Capstone project with Milliken Proposal Team member: Ling/Tasha/Zihao/Stark/Annie/Shang Project Theme Anticipate the future trend and changes on standards in flooring industry Global green agreements are driving the evolution of green building standards, bringing both challenges and opportunities to the flooring industry. To better anticipate and analyze future requirements for flooring, it is essential to break down the strategic challenges from multiple perspectives. Strategic Challenges Breakdown 1. Evolution of Global Green Agreements and Their Impact ● What are the key international and domestic green agreements affecting the construction industry? (e.g., Paris Agreement,China’s Dual Carbon Goals) ● How do these agreements drive the development of green building standards? ● How do major economies (e.g., EU, China, U.S.) shape the global building materials supply chain through their green policies? 2. Key Sustainability Focus Areas in the Flooring Industry ● What are the main sustainability priorities in the flooring industry? ● Are current sustainability practices sufficient to meet stricter future regulatory requirements? 3. Impact of Green Agreements on Future Building Standards ● Will future green building standards (e.g., LEED, WELL,绿标，Green Mark) change due to global green agreements? ● What new requirements will these standards impose on the flooring industry? ● How can the industry adapt to regulatory shifts to minimize compliance costs and enhance competitiveness? 4. Strategic Implications of Future Global Green Standards for the Flooring Industry ● How should the flooring industry adjust its product standards, manufacturing processes, and supply chains to align with new green requirements? ● Is there a need for new technological investments (e.g., bio-based materials, carbon capture technologies) to maintain market competitiveness? ● How will evolving green standards impact market access, government subsidies, and consumer preferences? Theoretical basis for anticipate and analyze 1. Policy Diffusion Theory Concept: Policy diffusion theory explains how policies spread across different countries and sectors due to various mechanisms such as learning, competition, imitation, and coercion. It provides a framework to analyze how international agreements like the Paris Agreement lead to national policy changes and how green standards evolve in response. Relevance: ● After the Paris Agreement (2015), different countries adopted carbon neutrality goals at different times (e.g., EU’s Fit for 55, China’s carbon neutrality by 2060). ● Green requirements started from carbon emissions regulation and expanded into life-cycle sustainability, material circularity, and environmental product declarations (EPDs). ● The theory helps predict how future policies may shape corporate sustainability standards in the flooring industry. Source: ● Shipan, C. R., & Volden, C. (2008). "The Mechanisms of Policy Diffusion." American Journal of Political Science, 52(4), 840-857. 2. Institutional Theory (Coercive, Normative, and Mimetic Pressures) Concept: Institutional theory suggests that firms adopt sustainability standards due to regulatory (coercive), industry norms (normative), and market competition (mimetic) pressures. Relevance: ● Coercive pressure: Governments impose stricter green policies, making compliance with green standards mandatory (e.g., EU Circular Economy Action Plan pushing for recycled materials in carpets). ● Normative pressure: Sustainability certifications (e.g., Cradle to Cradle, LEED, FloorScore) evolve in response to policy demands. ● Mimetic pressure: Competitors adopting green innovations force others to follow (e.g., the rise of bio-based carpets and closed-loop recycling). Source: ● DiMaggio, P. J., & Powell, W. W. (1983). "The Iron Cage Revisited: Institutional Isomorphism and Collective Rationality in Organizational Fields." American Sociological Review, 48(2), 147-160. 3. Environmental Kuznets Curve (EKC) & Regulatory Push-Pull Model Concept: The Environmental Kuznets Curve (EKC) suggests that as economies develop, environmental regulations become stricter, leading to a transition from pollution-intensive growth to sustainable practices. The Regulatory Push-Pull Model explains how stringent regulations push industries toward higher sustainability standards. Relevance: ● Early policies focused on emission reductions (e.g., CO₂ limits for manufacturing). ● Over time, policies expanded into supply chain transparency (e.g., product life-cycle assessments and carbon footprint labeling). ● Future policy evolution may integrate digital sustainability reporting and real-time emissions tracking in manufacturing. Source: ● Grossman, G. M., & Krueger, A. B. (1995). "Economic Growth and the Environment." The Quarterly Journal of Economics, 110(2), 353-377. 4. Path Dependency and Punctuated Equilibrium Theory Concept: Path dependency explains how historical policy decisions shape future sustainability standards, while Punctuated Equilibrium Theory (PET) suggests that major events (e.g., climate summits, global crises) trigger sudden regulatory shifts. Relevance: ● Example: The Paris Agreement (2015) led to incremental policy adoption, but COVID-19 and EU Green Deal (2020) accelerated sustainability shifts. ● The flooring industry must anticipate "policy shocks" that could introduce stricter recycling mandates, embodied carbon regulations, and digital traceability. Source: ● Baumgartner, F. R., & Jones, B. D. (1993). "Agendas and Instability in American Politics." University of Chicago Press. 5. Multi-Level Perspective (MLP) on Sustainability Transitions Concept: The Multi-Level Perspective (MLP) framework explains how policy-driven sustainability transitions unfold across different levels (niche innovations, socio-technical systems, and policy landscapes). Relevance: ● Green standards start with niche innovations (e.g., biodegradable carpet fibers) → gain industry support (corporate adoption) → become regulatory mandates (e.g., EU's Extended Producer Responsibility). ● Future sustainability transitions in flooring could require full circular economy adoption, net-zero carbon materials, and mandatory digital product passports. Source: ● Geels, F. W. (2002). "Technological Transitions as Evolutionary Reconfiguration Processes: A Multi-Level Perspective and a Case-Study." Research Policy, 31(8-9), 1257-1274. Methodologies for Analyzing global sustainability policies and Impact on flooring industry To comprehensively analyze the impact of global sustainability policies on the green building sector and the flooring industry, we will employ three key research methodologies: Document Analysis, Data Analysis, and Expert Interviews. 1. Document Analysis We will examine official government regulations and policy documents to extract key sustainability trends, including China’s “Dual Carbon” goals and international frameworks like the Paris Agreement and the UN Global Compact. Additionally, we will analyze industry reports from McKinsey and Deloitte to understand how these policies translate into business impacts. These reports provide insights into market trends, such as the projected growth of the green building sector and the effects of carbon taxes and ESG scores on corporate costs. By synthesizing findings from these sources, we can identify future regulatory trends and their implications for the flooring industry. 2. Data Analysis Data analysis will help quantify policy impacts on the green building and flooring industries. Using Trend Analysis, we will assess the growth trajectory of green building investments worldwide. If data shows that investments have risen by 30% over the past five years, this would confirm that policy shifts are driving market expansion. Additionally, we will analyze MSCI ESG ratings to determine whether companies with higher ESG scores experience better financial performance, reinforcing the significance of sustainability in corporate valuation. Lastly, by tracking carbon tax fluctuations, we can evaluate whether rising carbon costs will make non-sustainable flooring materials less competitive, further incentivizing the adoption of greener alternatives. 3. Expert Interviews To complement our document and data analysis, we will try to conduct expert interviews with professionals such as Shanghai Jianke Consulting Co., Ltd. to gain deeper insights into China’s evolving green building policies and standards. Additionally, discussions with ESG rating agencies and industry experts can give us first-hand perspectives on sustainability trends, and regulatory expectations. Resource List 1. Official Government Websites Access authoritative policies, regulations, and official interpretations ● United Nations (UN Climate Change) – Covers global climate policies, Sustainable Development Goals (SDGs), and the Paris Agreement. ● China’s Ministry of Ecology and Environment (MEE) (MEE) – Tracks China’s “Dual Carbon” goals (carbon peak by 2030, carbon neutrality by 2060), carbon trading policies. 2. ESG & Sustainability Organizations Monitor global ESG rating frameworks and industry trends ● MSCI ESG Ratings (MSCI ESG) – Analyzes ESG performance and risk ratings of companies worldwide. 3. Industry Research & Think Tanks Gain insights from policy interpretations and market trend analysis ● McKinsey & Company (McKinsey Sustainability) – Publishes ESG and sustainability research reports. ● Deloitte (Deloitte ESG & Climate Risk) – Covers ESG regulatory trends and corporate best practices. ● World Bank (World Bank Climate Change) – Researches global climate policies, carbon pricing, and economic impacts. ● International Energy Agency (IEA) (IEA Climate Change) – Focuses on energy transition, carbon neutrality policies, and global emissions regulations. Team identity Tasha ● Strengths: Logical reasoning (logic tree), time management, independent thinking, GPT utilization ● Role: Process Optimization & Timeline Control ○ Lead logical framework design, track project progress, and integrate AI tools for efficiency. Zihao ● Strengths: Structured business thinking, research resilience, practical commercial insights ● Role: Market Research & Strategic Analysis ○ Conduct in-depth industry analysis, propose actionable strategies, and drive data-driven decision-making. Shang ● Strengths: Direction correction, independent critical thinking ● Role: Quality Assurance & Strategy Adjustment ○ Monitor research alignment, refine hypotheses, and ensure deliverables meet objectives. Annie ● Strengths: Visual design (logic tree/OPT), task-focused independent research ● Role: Visualization & Output Design ○ Create polished presentations, design logic frameworks, and translate data into visual narratives. Stark ● Strengths: PPT/Excel expertise, punctuality, meticulous content extraction ● Role: Data Reporting & Documentation ○ Develop clean reports, manage datasets, and ensure timely delivery of key outputs. Ling ● Strengths: Communication, direction-setting, independent problem-solving ● Role: Team Coordination & Leadership ○ Facilitate cross-functional collaboration, define project scope, and resolve critical bottlenecks. Plan & Timeline
