*{A Precautionary Approach: An ICC Business Perspective [http://www.iccwbo.org/home/statements_rules/statements/1997/buspers.asp]

Commission on Environment, 2 April 1997

Introduction}

International law and environmental agreements are increasingly predicated on accepting a "precautionary approach" which will limit or mitigate actions which may impact on the environment.

The phrase stems from the Rio Declaration (1992) Principle 15, which states: "In order to protect the environment, the precautionary approach shall be widely applied by States according to their capabilities. Where there are threats of serious or irreversible damage, lack of full scientific certainty shall not be used as a reason for postponing cost-effective measures to prevent environmental degradation". 

A precautionary approach starts with risk assessment. Governments and the business community must use scientifically based risk assessment to prioritise environmental concerns and develop cost-effective actions which are proportionally responsive to those concerns.

*partie=titre Business process *partie=nil

Relationships within ecological systems are complex and incompletely understood, as are human interactions with them. All human activities have an impact on the environment. The international business community remains concerned with the environmental and ecological health of the world and how to balance this concern with the economic use of resources. The business community supports scientifically sound, cost-effective preventative action as part of its integrated business process.

*partie=titre Risk assessment *partie=nil

Principle 15 of the Rio Declaration implies an approach to precaution based on the principles of identifying threats or risks to the environment, generating a scientific assessment of their impact, and developing cost-effective measures to address them. It firmly recognizes the need to adopt such measures promptly in the face of serious threats or risks.

Assessment of environmental risk has, as its foundation, sound scientific inquiry and objectivity. Environmental risk management includes an evaluation of risks posed and the development of appropriate management strategies to ameliorate potential risks. Risk management recognises that action may need to be taken before causal links have been fully scientifically proven. Those linkages, however, must still have a cogent scientific basis to warrant action and must be integrated with cost-benefit analysis to ensure that environmental objectives are most effectively met.

The precautionary approach does not call for scientific proof of to the receiving environment. It is illogical to expect that we can limit risk to in any discipline, including environmental stewardship. As all human activities have an element of risk such an approach would be impractical, and at variance with ecologically sound decision-making processes. Realistically, it is only viable to strive to minimize risk and bring it as close to zero as possible.

*partie=titre Environmental management *partie=nil

The business community accepts that management processes need to be tailored to different types of environmental impacts. Business aims for continuous improvement in its environmental performance, that is both practical and cost-efficient, by integrating environmental considerations into accepted business practices. These take account of environmental risk and uncertainty through organisational structures, management systems and operational procedures.

Individual business entities are developing and implementing environmental risk focused policies and internal management systems. These include environmental monitoring and auditing and are designed to meet international standards of best practice. The programs identify and deal specifically with environmental risk. The ICC Business Charter for Sustainable Development and the international standards in the ISO 14000 series on Environmental Management Systems are two important contributions to improve and structure the environmental management in the business community, which in turn substantially will decrease the environmental risks involved. 

*{Conclusion}

The business community urges governments to involve it in the planning and policy development of environmental risk management. Development of environmental management plans and preparation of environmental impact assessments involving consultation with all stakeholders are regarded by the business community as prudent actions in applying a precautionary and realistic approach. The precautionary approach also encourages creativity and innovation in and beyond the business community, by stimulating new methods of environmental preservation and fostering continuous improvement.

*{Document No. 210/505 Rev.2

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