Case Study: Hong Kong Special Administrative Region, People’s Republic of China. Realities of MSME: What Green Skills Are Included in the RVAs?

Abstract

This chapter presents and analyses the results of a Hong Kong SAR, PRC, study. Sixteen micro, small and medium enterprises (MSMEs) were interviewed in Hong Kong SAR, PRC: four in automotive, four in waste management and eight in the catering sectors. Data collection on PVC manufacturing was not feasible due to the inactivity of that industry in Hong Kong SAR, PRC. The automotive and waste management industries are regulated by the government, so all results were obtained from the formal sector. Regarding the catering industry, both formal and informal companies were interviewed and visited for observations. Results revealed that some green practices have been applied by MSME, and employers stated that the successful implementation of environmentally friendly operations greatly depends on the attitudes and behaviour of staff, in many cases even more than on particular skills. Across three sectors the majority of owner/managers had not heard about recognition, validation and accreditation (RVA) mechanism. They believed that adding RVA processes could be somewhat unhelpful, particularly for the automotive industry, as an apprenticeship scheme was in place and was used to certify obtained skills. MSME believe that the inclusion of green skills in RVA might negatively affect the hiring processes in the industry. The findings demonstrate that inclusion of green skills in RVA mechanism in Hong Kong SAR, PRC, requires a strong political push from the government. An awareness campaign for industries and the private sector is vital to clarify the benefits of RVA and greening. Key performance indicators, clearly defined targets and available support for MSME are essential. Education has a clear role to play in developing green mind-sets.

1 Introduction

Human resources are one of the greatest assets in any country or territory. Skills, knowledge and competencies of employees should be viewed as key for economic development as well as the realisation of environmental sustainability. Imparting knowledge and facilitating the inclusion of green skills in learning for all occupations can achieve this. In addition to formal learning, work experience obtained in non-formal and informal settings is of particular importance for the greening of industries, as greener operations and greener technologies can very often be learned best within the workplace. To recognise and value the hidden competencies attained by individuals in various settings, many countries use recognition, validation and accreditation (RVA) mechanisms that have been identified by UNESCO as a key strategy to promote lifelong learning. Although RVA exists in many places it is not clear how it is perceived by micro, small and medium enterprises (MSME) in Hong Kong SAR, PRC, and to what extent competencies that are related to environmental protection are visible in existing units of competencies. It is also not clear what environmentally friendly practices exist in Hong Kong SAR’s MSME or what skills are required to support/improve them. These green skills should be possessed by the workforce in a variety of sectors as they are important for achieving the environmental goals established by the Hong Kong SAR government.

Socio-economic and educational context

In the eyes of many, Hong Kong remains ‘Asia’s world city’ after the transition from Britain to a Special Administrative Region (SAR) within the People’s Republic of China. Ever since the handover of sovereign rule back to PRC, Hong Kong SAR has experienced major socio-economic changes. Economic integration between the two regions has broken down communication barriers and increased interaction between mainlanders and Hong Kongers. ‘The front shop back factory model’ describes economic restructuring in Hong Kong SAR, PRC, after 1997, referring to this socio-economic integration, where manufacturing production has relocated to PRC’s provinces and Hong Kong SAR has specialised in commercial and financial services, marketing and design (Chiu and Lui 2009).

During the British colonial era, higher education was limited to elite students until rapid industrialisation and greater prosperity demanded an increase in the number of knowledgeable individuals. In the 1970s, technical training and education became important, so the Hong Kong Polytechnic was established. Later, from the 1980s to the present day, formal higher education became central to the knowledge-based economy, first under British rule and then as an SAR, with the purpose of nurturing innovation leaders, entrepreneurs, engineers and business management elites. After two waves of higher education massification (Cheng 2009), access to post-secondary education has surged from 30% in the 2000s to nearly 70% in the 2010s (University Grants Committee 2010). The educational reform of secondary education undertook five guiding principles: student-focused, ‘no-loser,’ quality, ‘life-wide’ learning and society-wide mobilisation. The fifth principle, ‘society-wide mobilisation’ suggests learning beyond the classroom, with contributions from all sectors of society as well as an appreciation of lifelong learning by learners (Cheng 2009). Importantly, both lifelong learning and life-wide learning emphasise autonomous learning in both formal and non-formal settings. Thus, the recognition of this type of learning should be one of the priorities.

Environmental challenges in industry

Environmental challenges raise serious concerns for our world and make the shift towards green economies inevitable. Policies on environmental protection, energy, education and training are driven by the challenges of environmental degradation and have become a critical, ethical matter for sustainable development, including decent work conditions. Likewise, government, enterprises and organisations in Hong Kong SAR, PRC, are also dealing with complex and ever-changing environmental issues. The three industries under examination (automotive, catering and waste management) in Hong Kong SAR, PRC, have encountered various environmental challenges in recent years.

Catering

Statistics of the catering industry demonstrate an increase in the number of people employed in the sector as well as the number of restaurants over recent years. There was a total of 237,333 persons engaged in food and beverage services in 2013, a 0.9% increase compared with 2012 (Census and Statistics Department 2015a). The number of food business licences issued in Hong Kong SAR, PRC, by the Food and Environmental Hygiene Department has increased steadily and reached 8,926 in 2013, representing an increase of 6.4% from 2010 (ibid.). For the same period, light refreshment restaurant licences issued increased from 3,053 to 3,155, representing an increase of 3.2% (ibid.). The number of liquor licences issued has also increased, reaching a total of 5,975 in 2013 compared to 5,291 in 2010 (Ibid.). There were 449 club liquor licenses in 2013 compared to 491 in 2010 (Ibid.).

Food waste is one of the major environmental challenges that this industry faces due to festive binge eating and drinking in Hong Kong SAR, PRC (Ng 2015). Around 3,600 tonnes of food waste is produced daily, which equals to a combined weight of 300 double-decker buses (Environmental Protection Department 2017). The amount produced ends up in landfill where space is limited and therefore imposes a severe burden on the local environment.

Waste management industry

The waste management sector in Hong Kong SAR, PRC, commonly deals with municipal solid wastes from domestic premises, commercial sources and public facilities. 3,012 individuals are engaged in waste collection, treatment and disposal, together with materials recovery in 2013, which is 30% more than in 2012. In 2012, the industry grouping of sewerage, waste management and remediation activities achieved a gross surplus of HK$553 million (Census and Statistics Department 2014). Taking 2008 as reference, with a value of 100, the index of industrial production for sewerage, waste management and remediation activities increased sharply and reached 121 in 2014 (Census and Statistics Department 2015b).

Currently, around 15,332 tonnes of municipal solid waste are produced daily in Hong Kong SAR, PRC (Environmental Protection Department 2017). In 2013, 2.01 million tonnes of municipal solid waste were recovered, yet only 7% was recycled locally. The rest of the municipal solid waste was exported to the mainland and other countries for recycling (Environmental Protection Department 2015a) or end up in landfills (Fig. 6.1).

Fig. 6.1

Source Environmental Protection Department (2017)

Types of solid waste disposed of at landfills in 2016.

Until recently, recycle and landfill of waste were the two main waste management approaches in Hong Kong SAR, PRC (Fig. 6.2).

Fig. 6.2

Source Environmental Protection Department (2013)

Municipal solid waste management comparison: recycling, incineration and landfilling and other.

Compared to other international cities and territories, Hong Kong SAR’s recovery rate for municipal solid waste (MSW) after running source separation and recycling initiatives is acceptable. Eighty-three percent of the population in Hong Kong SAR, PRC, have waste separation bins in their residential buildings (Environmental Protection Department 2013). Approximately 4,500 sets of separation bins can also be found in public spaces and 2,400 sets in commercial, industrial and institutional locations (ibid.). This measure results in 48% of the MSW recovery in 2011 (ibid.). However, the generation and disposal rates are higher than other cities such as London, Tokyo, Seoul (Environmental Protection Department 2013), making this the most critical area to be addressed in waste management.

Growing waste loads due to an increase in population and limited space for landfill sites are serious challenges for this industry. Three existing soon-to-be-saturated landfill sites are under tremendous pressure.

Automotive sector

There was a sharp drop in the total number of persons engaged in the assembly of motor vehicles and the manufacture of other transport equipment: from 1,661 in 2012 to 1,028 in 2013.

However, the number of vehicles on the streets of Hong Kong SAR, PRC, has not decreased. Vehicle emissions are a major source of street pollution and the problem has intensified in urban districts due to congested traffic. Emissions from diesel commercial vehicles including trucks, buses and public light buses produce large amounts of particulates and nitrogen oxide. Worsening congestion is contributing to poor roadside air quality (Table 6.1).

Table 6.1 Types of registered vehicles

With vehicle speeds decreasing, and the number of vehicles on the road increasing, Hong Kong SAR, PRC, is running into a vicious cycle—even as cleaner vehicles are being deployed, emissions per kilometre tend to rise due to slower average road speeds, especially in city centres with high populations and, as a consequence, high exposure risk (Environment Bureau 2013a).

Hong Kong SAR government response to environmental challenges

The Hong Kong SAR government has been promoting a ‘green economy’ since 2009, designed to achieve a balance between economic development and environmental protection. The green economy was emphasised in the Budget Speech 2009–2010 (Financial Services and the Treasury Bureau 2009). To align with the 2009–2010 policy address, the Chief Executive selected the environmental industry, alongside five other industries, to enjoy clear advantages in development (Government Logistics Department 2010). In recent years, the government has been taking the lead in strengthening new environmental protection initiatives among government departments and encouraging the private sector to support environmental industries through financial incentives. Over the years, electric vehicles, new energy technology, green specifications and green products to enhance energy efficiency have been introduced.

In Hong Kong SAR, PRC, the environmental industry focuses on six business areas: water conservation and pollution control, air and odour pollution control, energy conservation, waste treatment, disposal and recycling, noise control and mitigation and environmental consulting services (HKTDC 2017). Most enterprises in these environmental industries are SMEs (89%), with less than 100 staff and they specialise in water conservation and pollution control, air and odour pollution control, waste recycling or recovery, noise control and energy conservation (Innovation and Technology Commission 2015). Currently, there are approximately around 300 such establishments in Hong Kong SAR, PRC (HKTDC 2017). This industry has been enjoying clear advantages with much governmental support. The value of environmental industries grew by 5.2% to $7.1 billion in 2013 (or 0.3% of GDP). Employment by the industry amounted to 43,750 persons in 2017, accounting for 1.2% of total employment in Hong Kong SAR, PRC (HKTDC 2017).

The government has launched different programmes and initiatives with respect to the catering, automotive and waste management sectors.

The CarbonSmart Programme launched by the Hong Kong Productivity Council (HKPC) and various industry partners, with support from the Environment and Conservation Fund, encourages local enterprises to reduce carbon emissions. The programme provides suggestions for the catering sector, including the installation of super gas steamer series appliances by Towngas for saving electricity and water in steaming, recycling of used cooking oil and the introduction of low-carbon dishes (Hong Kong Productivity Council 2015).

‘The Quality Restaurant Environment Management Scheme’ was developed in cooperation with the Hong Kong Federation of Restaurants & Related Trades and the Hong Kong Productivity Council. The scheme provides guidance to catering industries about how to implement environmental management. The whole scheme is divided into seven areas: energy efficiency, water efficiency, waste management, wastewater management, air pollution control, noise pollution control and overall environment management (QREMS Accrediting Body Secretariat 2014). Detailed suggestions on each of the seven areas are provided. ‘The Food Waste Recycling Partnership Scheme’, launched by the Environmental Protection Department in 2009, aims to recover food waste from the 1,000 tonnes in 2011 to the 30,000-plus tonnes in 2013 that accounts for 1.5% of the total recovered municipal solid waste (EPD & Green Council 2017). Keeping a control on food wastage not only saves business costs in the purchase, preparation, cooking and serving processes; it also helps to preserve the environment.

In the automotive sector, the Hong Kong Productivity Council has developed several new technologies for manufacturing different automotive parts with higher cost effectiveness, including the development of an over-moulding tandem injection moulding machine, the application of nano-technology on coating and the use of light metal on the manufacture of automotive parts (Hong Kong Productivity Council 2017).

The introduction of electric vehicles was a part of Hong Kong SAR’s strategy to promote a green economy. From 1994 to March 2017, the government had provided first registration tax (FRT) concessions for all electric vehicles to encourage buyers. Electric vehicles are considered ‘green’ cars as they cause zero roadside emissions and have lower overall emissions of carbon dioxide. Electric vehicles are quieter, more economical and energy-efficient. However, in the Government Budget 2017–18, the above concessions were replaced by the waiving of FRT for electric private cars up to HK$97,500 (Environmental Bureau, 2017). According to the South China Morning Post (2018), this policy led to a decrease in sales of electric cars from 2,078 (April to December 2016) to 99 (April to December 2017). Therefore, in the latest 2018–2019 Budget, in addition to the waiving of $97,500 in tax, the government has set up the new ‘One-for-One Replacement’ Scheme, which will run for three years and can increase the FRT concession to HK$250,000 (ENB 2018). With this new scheme, the FRT for electric private vehicles which cost less than HK$375,500 will be zero.

In the waste management sector, the Hong Kong SAR, PRC and Guangdong governments are exploring cross-boundary cooperation in recycling so that recyclables generated in Hong Kong SAR, PRC, are transported to the mainland for further reuse. This can help the development of waste recycling industries (Advisory Council on the Environment 2010).

Recently, Hong Kong SAR, PRC, has started to introduce a variety of new waste-related technologies that generate energy. STF (Sludge Treatment Facility), OWTFs (Organic Waste Treatment Facilities) and IWMF (Integrated Waste Management Facilities) have been designed to produce considerable quantities of renewable energy that can be used in the city. Landfill gas captured by Towngas can be used as fuel for trucks or for household and business use. These opportunities will not only enable Hong Kong SAR’s greenhouse gas emissions to be reduced, they will also add to Hong Kong SAR’s overall competence in technology and waste management (Environment Bureau 2013b).

2 Terminology and Definitions

Conceptualisation of green skills

Green skills are commonly defined as skills required for reducing the negative environmental impact of enterprises and economic sectors. This study adopted the definition from the National Council for Vocational Education Research (NCVER) that green skills are ‘technical skills, knowledge, values, and attitudes needed in the workforce to develop and support sustainable social, economic and environmental outcomes in business, industry and the community’ (NCVER 2013).

The concept of green skills is not very well known in Hong Kong SAR, PRC, and so it is not referred to by industries. Previous studies conducted by Pavlova (2015, 2016, and 2017) demonstrate that there are attempts in the education sector to develop skills within the context of greening, however, this concept is not well known to industry, even to those companies that implement green practices. To meet this challenge, comprehensive lifelong learning strategies are required to integrate sustainable development issues into training programmes, both through formal education and work-based learning, to ensure that the labour force has the right skills to deal with energy efficiency, waste and water management and other environmentally friendly practices.

The status of recognition, validation and accreditation

At present, informal and non-formal learning in Hong Kong SAR, PRC, especially work experience, is recognised through the established recognition of prior learning (RPL) mechanism under the qualifications framework (QF) launched in 2008. Ten industries, including Chinese catering and automotive, had been included in RPL by 2014 with expansion planned. RPL recognises previous knowledge, experience and skills of practitioners with various backgrounds in a formal manner. To ensure its credibility, RVA mechanisms are based on the Specification of Competency Standards (SCSs) formulated by individual industries. Each of the participating industries forms its own Industry Training Advisory Committee (ITAC) to develop, maintain and update the Specification of Competency Standards that form the basis for RPL mechanisms. By 2015, 20 ITACs for 21 industries/sectors covering over 50% of the total labour force had been set up.

Over the five years of the transitional period that ended in May 2017, practitioners applied for recognition of competencies at QF levels 1 to 3 by producing documentary proof of their years of relevant working experience, without the need to take any formal assessment tests. This scheme was set up to encourage greater participation among those who had worked their way up from junior positions and also to allow sufficient time for industries to adapt and accept the mechanism. The application fees have been also mainly waived. Currently, all applicants seeking recognition of qualifications at QF levels 1 to 4 are subject to assessment tests (in addition to the supply of required documentation) (Hong Kong Information Services Department 2012). This is to enhance the credibility and acceptance of qualifications recognised under RVA mechanisms.

Based on the SCS, formulated by the automotive industry and catering industry, competencies are assessed based on units of clustered competencies (UoC). For the automotive industry, for example, there are 50 clusters spread across four levels of qualifications. Some UoC include elements of environmental protection (e.g. monitoring and managing environmental protection operations; formulating management procedures for dangerous chemicals, pollutants and waste). Applicants can decide which level and which UoC they wish to apply for recognition at, based on their prior relevant working experience.

3 Methodology of Primary Data Collection

This study follows the methodology presented in Chap. 1. Secondary data on environmental regulations and challenges selected industries facing is presented in Sect. 6.1 above. Primary data was collected from sixteen companies in Hong Kong SAR, PRC: four in automotive, four in waste management and eight in the catering sectors. Data collection on PVC manufacturing was not feasible due to the inactivity of that industry in Hong Kong SAR, PRC. The automotive and waste management industries are regulated by the government, so all results were obtained from the formal sector. Regarding the catering industry, both formal and informal companies were interviewed and visited for observations.

The majority of the MSME involved in the study were located at Kowloon City, an old district in Hong Kong SAR, PRC, where many small industrial companies and restaurants are located. All interviewed automotive companies and the majority of waste management companies and restaurants were found there. One waste management company that was subsidised by the government was visited in Wong Tai Sin, and two restaurants interviewed were found in the Prince Edward area.

4 Results and Discussion

4.1 General Information on Enterprises in Different Sectors

Automotive Industry

A total of four companies were interviewed in the automotive industry, including one car washing company, one car repair and maintenance company, one motorcycle retail and maintenance company and one motor ‘beauty’ company. The number of employees in general was small, with mostly two to five staff, and the majority of the staff had reached an educational level lower than higher education. They provided a range of services, from car washing and waxing, car coating and vacuuming to complete engine overhaul and repairing (see Table 6.2).

Table 6.2 General information on enterprises in the automotive sector

Box 6.1 Case study of an enterprise in the automotive industry

Located in Kowloon City, Company B is a micro-sized car maintenance company with only two employees, including the manager of the company. The company does car repair and maintenance, including engine checking and tyre changing. They also provide consultation services in relation to damaged cars. The company is typical of Hong Kong SAR, PRC: the employer and employees had not progressed to higher education and the company is very small.

The Environmental Protection Department (EPD) made regular visits to update the company on vehicle emission regulations and perform exhaust emission tests on the cars they were maintaining to ensure the company’s maintenance practices complied with emission standards. Emission control regulations for petrol and liquefied petroleum gas (LPG) vehicles were sent to the company via mail and Company B made adjustments to their engine checks in order to keep up with the latest required practice in Hong Kong SAR, PRC. Aside from random checks on the compliance of car maintenance practices from EPD, the company was also invited to join the Electrical Mechanical Services Department (EMSD)’s voluntary registration scheme for vehicle mechanics. The owner of Company B said he would recommend his employee join the vehicle maintenance workshops conducted by the Vehicle Maintenance Registration Unit.

The owner of the company is not aware of possible environmentally friendly practices for his business, but his attitude towards greening of the industry is positive. However, he believed small enterprises like his only played a small part in car maintenance services, and a stronger push is needed from the government to green this industry. Furthermore, he said resources were limited for car companies to introduce environmentally friendly practices, and that government tended to neglect their industry since it was a ‘light’ industry in a sense that it is no longer a major industry sector in Hong Kong SAR, PRC, compared to the business and commercial sector. This, he believed, was a typical concern of automotive companies when it comes to greening skills.

Source: Author

Waste management enterprises

In Hong Kong SAR, PRC, waste management companies are issued a licence from the government to collect waste. The industry collects:

• Paper, cardboard, magazines, newspaper, paper wrapping;

• Five metals: aluminium, iron, steel, gold, copper;

• Glass;

• Electronic waste;

• Wood;

• Plastic.

While most of the waste is sold to mainland PRC and Southeast Asia, a small part is recycled locally at the Kowloon Bay Material Transfer Centre and Eco-park in Tuen Mun.

The interviewed companies were micro-sized, with working staff having only primary to secondary education. They provided door-to-door waste collection, and mainly collected waste from the industrial sector. Two of the companies had their own heavy trucks to collect construction waste from their clients, many of which were construction companies (see Table 6.3).

Table 6.3 General information on waste management enterprises

Box 6.2 Case study of a company in the waste management industry

Company D operates in a different manner from the waste management companies commonly found in Hong Kong SAR, PRC—both full-time staff had completed university education, it also recycles glass bottles and collects waste from residential buildings which big environmental companies refuse to service. Unlike other recycling and collecting companies, its community recycling centre does not function in a commercial manner: it receives financial support from the government Environment and Conservation Fund to support its operation.

While over 80% of Hong Kong SAR’s population is covered by the Source Separation of Waste Programme, this centre, along with another 17, fills a gap by providing recycling outlets to those residents living in buildings not served with waste recycling facilities. Company D not only collects waste plastics, glass bottles and small waste electrical and electronic equipment, it also educates the public on waste recovery and encourages public participation. The centre also introduced waste reduction ambassadors to promote green practices. They rated themselves at 8 out of 10 on the scale in paying attention to environmentally friendly practices. They did not maintain any record on environmental risk but they did have management procedures and meetings to that effect. For example, they found that many collected plastic bottles were contaminated and not cleaned, in particular plastic bottles containing milk or soya milk, so they had brochures/talks to educate residents to wash plastic bottles before putting them into the bins.

To further encourage citizens to bring waste to the collection points, they had a scheme in which citizens could exchange recycling products brought to the centre for toilet paper, stationery or rice.

Source: Author

Catering industry

Interviews for the study were conducted in formal and informal settings in the catering industry. Both formal and informal restaurants were subject to regulations by the government, yet the difference was that informal restaurants were often family-run and labour law is not applicable to practices in these restaurants. In general, informal catering restaurants have much smaller scales of operation. As for the formal catering setting, three of the interviewed restaurants belong to one of the several chain restaurants in Hong Kong SAR, PRC, owned by local or international companies. The majority of employees in the catering industry have attained only primary to secondary education (Tables 6.4 and 6.5).

Table 6.4 General information on catering enterprises (formal sector)

Table 6.5 General information on catering enterprises (informal sector)

Box 6.3 Case study of a formal catering company

Restaurant C is a formal large catering provider that is one among eight restaurants in this chain in Hong Kong SAR, PRC. It also provides banquet services, such as celebration dinners and wedding dinner packages.

Restaurant C did not have specific regulations and policies on the environment. The general practice was for senior staff to remind employees from time to time to use less detergent as well as not to let water keep running from the taps, yet there were no specific regulations or code for those practices. The operations management director and senior level management staff at the office were responsible for setting these regulations and policies and having them implemented throughout the chain of restaurants, while managers were responsible for monitoring at the restaurants. The restaurant does not find it necessary to carry out waste separation, so kitchen waste will be dumped with other municipal waste. The manager believed it would be very hard to separate different types of waste.

With regard to environmentally friendly practices, Restaurant C installed kitchen appliances fuelled by town gas to save electricity and switched to LED lighting. The waiters proactively advised consumers to try vegetarian options; however, the concern was more on health than the environment.

There were no practices and protocol with regard to promoting the skills required for implementing environmentally friendly practices, nor were there jobs or positions specifically assigned with the task of dealing with green practices.

Source: Author

Box 6.4 Case study of an informal catering company

Small restaurant C is an eatery located in Prince Edward, selling dumpling, fish ball and beef ball noodle soup. It can be viewed as a typical food store found on the streets of Hong Kong SAR, PRC. It employs three to four staff, all of whom were educated to high school graduation level.

Small restaurant C pays attention to environmental regulations and follows the guidelines stated in ‘Grease Traps for Restaurants and Food Processors’. Occasionally, Environmental Protection Department (EPD) pay visits to the company to ensure greasy materials are removed from kitchen wastewater before it is discharging into the sewer systems.

Like the formal catering company, they did not have specific jobs or positions that dealt with green practice enforcement in the restaurants or for promoting the skills required to implement environmentally friendly practices.

Source: Author

4.2 Companies’ Interest and Involvement in Greening, and Skills Required to Support These Practices

Automotive companies

The interviewed companies saw no specific standards or guidelines in terms of environmental protection being enforced in the automotive industry with the exception of exhaust compliance. Two companies reported that the government checked their water records and compliance of car maintenance practices occasionally. Other than that, self-initiated environmental friendly regulations were seldom practised within companies. The term ‘green skills’ was unfamiliar to interviewees; however, those who support improvements in environmentally friendly practice at their enterprises believe they would help to build a greener environment for a younger generation and that the promotion of cleaner service could be used as a marketing strategy to their clients to gain additional business. In other words, companies in the automotive industry believe green skills can increase competitiveness and the cost effectiveness of their enterprises, but they will not improve workers’ employability and usability at the labour market. For one car washing company, the reason for not supporting environmentally friendly practices was mainly because car washing inevitably consumes large amounts of water and that is unavoidable.

One environmental risk that was commonly referred to during the interviews at the automotive companies is the issue of untreated dirty water that is poured into rainwater drainage. These companies have thought of connecting the dirty water to the sewerage system so that it will not pollute the rainwater system, however such action requires an overhaul of their water pipe system. In addition, the process requires three years because they need to apply and get approval, from the Environmental Protection Department. Thus, the whole process of connecting dirty water to the sewerage system would be time-consuming for the business.

Box 6.5 Environmentally friendly practices introduced in interviewed automotive companies

• Recycle paper and boxes;

• Call supplier to collect old and worn tyres;

• Follow closely the repair guidelines issued by government and international motorbike association;

• Employ eco-practice and technology (less VOC and aerosol emission) in vehicle repairs;

• Switch from fluorescent lights to LED;

• Turn off the light when the room is unattended.

Source: Author

The companies identified skills presented in Box 6.6 as crucial in promoting greener products and services.

Box 6.6 Skills requirements identified in automotive enterprises

• Cognitive competencies (environmental awareness and a willingness to learn about sustainable development);

• System and risk analysis skills to assess, interpret and understand both the need for change and the measure required;

• Marketing skills;

• Communication and negotiation skills;

• Adaptability and transferable skills.

Source: Author

Overall, all the interviewed enterprises did not have any practices and protocol with regard to promoting skills required for implementing environmental friendly practices. Given their limited resources, these enterprises are not able to progress further on environmentally friendly practices.

Waste management enterprises

Enterprises participating in the study could not recognise any environmental regulations for them to follow. Furthermore, there are no self-implementation and monitoring policies within the companies regarding environmental protection. Despite the lack of environmental regulations for waste management companies, the Hong Kong SAR Government has sent officials to waste collectors and recycling companies to notify them about the latest plastic and electronic waste recycling opportunities as well as exporting options. The government visited one of the interviewed companies on this matter. According to current practice in Hong Kong SAR, PRC, those two specific products will need to be exported to PRC for further processing and recycling. Environmentally friendly practices introduced on their own initiative were few. See Box 6.7.

Box 6.7 Environmentally friendly practices introduced in the interviewed waste management companies

• Separation of waste into categories to maximise recycling efficiency;

• A huge company banner to promote collection of waste;

• Brochure/talks to educate residents*

• Product exchange to boost recyclables*

*Run by a company under Environment and Conservation Fund by EPD.

Source: Author

In 2005, the programme on Source Separation of Domestic Waste was launched territory-wide to encourage waste separation in housing estates in Hong Kong SAR, PRC. Now the programme covers over 80% of the population. With the aim of filling the gap for the remaining housing estates that are not served with waste recycling facilities, community recycling centres were set up in all 18 districts in Hong Kong SAR, PRC, to raise public awareness of recycling and to encourage public participation in waste recovery. In this study, we interviewed one of the companies that received funding from the government to collect and recycle materials with low commercial value, i.e. recycle glasses, and recruit waste reduction ambassadors to promote green practices. The set-up of these community recycling centres reduced the recyclables dumped into landfills, and generally served buildings in older districts that are not served by big environmental service companies, do not have a property management company to oversee a recycling programme nor have space for waste management facilities to enable recycling.

This industry is often deemed to be ‘straightforward’. Waste with high commercial value is collected and recycled and there are no environmental laws and regulations for the workers to refer to. Companies had not heard about the concept of green skills. Believing that the nature of their job is very green, they are not thinking about greening their practices.

Box 6.8 Skills requirements identified in the waste management industry

• Cognitive competencies.

• Strong adaptability and positive attitudes in social, environmental aspects.

Source: Author

The industry identified cognitive competencies to be important among workers so they understood how to distinguish recyclable plastic from non-recyclable plastic (see Box 6.8). It was pointed out that such skills rely heavily on experience. The successful implementation of green skills or environmentally friendly practices depends a great deal on the attitudes and behaviour of people.

Catering enterprises

Formal and informal settings in the catering industry were interviewed in the study. Formal restaurants followed strategic management plans, and often had their own environmentally friendly practices for their staff. One restaurant implemented the 5S rules from Japan (structure, systematise, sanitise, standardise, self-discipline), which cover environmentally friendly practices within their daily operation. For example, they checked the consumption of detergent used and water records and forbid unused running water. The manager at the restaurants was responsible for monitoring this. As can be seen from Box 6.9, both formal and informal restaurants use energy-saving kitchen appliances and practise the separation of waste. In the formal catering setting, the restaurants have more resources for printing flyers and brochures to promote ‘green’ meatless meals and can collaborate with green organisations to implement environmental management measures. Interviewed restaurants in a formal setting had been visited occasionally by the Food and Environmental Hygiene Department for checks on the kitchen staff's food hygiene qualification certificates and to teach staff how to clean the kitchen. The department also asked the restaurant to offer in-house training for staff to avoid massive food loss before they launched their ‘all-you-can-eat’ menu. Meanwhile, interviewed restaurants also received guidelines from the Environmental Protection Department (EPD) on the proper cleaning of grease traps for restaurants and food processors.

Box 6.9 Environmentally friendly practices introduced in the interviewed catering enterprises

Formal sector enterprises

• Collaboration with green organisations to support a meatless diet to reduce carbon footprint;

• Food waste recycling campaign;

• Collection and separation of kitchen waste;

• Adoption of disposal policy to minimise waste disposal and encourage recycling;

• Use of non-renewable resources and reuse where possible;

• Marketing strategies to promote clean and carbon-free meals through advertisements;

• Use diluted detergent for washing;

• Avoid giving out fresh plates during banquets to reduce washing frequency;

• Friendly reminders from managers to save electricity and water;

• Turn off lights during resting hours;

• Use energy-saving kitchen appliances (saving up to 60% of energy);

• Record the number of food portions cooked daily;

• Record electricity and water consumption;

• Print a brochure to discourage food waste for all-you-can-eat meals;

• Charge for plastic boxes with take-away orders.

Informal sector enterprises

• Use eco detergent, and very little, to wash the floor;

• Free herbal tea for customers who bring their own bottles/containers;

• Charge $1 for a take-away plastic box;

• Stock coke in glass bottles rather than aluminium cans, so they can be sent back to producers for a fee;

• Separate different kinds of waste and aluminium cans for collectors;

• Dispose of plastic in a plastic-recycling bin;

• Use energy-saving kitchen appliances.

Source: Author

Box 6.10 Cognitive skills requirements identified in the catering industry

• Interpersonal skills;

• Good marketing skills.

Source: Author

Five out of eight interviewed restaurants did not see a strong need for special skills in order to sustain environmentally friendly practices. They believe attitude and behaviour change are much more important to promote such practices in Hong Kong SAR, PRC. For those seeing a need for greening of skills in the industry, the cognitive competencies identified as important for promoting greener products and services were interpersonal skills and good marketing skills (see Box 6.10).

Greening across sectors

The study revealed that some green practices have been applied by MSME, and employers stated that the successful implementation of these practices greatly depends on the attitudes and behaviour of people, in many cases even more than on particular skills. During interviews, both executives/owners and employees were in favour of being involved in greening of their industry. Most of the enterprises demonstrated a positive attitude towards environmentally friendly workplace practices. Interviewees noted the benefits of greening skills at the individual and societal level in terms of the reduction of negative impacts to the environment. They also showed their willingness to do well to the environment for the sake of the younger generation, and they believed the concept of green skills could serve as an ‘ideology change’ to influence decisions in a daily life.

However, their positive attitude towards greening has had only a partial influence on working practices due to the lack of understanding of what is required. Not all companies even knew about environmental regulations (Fig. 6.3). In general, the automotive industry pays most attention to environmental regulations (75% of the interviewees were aware of these regulations). This can be explained by the need for the companies to have a good understanding of the environmental regulations in order to obtain a licence to operate. The Hong Kong SAR government, usually the Environmental Protection Department, set up stricter guidelines and formulated more regulations to protect the environment for the automotive industry due to increasing concerns about roadside emissions.

Fig. 6.3

Source Author, based on interview responses

Awareness of environmental regulations in the automotive, waste management and catering industries in Hong Kong SAR, PRC.

Companies in the waste management and informal catering industries are not well aware of the environmental regulations. Catering companies in the formal sector receive some guidelines from the Environmental Protection Department and training from Food and Environmental Hygiene Department on up-to-date hygiene practices.

During company visits observation lists were used that included the following four areas of practice: following environmental workplace practices, contributing to improved work practices, recognising and reporting on a potential environmental threat and maintaining environmental records. Aggregated results are presented in Fig. 6.4.

Fig. 6.4

Source Author, based on observations

Industries’ performance aggregated by sector.

This confirms interview findings and supports the conclusion that the MSMEs in three industries in Hong Kong SAR, PRC, did not pay special attention to environmentally friendly practices. Overall in less than 50% of cases have respondent companies been involved in remedying or proactively prevented processes that can be harmful to environment. All industries are generally weak in recognising and reporting environmental threats and do not keep and maintain environmental records.

Interviewees noted the benefits of greening of skills at the individual and societal level and they believed the concept of green skills can serve as an ‘ideology change’ to influence daily life-decisions.

Enterprises’ interest and involvement in RVA

Across three sectors the majority of owner/managers had not heard about recognition, validation and accreditation (RVA) mechanisms. The only exception was formal catering; companies in this sector had heard about RVA. Although they did not use RVA mechanism at the workplace, they believe that RVA could be useful in helping to recognise and credit prior skills and experience, therefore saving resources on training. At the moment, these companies have a strong preference for hiring people who have graduated from VTC, where they have gained a certificate in Chinese cuisine. During the recruitment process, ‘formal’ restaurants checked for the Basic Food Hygiene Certificate for Hygiene Managers issued either by government or educational or private institutes as well as the certificate in Chinese cuisine issued by VTC.

Although they demonstrated a positive attitude towards inclusion of green skills in RVA, a general concern across formal catering is that implementation of environmental protection practices would be likely to increase their operational cost. Therefore, they can only support inclusion of green skills in RVA if it helps to save money while doing good to the environment. They were worried about the type of skills included in RVA.

In the waste management sector, companies were concerned about the entry point to employment. Currently, the educational level of employees is relatively low (secondary or even primary education), therefore if an RVA certificate is a requirement, this could strongly affect the willingness of people to enter the field. Employers in this industry did not see the necessity to include green skills in RVA although they supported environmental friendly behaviour. They also worried about an increase in operational costs and requirements for additional human resources. They did not believe the use of RVA would improve productivity or strengthen confidence and boost motivation of workers. If no economic value can be gained from it, the industries would not be in favour of green skills inclusion.

Most of the interviewees in the automotive industry have not heard of the RVA mechanism although automotive is one of the industries where RVA has been introduced by the government. In addition, some companies believed that adding RVA processes could be somewhat unhelpful for the automotive industry as an apprenticeship scheme is in place and is used to certify obtained skills. Although in the current situation they cannot support the inclusion of green skills in the RVA, a few interviewees believe that through increased attention from the government to their industry, green skills can be included in RVA. In particular, automotive enterprises suggested several measures that could facilitate green skills inclusion in RVA:

• Hong Kong SAR, PRC, must take the lead in pushing greening of skills;

• The government must provide industry with free green training courses;

• The public sector should take the initiative in promoting environmentally friendly practices in industries and the private sector and NGOs should play a supporting role;

• Education is key in advocating the concept of green skills to the public that will result in positive attitudes and behaviour towards environmental issues. For example, developing habits of recycling, separating of waste, etc.;

• Public attitudes towards greening should become more positive.

A few interviewees in the automotive and waste management industries complained about inadequate support from the government for the ‘light industries’ (such as waste management). They would welcome more incentives and an increase in resources allocated to ‘light industries’ by the government.

Therefore, to sum up, MSME believe that the inclusion of green skills in RVA might negatively affect the hiring processes in their industries and might increase operational costs. The findings demonstrate that inclusion of green skills in the RVA mechanism in Hong Kong SAR, PRC, requires a strong political push from the government. An awareness campaign for industries and the private sector is required to clarify the benefits of RVA and greening. Key performance indicators, clearly defined targets and more support for MSME are required. Education has a clear role to play in developing green mind-sets.

5 Conclusions and Recommendations

Greening practices in MSMEs greatly depend on government regulations, monitoring and training provided by government departments. Greening of MSMEs on their own initiative is limited and mainly related to gaining additional profit, thus some bigger companies have their own operational guidelines on saving water, energy and waste separation. Although the attitude towards greening is positive, many companies do not aware of environmental regulations for their industry. Some companies, particularly the bigger ones and the one funded by the government have organised awareness campaigns for the general public and their customers.

Green practices in micro, small and medium enterprises (MSMEs) are mainly related to:

• Operations (e.g. use a diluted detergent for washing; turn off lights during rest hours; switched from florescent light to LED);

• Following regulations (e.g. follow closely repairing guidelines for the motorbikes issued by the government);

• Using greener technology (e.g. energy-saving kitchen appliances);

• Advocacy (distribution of brochures/talks to educate residents; marketing of carbon-free meals; providing free tea for customers who come equipped with their own containers);

• Monitoring (e.g. recording electricity and water consumption; recording the number of food portions cooked daily);

• Recycling (e.g. disposing plastic to a plastic-recycling bin; separating different kinds of waste and aluminium cans for collection; recycling paper and paper boxes);

• In terms of skills, attitudes are very important at the workers’ level, so people can follow simple practices such as switching off water/electricity. In addition, some skills that are related to the operation of green technologies and some specific content knowledge on how things can be done (e.g. what can be recycled) are needed.

Thus, the skills that were identified as important by the MSME include:

• Cognitive competencies (environmental awareness and a willingness to learn about sustainable development);

• Strong adaptability and positive attitudes to social and environmental aspects;

• System and risk analysis skills to assess, interpret and understand both the need for change and the measures required;

• Good marketing skills;

• Communication and negotiation skills;

• Interpersonal skills;

• Adaptability and transferable skills.

The RVA mechanism is not well known in MSMEs, and as a result not valued. Thus, for majority of interviewees it was difficult to comment on inclusion of green skills into RVA. They could only see a benefit from this if there was some monetary value for individuals and enterprises. Inclusion of knowledge about environmental regulations as a part of RVA competencies and support from the government to promote RVA usefulness are required.

In addition, advocacy for existing schemes should be more efficient in reaching MSMEs. This can help to improve take-up of current initiatives to support green practices, to provide required training and to identify green skills through the RVA mechanisms. Two examples are provided below.

Catering: Since 2011 the Quality Restaurant Environmental Management Scheme has offered good green skills practices and standards in the catering industry that can be included in the RVA framework. This scheme offers quality standards and best practice for catering operators on environmental management, ranging from energy efficiency to water usage, waste management, waste water management, air pollution and noise management (Hong Kong Productivity Council 2011). QREMS covers five types of catering operators, namely Chinese Restaurants, Non-Chinese Restaurants, Fast Food Shops, Other Eating and Drinking Places and Food Manufacturing or Processing Factories (Hong Kong Productivity Council 2011). It is a voluntary scheme funded by the Environment and Conservation Fund (ECF) of Hong Kong SAR, PRC. No interviewees in this study mentioned this scheme.

Automotive: The automotive industry has been carrying out workshops to promote environmentally friendly practices in Hong Kong SAR, PRC. In 2000, the Environmental Protection Department embarked on the ‘Partnership Programme’ for the motor vehicle repair trade to promote environmental awareness and share green practices among trade practitioners in the automotive industry (Environmental Protection Department 2015b). The Hong Kong Vehicle Repair Merchants Association Limited (HKVRMA) and the Environmental Vehicle Repairers Association Limited (EVRA) are the participating trade association. They have organised workshops and nominated enthusiastic members to become environmental ambassadors to move their staff towards meeting the requirements of the environment-protection legislation. EPD also issued a ‘Guide to Environmental Protection for the Vehicle Repair Trade’ for distribution to motor vehicle repair trade practitioners. Some of the green practices listed in the guides include the use of an activated carbon adsorption system to reduce air pollution, environmentally friendly paint-spraying technologies and water-soluble paints. Again, no interviewees in this study mentioned this scheme.

The data collected demonstrates that Hong Kong SAR, PRC, can make a bigger leap in green skills development, but that the need for stronger political will from the government is greater than ever in terms of setting out stricter environmental regulations, monitoring their implementation and promoting the concept of greening skills that can be picked up by different industries. Key performance indicators (KPIs), clearly defined targets can be set up by the government so that different industries can work towards such collective goals. There is also room for improvement in promotion of the RVA scheme among these industries to inform them as to the benefits of continuing education and lifelong learning. In particular, public education should be called on to influence mind-set, and such education of children should be a key area of effort to make green skills inclusion work in Hong Kong SAR, PRC.