Profitable Environmental Management (PREMA)

PREMA is a new methodological approach developed (since 1996) by GTZ-P3U, the Pilot Programme for the Promotion of Environmental Management in the Private Sector of Developing Countries. Starting point was the analysis of achievements and shortcomings of existing environmental management tools and donor programmes as well as the demand concerning environmental issues voiced by German technical co-operation projects in the field of environment and private sector development. It is an approach that can easily be combined with LED efforts.

PREMA aims at practically implementing methodologies and concrete measures which allow enterprises to mobilise their economic self-interest in increased profitability and competitiveness for achieving also a better environmental performance and increasing the entrepreneurial capabilities to solve problems. By this, a "triple win" can be achieved.

The methodological approach and its interactive training modules allow for the identification and implementation of often low-cost, esp. low-investment measures with relatively short payback periods by

• reducing costs of production through the reduction of Non-Product Output (NPO), i.e. materials, water and energy which are used for production but do not end up as part of the desired final product;

• improving their environmental performance by producing less waste, waste water and emissions to air by producing less Non-Product Output, establish, where possible, closed loops in resource use (e.g. water) and substitute toxic components by non-toxic ones;

• enhance their organisational capabilities by using itinerative, motivating training methodologies (some of them similar to CEFE) and tools which allow for tapping the knowledge already available in the companies and for enhancing the entrepreneurial competencies and capabilities;

• to increase workplace safety by addressing these issues through the application of the respective checklist in the Good Housekeeping Guide (see GTZ-P3U)

PREMA comprises short training modules or a complete modular programme of up to six months which relies on 3 elements:

1. Interactive training workshops conducted by qualified and authorised international or local trainers and consultants give companies the necessary methodological inputs and tools (of increasing complexity) to identify optimisation potential and develop and actually successfully implement adequate measures

2. Networking meetings of the entrepreneurs which are supported by a facilitator and a specific methodological setting (Action Learning Set), tap the competency of the group and assist the members to implement measures and overcome obstacles; these networking meetings may be maintained beyond the duration of the programme.

3. The modular element is the continuous application of activities within the participating companies by trained staff.

The modular combination of instruments promotes the initiation of a continuous process of improvement in the companies ranging from simple measures of Good Housekeeping to the introduction of more complex instruments such as Environment-Oriented Cost Management or integrated management systems in the fields of quality, environment and workplace safety (PREMAplus). Initial resistance to change may be easily overcome with simple instruments and their inexpensive and successful application. Improved resource efficiency of production and pollution prevention are also key success factors for the long-term competitiveness and public image of companies. In addition, at the local, regional and national level, these factors are crucial for public health, the long-term sustainability of national resources and economic development in developing countries, as well as enhanced competitiveness at the international level where consumers and international agreements are demanding ever more environmentally sound products and the compliance with social standards. For more information, including case studies, please consult GTZ-P3U.

PREMA activities require a local partner, often a chamber of industry or handicraft, as well as interested local consultants and trainers who want to offer PREMA as a market-oriented service. This set-up offers opportunities for networking between local entrepreneurs, their representatives and local government that reinforce measures undertaken from an LED perspective.

More of PREMA: Non-Product Output

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