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Sustainability…that’s about CO2 right
Most businesses aren’t thinking
Different perspectives are needed
New models of business are evolving
Providing inspiration for the future
 Planetary resources are finite and the earth
represents a closed system except for solar
energy
 Increased consumption (or populations) will
deplete resources more quickly
 Then resources will become scarce and
expensive
 Unconstrained consumption will damage the
environment and give rise to climate change
 Opportunity for new business models and
innovation
Roses from
Kenya
Fairtrade Coffee
from Brazil
Carpet from
Sweden
Electric cars
From Japan
 “Sustainable development is development
that meets the needs of the present without
compromising the ability of future
generations to meet their own needs” UN
report 1987 Brundtland Report
 “If everyone in the world were to live like an
average person in the high-income
countries, we would need 2.6 additional
planets to support us all.” UN report 2007
Most definitions of sustainable development
consider:
 The scale of the economy relative to its
ecological life-support system
 Equitable distribution of resources
 Opportunities between present and future
generations
 Efficient utilisation and replacement of
resources that adequately accounts for the
planet
(Constanza & Patten, 1995)
Current business thinking in the developed
world is:
 Dominated by a focus on short term financial
growth and the efficient use of $$$ capital
 Limited to a small part of production with no
consideration for source or disposal
 Fixated on getting consumers to buy more,
different or better products
Rationalise
supplychain
bycost/scale
Outsourceto
lowestcost
countries
Promotenew
productswith
“musthave”
features
 Realise that everything is systemically
interconnected
 Consider wider sources of value
 Embrace a more complex view of resources
 Learn continually beyond traditional silos
and boundaries
 Act on significant opportunities for
innovation
Ecology
Society
Economy
After: Capra (2007) and Constanza et al (1997)
MOTHER NATURE PLC.
INVOICE FOR SERVICES 01/01/1999 to 01/01/2000
1. Atmospheric regulation: Regulation of atmospheric chemical composition. CO2/O2
balance,O3 for UVB protection etc
2. Climate regulation: Regulation of global temperature, precipitation, and other biologically
mediated climatic processes at global or local levels. Greenhouse gas regulation, Cloud
formation
3. Disturbance regulation: Capacitance, damping and integrity of ecosystem response to
environmental fluctuations. Storm protection, flood control, drought recovery and other
aspects of habitat response to environmental variability mainly controlled by vegetation
structure
4. Water regulation: Regulation of hydrological flows. Provisioning of water for agricultural
(such as irrigation) or industrial (such as milling) processes or transportation
5. Water supply Storage and retention of water. Provisioning of water by watersheds,
reservoirs and aquifers
6. Erosion control and sediment retention: Retention of soil within an ecosystem. Prevention
of loss of soil by wind, runoff, or other removal processes, storage of stilt in lakes and
wetlands
7. Soil formation Soil formation processes: Weathering of rock and the accumulation of
organic material
8. Nutrient cycling: Storage internal cycling, processing and acquisition of nutrients
9. Waste treatment: Recovery of mobile nutrients and removal or breakdown of excess
compounds, pollution control, detoxification
10. Pollination: Movement of floral gametes. Provisioning of pollinators for the reproduction of
plant populations
11. Biological control: Dynamic regulations of populations. Keystone predator control of prey
species, reduction of herbivores by top predators.
12. Provision of Refuge: Habitat for resident and transient populations. Nurseries, habitat for
migratory species, regional habitats for locally harvested species, or over wintering
grounds.
13. Food production: That portion of gross primary production extractable as food. Production
of fish, game, crops, nuts, fruits by hunting, gathering, subsistence farming or fishing.
14. Raw materials: That portion of gross primary production extractable as raw materials. The
production of lumber, fuel or fodder.
15. Genetic resources: Sources of unique biological materials and products. Medicine:
products for materials science, genes for resistance to plant pathogens and crop pests
16. Recreation: Providing opportunities for recreational activities. Eco-tourism, sport fishing,
and other outdoor recreational activities.
17. Cultural Inspiration: Providing opportunities for non-commercial uses. Aesthetic, artistic,
educational, spiritual, and/or scientific values of ecosystems
$33 TRILLION PER ANNUM
$33,000,000,000,000
Circular economy
Do more with less New consumption
Shared Value
Transparency & engagement
Do more with less
Shared Value
How is this company efficiently
getting the resources it needs?
Who else benefits from this business?
 VIDEO
Do more with less
Shared Value
How is this company efficiently
getting the resources it needs?
Who else benefits from this business?
Resources used
Money, jobs, and exchanges
Consideration Resources used
Financial Money, jobs, and exchanges
Physical Transport, shelter, energy
Social Security, governance, regional
relationships
Human Labour force, population
health, communications, and
skills
Natural Wood, building materials,
minerals, water, and food
Consideration Capital source Resources used
Financial Local businesses, economy,
and market places
Money, jobs, and exchanges
Physical Infrastructure, Power
production, buildings, networks
Transport, shelter, energy
Social Governance structures and
processes
Security, governance, regional
relationships
Human Education, children Labour force, population
health, communications, and
skills
Natural Rivers, forests, soils, climate Wood, building materials,
minerals, water, and food
After: Bebbington, A. (1999), DFIF Sustainable Livelihoods Guidance Sheets (April 1999)
Consideration Original method Solvatten method
Financial How can this be made
affordable?
Physical What was prior source of
energy used?
What is the new source?
Social What partners did you notice?
Human What issues for human health
is affected?
Natural What was impact of wood
burning?
How is this more sustainable?
After: Bebbington, A. (1999), DFIF Sustainable Livelihoods Guidance Sheets (April 1999)
 VIDEO
Consideration Original method Solvatten method
Financial How can this be made
affordable?
Physical What was prior source of
energy used?
What is the new source?
Social What partners did you notice?
Human What issues for human health
is affected?
Natural What was impact of wood
burning?
How is this more sustainable?
After: Bebbington, A. (1999), DFIF Sustainable Livelihoods Guidance Sheets (April 1999)
Roses from
Kenya
Fairtrade Coffee
from Brazil
Carpet tiles from
Sweden
Roses from
Kenya
Each rose stem produced requires 5 litres of water,
before it is flown to Europe, and water levels in Lake
Naivasha have fallen by over 3m.
It's estimated that 100 kilograms of chemicals are
used per hectare of plants.
Employment in horticulture has created six-fold
increase in population in the area putting further
strain on the environment.. all harvesting is done by
hand, exposing workers to dangerous chemicals
Kenya may be losing as much as $500m (£312m) a
year on its flower exports, as multinationals use
subsidiaries and transfer pricing to avoid local taxes.
The World Bank report on country development for Kenya, highlighted the
need to further develop the agricultural export market and to commercialize
water treatment and provision.
Fairtrade Coffee
from Brazil
1 cup of coffee requires 140 litres of
water to produce and emits over 59g
of CO2
Over 98% of coffee biomass is waste!
Fairtrade standards are
designed to tackle
poverty and empower
producers in the poorest
countries in the world.
The standards apply to
both producers and
traders...
NOT the environment
Current production uses intensive
mono-cultures with machine
harvests and large quantities of
pesticide and fertilisers. These
systems have short-lives but high
yields and support little biodiversity,
result in greater soil erosion and
water pollution.
Pesticides and fertilisers are based
on petroleum products and local
farmers often lack the skills or
training to use the products safety.
There is little regulation on the use
of chemicals.
Carpet tiles from
Sweden
• How has this company used
circular thinking?
• How has this company used
business model innovation?
• How is this company learning and
improving?
• How has this company used
process innovation?
 VIDEO
Carpet tiles from
Sweden
Redesign factory to untangle pipes
saving over 30% in energy.
(Kiuchi, 1997)
Support for Mission Zero networking
site to share innovations. Published
cases by Natural Step and Rocky
Mountain Institute.
Flooring services not owned carpet
products
98% of waste has been eliminated and
all energy used is green tariff
Electric cars
From Japan
Electric cars
From Japan
Technological and financial challenges
of infrastructure to enable charging
and improvement in battery efficiency
Psychological issues of ownership of
batteries and materials in car (Steel etc)
Criticism of lobbying and manipulation
directed at oil and motor industry
 Businesses can benefit
from more efficient use of
resources (Lovins 2002)
 Business can create future-
proof business models by
considering sustainability in
the design (Kiuchi 1997)
Better business will evolve new models
Radically
efficient
Full lifecycle
servicing
Learning
orientated
Stakeholder
valued
..with new sources of inspiration
• Efficient energy transfers designed on bee pollen foraging
routines
• Self-cleaning windows and paints based on texture of lotus
leaves
Good business knows…
…ideas are our only infinite resource
…collaborative learning networks to
harness them
Good business creates…
34% more
efficient
aircraft wings
Enzyme to
prevent scaling
in appliances
Detoxify coffee
waste
 VIDEO
Training: Designing Sustainable Business (xvids)

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Training: Designing Sustainable Business (xvids)

  • 1.
  • 2. Sustainability…that’s about CO2 right Most businesses aren’t thinking Different perspectives are needed New models of business are evolving Providing inspiration for the future
  • 3.  Planetary resources are finite and the earth represents a closed system except for solar energy  Increased consumption (or populations) will deplete resources more quickly  Then resources will become scarce and expensive  Unconstrained consumption will damage the environment and give rise to climate change  Opportunity for new business models and innovation
  • 4. Roses from Kenya Fairtrade Coffee from Brazil Carpet from Sweden Electric cars From Japan
  • 5.
  • 6.  “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs” UN report 1987 Brundtland Report  “If everyone in the world were to live like an average person in the high-income countries, we would need 2.6 additional planets to support us all.” UN report 2007
  • 7. Most definitions of sustainable development consider:  The scale of the economy relative to its ecological life-support system  Equitable distribution of resources  Opportunities between present and future generations  Efficient utilisation and replacement of resources that adequately accounts for the planet (Constanza & Patten, 1995)
  • 8. Current business thinking in the developed world is:  Dominated by a focus on short term financial growth and the efficient use of $$$ capital  Limited to a small part of production with no consideration for source or disposal  Fixated on getting consumers to buy more, different or better products
  • 10.  Realise that everything is systemically interconnected  Consider wider sources of value  Embrace a more complex view of resources  Learn continually beyond traditional silos and boundaries  Act on significant opportunities for innovation
  • 11. Ecology Society Economy After: Capra (2007) and Constanza et al (1997) MOTHER NATURE PLC. INVOICE FOR SERVICES 01/01/1999 to 01/01/2000 1. Atmospheric regulation: Regulation of atmospheric chemical composition. CO2/O2 balance,O3 for UVB protection etc 2. Climate regulation: Regulation of global temperature, precipitation, and other biologically mediated climatic processes at global or local levels. Greenhouse gas regulation, Cloud formation 3. Disturbance regulation: Capacitance, damping and integrity of ecosystem response to environmental fluctuations. Storm protection, flood control, drought recovery and other aspects of habitat response to environmental variability mainly controlled by vegetation structure 4. Water regulation: Regulation of hydrological flows. Provisioning of water for agricultural (such as irrigation) or industrial (such as milling) processes or transportation 5. Water supply Storage and retention of water. Provisioning of water by watersheds, reservoirs and aquifers 6. Erosion control and sediment retention: Retention of soil within an ecosystem. Prevention of loss of soil by wind, runoff, or other removal processes, storage of stilt in lakes and wetlands 7. Soil formation Soil formation processes: Weathering of rock and the accumulation of organic material 8. Nutrient cycling: Storage internal cycling, processing and acquisition of nutrients 9. Waste treatment: Recovery of mobile nutrients and removal or breakdown of excess compounds, pollution control, detoxification 10. Pollination: Movement of floral gametes. Provisioning of pollinators for the reproduction of plant populations 11. Biological control: Dynamic regulations of populations. Keystone predator control of prey species, reduction of herbivores by top predators. 12. Provision of Refuge: Habitat for resident and transient populations. Nurseries, habitat for migratory species, regional habitats for locally harvested species, or over wintering grounds. 13. Food production: That portion of gross primary production extractable as food. Production of fish, game, crops, nuts, fruits by hunting, gathering, subsistence farming or fishing. 14. Raw materials: That portion of gross primary production extractable as raw materials. The production of lumber, fuel or fodder. 15. Genetic resources: Sources of unique biological materials and products. Medicine: products for materials science, genes for resistance to plant pathogens and crop pests 16. Recreation: Providing opportunities for recreational activities. Eco-tourism, sport fishing, and other outdoor recreational activities. 17. Cultural Inspiration: Providing opportunities for non-commercial uses. Aesthetic, artistic, educational, spiritual, and/or scientific values of ecosystems $33 TRILLION PER ANNUM $33,000,000,000,000
  • 12. Circular economy Do more with less New consumption Shared Value Transparency & engagement
  • 13. Do more with less Shared Value How is this company efficiently getting the resources it needs? Who else benefits from this business?
  • 15. Do more with less Shared Value How is this company efficiently getting the resources it needs? Who else benefits from this business?
  • 17. Consideration Resources used Financial Money, jobs, and exchanges Physical Transport, shelter, energy Social Security, governance, regional relationships Human Labour force, population health, communications, and skills Natural Wood, building materials, minerals, water, and food
  • 18. Consideration Capital source Resources used Financial Local businesses, economy, and market places Money, jobs, and exchanges Physical Infrastructure, Power production, buildings, networks Transport, shelter, energy Social Governance structures and processes Security, governance, regional relationships Human Education, children Labour force, population health, communications, and skills Natural Rivers, forests, soils, climate Wood, building materials, minerals, water, and food After: Bebbington, A. (1999), DFIF Sustainable Livelihoods Guidance Sheets (April 1999)
  • 19. Consideration Original method Solvatten method Financial How can this be made affordable? Physical What was prior source of energy used? What is the new source? Social What partners did you notice? Human What issues for human health is affected? Natural What was impact of wood burning? How is this more sustainable? After: Bebbington, A. (1999), DFIF Sustainable Livelihoods Guidance Sheets (April 1999)
  • 21. Consideration Original method Solvatten method Financial How can this be made affordable? Physical What was prior source of energy used? What is the new source? Social What partners did you notice? Human What issues for human health is affected? Natural What was impact of wood burning? How is this more sustainable? After: Bebbington, A. (1999), DFIF Sustainable Livelihoods Guidance Sheets (April 1999)
  • 22. Roses from Kenya Fairtrade Coffee from Brazil Carpet tiles from Sweden
  • 23. Roses from Kenya Each rose stem produced requires 5 litres of water, before it is flown to Europe, and water levels in Lake Naivasha have fallen by over 3m. It's estimated that 100 kilograms of chemicals are used per hectare of plants. Employment in horticulture has created six-fold increase in population in the area putting further strain on the environment.. all harvesting is done by hand, exposing workers to dangerous chemicals Kenya may be losing as much as $500m (£312m) a year on its flower exports, as multinationals use subsidiaries and transfer pricing to avoid local taxes. The World Bank report on country development for Kenya, highlighted the need to further develop the agricultural export market and to commercialize water treatment and provision.
  • 24. Fairtrade Coffee from Brazil 1 cup of coffee requires 140 litres of water to produce and emits over 59g of CO2 Over 98% of coffee biomass is waste! Fairtrade standards are designed to tackle poverty and empower producers in the poorest countries in the world. The standards apply to both producers and traders... NOT the environment Current production uses intensive mono-cultures with machine harvests and large quantities of pesticide and fertilisers. These systems have short-lives but high yields and support little biodiversity, result in greater soil erosion and water pollution. Pesticides and fertilisers are based on petroleum products and local farmers often lack the skills or training to use the products safety. There is little regulation on the use of chemicals.
  • 25. Carpet tiles from Sweden • How has this company used circular thinking? • How has this company used business model innovation? • How is this company learning and improving? • How has this company used process innovation?
  • 27. Carpet tiles from Sweden Redesign factory to untangle pipes saving over 30% in energy. (Kiuchi, 1997) Support for Mission Zero networking site to share innovations. Published cases by Natural Step and Rocky Mountain Institute. Flooring services not owned carpet products 98% of waste has been eliminated and all energy used is green tariff
  • 29. Electric cars From Japan Technological and financial challenges of infrastructure to enable charging and improvement in battery efficiency Psychological issues of ownership of batteries and materials in car (Steel etc) Criticism of lobbying and manipulation directed at oil and motor industry
  • 30.  Businesses can benefit from more efficient use of resources (Lovins 2002)  Business can create future- proof business models by considering sustainability in the design (Kiuchi 1997)
  • 31. Better business will evolve new models Radically efficient Full lifecycle servicing Learning orientated Stakeholder valued
  • 32. ..with new sources of inspiration • Efficient energy transfers designed on bee pollen foraging routines • Self-cleaning windows and paints based on texture of lotus leaves
  • 33. Good business knows… …ideas are our only infinite resource
  • 34. …collaborative learning networks to harness them Good business creates…
  • 35. 34% more efficient aircraft wings Enzyme to prevent scaling in appliances Detoxify coffee waste

Editor's Notes

  1. http://www.wired.com/2014/09/medieval-style-guilds-will-remake-tech-behind-facebook-google/ Apprenticeships Assize Mission statement of guilds