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ENVIRONMENTAL TRENDS
• GHG emissions to double in next 50 years
• Urban uses require 100-200 million hectares of land over next 40 years
• High rates of forest loss
• Alarming water scarcity affecting people mainly in Asia
• Rise in sea levels, declining aqua-culture quality
• Critical habitats continue to be endangered
• Lack of data to document risk to human health and environment from chemical products
Atmosphere
Water
Biodiversity
Chem / Waste
Land
15th Forum on Eco-innovation UNEP Roundtable on Eco-innovation
THE INCONVENIENT TRUTH (About Resources)
‘Hidden’ resources flows are large and cause significant environmental impacts…
…and the receiving environments for
emissions are smaller than some might think.
Fischer-Kowalski, 2011
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RESOURCE USE & ECONOMIC GROWTH: KEY FINDINGS
GDP grew faster than global material extraction in these four categories
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USA
South Africa
China
Ghana
France
Brazil
Metabolic rate ton/capita
15th Forum on Eco-innovation UNEP Roundtable on Eco-innovation
RESOURCE USE & ECONOMIC GROWTH: KEY FINDINGS
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Resource prices now considered volatile
15th Forum on Eco-innovation UNEP Roundtable on Eco-innovation
RESOURCE USE & ECONOMIC GROWTH: KEY FINDINGS
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THE CONVENIENT TRUTH (ABOUT RESOURCES)
There are ways decouple environmental impacts and resource use from economic growth…
… while avoiding burden shifting between countries, generations, and trade-offs between impact categories and life cycle stages.
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Resource Productivity
Sustainability-Oriented Innovation will be key
RESOURCE USE & ECONOMIC GROWTH: KEY FINDINGS
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RISKS • Higher operational costs and supply chain disruption • Shifting production and transportation patterns to adapt to
local conditions • Public pressure for greater transparency • Regulatory and fiscal instruments increasingly complex
OPPORTUNITIES • Market shift towards ‘greener’ products – water-efficient
technology, green plastics and chemistry, sustainable infrastructure etc.
• Growing market opportunity to recover, reuse e-waste • Reputational advantage from incorporating environmental
trends into company strategy
WHAT DOES IT MEAN FOR BUSINESS
15th Forum on Eco-innovation UNEP Roundtable on Eco-innovation
Companies changing sourcing strategies Resources depletion and scarcity create risk of price volatility and resource availability. Large companies adopting holistic supply chain approaches Sustainability – essential for ensuring continuity and quality of
supply
New markets for sustainable products and services Increasing market demand for sustainable products & services Public Procurement: countries are setting standards for public
procurement linked to sustainability (entire value chain)
Stricter impending regulation Stricter regulation driving companies to reconsider business
models and redesign products
BUSINESS LANDSCAPE IS CHANGING…
15th Forum on Eco-innovation UNEP Roundtable on Eco-innovation
DECOUPLING IN ACTION: RESOURCE
EFFICIENCY AND ECO-INNOVATION …
15th Forum on Eco-innovation UNEP Roundtable on Eco-innovation
Resource Efficiency: "Using the Earth's limited resources in a sustainable manner while minimising impacts on the environment. It allows us to create more with less and to deliver greater value with less input,” EC, DG Env
Resource Efficiency: An Established Track Record • Improved productivity and less waste in production and
consumption • Cleaner investments (investment in efficient production
methods in resource intensive sectors, such as food) • More sustainable lifestyles (promoting responsible
consumption and choices that are more resource-efficient, environmentally friendly)
DECOUPLING IN ACTION:
ECO-INNOVATION
Eco-innovation is the development and application of a new business strategy that entails a combination of a significantly improved or new product (good/service), production process, organisation and business model that will lead to improved sustainability performance. (UNEP working definition)
Eco-innovation operates at level of a company strategy It mainstreams holistic life-cycle approach throughout
company’s operations Aimed at enhancing company’s positive sustainability
impacts, gaining reputational benefits and access to new markets = competitive advantage
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Build and retain expertise
ECO-INNOVATION: A STRATEGIC
BUSINESS APPROACH
Companies applying Eco-innovation can:
Enhance sustainability performance
Create competitive advantage vis-à-vis competitors
Achieve growth through access to expanding markets
“Read” standards and regulations evolution and benefit from first
mover advantage
Increase profitability and efficiency resource use along value chain
Attract sustainable investment
Build and retain expertise
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Eco-innovation applies life cycle thinking to products and processes to increase the sustainability of the entire value chain.
HOW CAN COMPANIES IMPLEMENT
ECO-INNOVATION?
Innovation is implemented in a combination of:
• Product, including product design
• Production process • Organizational methods • Marketing • Business model
Life-cycle thinking means considering the ENTIRE process, including:
• Raw material extraction • Manufacturing processes • Packaging and distribution • Use and maintenance • End-of-life/reusability
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Companies doing eco-innovation have shown (average) 12% growth rate - when competitors have been stagnant •Natura, Cosmetics firm - Brazil:
–Average growth rate of 15.9 % from 2008 – 2012 –Reduction of CO2 emissions by 33% from 2007-2012 –Products that are more sustainable and affordable due to reduced material input and production cost. Hence company tapped new market segments - domestic and international
•Ecover, Manufacturer of eco-cleaning products – Belgium
–Average growth rate of 10-25% (market has been flat) –Products with 0% harmful chemicals, packaging with 100% vegetable recyclable composition –Strong long-term eco-innovation strategy based on vision and open source collaboration with actors along value chain
ECO-INNOVATION IN PRACTICE
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National and regional policy framework: to promote/recognize SCP practices
Willingness and readiness of company – supply chain - market eg market requirements/demands
R&D capacity in country and company: need of service providers with skills and capacities to support
Existence of service providers with skills and capacities to support companies change strategies in a changing global economy
Private and public investments in eco-innovation are critical for long-term economic growth
ENABLING ENVIRONMENT
FOR ECO-INNOVATION
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The heightened drive to sustainability – the policy context couldn’t be more conducive
Rio+20 Outcome document reinforced: • Green Economy • Sustainable industrial development • SCP (10YFP) • (Eco)innovation • Technology transfer • Sustainability reporting
WHAT DO RE AND ECO-INNOVATION MEAN FOR
THE POLICY CONTEXT?
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Science: Research indicates that food systems have great potential for improved resource efficiencies:
In most Asian countries, agriculture is the biggest user of water and can reach up to 90% of total water consumption (ADB) Asia and the Pacific accounts for 37% of the world's total emissions from agricultural production, and the People's Republic of China alone accounts for more than 18% of the total (ADB) Inefficient use of nutrients in food systems in Asia is contributing to eutrophication and pollution of water sources (UNEP) ~1/3 food produced is lost and wasted annually due to inefficiencies in food supply chains, including in households (FAO)
WHAT DOES THIS MEAN IN THE FOOD SECTOR?
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Challenges in the context of a changing world: Shift to more resource-intensive consumption (changing diets to include more animal proteins) Increase in urbanisation/changing lifestyles
Taking Action: UNEP takes a holistic ‘food systems’ approach to contribute to food and nutrition security
Reducing food loss and waste is an important way in which to increase efficiencies in our food systems...... Resource efficiency and eco-innovation contribute UNEP, with FAO and others, leading the call for awareness and engagement : Think.Eat.Save: Reduce Your Foodprint, a global campaign to prevent and
reduce food waste
FOOD LOSS AND WASTE: AN ACHIEVABLE GOAL
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FOOD LOSS AND WASTE: AN ACHIEVABLE GOAL
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