Environmental Summary
1. Sustainable development
1.1 Historical roots
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term “sustainability” or “sustained yield” was coined by European foresters as early as the 17th or 18th
century
England, Germany and France – faced serious shortages due to high use of timber for industrial activities and
neglect of wise management of woodlands
=> Hans Carl von Carlowitz (1645-1714) suggested “only that many trees should be felled as could re-grow” to
maintain endlessly sustainability + introduction of more efficient stoves in homes and industry and better insulation
of buildings
1.2 Political and scientific milestones
Political Milestones
1972
UN Conference on the Human Environment, Stockholm
1987
World Commission on Environment and Development: Our
Common Future
1992
UN Conference on Environment and Development, Rio de
Janeiro
1997
UN Climate Change Conference, Kyoto -> Kyoto-Protokoll
2000
Millennium Summit, New York -> MDGs
2009
UN Climate Change Conference, Kopenhagen -> 2°C Goal
2012/13 Rio+20
UN Climate Change Conference, Doha/Warschau
2015
Sustainable Development Summit, NY -> SDGs
UN Climate Change Conference, Paris
Scientific milestones
1962 Rachel Carson: Silent
spring
1972 Club of Rome: Limits to
Growth
1984 R. Edward Freeman:
Strategic management: A
Stakeholder Approach
2009 Rockström et al.: Planetary
Boundaries
Tim Jackson: Prosperity
without growth
2012 Raworth: Doughnut
economics
1972: UN Conference on the Human Environment, Stockholm
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first UN conference on the environment -> beginning of international environmental policies
Stockholm Declaration – 26 principles regarding the environment and human development
foundation of the UN Environmental Programme (UNEP) – serves as the man UN institution to oversee
environmental issues
1987: Our Common Future – Report of the World Commission on the Environment and Development to the UN
General Assembly, New York
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referred also to Brundtland report
page 24: “Humanity has the ability to make development sustainable to ensure that it meets the needs of
the present without compromising the ability of future generations to meet their own needs.” – most widely
accepted definition of sustainable development
1992: Earth Summit: UN Conference on Environment and Development, Rio de Janeiro
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Important outcomes: Rio Declaration on Environment and Development, Agenda 21, Convention on
Biological Diversity, Framework Convention on Climate Change (UNFCCC)
2000/2001: Millennium Development Goals, Millennium Summit in New York, 2000
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adoption of the Millennium Declaration by the world leaders
Millennium Development Goals: a series of eight time-bound targets with a deadline of 2015 – regarding a
new global partnership to reduce extreme poverty, also encompassing one target regarding environmental
sustainability
2002: Johannesburg Earth Summit – Johannesburg Declaration confirming the 1992 Rio Declaration
2012: Rio +20 UN Conference in Sustainable Development, Rio de Janeiro
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document “The future we want” confirmed Agenda 21 and other relevant docs and action plans
introduced and highlighted the importance of the concept of a Green Economy
UNEP was officially recognised as a UN agency (not only a programme)
2015: UN Sustainable Development Summit, New York –
The Sustainable Development Goals SDGs (Agenda 2030)
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17 goals, sub-divided in 169 targets
time-frame: 2016-2030
continuation of MDGs with greater focus on
environmental issued
goals for both developed and developing countries
regular reporting and follow-ups
most recent UN Sustainable Development Summit
in Sep’19 in New York to follow up progress
1962: “Silent Spring” by Rachel Carson (biologist and journalist)
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examined the impact of insecticides on the environment (kills insects but impact on the food chain: birds,
fish, eventually humans)
starting point for the American and international environmental movement
DDT was banned in the 1970s in most industrial countries as a consequence of the book (still used to combat
Malaria in developing countries)
1972/1992/2004: The Club Rome and the Limits to Growth
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early and complex computer-based simulations of the future
economic and environmental developments – showed clearly that
infinite growth is not possible on a finite planet
parameters used: industrial production, world population, food
supplies, raw materials, environmental pollution with a special focus
on interdependencies between the parameters
1984: Strategic Management: A Stakeholder Approach by R. Edward Freeman (professor of management and
business ethics)
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founding figure for the concept of stakeholder management
leading idea: not only shareholders should be considered in business decision but every group has a
legitimate stake in the business
2009: “Planetary boundaries” (Rockstörm et al.)
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aim: outline a “safe operating space for humanity”
nine earth systems identified that are crucial for
stable environmental conditions
try to define threshold/boundaries in which these
systems are thought to remain stable
2009: “Prosperity without growth” by Tim Jackson (ecological economist at the
University of Surrey)
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central theme: question the economic paradigm that an economy needs to
grow in order to achieve prosperity (for a growing population)
also claims that infinite growth is not possible on a finite planet
solution: understanding of economy has to be expanded to include social
interactions and environmental boundaries
Jackson’s definition of prosperity: physical and mental health, educational and democratic entitlements,
trust security and a sense of community, relationships, meaningful employment, ability to participate in
social life, economic aspects only part of it
“Green new deal”: greatly increase (public) investments in environmental technology and ecosystem
services
need to integrate ecological parameters into economic equations -> reflect real world problems
his main criticism: GDP only measured in monetary terms and aggregated supply is only measured as a
product of labour and labour productivity -> if labour remains constant as desired, then growth automatic
through increasing productivity
one idea: decouple material throughout from economic growth e.g. selling services rather than products ->
problems of rebound effects, social costs
p. 130: “low-carbon economic activities that employ people in ways that contribute meaningfully to human
flourishing” (Uber, Airbnb, scouter carsharing)
service-based economy: labour intensive, but low labour productivity, thus not interesting in conventional
economics
2012: Doughnut economics by Kate Rawroth (academic at Oxford University and professor at the University of
Applied Sciences Amsterdam)
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economic model: combines the concept of planetary boundaries with social sustainability as defined by the
SDGs to set a framework for sustainable economics (key statements similar to T. Jackson)
Summary:
We saw that the basic idea of sustainable development in modern times can be traced back to the 18th century. It initially meant that one
should not use more trees than can re-grow. The concept was placed on the political international agenda in 1972 with the first UN conference
on the environment. The most common definition of sustainable development was proposed only in 1987 in a publication called the
Brundtland Report: sustainable development is development that „meets the needs of the present without compromising the ability of future
generations to meet their own needs”.
A number of important UN conferences followed, producing important documents such as the Rio Declaration, the Agenda 21 and the
Millenium Development Goals. The current framework of sustainable development is set by the Sustainable Development Goals that were
passed by the UN General Assembly and cover the time period from 2015 to 2030.
We also looked at the main scientific milestones with regard to sustainable development. The first publication dates to 1962 and showed the
negative impact of pesticides along the entire food chain and did not only help to greatly restrict the use of certain very harmful pesticides in
the 1970s, but is also seen as the starting point of the environmental movement in the US and Europe. Further important publications was the
so-called Limits to Growth report to the Club of Rome that dealt with the question of how much growth the finite planet earth could accept
until deterioration in certain parameters could lead to the collapse of vital systems. This scheme of “infinite growth not being possible on a
finite planet” is more or less the theme of all proceeding publications introduced to you today such as Tim Jackson’s concept of “Prosperity
without growth”, discussing his vision of an economy in some depths as well as Kate Raworth’s doughnut economics. Another concept
looking at the same idea from a different ankle is the concept of planetary boundaries that will be used to set the framework for the coming
lectures. The main focus, from now on, will be on the corporate perspective. We will look at what companies can do and are already doing to
implement the idea of (environmental) sustainable development in their business activities.
2. Corporate Sustainability
2.1 The role of companies in sustainable development
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companies: key actors in the realisation of sustainable development
SDGs: UN encourages companies to strengthen their Corporate Social Responsibility efforts and to report
companies have innovation potential to come up with solutions to sustainability related problems
companies can be a threat due to their production, their products or lobbying
companies rely on robust framework installed through e.g. governments, to guide their efforts as well as
pressure from stakeholder groups
2.2 Corporate Social Responsibility CSR
Definition EU Commission (2011): a concept whereby companies integrate social and environmental concerns in
their business operations and in their interaction with their stakeholders on a voluntary basis; actions by companies
over and above their legal obligations
Definition according to ISO 26000 (2010): responsibility of an organization for the impacts of its decisions and
activities on society and the environment, through transparent and ethical behaviour that contributes to sustainable
development, including health and the welfare of the society, takes into account the expectations of stakeholders, is
in compliance with applicable law and consistent with international norms or behaviours and is integrated
throughout the organization and practised its relationships
The definitions refer to the idea of triple bottom line (social, environmental and economic aspects), refer to the idea
of stakeholder management, address some form of integration and active management of these issues, make CSR
voluntary and beyond legal compliance.
They don’t shed light on which kind of businesses operations should be considered, what kinds of structure and
policies should be implemented, which management levels need to take CSR into account (normative, strategic,
operational)
Schaltegger (2011): corporate sustainability means that companies direct all their business activities towards
sustainable development in line with the triple bottom concept – environmental, social and economic goals are seen
as equally important. Corporate sustainability also focuses more on core business operations such as the products
and services themselves, the production processes and the supply chain and it aims aligning business activities with
sustainable development as an overarching societal goal.
2.3 Stakeholder theory of a firm
Developed by Edward Freeman in the 1980s:
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stakeholders are the parties who are affected or can affect a
company
strategic approach on how to deal with the stakeholders of a
corporation
stakeholder groups should be identified clearly and precisely and
their interaction with the company should be analysed
stakeholders could change over time and individuals could belong
to different stakeholder groups
non-market stakeholder and non-financial factors need to be
given enough consideration
2.4 Implementation of Corporate Sustainability
A company needs the following five elements to implements CSR:
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policies
goals and targets
organisational structures and manpower
performance measurement and KPIs
reporting
Policies
Programmes
Performance
measurement
Description
state the company’s values, beliefs,
goals with regard to social and
environmental issues
activities, measures and
instruments implemented to
achieve social policies
concrete changes the company has
achieved through the above
Instruments
mission statements, environmental
policy, CSR policy, etc.
Goals and targets
environmental and health and
safety management systems
data collection and reporting tools
Examples
IKEA is committed to sourcing 100%
renewable energy and wood from
sustainable sources by 2020
BMW: we have established environmental
management systems at all of our existing
production plants…
Nestle: By 2020 reduce direct water
withdrawals by 35% since 2010. Now: 29,6%
2.5 Transformational strategies for sustainable development (by Huber, 2000)
Sufficiency with regard to regard to pollution growth, as well as the level of affluence, lifestyle and consumption
patterns
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encourage consumers to buy less
this strategy acknowledges that there is more to human prosperity and well-being than consumption and
that a less materialistic lifestyle can be key to sustainable development
Efficiency with regard to production processes and the use of products
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decrease of the resource and energy input throughout the lifecycle of goods and services, can be achieved:
by design changes to reduce the need for material
through the extension of the useful life of products or by
developing completely different solutions that are based less on the sale of products and more on the
meeting of needs
Consistency (ecological) of production processes and products in order to achieve compatibility between industrial
and natural metabolism
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produce things in a way that is not harmful
this strategy aims at reshaping industrial processes so that they are in line with ecological processes, e.g. by
using resources in closed loops, either reusing them internally or using waste products as raw materials for
other processes
Summary:
Starting from the ideas we learned about in the first unit that basically say that the economy needs to change in order to respect
the boundaries of our planet and that infinite growth as the ultimate economic goal is not a viable, sustainable option, we
looked at the role of companies in this unit. We looked at definitions of CSR and corporate sustainability and how stakeholder
management is a prerequisite for both these approaches. We also saw that stakeholder management has found its way into the
C-suite of many large companies. I briefly explained how corporate sustainability is implemented in companies in general and
finally introduced the three transformational sustainability strategies by Huber (2011), giving examples for each.
3. Planetary boundaries
The concept of planetary boundaries:
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influence of humans on the environment ->
Anthropocene: earth shaped by humans
scientific research on different environmental systems
that are seen as vital for maintaining stable
environmental conditions on earth and how they are
impacted by human activity
if certain thresholds are crossed there is significant
risk that these systems will destabilize
prevention of destabilization -> authors propose
concrete boundaries for nine environmental systems
THE HOLOCENE
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human civilisations have developed only since the Holocene
how to continue the way of life under any environmental conditions?
safe option: organise societies and the economy in a way that ensures to stay within the familiar parameters
 “safe operating space for humanity”
Definition of boundaries
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continental to global scale. danger of a system collapsing altogether once a certain threshold has crossed
(e.g. ozone hole)
local or regional scale: deterioration of many such systems may lead to a situation where negative effects
are also felt on a global level
knowledge of most environmental systems not complete -> uncertainty to the exact boundary for each
system
The 9 planetary boundaries
3 global systems: Climate Change, Ocean Acidification, Stratospheric Ozone Depletion
6 regional, local systems: biogeochemical flows, atmospheric aerosol loading, global freshwater use, land-use
change, biosphere integrity, novel entities
Climate change: the basics
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CO2 emissions have increased significantly over the past decade and are now well beyond those levels that
have occurred naturally over the past 800000 years
evidence: temperatures are rising significantly since the beginning/middle of the 20th century
positive regional effects of climate change such as lengthening of growing seasons  negative impacts such
as sea level rise and more extreme weather events such as floods, droughts, heat waves and storms
Climate change: relevance for businesses:
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almost all business activities emit CO2  potential to increase cimate change
international community: keep climate change within 1.5°C to 2.0°C of pre-industrial levels
 companies are under increasing pressure to reduce their CO2 emissions
most advanced companies committed to targets that are in line with the 2°C goal and have these targets
verified on a scientific basis by “Science Based Targets” initiative
Ocean acidification
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boundary closely linked to climate change because the more CO2 in the atmosphere, the more is taken up by
oceans  increase of acidity of the seawater
difficult for marine organisms to take up carbonate ions in order to create their shells or skeletal structures
 may dissolve more easily in acidic conditions
 ocean acidification can have detrimental impacts on marine ecosystems and marine biodiversity:
o reduces e.g. fishing yields but also food protections services of coral reefs
o direct negative impact on businesses, especially those that depend on the fishing industry but also
tourism
o indirect negative impacts as coastal regions are more prone to flooding if coral reefs as protective
barriers disappear
o efforts to reduce CO2 emissions help to counter ocean acidification
Stratospheric ozone depletion
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appearance of the ozone hole (mainly above Antarctica) caused among other things by the introduction of
substances through industrial activity called halocarbons and chlorofluorocarbons (CFCs) that destroy ozone
ozone hole negatively impacts marine organisms and human health
in 1987, the Montreal Protocol agreed upon forbidding the production of ozone depleting substances, which
previously were used in aerosol sprays as well as refrigerants
marked reduction of halocarbons has already had a positive impact on the size of the hole
Biochemical flows
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associated with agricultural practices, especially industrial agriculture
Nitrogen (N) and Phosphorous (P) are used as fertilizers -> key nutrients -> the more you add to a system the
better the plant growth
both fertilizers washed out of the fields and enter surface water such as lakes but also the sea in coastal
regions -> process called eutrophication leads to
 increasing growth of algae which can lead to anoxic conditions, i.e. there is not enough oxygen in the
water and all organisms depend on oxygen die
boundary closely linked to industrial agriculture  relevant for all industries on agricultural resources as raw
materials
nutrient flows need to be controlled more closely to prevent their runoff from fields  possible through
change in agricultural practices
businesses can respect this planetary boundary by committing to more sustainable agricultural practices in
their supply chain  especially large multinational companies can have a significant impact
Biosphere integrity:
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biodiversity: number of different species in a given ecosystem and the genetic variability within one species
rate of biodiversity loss very high  sixth mass extinction  similar to the event that razed out the
dinosaurs
reasons: changes in land use, overexploitation of species as well as consequences from climate change
in ecosystem all organisms are linked, e.g. in food webs
the lower the biodiversity in an ecosystem, the more vulnerable it gets, e.g. in regards to diseases or
(sudden) environmental changes
biodiversity loss and deterioration in ecosystems extend to  forestry but also to sectors that potentially
rely on wild species, e.g. cosmetics and pharmaceutical industry  tourism
changes in agricultural practice can also contribute positively
impacted sectors are very diverse  difficult to pinpoint specific measures that businesses can undertake to
address biodiversity loss
Land system change:
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primarily means the conversion of natural habitat to agricultural land
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detrimental effects  mainly biodiversity loss  also soil erosion and subsequent desertification, loss of
water retention capacities as well as increasing CO2 emissions
close link between the size of an ecosystem and its biodiversity  the smaller an area the more vulnerable it
gets
together with the biogeochemical flow and biodiversity loss  third boundary that related closely to
agricultural practices
increase in food production necessary to feed a growing world population  change in diets, improved
processes that decrease food waste along the entire value chain and a change in agricultural practices can
also contribute to this goal
changes in agricultural practices may include e.g. use of most the productive agricultural land, prevention of
soil erosion (includes the control of irrigation), stopping to convert agricultural land to building land or using
it for biofuels
especially, multinational companies can put pressure on their supply chain and improve their own internal
processes to ensure we are staying within the boundaries
Freshwater use
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70% of the earth’s surface is covered in water, 97.5% of It is sea water and remaining 2.5% freshwater
(much not available as locked in ice or elsewhere)  0.01% available as surface freshwater such as rivers
and lakes
freshwater needed for most agricultural production and in industrial processes but also daily life of every
persons and other organisms
water cycle is a stable system which cannot be altered fundamentally by human activity  availability of
freshwater can be at serious risk through exploitation of the resource
climate change leads to changing precipitation patterns that can lead to serious droughts
essential resource that makes life possible and most organisms depending on its availability
main concept: Water Stewardship  initiatives and guidelines that support companies from different
sectors to act accordingly  concrete measures: reduction targets, aim for recycling water on the sire, aim
for improving the quality of wastewater what does not contain harmful substances  companies should
work closely with local communities to ensure a fair and sustainable distribution of water
Atmospheric aerosol loading
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aerosols: very small particles in the atmosphere that are released from human activities such as fuel
combustion  creation of Smog
damaging to human health, change of weather patterns and therefore damage to the environment as acid
rain
many processes around aerosols not well researched  difficult to define a planetary boundary  a
regional boundary has been proposed  regulations to limit the emission of e.g. fine particulate matter
which can also have impacts on businesses
businesses can either apply technological solutions such as filters or change their processes to more clear
production in order to reduce aerosol emissions
Novel entities
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various chemicals and new substances and organisms that are released into the environment such as micro
plastics, nanoparticles, heavy metals, GMOs
main problem: unclear which impacts the massive release of these substances have on natural systems
businesses: major responsibility for this boundary lies with chemical industry and their development and
production of (new) chemicals  businesses that use or emit such chemicals responsible to reduce their use
or their release into the environment and turn towards more sustainable and environmentally-friendly ways
of production
Summary:
We learnt about the concept of planetary boundaries. The science behind the concept was explained in some
detail. Based on data showing that the environmental conditions over the past 11,000 years, a period known as
Holocene, in which most of humanity’s development has taken place, have remained very stable, the authors
propose a “safe operating space for humanity” based on nine planetary boundaries.
These nine planetary boundaries were described in some detail, both in terms of scientific background of each
individual boundary and how the relate to business activities.
The exercise showed how these boundaries can be found in the Unilever sustainable agriculture code.
4. Planetary boundaries applied
4.1 Climate change
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CO2 emissions have increased significantly over the past decade and are now beyond those levels that have
occurred naturally over the past 800000 years
profound evidence that temperatures are rising significantly since the beginning/middle of the 20th century
positive effects of climate change in some regions such as lengthening of growing seasons will be countered
by  negative impacts such as sea level rise, more extreme weather events such as floods, droughts, heat
waves and storms
Greenhouse gases that contribute and their warming potential:
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number of gases that contribute to the greenhouse effect which leads to the warming of the atmosphere
commonly known as climate change
carbon dioxide (CO2) most common and humans have increased atmospheric CO2 concentration by more
than a third since the Industrial Revolution began  planetary boundary measured in CO2 but other gases
also have a warming effect  Methane, CH4 has a thirty times higher warming potential than CO2 and CFCs
are many thousand times more potent than CO2