An Executive Short Course

Fundamentals of Sustainability Policy and Practice

Nassos George P. georgepnassos@gmail.com

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Άδεια Χρήσης

An Evolutionary Analogy

• Monday - the earth is created

• Tuesday 8:00 AM – life

• Thursday morning – photosynthesis

• Saturday – oxygen, chlorophyll, coal

• Saturday 4:00 PM – giant reptiles

3

An Evolutionary Analogy

• Saturday 10:00 PM – primates

• Sat. 11:59:54 - homo sapiens

• 0.25 sec before midnight - Jesus Christ

• 1/40 sec. - Industrial Revolution

• 1/80 sec. – discover oil, accelerate carbon blowout

4

Our Changing Environment

• 70% of fisheries at their biological limit

• 50% of forest cover gone

• 50% of wetlands lost

• 90% of grasslands lost

• 19% of coral reefs are dead

• 40% of species are endangered

• 40% of world experiencing water shortage

5

Managing the Ecological Footprint

• Tool for Measuring and Analyzing

• Need a Balance

• Deficit is Growing

6

Ecological Footprint for 2007

United Arab Emirates – 10.7 hectares

United States – 8.0

Greece – 5.4

Germany – 5.1

Japan – 4.7

World – 2.7

China – 2.2

Biocapacity – 1.8

India – 0.9

Puerto Rico – 0.04 7

1960 1980 2007

2030 2050

8

With China and India - 2050

9

Four Major Environmental Issues

• Climate Change

10

Intergovernmental Panel on Climate Change (IPCC)

• Initial meeting – 1992

– Kyoto Protocol – 1997 (set milestones)

– By 2050, 60-80% below 1990 level

– By 2012, 5% below 1990 level

• In 2012, 58% above 1990 level

• Carbon dioxide – historically 280 ppm

• Cannot go above 350 ppm

• In 2013, reached 400 ppm

• In 2015, consistent at 400 ppm

11

Four Major Environmental Issues

• Climate Change

• Water – growing shortage

12

Distribution of Earth’s Water

13

Four Major Environmental Issues

• Climate Change

• Water – growing shortage

• Consumption of natural resources

14

Unsustainable Consumption Factor: 32

• 6.5 billion people: 1 – 1 billion people: 32

• China – Double consumption

• India – Triple consumption

• 72 billion

• Everyone must reduce consumption 15

Four Major Environmental Issues

• Climate Change

• Water – growing shortage

• Consumption of natural resources

• World population – heading north

16

Where is the world population heading?

17

St. Matthews Island: A Metaphor

for Earth

• Estimated carrying capacity: 1600-2300

• 1944 – 29 reindeer

• 1957 – 1,350

• 1963 – 6,000

• 1966 -

18

St. Matthews Island: A Metaphor

for Earth

• Estimated carrying capacity: 1600-2300

• 1944 – 29 reindeer

• 1957 – 1,350

• 1963 – 6,000

• 1966 - 42

19

THE INTRODUCTION, INCREASE, AND CRASH OF REINDEER ON ST. MATTHEW ISLAND

By David R. Klein - Alaska Cooperative ildlife Research Unit, University of Alaska, College

St. Matthews Island

20

Where is the world population heading?

21

Sustainable Development

“The practice of sustainable development assures that the natural resources and energy we use to provide today’s products and services will not deny future generations the resources necessary to meet their needs while building and preserving communities that are economically, socially and environmentally healthy.”

22

Brundtland Definition of Sustainable Development

“Development which meets the needs of the present without compromising the ability of future generations to meet their own needs”

23

Total Environmental Burden

• EB = P x A x T, where

– P is population

– A is affluence

– T is technology

• How do you keep EB constant, or reduce it?

24

Restatement of EB

• EB = P x A , where

T2

T2 is technology that creates products and services sustainably

25

Other terms for Sustainability?

• CSR or CSER or CS&ER

• Environmental & Social Governance (ESG)

• Global Corporate Citizenship

• Triple Bottom Line

26

Traditional Triple Bottom Line

Environmental

Social Economic

27

Traditional Triple Bottom Line

Earth

Equity Economy

28

Traditional Triple Bottom Line

Planet

People Profit

29

Realistic Triple Bottom Line

30

Realistic Triple Bottom Line

31

Realistic Triple Bottom Line

32

Adopt Sustainable Strategies

• The CERES Principles

• The Natural Step

• Eco-effective vs. Eco-efficient

• Servicizing

• Biomimicry

33

Adopt Sustainable Strategies

• Base of the Pyramid

• Systems Thinking Leads to Tunneling

• Sustaining Fisheries

• Green Buildings

• “Big Hairy Audacious Goal”

34

C.E.R.E.S. Components

• About 130 Coalition Members

• About 64 companies endorsing principles

35

The CERES Principles

• Protection of the Biosphere

• Sustainable Use of Natural Resources

• Reduction and Disposal of Wastes

• Energy Conservation

• Risk Reduction

36

The CERES Principles – more

• Safe Products and Services

• Environmental Restoration

• Informing the Public

• Management Commitment

• Audits and Reports

37

Company Network Members

• Apple

• Baxter International

• Coca Cola

• eBay

• Levi

• Nike

• PepsiCo

• Suncor

• Walt Disney

38

Eco-efficient or Eco-effective

• Fuel efficiency

• Computing efficiency

• More durable brake pads

39

More Efficient Products

• Clocks & Watches

• Leveraging Electrical Demand

40

The Natural Step

• Founded by Karl-Henrik Robért

• Developed four system conditions

41

Condition No. 1

• Do not systematically increase concentration of substances extracted from the Earth’s crust

– Do not remove fossil fuels, metals, minerals faster than reintegration

– Concentrations would increase in ecosphere

42

Condition No. 2

• Do not systematically increase concentrations of substances produced by society

– Similar to first condition (synthetically produced)

– Same impact if neglected

43

Condition No. 3

• Do not systematically mismanage the ecosphere

– Do not over-harvest fertile areas, soils, fresh water

– Do not diminish availability of natural systems

44

Condition No. 4

• Resources are used fairly and efficiently in order to meet basic human needs worldwide

– Must use most resource-efficient methods possible

– Necessary condition if first three are met

45

Companies Employing The Natural Step

• IKEA

• Interface

• Starbucks

• Nike

46

Extended Product Responsibility

• Along product chain or lifecycle

• Highlights environmental impacts associated with

– Manufacture

– Use

– Disposal

47

Servicizing

• Redefine commerce to deliver service and value, not material

• Maintain control over product life cycle

• Produce more cost efficient products

48

Some Servicizing Strategies

• Product miniaturization

• Multipurpose products

• Leasing

• Replacing service product with service

49

Application of Servicizing Strategy

• Incandescent Light Bulbs

• Interface – Commercial Carpeting

• Electrolux – Washing Machines

• duPont & Ford – Auto Assembly Paint Shop

• Volvo – Transportation Company

50

Student Examples

• Luggage

• Paint

• Ceiling tiles

• Nutrient services

• Mattresses

• Helmet renting

• Perfume refill shop

51

Learn From Nature – Biomimicry

Abalone

52

Abalone Shells – Stronger than Ceramics

53

Learn From Nature – Biomimicry

Abalone

Spider’s silk

54

Spider Silk – Stronger than Steel, Tougher than Kevlar

55

Learn From Nature – Biomimicry

Abalone

Spider’s silk

Bi-valves

56

Learn From Nature – Biomimicry

• Rhinoceros horns

57

Rhinoceros Horn – Similar to Carbon Fiber Composites

58

Learn From Nature – Biomimicry

Rhinoceros horns

Cow’s enzyme production

Mobile phone screen

59

Read Mobile Phone Screen in the Sun

60

61

62

63

64

65

Bee Hive – Hexagonal Home Built by Bee Engineers

66

The Global Pyramid

Low-Income Markets

(BOP)

Emerging Middle Class

Wealthy

Purchasing Power Population in Millions

>$15,000

$1,500 – 15,000

<$1,500

1,000

1,700

4,200

67

The Great Leap Downward

Bottom of the Top Base of

the Pyramid

68

Driving Innovation from the Base of the Pyramid

• Honda

• LEDs

• Galanz

69

Components of System Thinking

• Elements

• Interconnections

• Purpose or Goal

70

Tunneling Through the Cost Barrier

• Typical: Diminishing Returns

71

72

73

Tunneling Through the Cost Barrier

• Typical: Diminishing Returns

• Different Possibility: Whole System

• Straight Pipes

• Insulation and Thermopane Windows

74

Current State of U.S. Fisheries is Clearly Unacceptable

• Fifty-four stocks – overfished

• Forty-five – experiencing overfishing

• Over half – uncertain status

• Over 72,000 jobs lost

• Typical fisherman earns 30% less

75

Introduce “Catch Shares”

• Innovative, incentive-based tool

• “Limited Access Privilege Programs” (LAPPS)

• Simultaneously

– Protect environment

– Increase profits

– Higher quality fish

– Create more full-time jobs

76

Management of Catch Shares

• Determine annual catch

• Allocate annual catch to fishermen

• Enforce the regulation

77

Benefits of Catch Shares

• Employs better science and monitoring

• Reduce bycatch

• Limit fishing impacts on habitats

• Safer fishing

• Improving economic performance

78

What is a green building?

• Increasing efficiency

– Energy

– Water

– Materials

• Reducing building impacts on

– Human health

– Environment

79

LEED History

• LEED 1.0 in late 1998 – Many shortcomings – 40 credits

• LEED 2.0 in March 2000

– Expanded to 69 credits – Still needed refinement

• LEED 2.1 in early 2003

• LEED-NC 2.2 in November 2005

80

More Versions of LEED

• LEED – EB

• LEED – CI

• LEED – CS

• LEED – H

• LEED – ND

• LEED Application Guides

81

LEED Application Guides

• Retail

• Multiple Buildings

• Campuses

• Lodging

• Healthcare

• Laboratories

• Schools

82

LEED Certification Levels – NC

• Certified 26-32

• Silver 33-38

• Gold 39-51

• Platinum 52-69

83

Earning LEED Points for NC

• Sustainable Sites 14

• Water Efficiency 5

• Energy & Atmosphere 17

• Materials & Resources 13

• Indoor Environmental Quality 15

• Innovation & Design Process 5

– Total 69

84

Earning LEED Points for EB

• Sustainable Sites 14

• Water Efficiency 5

• Energy & Atmosphere 23

• Materials & Resources 16

• Indoor Environmental Quality 22

• Innovation & Design Process 5

– Total 85

85

Shortcomings of LEED

• Go after easy points

• Regional differences

• Need weighting factors

• LCA is missing

• Must define “green material or product”

• Analysis of cost vs. benefit

• Must link “green building” to “specific benefit”

• Point totals confusing

86

New Point System for All Projects

• Certified 40 – 49

• Silver 50 – 59

• Gold 60 – 79

• Platinum 80+

• Additional bonus of 10 points

87

LEED Improvements

• New since 2010

– LEED Retail New Construction

– LEED Retail Interiors

• LEED-NC 3.0 includes carbon footprint requirement

• Accreditation

– 2001 - 2009 one test

– Since June 2009

• LEED Green Associate

• LEED AP BD+C, or ID+C, or Homes, or O+M, or ND

88

Human & Social Benefits

• Day lighting improved test scores

• Higher sales with sky lights

• Increased productivity

• Reduced respiratory diseases

89

Searle/Monsanto Q Research Building

90

91

92

93

Certainly Not LEED Certified

94

“Big Hairy Audacious Goal”

• Washing machines

• Toilets

95

Toilet Lid Sink

96

“Big Hairy Audacious Goal”

• Washing machines

• Toilets

• Farming

97

Vertical Farm

98

Advantages of Vertical Farming

• Year-around crop production

• No weather problems

• All food grown organically

• Eliminates agricultural runoff

• Farming in urban centers

• Reduces fossil fuel use

• Converts black and gray water

99

SKY Farm

100

The Sharing Economy

101

Examples of Sharing Economy

102

The Circular Economy

103

Examples of Circular Economy

104

Additional Sustainability Solutions

• Cost of Natural Capital

• Impact on Financial Performance

105

COC Differentials Industrial Manufacturing Companies

106

-4 -2 0 2 4 6 8

OSHKOSH CORP

FLOWSERVE CORP

JOY GLOBAL INC

INGERSOLL-RAND PLC

IDEX CORP

BUCYRUS INTERNATIONAL INC

DANAHER CORP

EATON CORP

SPX CORP

NAVISTAR INTERNATIONAL CORP

PARKER-HANNIFIN CORP

GARDNER DENVER INC

DEERE & CO

DOVER CORP

SNAP-ON INC

PALL CORP

CATERPILLAR INC

TIMKEN CO

ILLINOIS TOOL WORKS

LINCOLN ELECTRIC HLDGS INC

PENTAIR INC

AGCO CORP

CUMMINS INC

CNH GLOBAL NV

METSO OYJ

DONALDSON CO INC

KUBOTA CORP

MAKITA CORP

VOLVO AB

ATLAS COPCO AB

KENNAMETAL INC

SKF AB

TATA MOTORS LTD

WABCO HOLDINGS INC

KOMATSU LTD

PACCAR INC

Points Versus S&P Average

Additional Sustainability Solutions

• Cost of Natural Capital

• Impact on Financial Performance

• Corporate Training

• Academic Training

107

108

Why Sustainability Has Not Made a Breakthrough

“There is an important job to be done, and Everybody expects that Somebody would do it.

Anybody could do it, but Nobody did it. Somebody gets angry about that because it is

Everybody’s job. Everybody thinks that Anybody should do it,

but Nobody realizes that Everybody would not do it. It ends up that Everybody blames Somebody

when Nobody does what Anybody has to do.” 109

Later is TOO Late

110

Χρηματοδότηση

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σλικού.

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ζσγτρημαηοδοηείηαι από ηην Εσρωπαϊκή Ένωζη

(Εσρωπαϊκό Κοινωνικό Ταμείο) και από εθνικούς πόροσς.