SUSTAINABILITY FROM COST TO ASSET by Sara Hjalmarsson Founder of Scenario Sciences Sweden ltd
May 26, 2015
SUSTAINABILITY FROM COST TO ASSET
by Sara Hjalmarsson Founder of Scenario Sciences Sweden ltd
Sustainability has today become synonymous with cost.
Sustainable products are expensive and sustainable processes eat up valuable time and resources. This has to change!
It is time to go beyond the focus on environmental and social value to also create real economical and cultural value.
THE CHALLENGE
The good news is that this has already been done successfully
throughout the world
THE SOLUTION
The good news is that this has already been done successfully
throughout the world
We can already learn from thousands of profitable and sustainable enterprises.
We can use this experience to OPTIMIZE our processes and strategies to create more
VALUE with what we already have.
THE SOLUTION
WE ALL KNOW HOW
PRODUCTION WORKS
LET’S LOOK AT HOW WE CAN OPTIMIZE ITS
RESOURCE FLOW
TRADITIONAL MODEL
ProductionProcessResources
Sellable Product(Makes you money)
Physical Waste(Costs you money)
Energy Loss(Generally not measured, but may cost
you money under certain circumstances)
RESOURCE FLOW MODEL
ProductionProcessInputs
Primary output(Makes you money)
Secondary output(Costs you money)
Tertiary output(Generally not measured, but may
cost you money under certain circumstances)
In a resource flow model, you consider everything as an input or output. There is no waste.
RESOURCE FLOW MODEL
ProductionProcessInputs
You want to maximise the gain from all your outputs while minimising losses. Primary output
(Optimize)
Tertiary output(Convert to value / Reinvest)
Secondary output(Convert to value)
RESOURCE FLOW MODEL
ProductionProcessInputs
Excess output becomes input for other enterprises Inputs
(Go into other enterprises)
Tertiary output(Convert to value / Reinvest)
Secondary output(Convert to value)
Primary output(Optimize)
You want to maximise the gain from all your outputs while minimising losses.
EXAMPLE 1 - COFFEE
Lipids (oils)Pharmaceuticals,hygiene products
cosmetics
MushroomsRestaurants,
grocery shops, pharmaceutical
FeedFertilizerCompost
Biogas
CoffeeBusinesses, consumers
99.8% of coffee’s nutrients remain in used grounds. The derived products are labelled in bold and their markets in normal type.
EXAMPLE 1 - COFFEE
ProductionProcess
ProductionProcess
Enterprise 1 - Café Enterprise 2 - Biotech
+
Enterprise 1 has coffee as their primary output.
They give their secondary output (used coffee grounds) to Enterprise 2 in return for DIY mushroom kits that
become another primary output.
Enterprise 2 extracts and sells lipids to pharmaceutical companies. The leftover coffee grounds are used to grow mushrooms, which are sold to
restaurants and grocery shops.
The spent substrate becomes a secondary output again, but the
resource is still usable.
Heat Heat
+
In some cases it is not possible to make full use of the outputs. Perhaps they are even harmful or problematic.
When this is the case, the input and production processes must be optimized for higher-value output.
ProductionProcess
Inputs(Select for higher-
value output)
Tertiary output
Secondary output
Primary output
Optimize for higher-value output
EXAMPLE 2 - ANTISEPTICSThis is the case with antiseptics. Antiseptics of today consist of substances that kill bacteria, funghi and other microorganisms.
These substances disrupt water purification plants and encourage microbes to develop resistance toward them.
ProductionProcess
Bacterial control product
Toxic substances, antibiotics(difficult to dispose of safely)
AntibioticsAlcoholsEsters
Chlorine
EXAMPLE 2 - ANTISEPTICSTo solve this challenge, we must select an alternative input.
In this case, we consider a seaweed extract that controls bacteria without allowing them to develop resistance. The
secondary output is now both useful and valuable.
Plant matter +Pigment
Input for other
enterprise
ProductionProcess
Safe bacterial control product
Delicea Pulchra(Red Seaweed)
+
TRY IT YOURSELF!InputsWhat do you need to do your job?
Primary OutputsWhat do you get paid to produce?
Secondary OutputsWhat do you discard?
Tertiary OutputsEnergy loss (eg. body heat, radio waves)
Resource flowin your
workplace
NOW OPTIMIZE
Secondary OutputsWhat do you discard?
Tertiary OutputsEnergy loss (eg. body heat, radio waves)
InputsWhat do you need to do your job?
NOW OPTIMIZE
Find opportunities for your outputs
Select the inputs that best generate valuable outputs at
each level
InputsOptimize for ease of conversion
Secondary OutputsFirst convert as much as possible into a new primary output. Then share with other enterprises.
Tertiary OutputsFirst reinvest, then share.
YOU CAN NOW CREATENew revenue streams
Business opportunities
Secure and dignified jobs
A greatly reduced environmental footprint
Socio-economic stability
Resource security
LOOKING FOR THE NEXT STEP?
We help organizations turn sustainability from cost to asset
Find out more:http://www.scenariosciences.com