The ASEM SMEs Eco-Innovation Center, established by South Korea’s Small and Medium Business Administration in 2011 to promote eco-innovation in the ASEM member countries, has offered its eco-business consulting services for small and medium enterprises in Asia for the past two years.

Behind the drive is ASEIC’s belief that SMEs play a critical role as dynamic developers and adopters of eco-innovation in the global economy.

According to the OECD, eco-innovation is defined as innovation that results in a reduction of environmental impact, whether or not that effect is intended. It creates products, services, processes and management methods that can benefit the environment and human welfare.

As the demand for environmental products, services and technologies grows internationally, SMEs can grow through eco-innovation, but they must overcome a lack of finance, information and technology.

In this vein, ASEIC launched the eco-innovation consulting services for SMEs, particularly, in Asia, where the infrastructure for eco-innovation business is less developed than in Europe.

The goals of ASEIC’s eco-innovation consulting are to help SMEs innovate and to strengthen their competitiveness through green management and technology.

In 2011, ASEIC launched its first “ASEM SMEs Eco-Innovation Consulting Project” for 33 SMEs in four ASEM member countries ― Indonesia, Vietnam, Thailand and Malaysia ― in collaboration with U.N. organizations such as the United Nations Industrial Development Organization and the United Nations Environment Program, as well as global consulting firms and environmental experts from around the globe. In 2012, ASEIC also offered consulting services for 32 different SMEs in those four countries.

The consulting project was developed to offer customized services in process, system, marketing and management innovation, helping SMEs improve their overall environmental performance. Moreover, on-site training and education were provided as a way of raising awareness about the relationship between eco-innovation and growth.

The project consisted of customized consulting services for product, process and system innovation in the participating SMEs. It emphasizes two main programs: assessment and implementation, and training and education.

ASEIC used quantitative and qualitative instruments to assess the environmental performance of the participating SMEs. Based on the assessment, both short- and long-term environmental management and cleaner production strategies were established for implementation.

During the consultancy, ASEIC also provided training and education to raise awareness about the long-term cost-effectiveness and profitability of green management.

At the end of the consultancy, each company was provided with a set of customized eco-innovation guidelines to be implemented over the long run, including business frameworks for developing green products, services and technologies.

Rising success cases

One model case is Exis Tech, an original equipment manufacturer which tests components for semiconductors and automation industries in Malaysia.

Moving into a brand new factory in early 2011, Exis Tech was dedicated to incorporating green production methods and management practices that would ensure the sustainability of the company.

ASEIC’s eco-innovation consulting project provided Exis Tech with an environmental data management tool ― an essential instrument for controlling environmental management. It also recommended that Exis Tech integrates environmental management into the existing organizational structure by establishing an environmental management committee. Based on this recommendation, Exis Tech established an environmental committee composed of four employees, allocating specific roles and tasks.

To foster green industrial processes, the project recommended that Exis Tech incorporate the “green factory” concept for its new facility. The application of green process activities is expected to reduce annual electricity consumption by about 110,000 kWh, saving the company approximately $10,297 a year. In terms of greenhouse gas, Exis Tech is expected to reduce its emissions by the equivalent of 79 tons of CO2.

Beyond Exis Tech, ASEIC’s eco-innovation consulting supported another Malaysian SME to adopt an eco-friendly roof system at its production plant to cool down the interior temperature by 5 or 6 degrees. This reduces dependency on fans or air conditioning. Under the system installed on the roof, water evaporates, which cools down the roof and prevents the transfer of heat from the roof to the interior.

In Thailand, ASEIC worked with Bltwise Thailand, which makes air conditioners and other cooling systems, to develop its green management processes. It assessed entire work processes and proposed improvements for each process. It also set an eco-innovation goal of each process, allowing employees to check their progress.

By Seo Jee-yeon  (jyseo@heraldcorp.com)