Transcript 7 ELEMENTS THAT COMPANIES CAN USE FOR IMPROVING

Eco-efficiency
1. ”Resource-Productivity & Ecoefficiency”
Friedrich Hinterberger and Phillipp Schepelmann
2. ”Eco-efficiency, creating more value with
less impact”
World Business Council for Sustainable
Development, 2000.
3. "Defining and Measuring Eco-efficiency"
Livio D. Desimone and Frank Popoff
ResourceProductivity &
Ecoefficiency
Friedrich Hinterberger
Philipp Schepelmann
Definition:
“Doing more with less”
 “Securing development with minimized
use of natural resources”.
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Interpretation:
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“A partial translation of ecological
science into economic terms”.
Sustainable development can be
achieved:
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if economical growth is accompanied
by an absolute reduction of material
and energy (decoupling)
Relations between ”resource
productivity” and ”work”:
Restructuring our economy and
societies will lead to an increase in
employment (e.g. in the construction,
transport and service sector).
 New jobs will be created in the
ecological sector
 But that is not enough…
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Re-evaluation and redistribution of labour are
needed:
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Priority for the creation of useful
employment
Reduction of working hours
Introduction of a minimal per capita support
Shifting the tax burden from labour to
resource use
Re-evaluation of labour in the informal
sector (e.g. housewives)
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These reforms would result in a
strengthening of local and regional
economies (regional supply) and the
primary sector (resource- and foodproduction)
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“In a sustainable society labour will
contribute to quality of life.”
Comprehensive strategy
in Sweden.
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Meta – a societal consensus on the
objective of sustainable development which
encompasses competitiveness, social
justice and ecoefficiency
Micro – ecologically oriented enterprises
and consumers
Meso – the reform of economic institutions
and networks
Macro – fiscal, monetary and distributional
conditions
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Meta – awareness-raising, capacity- and
consensus building, stake-holder dialogue
Micro – indicators for small and medium
sized enterprises (SME), financial sector,
consumer behaviour
Meso - awareness-raising, sectorial targets,
culture and tradition-building
Macro – ecological tax reform and other
instruments, EMU, indicators
Eco-efficiency
Creating more value with
less impact
World Business Council for
Sustainable Development
In simplest terms, eco-efficiency
means creating more goods and
services with ever less use of
resources, waste and pollution.
What Does Eco-efficiency
Mean?
Many business leaders, inside and outside
the WBCSD, often express eco-efficiency
as creating more value with less impact or
doing more with less .
Academic experts and practitioners term ecoefficiency the synthesis of economic and
environmental efficiency in parallel , where
the prefix eco stands for both economy and
ecology.
Eco-efficiency in the
Broader Context
Eco-efficiency is a concept
with much to offer for many. It can be
used for a variety of purposes and
applied on various levels.
Eco-efficiency is a key concept for helping
companies, individuals,governments and
other organizations to become more
sustainable.
 eco-efficiency is not sufficient by itself
because it integrates only two of
sustainability’s three elements,economy
and ecology, while leaving the third, social
progress, outside its embrace.
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The Business and
Political Agenda
BUSINESS
POLITICAL
1.Reducing the
consumption of
resources
2.Reducing the impact
on Nature
3.Increasing product or
service value
1.Identifying and eliminating
perverse subsidies
2.Internalizing environmental
costs
3. Shifting tax from labor and
profit to resource use and
pollution
4. Developing and implementing
economic instruments
5. Promoting voluntary
initiatives
and negotiated agreements
How Do the Skeptics of
Eco-efficiency Argue?
Problem
1.
Some claim that a
relative increase in
company ecoefficiency is not
enough.
Answer
1.
Eco-efficiency is
much more about
innovation and the
need for change
toward functional
needs and service
intensity, to contribute
to de-coupling growth
from resources.
Problem
Answer
2. There is also the claim
that using fewer
resources per unit of
production fails to
deliver progress
toward sustainability if
the number of units
continues to increase
faster than the gains in
resource productivity.
2. In our view, it is more
important to opt for a
different way of living that
can offer a better quality
of life and more welfare
for all, while limiting the
use of resource and
pollution
to acceptable levels.
Problem
3. It is also claimed that
eco-efficiency will not
work in poor
economies because
preventing pollution is
too costly and requires
legal enforcement and
substantial financial
help.
Answer
3. Companies can
achieve big
improvements in
developing
countries and countries
in transition where
resources were
previously not used
efficiently.
The Business
Agenda
How companies turn the
challenge of sustainablity into
business opportunities
Seven Elements to Ecoefficiency
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Reducing the material requirements for goods and
services
Reducing the energy intensity of goods and
services
Reducing toxic dispersion
Enhancing material recyclability
Maximising sustainable use of renewable resources
Extending product durability
Increasing the service intensity of goods and
services
5 Elements for corporate
Eco-efficiency reports
1 organization profile
2 value profile
3 environmental profile
4 Eco-efficiency Rations
5 methodological Information
Plastics from ELVs
The cars themselves are built from recycled materials
using production methods which minimize waste and
emissions
The Political
Agenda
How Governments can make
eco-efficiency work for Society
The Political Agenda for
Eco-efficiency
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Identify and eliminate perverse subsidies
Internalize environmental costs
Shift tax from labour and profit to resource
use and pollution
Develop and implement economic
instruments
Promote voluntary initiatives and negotiated
agreements
Eco-efficiency and Macroeconomic Development
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Eco-efficiency is a leadership practice to
meet the future needs of society and reach
a competitive and innovative economy.
By quantifying eco-efficiency with macrolevel indicators governments can measure
progress on eco-efficiency targets.
Incentives can be used to reward ecoefficiency and guide innovation in the right
direction.
Twelve Action points for
an Eco-efficient future
Governmental leaders and civil servants
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Set macro-economic eco-efficiency targets
and conversion criteria for sustainable
development
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Integrate policy measures to strengten
eco-efficiency
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Work toward changing international policy
rules and systems for trade and financial
transactions etc.
Civil society leaders and consumers
4.
Encourage consumers to prefer ecoefficient, more sustainable products and
services
5.
Support political measures to create
framework conditions wich reward ecoefficiency
Educators
6.
Include eco-efficiency and sustainability in
high school and university curricula and
build it into research and development
programs
Financial analysts and investors
7. Recognize and reward eco-efficiency and
sustainability as investment criteria
8. Help eco-efficienct companies and
sustainability leaders to communicate their
progress and related business benifits to
financial markets
9. Promote and use assessment tools and
sustainability ratings to support the
markets and to help widen understanding
of eco-efficiency benefits
Business leaders
7. Integrate eco-efficiency into their
business strategy
8. Report company eco-efficiency and
sustainability performance openly to
stakeholders
9. Support policy measures which
reward eco-efficiency
"Defining and
Measuring Ecoefficiency"
Livio D. Desimone and Frank Popoff
Eco-efficiency means doing
more with less
The definitions has five themes:
1. Emphasis on service
2. Focus on needs and quality of life.
3. Considerations of the entire product
life cycle
4. Limits to a eco capacity
5. Process view
The WBCSD has outlined the
following actions to implement
eco-efficiency:
1. Reduce the material intensity of goods and
service
2. Reduce the energy intensity of goods and
services
3. Reduce toxic dispersion
4. Enhance material recyclability
5. Maximize sustainable use of renewable
resources
6. Extend product durability
7. Increase the service intensity of goods and
services
Measuring Eco-efficiency
1. It is difficult to measure it.
2. Eco-efficiency measures environmental
effect.
3. It can be measured between economic
output and environmental input
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Eco Capacity
The eco-efficiency bottom line is to make
profits within the eco- capacity. Eco capacity
is difficult to calculate but it is clear that
limits are being reached in many places.
Measuring methods
There is not one original method to measure
eco-efficiency.
Some companies measuring procedures:
Nova Nordisk
 Sony Europe
 Volvo
 Dow Europe
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Nova Nordisk
Novo nordisk uses in measuring eco-efficiency
eco-productivity indices (EPI). It is described by this formula:
EPI=
indexed turnover in
constant prices
indexed resource
consumpsion
X 100
This index expresses the resource consumption index in
physical units.
In this method Novo Nordisk has the highest level in utilizing
the resource which was 1990.
Sony Europe
For measuring eco-efficiency this company used comparing
the resource productivity of three different batteries and to
calculate the resource productivity used this figure:
Resource =
productivity
(economic value added)X(product lifetime)
(material consumed-recycled)+(energy consumed+(lifetime
energy used)for production and recycling
By using this Company comparied three different kind of
chargeable and non-chargeable batteries for making desision
which one is the best eco-efficient product.
This procedure is like comparing ”apples and pears”.
Volvo
In measuring eco-efficiency Volvo used an ”eco-point”
method.
It requisites the Environmental Priority Strategies (EPS)
system.
With help of eco-point this company compared and chose
one which is more eco-efficient.
Eco-points were calculated for production, using product
and product disposal at end of life for each material and
results were been compared.
Dow Europe
Dow Europé uses for measuring eco-efficiency “ecocompass” method.
This method marks products in six level and compares
them.
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performance per functional unit decreases by 50%or more
performance per functional unit decreases by up to 50%
no significant variation from the base case
up to 100% change for the better per functional unit
up to 300% grow in performance per functional unit
more than 300% increase in performance per functional unit
Actions to implement
eco-efficiency
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Reduce the material intensity of goods
and services
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Reduce the energy intensity of goods
and services
Actions to implement
eco-efficiency
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Reduce toxic dispersion
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Enhance material recyclability
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Maximize sustainable use of
renewable resources
Actions to implement
eco-efficiency
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Extend product durability
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Increase the service intensity of goods
and services