ENVIRONMENTAL TRENDSec.europa.eu/environment/archives/ecoinnovation2013/2nd... · 2015. 8. 17. · ENVIRONMENTAL TRENDS • GHG emissions to double in next 50 years • Urban uses

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



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Resource prices now considered volatile



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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



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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


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…


DECOUPLING IN ACTION: RESOURCE

EFFICIENCY AND 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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ENVIRONMENTAL TRENDSec.europa.eu/environment/archives/ecoinnovation2013/2nd... · 2015. 8. 17. · ENVIRONMENTAL TRENDS • GHG emissions to double in next 50 years • Urban uses

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