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Making $ense of Sustainability
Wellington6th 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.
Strategic focus – systems approach
Scientific foundation
Develop learning organisations
Strategic focus – systems approach
Scientific foundation
Develop learning organisations
What’s different about The Natural Step?What’s different about 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
The Natural Step
Sustainable development
Development which meets the needs of the present without compromising the ability of future generations to meet their own needsOur 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 systemsForum 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
ENVIRONMENT
SOCIETY
ECONOMY
Sustainablebearable
viable
equitable
Environment
Society
Economy
Used under creative commons licence
What do you think are the main sustainability
issues?
What do you think are the main sustainability
issues?
The Great Squeeze
100,000200,000300,000400,000500,000600,000
300
500
400
600
180
200
220
240
260
280
Tem
p. in
C°
CO
2
Co
ncen
tration
Today’s CO2 Concentration
Projected Concentration After 50 More Years of Unrestricted Fossil Fuel BurningProjected Concentration After 50 More Years of Unrestricted Fossil Fuel Burning
CO
2 [p
pm
v]
Age (years Before Present)
Tem
p. in
C°
70% of crude oil is refined into transportation energy
98% of transportation energy comes from oil
70% of crude oil is refined into transportation energy
98% of transportation energy comes from oil
94% of all materials involved in production process = waste before the product is sold
1.2% of total materials used after 6 weeks remain as
useful product
Source: Robert Ayres, Industrial Metabolism
Resources / materials Products / services
6% 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 240 years 650 years 6900 years
Ref. Factor X concept from a Sustainability Perspecitive, Holmberg & Carlsson, 1999.
Chris Jordan 2009 ©
9 Planetary Boundaries1. Climate change (105%)
2. Interference with Global – Nitrogen Cycle (200%)– 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
100 % = max safe limitRed indicates limit exceededTBD = To Be Determined
Social inequity
“Declining ecosystems and increasing pollution tend to correlate with the erosion of our spiritual and non-material 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)• Poverty and inequality• Breakdown of trust
Copyright © The Natural Step
What are the main issues that present risks or opportunities for your organisation?
What are the main issues that present risks or opportunities for your organisation?
BP – comic relief
Vision/Outcome
Strategies
Actions
Metrics/ToolsEvaluate
Principles of sustainable business
Strategies
Actions
Metrics/ Tools
Ecological reality
Vision/Outcome
Evaluate
Accumulating concentrations of substances taken from the Earth’s crust
Accumulating concentrations of persistent substances that do not easily break down in nature
Destruction of and damage to natural systems
Creating barriers to people meeting their basic needs worldwide
4 basic disruptions to natural cycles
Copyright © The Natural Step
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.
WHAT WE TAKEContinually reduce and eliminate our dependence on mined metals, minerals and fossil fuels - extract less, reuse, recycle, use renewable resources
WHAT WE MAKEContinually reduce and eliminate our use of manufactured non-degradable chemicals and substances - use natural alternatives and recyclable materials
WHAT WE DESTROYContinually 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 SHAREEnsure 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
Sustainability objectives
© 2009 The Natural Step
What do people need?
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
Successful planning
What do we deliver?
Earlier stages inthe supplier
chain
Use of product/service
What do we depend on?
What is left?
Energy
Water
Transport
Land, Building, Equipment
Investment
People
Products
Services
Waste
By-productsCopyright © The Natural Step
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
(oil, petrol, gas, minerals, heavy metals)
Meeting people’s needs
(working conditions, job satisfaction,
creativity, health)
Synthetic substances and chemicals
(pesticides, insecticides, chemical
cleaners, plastics, preservatives)
Physical impacts on nature and natural systems
(food, trees, water, air, soil, landfill
waste)
© 2010 The Natural Step
What are the significant impacts; future risks and opportunities?
What are the significant impacts; future risks and opportunities?
What can you build on?
• Waste• Energy• Water• Purchasing
What initiatives and processes are already in place?
• Employees• Customers• Leadership• Policies and plans
A Awareness and understanding
B Baseline / Benchmark
C Compelling vision / creative solutions
D Down to action
Successful planning
Ray Anderson - Vision
1. Begin with the end in mind
Present
Future
2. Plan backwards from the vision to the present3. Move step by step towards the
vision
Back-casting The Natural Step to planning for success!
Back-casting The Natural Step to planning for success!
© 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 1. Eliminate Waste: Eliminating all forms of waste
in every area of business2. 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
Source: http://www.interfacesustainability.com
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?
List the high-level strategic goals that your organisation needs to achieve to be a sustainable organisation
List the high-level strategic goals that your organisation needs to achieve to be a sustainable organisation
Strategic goals
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
CookingFireplaces
Transportation
© The Natural Step
District Energy,N.Gas /GSHP
Natural GasBio Gas
Gasoline,Natural GasBiofuel,Hybrids
TodaySustainable
Future
Heating
CookingFireplaces
Transportation
Bio gasWood
BiofuelFuel cellsHydrogen
Other?
GSHPBiofuels
Fuel cellsOther?
Electric/Propane
Electric/Propane
Propane
GasolineDiesel
Transition
Backcasted from Sustainability…
Adapted from Terasen Inc.
© The Natural Step
Olympic Village
Was: 100% Natural GasNow: 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
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
For each of your strategic goals, develop an action plan of next steps that work towards achieving the milestones you’ve identified
Easy wins first Reduce waste Identify financial
benefits
Easy wins first Reduce waste Identify financial
benefits
Guiding principles
Ray Anderson - waste
Back-cast from the ideal solution, and work out the next step towards achieving that goal
Back-cast from the ideal solution, and work out the next step towards achieving that goal
Guiding principles
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
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 –
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 [email protected]
