Study Guide Q & A Flashcards
(104 cards)
1
Q
What is sustainability?
A
Development that meets the needs of the present, without compromising the ability of future generations to meet their own needs.
2
Q
What are the three dimensions of sustainability?
A
Social: Universal human rights, basic necessities
Environmental: Maintenance of ecological integrity, where the rate of consumption is less or equal to nature’s rate of replenishment
Economic: Ability for communities to maintain independence, and access the resources necessary to meet their needs
3
Q
Why does sustainability matter?
A
Increasing global temperatures, rising seas, unemployment, precarious work etc. are threatening the survival of human societies.
4
Q
What are the UN Sustainable Development Goals?
A
“Blueprint to achieve a better and more sustainable future for all.”
Universal goals and targets to be achieved by 2030.
Leading global framework for international cooperation, that requires actions on ALL fronts.
5
Q
What is the Ehrlich equation?
A
Environmental Impact = Population x Affluence x Technology
- Population of an area
- Affluence: Average consumption of each person in the population
- Technology: Resource intensity of the production of affluence
6
Q
What is the climate mitigation gap?
A
“We conclude that there are opportunities to improve existing education and communication structures, to promote the most effective mission-reducing strategies and close this mitigation gap.”
7
Q
Who are the catalysts of changes in sustainable development?
A
Adolescents, who have the freedom to make large behaviour choices that will structure the rest of their lives.
8
Q
What are moderate-impact actions?
A
- Home heating/cooling efficiency
- Using public transportation, cycling, walking
- Buying energy-efficient products
- Hang-drying clothes
9
Q
What is engaged citizenship?
A
Individual and collective actions: Living your values in your personal life, living your values in your community life, volunteering, putting political pressure
10
Q
What is biocapacity?
A
The capacity of a given biologically-productive area to generate an ongoing supply of renewable resources, and absorb its spillover wastes.
11
Q
What is ecological reserve/deficit, for an area?
A
Ecological Reserve: Biocapacity > Ecological Footprint
Ecological Deficit: Biocapacity < Ecological Footprint
12
Q
How can an area address its ecological deficit?
A
Importing biocapacity through trade, or by liquidating regional ecological assets
13
Q
What is ecological overshoot?
A
Global ecological deficit, that can’t be compensated through trade.
14
Q
According to Friedman, what is the social responsibility of business?
A
Corporations are artificial persons, that have artificial responsibilities.
Businesses are responsible for increasing its profits, maximizing money, while staying within the rules of the game.
15
Q
Can an individual proprietor exercise his social responsibility?
A
The individual proprietor can reduce the returns of his business to exercise his “social responsibility”.
As he is spending his own money, there are less side effects.
16
Q
What is collective capitalism?
A
Big businesses being called on to help fix economic and social problems. Working towards broader social goals, rather than self-interest.
17
Q
What are the two problems associated with collective capitalism?
A
- Lack of accountability: It is unclear what society wants from companies. End result? A small number of unrepresentative business leaders end up with immense power in setting societal goals.
- Lack of dynamism: Collective capitalism leans away from change (job cuts, new social goals)
18
Q
What is enlightened capitalism? How can we make it happen?
A
Enlightened capitalism: Innovation, widespread ownership, diverse firms adapting fast to social needs.
We need to ENHANCE accountability and dynamism, by…
- Having the purpose of companies set by its owners, not the executives. This will ensure that long-term value is considered.
- Adapting to society’s changing preferences.
- Encouraging competition (stimulates proactivity) and an effective government.
19
Q
What is a deliberation?
A
A form of reasoning and conversation, where the costs and consequences of various options and perspectives for action are weighed and considered.
Collaboration, learning relationship, many potential solutions.
Discovery of a shared direction, guided by what we value most.
20
Q
What is a debate?
A
A competitive relationship for which the goal is winning your idea. There are two opposing sides that aim to prove each other wrong.
One solution, attempt to find others’ flaws and weaknesses (criticize)
21
Q
What is the first wave of sustainability (first two phases of sustainability)?
A
- Rejection (Opposition): All resources are exploited for immediate economic gain. Firm’s primary motive is maximizing its profits. Environmental impacts are dismissed, disregarded and opposed, as are activist activities and external claims.
- Non-Responsiveness (Ignorance): Lack of awareness, ignorance. ‘Business as usual’ - No incorporation of sustainability into decision-making. Disregarding environmental consequences of activities.
22
Q
What is the second wave of sustainability (third to fifth phases of sustainability)?
A
- Compliance (Risk): Reducing risk of sanctions for failing to meet standards. ‘Decent employer and citizen’, avoiding environmental abuse that could lead to litigation. Reactive to requirements and expectations.
- Efficiency (Cost): Awareness of the real advantages of incorporating sustainable practices, to reduce cost and enhance efficiency. The additional expenses lead to additional payoffs, making it worthwhile pursuing.
At this stage, the company is beginning to incorporate sustainability as an integral part of its business. - Strategic Proactivity (Competitive Advantage): Making sustainability as an important part of the business strategy, to gain competitive advantage. Taking a leadership position in sustainable business practices. A commitment to sustainability, embedded in the quest for maximizing long-term profitability. However, the company is still acting in its self-interest.
23
Q
What is the third wave of sustainability (sixth phase of sustainability)?
A
- The Sustaining Corporation (Transformation): Internalization of the ideology of working for a sustainable world. The company actively promotes sustainability values and practices in society. There is a commitment to sustainability - facilitation of the emergence of a society that supports ecological vitality, and contributes to equitable social practices. THE NATURE OF THE CORPORATION IS REDEFINED.
24
Q
What are the similarities and the differences between a BCorp and a Benefit Corporation?
A
Both are leaders of the global movement to use businesses as a force for good, meeting higher standards of accountability and transparency.
B-Corps: 3rd party certification administered by B Lab, based on the company’s verified performance on the B Impact Assessment.
Benefit Corporation: Legal structure for a business, legally empowered to pursue positive stakeholder impact and profits. Holds three key legal attributes, being accountability, transparency and purpose.
25
What is the 'Take, Make, Waste' (linear production) model?
TAKE - Resources degraded through the extraction process
MAKE and MANUFACTURE, to enable USE
WASTE - From the extraction process, from the manufacturing and from the post-use disposal
26
What is the 'Borrow, Use, Return' (Cradle-to-Cradle) model?
BORROW renewable and non-renewable resources, and the product offered
USE the product's services
RETURN the product back to the manufacturer, the nutrients to the two cycles
27
What is the business case for sustainability?
REDUCE COSTS. Use less resources, more efficient processes, minimize/eliminate waste
PRESERVE RESOURCES. The raw materials needed for production are threatened.
COMPLY WITH LEGISLATION. Increases in standards, and costs/consequences to non-compliance (risk mitigation)
ENHANCE REPUTATION AND POINT OF DIFFERENTIATION, hence an increased market share.
ATTRACT QUALITY EMPLOYEES, who will feel proud of working for sustainability-driven employers.
SATISFY CUSTOMER NEEDS, to meet the growing eco-conscious (LOHAS) consumer population, who are environmental stewards
INCREASING PRESSURE FROM MOVEMENTS AND BOYCOTTS.
MEET STAKEHOLDER EXPECTATIONS, by increasing transparency and thus, maintaining investor confidence.
ATTRACT CAPITAL INVESTMENT, as there is a changing investment climate
28
What are the best ways of integrating sustainability into current corporate operations?
Be informed, create a coalition, pick your moment carefully, package the information appropriately, choose who will give out information, offer a vision, present the problem.
The greatest impact is when sustainability is embedded into strategy and culture.
29
What is sustainable investing?
Sustainable investing considers environmental, social and governance (ESG) factors into its portfolio selection and management.
30
What are sustainable investing activities/strategies?
- Negative/exclusionary screening
- Positive/Best-in-class screening
- Norms-based screening
- ESG Integration
- Sustainability-themed investing
- Impact/Community investing
- Corporate engagement and shareholders' action
31
Why does sustainability matter for accounting professionals?
- Changing rules of the game: Need to create long-term, sustainable stakeholder value
- Increasing demand for sustainability information: Accounts need to understand this info, in order to report on and comply with requirements
- Sustainability strategy requires the development of measurable objectives and targets, for which the accountants collect data
- Better decision-making: Better understanding of the business, identification of potential cost reductions and eliminations, revenue opportunities, risk management
- Getting ahead of the game: The effors in climate change will lead to disclosure requirements around water & energy use, emissions generated
- New and increasing sustainability-associated economic and market instruments, such as permits, liabilities, charges, taxes: Accountants need to understand how they affect businesses
32
How can accounting professionals incorporate sustainability into their work?
- Collect information to assist internal users
- Prepare information for external users (sustainability in financial statements, using integrative reporting, standalone sustainability reports)
- Provide assurance on published results, to ensure accuracy and enhance credibility
33
What is materiality?
Materiality: Determining which sustainability-related issues are important. The omission of material issues could create a significant difference in decision-making.
Important issues are those...
- with direct, short-term financial impact
- where the company has made policy-related statements or commitments
- that stakeholders consider important
- that are considered social norms
34
What is full/true cost accounting?
Measuring the full costs of products and services, by considering the environmental and social costs, such as...
- Hidden/overhead costs: Waste disposal, R&D, Monitoring
- Contingent/Liability costs: Remediation, fines
- Intangible costs: Reputation, motivation, productivity
- Societal costs: Impact on human health, and other externalities
35
What are key performance indicators?
Measures to gauge progress against environmental, social and economic goals
36
How can we measure social impact?
- Inputs (costs)
- Outputs (direct results of goals)
- Outcomes (changes that occur in the long-term as result of the activity)
- Impacts (outcomes, less an estimate of what would've happened in absence of the program)
37
What is sustainability reporting? What should it contain? How is its quality measured? What are its benefits?
Sustainability report content should be material, identify stakeholders, and their expectations and interests, be contextual, and be complete.
The report quality is defined by its reliability, its clarity, its balance (S/W), its comparability, its accuracy and its timeliness.
Sustainability reporting increases the understanding of short-term and long-term risks and opportunities, provides a benchmark and assessment on internal and external sustainability performance, and increases transparency (aka improving reputation and brand loyalty).
38
What is the sustainability mindset?
Embedding sustainability into the company DNA: Integrating values, attitudes, assumptions and issues related to sustainability into the thinking, strategy, planning and operations of all departments
39
What is the HR management's role in sustainability?
HR can link the company's strategy with its' employees' behaviour, throughout all HR processes (workforce life cycle).
40
What are the key stages in the workforce life cycle, in adopting a sustainability mindset?
- Employee engagement
- Employee attraction
- Performance management
41
Stage in the workforce life cycle: Employee selection
How can HR processes incorporate sustainability?
- Employee branding: Place sustainability-related values as key elements in the employer brand, and the employee value proposition
- Targeting and recruitment: Highlight relevant sustainability skills and knowledge; Find employees whose knowledge and values math the company's sustainability goals.
- Hiring: Discuss sustainability issues, expectations, requirements, and the company's sustainability mission and goals.
42
Stage in the workforce life cycle: Career development
How can HR processes incorporate sustainability?
- Onboarding: Contribute information on the company's current sustainability perspective, status, strategy and goals.
- Training: Initiate programs that create awareness of environmental and social trends and issues.
- Career development: Help employees consider sustainability-related career choices.
43
Stage in the workforce life cycle: Rewards and retention
How can HR processes incorporate sustainability?
- Compensation and incentives: Offer incentives and rewards for achieving sustainability-related goals
- Retention: Retain and motivate top talent based on their environmental and social performance
- Compliance and discipline: Develop policies and procedures that mandate sustainability-related behaviours (Code of conduct)
44
What are the five stages of the workforce life cycle?
1. Employee selection
2. Career development
3. Rewards and retention
4. Performance management and workforce planning
5. Separation
45
What is the Triple Bottom Line?
The triple bottom line (TBL) is a framework or theory that recommends that companies commit to focus on social and environmental concerns just as they do on profits.
Sees business results as being linked to sustainability and employee engagement.
46
How can HR processes foster employee engagement?
"Sustainability keeners" don't leave --> Employees generate innovative, new ideas that reduce sustainability impacts, costs, inspire others, and offer new sustainability value.
HR can focus on personal sustainability outside of the workplace, by creating 'green teams' and volunteer opportunities, and initiate workplace activities.
47
What is greenwashing?
Act of misleading consumers regarding the environmental practices of a company, or the environmental benefits of a product.
48
What are the forms of product-level greenwashing (7 sins)?
- Sin of the hidden trade-off: Claim suggesting that a product is green, based on a narrow set of attributes, without attention to other important environmental issues that are unaddressed.
- Sin of no proof: Claim that is not substantiated by easily-accessible evidence, or a 3rd-party certification.
- Sin of vagueness: Claim that is poorly/broadly defined, with a real meaning that is likely to be misunderstood (ex. use of buzz words and fuzzy language)
- Sin of worshipping false labels: Product that gives the impression of false, non-existent 3rd-party endorsement
- Sin of irrelevance: Claim that may be truthful, but is unimportant or unhelpful
- Sin of lesser of two evils: Claim that may be true within the product category, but risks distracting consumers from the greater environmental impacts of the whole category (ex. organic cigarettes)
- Sin of fibbing: False environmental claims (ex. False "Energy Star" certification)
49
What are the forms of firm-level greenwashing (5 transgressions)?
-Dirty Business: Touting an environmental program or product, while the core activity is polluting or unsustainable
-Ad Bluster: Using targeted ads and PR campaigns to exaggerate environmental achievement, divert attention from environmental problems
(More investment in the environmental claims, than in the implementation of the green claim)
-Political Spin: Advertising/speaking about the company's 'green' commitments, while lobbying against environmental laws/regulations
-It's the Law, Stupid!
Advertising/branding achievements, when they are already-required environmental laws.
-Fuzzy Reporting
50
What initiatives are being put in place to stop greenwashing?
- Establishing legal framework (Advertising Standards Authority)
- "Green Guides", "Green Claims Guidance"
- Sector-specific regulations
51
What are the different types of appeal that marketing messages can have?
- Financial appeal: Price reductions, from resource conservation
- Management appeal: Company positions itself as par of the 'green movement', as the solution rather than the problem
- Euphoria appeal: Invoking a sense of well-being (naturalness, health benefits)
- Emotional appeal: Evoke fear/guilt about environmental impact, or create a sense of empowerment
- Zeitgeist appeal: Marketing message linked into prevailing social concerns
- Others: Comparative ads, celebrity endorsement
52
What are the best marketing practices that businesses can employ?
- Making the issue personally relevant, and connect the issue to consumer values
- Avoiding negative, guilt-based messages --> Focus on benefits
- Associating behaviours with positive self-images, with the here and now
- Resonating the message with the audience, by being interactive, playful, entertaining, informative
- Avoid greenwashing!
53
What are the challenges of sustainability marketing?
- Green and choice fatigue
- Increased risk, either way
- Lack of overarching standards
- Difficulty in getting the pricing right
- Confusing messages
- Unreliable customer support
- Target audience with different attitudes and values
54
When is sustainability communication important?
At all stages of the consumption process (pre-purchase, purchase, use, post-use)
55
How can sustainable product claims be deemed credible and trustworthy?
If they are consistent, and backed by 3rd parties.
56
What is "wokewashing"?
When the practices (bad walk) of a company don't align with their messaging (good talk) --> GREENWASHING
57
What are...
(a) Vocal green firms
(b) Silent brown firms
(c) Green mutes
(a) Vocal green firms ("Honestly Woke"): Positive talk, good walk
(b) Silent brown firms ("Honestly Not Woke"): Negative talk, bad walk
(c) Green mutes ("Woke, but silent"): Negative talk, good walk
58
What is the nag factor?
Gives marketing a bad reputation!
The tendency of children, who are bombarded by marketers' messages, to unrelentingly request advertised items.
59
What are the UN Guiding Principles on Business and Human Rights? What are its three pillars?
What are the expectations of businesses and governments within this framework?
Defining the responsibilities of businesses and governments in ensuring the respect of human rights,
Pillar 1: STATE DUTY TO PROTECT, by passing & implementing laws that preventing human rights violations
Pillar 2: CORPORATE RESPONSIBILITY TO RESPECT, by refraining from violating human rights, whenever and however they operate.
Pillar 3: ACCESS TO REMEDY, by allowing victims to file complaints, to be investigated, to participate in processes to make grievances right
60
What is Human Rights Due Diligence?
Businesses must perform HUMAN RIGHTS DUE DILIGENCE, where...
- They know their human rights impact
- Take the steps to improve them (not make communities and workers worse off), by having in place policy commitments to respect human rights, ongoing human rights due diligence and remediation processes.
- Speak to people whose lives are affected.
Due diligence should be performed on the impacts that the business causes, contributes to, and those directly linked to the business through its external relationships.
61
What are the four key steps of Human Rights Due Diligence?
1. Assess human rights impacts
2. Integrating and acting upon findings
3. Tracking and monitoring the effectiveness of the responses taken
4. Communicating and reporting
62
What are the key objectives of a multi-stakeholder dialogue?
- Enhance trust levels between actors who have a 'stake' in a given issue/decision (those who influence decisions, and those who are affected by decisions)
- Share information and institutional knowledge
- Generate solutions and relevant good practices
63
What is a multi-stakeholder dialogue?
A flexible tool that can be adapted to various contexts, recognizing the importance of achieving equity and accountability in communication.
64
Describe the steps in the design of the multi-stakeholder dialogue process.
1. Initiate the process
- Ensure efficient time, resources and commitment
- Locate key issues, timeline, and milestones
- Identify core coordinating group
2. Map key issues and actors
- Consider the choice of language, to avoid miscommunication
- Establish representative election/selection system across stakeholders, to ensure that stakeholders are meaningfully represented
3. Prepare the dialogue
- Produce a 'final position paper', for distribution across stakeholders
- Lay down the ground rules for sharing information, communication and preparation
4. Conduct the dialogue
- In-person meeting, with a facilitator
5. Perform a follow-up
- Provide a written summary
65
What are benefits and the challenges to a multi-stakeholder dialogue?
Benefits:
- Discussion and collaboration
- Enhanced understanding
- Better decision-making
- Increased likelihood of implementation
- Potential partnerships
Challenges:
- Problematic and political stakeholder representation
- Requires time, resources and commitment
66
What are the characteristics of human rights?
- UNIVERSAL and INALIENABLE: Possessed by all, with no distinction based on gender, nationality etc. Cannot be given away, sold, renounced.
- INDIVISIBLE: All human rights have equal status, cannot be placed in hierarchical order
- INTERDEPENDENT and INTERRELATED: Each right contributes to the realization of one's human dignity. Realization that some rights may depend on the realization of others (ex. Security and Privacy).
67
What is the right to development?
Inalienable human right, by virtue of which every person is entitled to participate in, contribute to, and enjoy economic, social, cultural and political development.
68
What is the right to self-determination?
Exercise of the inalienable right to full sovereignty over all wealth and resources.
69
What are the two key frameworks for indigenous rights?
1. ILO 169 (1989)
- Right to control their own economic, social and cultural development
- States must consult
2. UNDRIP - UN Declaration on Rights of Indigenous People (2007)
- Defines individual and collective rights, to ensure survival, dignity and well-being
- Free, prior and informed consent
Convention No. 169 is an international treaty adopted by the International Labour Conference in 1989. It is legally binding for States that have ratified it (signed it). Treaties in force for any given country must be implemented by that country in good faith. Under the ILO Constitution, ILO members must make provisions of ratified Conventions effective.
By contrast, UNDRIP is a Declaration adopted by the General Assembly of the United Nations. Declarations are not subject to ratification (signing) and do not have legally binding status. A Declaration adopted by the General Assembly reflects the collective views of the United Nations which must be taken into account by all members in good faith. Despite its non-binding status, the Declaration has legal relevance. For instance, it may reflect obligations of States under other sources of international law, such as customary law and general principles of law.
70
What types of justice do the Indigenous Rights Frameworks adhere to?
- Distributional: Fair allocation of risks and benefits
- Procedural: Fair decision-making process
- Interactional: Fair interpersonal treatment
71
What is a social entrepreneur?
Combines the passion of a social mission with an image of business-like discipline, innovation and determination.
They play the role of change agents in the social sectors, through...
- Local action, global impact: Mission to create and sustain social value;
- Persistence, willingness to adjust, innovation, learning: Pursuing opportunities to serve their mission
- Collaboration: Doing less with more, they act boldly, and are not limited by the resources on hand.
- Accountability, for the constituencies they serve and the outcomes they create.
72
What is an entrepreneur?
Catalysts, innovators that create value and are the change agents in the economy. They exploit the changes in technology, consumer preferences and social norms create.
Entrepreneurs "reach beyond their grasp", mobilizing the resources of others to achieve their entrepreneurial objectives.
73
What are the differences between business and social entrepreneurs?
The central and explicit criterion is no longer wealth creation, it is mission-related impact.
Markets don't work as well for social entrepreneurs, as they don't value non-monetary elements. As such, it is difficult to measure the social value created by social entrepreneurs.
The survival and the growth of a social enterprise does not serve as proof of efficiency, or effectiveness, in improving social situations.
74
How can you 'pitch' a sustainable business case? Describe the sustainable business model canvas!
The sustainable business canvas helps you design, discuss and communicate sustainability in a language management can understand.
1. Value proposition: What are you building, and for whom? What need are you satisfying, what problem are you solving?
2. Customer segments: Who are they? What are their problems, frustrations?
3. Channels: What are the physical/virtual distribution channels you can use, to get from 1. to 2.?
4. How can you find, keep and grow your customer relationships, and your employee engagement?
5. Revenue Streams: How do plan to capture value?
6. Resources needed: What type of financial, physical, HR and intellectual property allocations are needed?
7. Key activities, that will make the business model work.
8. Cost structure, to deliver the key activities (investing, operating): Who are the beneficiaries, what are the sustainability benefits?
75
What is the Life Cycle Assessment?
The LCA is a technique for assessing the sustainability (including the environmental and social impacts) of a product, over its entire life cycle.
LCA applies Life Cycle Thinking (LCT), by considering the economic, environmental and social consequences.
76
Cradle to Grave: What is the product life cycle?
1. Extraction of Raw Materials
2. Design and Production
3. Packaging and Distribution
4. Use and Maintenance
5. Disposal
77
Why is LCA useful?
It increases our understanding of the impacts of production and consumption, and helps us identify impact 'hotspots', where improvements can be made.
This expands the scope of decision-making, through a system-wide improvement, not only resources within their own control. LCA establishes controls to meet environmental requirements, collects performance data, analyzes external impacts, and communicates requirements externally.
Furthermore, it connects the value chain actors (suppliers, producers, distributors, consumers) and encourages collaboration for sustainable development.
78
What are the four steps of a LCA? How can organizations use the findings?
1. Goal and Scope Definition
- Context of the study
- How, and to whom, the study should be communicated
- Functional unit: The function of the studied products or services in quantitative terms serves as a basis for the calculations. It is the reference flow to which all other flows in the LCA model are related. It also serves as the unit of comparison in comparative studies.
- Set-up of the system boundary
2. Life Cycle Inventory (LCI) Analysis
The phase during which the LCA model is built according to the specifications determined in the goal and scope definition, data are collected and calculations indicating the environmental load (inputs and outputs) of the products are made.
3. Life Cycle Impact Assessment (LCIA)
The phase of an LCA study during which the environmental impacts of the products are assessed and evaluated. The impact assessment consists of several steps, among other classification, characterization and weighting.
4. Steps 1-3 all lead to Interpretation
Stage 1: Goal and scope aims to define how big a part of product life cycle will be taken in assessment and to what end will assessment be serving. The criteria serving to system comparison and specific times are described in this step.
Stage 2: In this step, inventory analysis gives a description of material and energy flows within the product system and especially its interaction with environment, consumed raw materials, and emissions to the environment. All important processes and subsidiary energy and material flows are described later.
Stage 3: Details from inventory analysis serve for impact assessment. The indicator results of all impact categories are detailed in this step; the importance of every impact category is assessed by normalization and eventually also by weighting.
Stage 4: Interpretation of a life cycle involves critical review, determination of data sensitivity, and result presentation.
79
How can organizations use the findings of their LCA?
The utilization of LCA method can help in the following:
* searching the most available life cycles, e.g., those with minimal negative impact on environment,
* Assuming the decisions in industry, public organizations, or NGOs, which determine direction and priorities in strategic planning, design or design product, or process change,
* Choose important indicators of environmental behaviour of organization including measurement and assessing techniques, mainly in connection with the assessment of the state of its environment,
* Marketing with the link on formulation of environmental declaration or eco-labeling
The application of LCA helps to promote the sustainable design and redesign of products and processes, leading to reduced overall environmental impacts and the reduced use and release of nonrenewable or toxic materials. LCA studies identify key materials and processes within the products’ life cycles that are likely to pose the greatest impacts, including resource demand and human health impacts. These assessments delineate the full benefits and costs of a product or process, which allows decision-makers to select the most effective solution.
By performing an LCA, decision-makers can for example:
* Develop a systematic evaluation of the environmental consequences associated with a given product.
* Analyze the environmental trade-offs associated with one or more specific products/processes to help gain stakeholder (state, community, etc.) acceptance for a planned action.
* Quantify environmental releases to air, water, and land in relation to each life cycle stage and/or major contributing process.
* Assess the human and ecological effects of material consumption and environmental releases to the local community, region, and world.
* Compare the health and ecological impacts between two or more rival products/processes or identify the impacts of a specific product or process.
80
What are monstruous hybrids?
Mixtures of materials, both technical and biological, neither of which can be salvaged after their current lives --> Unmarketable
81
What is a cradle-to-cradle product design?
"To eliminate the concept of waste means to design things from the very beginning on the understanding that waste does not exist". Every output either biodegrades naturally, or recycles into high-quality materials for subsequent products.
Rethinks how we view ownership --> 'Licensing'/'Leasing' from manufacturers
82
What are the two metabolisms that all manufactured products should feed into?
(a) Biological: Cycle of nature (recycle)
| b) Technical: Cycle of industry, for products that are disassembled (reuse
83
How can we build a business case for adopting C2C?
- Eliminated need for regulation
- Diminished health hazards
- Financial success
- "Feel-good" --> No guilt
- Money-saving: No need to extract new materials
- No useless and potentially dangerous waste produced
- TRIPLE BOTTOM LINE: Benefits People, Planet and Profits
84
What is a closed-loop supply chain?
Reducing the impact of products that have completed their useful life, by reclaiming, reusing and recycling them.
Uses both forward and reverse logistics.
Forward Logistics: Raw Materials, Part Production, Assembly, Distribution, Use
Reverse Logistics: Reusing from Consumption, Refurbishing through Distribution, Remanufacturing through Assembly, Recycling and Return to Landfill through Part Production
85
What are the benefits of a closed-loop supply chain (take-back programs)?
- Generating additional revenue
- Reducing disposal fees
- Reducing costs of buying new materials
- Competitive advantage, through proactivity, not reactivity
- Responds to customer demand and legislation
- Considering waste management as an opportunity, not a liability
- Contributes to a positive brand image
86
What do the benefits and the costs of product take-back and recycling depend on?
- Reusability and recyclability of used products
- Ease at which they can be repurposed or recycled
- Existence and depth of secondary markets, for parts and packaging that can't be repurposed
- Costs of additional transportation efforts, energy required for used-material processing, safety threats etc.
87
How do we evaluate the strategy for closing the loop of a specific product?
CLOSED-LOOP EVALUATION TOOL
1. Determine the appropriate metrics
- Collect baseline environmental and economic performance data for the forward and reverse supply chains
2. Determine where opportunities exist for economic and environmental improvement
i. Recycling without disassembly
ii. Recycling with disassembly: Ensure that the product is designed for disassembly, by avoiding the use of mixed materials, by integrating parts, and avoiding glue
3. Determine the possible limits, and the optimal recovery strategies for take-back and recycling
- Assess limitations on your access to EOL products
- Determine the feasibility of reprocessing/disassembly
- Evaluate the demand for recycled/reused components
- Evaluate the packaging supply chain
88
What is servitization?
Process of creating value by adding services to products.
Product-Service Systems (PPS): Offering 'bundles' of customer-focused combinations of goods and services, support, self-service, knowledge. These add value to the core product offerings.
Customer-focused: Selling SOLUTIONS and VALUE, not PRODUCTS.
Entails organization transformation.
Aims to create a function-based economy, where you buy the SERVICES provided by the goods, instead of the goods themselves. As such, companies can focus on increased product durability.
89
Why servitize?
- The concept of ownership shifts, so that you can focus on resource efficiency
- Lock in customers, gain competitive advantage through differentiation
- Increase revenue streams
90
What technologies can assist in servitization?
According to Capital Equipment Manufacturers (CEM)...
- Predictive Analytics
- Increased Analysis of Existing Data
- Remote Communication
- Dash Boarding Technologies
- Case-Based Reasoning
According to Academics...
- Predictive Analytics
- Remote Communication
- GPS Technology
- Consumption Monitoring
- Mobile Technology
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Why should companies adopt the technologies that can assist in servitization?
- Generate new revenue streams
- Improve maintenance efficiency and effectiveness
- Improve product performance
- Increase and improve access to information, and data gathering
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What is dematerialization?
The substitution of material resources for technologies, which combines individual products together. This yields for resource and cost efficiency.
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How can a company move from a product-oriented system, to a product-service system?
1. Offer limited services, based on customer demand. Focus on extending the product life-cycle. Add an 'extension' to the product offered.
2. Develop services as a separate business line.
3. Bring products and services together. The services focus on the entire value chain, while the product improves the service offering and adds value to the service.
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What is ISO 37120 and the World Council on City Data?
Sustainable Development of Communities - Indicators for City Services and Quality of Life: Basic benchmarks, "common language' for knowledge sharing. Demand-led, by cities, for cities.
Defines and establishes definitions and methodologies for 100 KPIs, to steer and measure the performance of city services and quality of life. Cities set their own targets based off these KPIs.
Cities use ISO 37120 to improve operational transparency, to leverage funding for infrastructure investments, to prioritize city budgets, to benchmark their performance to others.
The WCCD is a global leader in standardized city metrics, and implements ISO 37120 across cities in the world.
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How can we use data and global standards to drive development with a global-scale impact?
"Local action, global impact". In an increasingly-urbanized world, cities are the economic basis for growth and innovation.
Data is a metric to compare cities, encourage learning and sharing.
International standards are tools defining WHAT to measure, and how to guarantee the reliability of data.
Standards help ensure that cities implement smart strategies effectively.
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How do we localize SDGs to be context-appropriate?
Many of the targets set by the SDG goals can be supported by the WCCD indicators.
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What is reverse innovation?
Innovation that is first adopted in the developing world, flowing upwards to the developed world.
Reasoning behind it? "If you create a product for the rich man, the poor man can't afford it. If you create a product for the poor man, everyone can afford it."
The products are created to suit the needs of the people in developing nation (bulk of consumer base).
Scaling growth in emerging markets, importing low-cost, high-impact innovations to mature markets.
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What is glocalization?
Centralized development and creation of products and services for the global market, then adapting them to local cultures.
Costs are minimized through the 'Economies of Scale' concept.
Market share is maximized through local customization.
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How can we develop reverse innovations to reap their benefits?
Through organizational transformation...
- More effective management and resource utilization
- Building a local growth team
- Laying power locally
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What is the closed innovation model?
Believes that successful innovation requires control and self-reliance. As such, firms only hire the best and the brightest, and aims to invest the most in R&D.
The company generates ideas, develops, manufactures, markets, distributes and services all on their own.
Intensive control of intellectual property.
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What is a key issue with the closed innovation model?
With the rise in number, and the increasing mobility of knowledge workers, as well as growing private venture capital availability, it is difficult to control proprietary ideas!
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What is the open innovation model?
Believes that ideas can originate and commercialize internally and externally. The boundary between the firm and the external environment is therefore porous.
This allows for rescuing 'false negative' ideas, as by combining internal and external technologies, potential can be unlocked!
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Why employ open innovation challenges?
- Brings in new solvers and solutions.
- Helps you develop understanding of the innovation landscape.
- Catalyzes new markets.
- Improves reputation, through openness and transparency.
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Who are the actors in the innovation landscape?
1. FUNDING, to supply fuel for innovation fire (R&D)
- Investors
- Benefactors
2. GENERATING
- Explorers: These explorers focus on the research and development (R&D) of new technologies. They are typically related institutional actors within the network (i.e., Government labs, Universities, etc.)
- Merchants: Focus on R&D efforts focused on creating intellectual property that others can license to advance their innovations.
- Architects: Bring together a variety of intellectual property to develop custom solutions that together create more value. They offer the opportunity of numerous firms to be involved in the process. Due to the multiple interests and parts, innovations generated by architects is complex.
- Missionaries: Driven by a collective vision and typically do not seek direct financial gain from the innovation developed by the community.
3. COMMERCIALIZING
- Marketers: Focus on understanding the needs of a market. Their strength lies in their ability to understand the full range of technologies that are appropriate for solving the identified problems.
-One-Stop Centers: Similar to Innovation Marketers. They are differentiated because they are agnostic toward where solutions come from including, their internal technologies. They are characterized by having strong ties with the end user and rigidly manage their resource.
