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BEYOND GREENING: STRATEGIES

FOR A SUSTAINABLE WORLD


Group 6
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M0258981

Beyond Greening: Strategies for


a Sustainable World
GREENING is about the continuous improvement of
current products and processes, emission reduction,
pollution
prevention,
waste
reduction,
product
stewardship, engaging stakeholders around current
products POLLUTION PREVENTION
BEYOND GREENING is about tomorrows technologies
and tomorrows potential markets that have to be created.

GREENING is about todays products and processes.


BEYOND GREENING requires the development of new
skills and capabilities

Beyond Greening: Strategies for


a Sustainable World
Pollution-prevention programs have saved
companies billions of dollars.
Environmental opportunities might actually
become a major source of revenue growth.
Greening has been framed in terms of risk
reduction, reengineering, or cost cutting
Greening linked to strategy or technology
development Beyond greening
STRATEGIES FOR A SUSTAINABLE WORLD

WORLD IN COLLISION
To
move
beyond
greening
to
sustainability, first unravel a complex
set of global interdependencies. In fact,
the global economy is really three
different, overlapping economies.
1.Market economy
2.Survival economy
3.Natures economy

WORLD IN COLLISION

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MARKET ECONOMY
THE MARKET ECONOMY
is the familiar world of commerce comprising both the
developed economies and the emerging economies.
more than 75% of the worlds energy and resource
consumption

Developed economies: low level of pollution.


Three reasons: stringent environmental regulations,
the greening of industry, and the relocation of the
most polluting activities (such as commodity
processing and heavy manufacturing).
Emerging economies: high level of pollution.
Economic growth comes urbanization (infrastructural
and environmental challenges) POVERTY
Industrialization POLLUTION-acid rain, smog
precursors and greenhouse gas

SURVIVAL ECONOMY
SURVIVAL ECONOMY:
the traditional, village-based way of life found in the
rural parts of most developing countries.
mainly Africans, Indians, and Chinese who are
subsistence oriented and meet their basic needs
directly from nature.

Extractive industries and infrastructure


development degraded the ecosystems
DEPLETION
Rural populations scarce natural resourceforests, soil and water POVERTY

NATURES ECONOMY
NATURES ECONOMY:
consists of the natural systems and resources that support the
market economies and the survival economies.
Nonrenewable resources, such as oil, metals, and other
minerals, are finite.
Renewable resources, such as soils and forests, will replenish
themselvesas long as their use does not exceed critical
thresholds.
Human population growth and rapid industrial development
forests, soils, water, and fisheries are under limits.
Soil is another resource at risk. Available cropland and
rangeland are shrinking.

WORLD IN COLLISION

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WORLD IN COLLISION
Approach the twenty-first century, the
interdependence of the three economic spheres
is increasingly evident. In fact, the three
economies have become worlds in collision,
creating the major social and environmental
challenges facing the planet: climate change,
pollution, resource depletion, poverty, and
inequality.

STRATEGIES FOR SUSTAINABLE


WORLD
Total Environmental Burden
EB = P x A x T
Where:
EB
P
A
T

=
=
=
=

Environmental Burden
Population
Affluence
Technology

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11

STRATEGIES FOR SUSTAINABLE


WORLD
Achieving sustainability will require stabilizing or
reducing the environmental burden:
Decreasing the human population
Lowering the level of affluence (consumption)
Changing the technology to created the
wealth.

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12

STRATEGIES FOR SUSTAINABLE


WORLD
The first option: Decreasing the human population
Short of draconian political measures (China) or the occurrence of
a major public health crisis (Ebola) => No

The second option: Lowering the level of affluence


Poverty and population growth go hand in hand. Some
demographers have long known that birth rates are inversely with
the level of education and standard of living => It is only

worse
The third option: Changing the technology used to create
the goods and services that constitute the worlds wealth
It is not logical.

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STRATEGIES FOR SUSTAINABLE


WORLD
Today, few companies have incorporated
sustainability into their strategic thinking.
They put the business strategies in a new test.
They ask themselves be a part of the solution to
social and environmental problems or part of the
problem.
=> They provide three stages of environmental strategy

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Stage One: Pollution Prevention


The first step: shift from pollution control to pollution
prevention.
Pollution control and pollution prevention? Whats
difference?
Pollution control: means cleaning up waste after it has
been created
Pollution prevention: means minimizing or eliminating
waste before it is created

Pollution prevention strategies depend on continuous


improvement efforts to reduce waste and energy

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Stage One: Pollution Prevention


Example: BASF, the German chemical giant, is
helping to design and build chemical industries in
China, India, Indonesia, and Malaysia that less
polluting than in the past. BASF is able to create
industrial ecosystems in which the waste from
one process becomes the raw material for
another.

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Stage Two: Product Stewardship


Product stewardship?
It focus on minimizing not only the pollution from
manufacturing but also all environmental impacts
associated with the full life cycle of a product.
It requires changes in underlying products and
process design

=> Product stewardship is one way to


reduce consumption in the developed
economies.
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Stage Two: Product Stewardship


Example: Design for environment (DFE)
It is a tool for creating products that are easier to
recover, reuse, or recycle, is becoming
increasingly important.
All effects that could have on the environment are
examined during its design phase.
It includes a full assessment of all inputs to the
product and examines how customers use and
dispose of it. It also includes technical staff,
environmental experts, end customers, and
community representatives.
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Stage Three: Clean Technology


Companies with their eye on the future
can begin to plan for and invest
tomorrows technologies. In fact, the
existing technology base in many
industries is not environmentally
sustainable.

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SUSTAINABILITY VISION
Pollution prevention, Product stewardship and Clean
technology all move a company toward sustainability. But
without a framework to give a direction to those activities,
their impact will dissipate.
A vision of sustainability for an industry like a road map to
the future, show they way products and services must
evolve and what new competencies will be needed to get
there.

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SUSTAINABILITY VISION
Example in auto industry.
1970s, Government regulation of tailpipe emissions
forced the industry to focus on pollution control.
1980s, The industry began to tackle pollution
prevention: Corporate Average Fuel Efficiency and the
Toxic Release Inventory=> auto companies have to
examine their product designs and manufacturing
processes to improve fuel economy and lower
emissions from the plants.

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SUSTAINABILITY VISION
1990s, first sign for product stewardship in Germany. take
back law required auto manufacturers to take
responsibility for their vehicles at the end of their useful
lives.=> BMW designs new car with their design for
disassembly efforts.
Now, Californias zero-emission vehicles law and the UN
Climate Change Convention=> Electric-vehicle programs

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The sustainability Portfolio

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BUILDING SUSTAINABLE
BUSINESS STRATEGIES

Megacities

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