Making $ense of Sustainability Wellington 6th August 2010 New Thinking “The volume of education… continues to increase, yet so do pollution, exhaustion of resources, and the dangers of ecological catastrophe. If still more education is to save us, it would have to be education of a different kind: an education that takes us into the depth of things.” E.F. Schumacher Our Vision is of a sustainable human society. Our Core Purpose is to develop a genuine commitment to, and competence in, sustainable development throughout society. What’s different about The Natural Step? Strategic focus – systems approach Scientific foundation Develop learning organisations The Natural Step "It was not until at least ten years later, we understood how much money Electrolux had saved and earned from applying the TNS Framework to foresee changes on markets and legislation". Leif Johansson, CEO Volvo and former CEO Electrolux “… start at the other end. Start by defining completely sustainable products rather than trying to improve the existing, flawed one.” Nigel Stansfield, Innovation Director, Interfaceflor Sustainable development Development which meets the needs of the present without compromising the ability of future generations to meet their own needs Our Common Future (Bruntland Report), 1987 A dynamic process which enables all people to realise their potential and improve their quality of life in ways which simultaneously protect and enhance the Earth’s support systems Forum for the Future (UK) Global ecological footprint Adapted from Global Footprint Network http://www.footprintnetwork.org/en/index.php/GFN/page/world_footprint/ Defining sustainability SOCIETY bearable equitable Sustainable ENVIRONMENT ECONOMY viable Environment Society Economy Used under creative commons licence What do you think are the main sustainability issues? The Great Squeeze 600 Projected Concentration After 50 More Years of Unrestricted Fossil Fuel Burning 500 400 CO2 [ppmv] 300 280 260 240 220 200 180 600,000 500,000 400,000 300,000 200,000 Age (years Before Present) 100,000 CO2 Concentration Today’s CO2 Concentration 70% of crude oil is refined into transportation energy 98% of transportation energy comes from oil Products / services Resources / materials 6% product 94% of all materials involved in production process = waste before the product is sold Source: Robert Ayres, Industrial Metabolism 1.2% of total materials used after 6 weeks remain as useful product Time until 1 % remains Recycling rate 50% 75% 90% 99% Beverage can, three weeks duration 5 months 11 months 31 months 27 years Car chassis, fifteen years duration 100 years 650 years 6900 years © 240 years Ref. Factor X concept from a Sustainability Perspecitive, Holmberg & Carlsson, 1999. Chris Jordan 2009 © 9 Planetary Boundaries 1. Climate change (105%) 2. Interference with Global 100 % = max safe limit – Nitrogen Cycle (200%) Red indicates limit exceeded TBD = To Be Determined – Phosphorus Cycle (90%) 3. Stratospheric Ozone Depletion (100%) 4. Atmospheric Aerosol Loading (TBD) 5. Chemical Pollution (TBD) 6. Ocean Acidification (98%) 7. Global Fresh Water use (60%) 8. Land System change (75%) 9. Rate of Biodiversity Loss (200%) Source: Dr Johan Rockström, Stockholm Environment Institute and an international group of experts Social inequity “Declining ecosystems and increasing pollution tend to correlate with the erosion of our spiritual and nonmaterial well-being, in developing and developed countries alike. Growing social stresses are all too often taken as the norm today.” Senge – The Necessary Revolution 2008 From 1980 to 2000 the share of global income for world’s poorest 25% fell from 2.5% to 1.2% Source: World Bank We are here © 2010 The Natural Step • Availability of natural resources for productive use • Availability of natural systems for productive purposes and enjoyment • Demand for finite natural resources • Government intervention / regulation / taxes • Consumer pressure for change • Lifestyle aspirations globally • Costs (resources, waste, insurance etc) Copyright © The Natural Step • Poverty and inequality • Breakdown of trust What are the main issues that present risks or opportunities for your organisation? BP – comic relief Vision/Outcome Strategies Evaluate Actions Metrics/Tools Ecological reality Principles of sustainable business Vision/Outcome Strategies Evaluate Actions Metrics/ Tools Accumulating concentrations of substances taken from the Earth’s crust Accumulating concentrations of persistent substances that do not easily break down in nature 4 basic disruptions to natural cycles Destruction of and damage to natural systems Copyright © The Natural Step Creating barriers to people meeting their basic needs worldwide Adapted from Planning for Sustainability – TNS Canada Ray Anderson on The Natural Step What is sustainable? 1. We only take what nature replaces. 2. We make only what nature can process. 3. We avoid breaking nature’s systems. 4. We ensure that globally people are able to meet their basic needs. Sustainability objectives WHAT WE TAKE Continually reduce and eliminate our dependence on mined metals, minerals and fossil fuels - extract less, reuse, recycle, use renewable resources WHAT WE MAKE Continually reduce and eliminate our use of manufactured non-degradable chemicals and substances - use natural alternatives and recyclable materials WHAT WE DESTROY Continually reduce and eliminate our dependence on activities that cause physical encroachment upon the natural environment - draw resources from sustainably managed eco-systems, restore nature, protect biodiversity HOW WE SHARE Ensure that people everywhere are treated fairly and with respect to enable them to meet their needs efficiently – look after people, share resources fairly Adapted from The Natural Step Framework 4 System Conditions What do people need? © 2009 The Natural Step Successful planning A Awareness and understanding B Baseline / Benchmark C Compelling vision / creative solutions D Down to action Successful planning A Awareness and understanding B Baseline / Benchmark C Compelling vision / creative solutions D Down to action What do we deliver? What do we depend on? Earlier stages in the supplier chain Products Energy Services Water Transport Land, Building, Equipment Investment People What is left? Waste By-products Copyright © The Natural Step Use of product/service Your business system • What raw materials do you use and where do they come from? • What other materials and substances are used? • Energy use – electricity, gas, petrol, diesel, other – and what for? • Water – how much and what for? • Transport – how many vehicles and what for? • Emissions – what are your other liquid / gas by-products? • Waste – hazardous, landfill, recycling - what waste and from where? • Labour practices – impacts of your business on people – employees, supply chain employees, local communities? • Community – Are you a valued and beneficial corporate citizen? How do you help people meet their needs? Fossil fuels / other mined materials Synthetic substances and chemicals (oil, petrol, gas, minerals, heavy metals) (pesticides, insecticides, chemical cleaners, plastics, preservatives) Physical impacts on nature and natural systems Meeting people’s needs (food, trees, water, air, soil, landfill waste) © 2010 The Natural Step (working conditions, job satisfaction, creativity, health) What are the significant impacts; future risks and opportunities? What can you build on? What initiatives and processes are already in place? • • • • Waste Energy Water Purchasing • • • • Employees Customers Leadership Policies and plans Successful planning A Awareness and understanding B Baseline / Benchmark C Compelling vision / creative solutions D Down to action Ray Anderson - Vision Back-casting The Natural Step to planning for success! Future Present 1. Begin with the end in mind 2. Plan backwards from the vision to the present 3. Move step by step towards the vision © 2010 The Natural Step Interface: Vision “To be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: People, process, product, place and profits — by 2020 — and in doing so we will become restorative through the power of influence.” InterfaceFLOR – Commitments Source: http://www.interfacesustainability.com 1. Eliminate Waste: Eliminating all forms of waste in every area of business 2. Benign Emissions: Eliminating toxic substances from products, vehicles and facilities 3. Renewable Energy: Operating facilities with renewable energy sources – solar, wind, landfill gas, biomass and low impact hydroelectric 4. Closing the Loop: Redesigning processes and products to close the technical loop using recovered and bio-based materials 5. Resource-Efficient Transportation: Transporting people and products efficiently to reduce waste and emissions 6. Care for people: Creating a culture that integrates sustainability principles and improves people’s lives and livelihoods 7. Redesign Commerce: Creating a new business model that demonstrates and supports the value of sustainability-based commerce By 2020, DNV will be one of the most sustainable communities in the world. This in part will be achieved through a leadership role assumed by the municipal government in its own operations. As an organisation, the immediate challenge before the district is to demonstrate how sustainability can be implemented considering these values: Developing a vision What would the characteristics of your organisation be if its operations and policies were fully aligned with the four sustainability principles? Developing a vision 1. Make a list of your key stakeholders (employees, customers, suppliers etc) 2. Choose the 3 or 4 most important 3. What would each stakeholder group be saying about you as a sustainable organisation? Strategic goals List the high-level strategic goals that your organisation needs to achieve to be a sustainable organisation Whistler Benefits of new natural gas supply proposal - C$42m • • • • Secure supply of energy Meet all forecasted energy demands Cleaner – natural gas = 15% lower GHG emissions than LPG Pay for itself within 50 years (assuming all new energy loads will use natural gas) • Natural gas supply required to avoid need for diesel generators during Olympics • Cost savings by laying pipe in conjunction with road upgrade • No current energy alternatives - several renewable energy heating systems under investigation – and geothermal is technically feasible Whistler’s energy vision Copyright © The Natural Step Canada Forecasted Growth and Natural Gas Supply Heating Cooking Fireplaces Transportation © The Natural Step Backcasted from Sustainability… Today Heating Electric/Propane Cooking Fireplaces Electric/Propane Transportation © The Natural Step Propane Gasoline Diesel Transition District Energy, N.Gas /GSHP Natural Gas Bio Gas Gasoline, Natural Gas Biofuel, Hybrids Sustainable Future GSHP Biofuels Fuel cells Other? Bio gas Wood Biofuel Fuel cells Hydrogen Other? Adapted from Terasen Inc. Olympic Village Was: 100% Natural Gas Now: 100% Renewables © The Natural Step © The Natural Step For each of your strategic goals, identify one or two key milestones that must be achieved along the journey Fleet Right size; reduce trips; alternative fuels Waste management Less paper; composting; expand recycling Purchasing More investigation; better protocols Building and properties Ambitious minimum standards; reduce water usage Alternative energy Pilot on-site alternative energy for council equipment and facilities; pilot large scale projects Employee health and well-being Incentivise health and safety culture; support learning on sustainability; support commuting alternatives Strategic planning Connect sustainability with everyday operations; act as ambassador and support education Guiding principles For each of your strategic goals, develop an action plan of next steps that work towards achieving the milestones you’ve identified Guiding principles Easy wins first Reduce waste Identify financial benefits Ray Anderson - waste Guiding principles Back-cast from the ideal solution, and work out the next step towards achieving that goal What are your priorities? • Biggest expenses? • Most significant purchases? • Where can you be more efficient? • What can you do without – through efficiencies or redesign? • What different materials, products, substances might you use? • What are your biggest risks and greatest opportunities? • Where do you want to get to as an organisation? • What are your values? For each of your strategic goals, identify what you need to measure to know how close you are to achieving the goal Developing a business case Business case – the Benefit$ • Increase turnover - more customers, better offer • Improve margins / reduce costs – More efficient use of resources (materials / energy) – Increase staff productivity and better retention • Reduce risk – Regulatory / compliance – Reputation and customer perception • Develop enduring competitive advantages • Avoid tax – regulatory risks • Attract the best staff Getting started Form a team – – – – – – – Who should be at the table? Who are the ideal people? Include a cross-section of the organisation Diverse skills Influencers Sceptics Ensure time is budgeted Governance and decision-making • Is there a shared understanding of sustainability that can be integrated into long-term goals? • Is sustainability a strategic priority? • Is there credible leadership and commitment on the issue? • Organisation-wide sustainability analysis? • Project based sustainability analysis? • Training programmes? • Ongoing internal communication? • Policies and procedures? • Connected to / communicated with external stakeholders? • Sustainability progress reporting? Poutama 2 - overview • Quick re-cap of TNS framework • How to drive sustainability initiatives – Developing the in-house team – Supporting structures • Identifying the right initiatives • Developing a persuasive business case – Gaining permission and support – Measuring success Further resources • Case studies – www.thenaturalstep.org • Planning guides (available free on the website) • Benchmarking tools – PROBE for Sustainable Businesses • Life-cycle Assessment tools • E-learning For more information contact Simon Harvey – natstep@naturalstep.org.nz The Natural Step approach is based on 20 years of scientific research and applied experience. TNS works with some of the world’s largest companies and a growing number of local and national government organisations. For further info contact Simon Harvey natstep@naturalstep.org.nz