The Ecological Footprint measures people’s demand on nature in different countries (see appendices 1 and 2). For example, the global Ecological Footprint was 13.5 billion global hectares in 2001, or 2.2 global hectares¹ per person (Living Planet 2005).

Ecological Footprint has an influence on the image of different nations due to the information it offers. Consequently, it also affects the international trade of the country and indirectly also the small business sector. A large Ecological Footprint decreases the credibility of marketing for ecological businesses. It is challenging is to create larger market shares for ecological products. The development of environmental marketing for SMEs can support their possibilities and significance in ecological trade. On the other hand, how we would like to maintain quality of life in a sustainable way is an important question today as well as in the future (Peattie 2001). The ecological footprint (http://www.footprintnetwork.org/

1 A global hectare is a hectare whose biological productivity equals the global average

en/index.php/GFN) of SMEs can be affected and the environmental management can be changed towards sustainable solutions. When the starting point of environmental marketing is sustainable development (Banerjee 1999; Polonsky et al. 1995) and its intention is to provide information on the consumption of resources and ecological services. According to Makower (2005), we consume more in handling nutrition, materials, energy and waste than the land and water reserves allow, and the regional differences are large (Global Footprint Network 2003, figure 2).

Figure 2. The growth in demand and scarcity of supply direct the entrepreneurs of the future.

Joel Makower (2005:1) summarizes the key findings of ecological footprint in the following way: “Europeans now require 4.9 global hectares per person to provide for their lifestyle. As the continent can only supply 2.2 global hectares per person, Europeans rely on the rest of the world to make up this increasing deficit. Europe’s Ecological Footprint represents an area more than twice the size of Europe. By contrast, America’s footprint consumption is nearly twice that of Europeans: an average of 9.5 hectares per person. Globally, humanity requires 2.2 global hectares of productive area per person to sustain current lifestyles, 1.3 times more than in 1961. However, the Earth currently has just 1.8 global hectares available per person. This

”overshoot” of 21% depletes the Earth’s natural capital, and is thus possible only for a limited period” (Makower 2005:1). Environmental issues are also addressed in the EU environment portal (European Commission 2007b/environment). On the other hand, inter-relationships between health, environment and development were clearly underlined at the United Nations Conference on Environment and Development (UNCED) held in Rio de Janeiro in 1992.

Health is part of the whole socio-economic development world and the “human being is at the centre of concerns for sustainable development” (UNCED 1992).

For this discussion, SME entrepreneurs provide unused resources for more sustainable use of natural resources. By enabling environmental management for SMEs, a competitive edge will be attained using best environmental practices and best possible products. This study promotes improved cooperation between environmental management stakeholders and SMEs.