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SUSTAINABILITY FROM COST TO ASSET by Sara Hjalmarsson Founder of Scenario Sciences Sweden ltd
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Sustainability: From Cost to Asset

May 26, 2015

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Sustainability can become an effective value generator when integrated with enterprise objectives. By rethinking the production chain, you can salvage unused resources and build new revenue streams. Try it yourself with the resource flow assessment tool! This is the same tool we use in the Scenario Sciences training course "Turning Sustainability from Cost to Asset".
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Page 1: Sustainability: From Cost to Asset

SUSTAINABILITY FROM COST TO ASSET

by Sara Hjalmarsson Founder of Scenario Sciences Sweden ltd

Page 2: Sustainability: From Cost to Asset

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

Page 3: Sustainability: From Cost to Asset

The good news is that this has already been done successfully

throughout the world

THE SOLUTION

Page 4: Sustainability: From Cost to Asset

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

Page 5: Sustainability: From Cost to Asset

WE ALL KNOW HOW

PRODUCTION WORKS

LET’S LOOK AT HOW WE CAN OPTIMIZE ITS

RESOURCE FLOW

Page 6: Sustainability: From Cost to Asset

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)

Page 7: Sustainability: From Cost to Asset

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.

Page 8: Sustainability: From Cost to Asset

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)

Page 9: Sustainability: From Cost to Asset

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.

Page 10: Sustainability: From Cost to Asset

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.

Page 11: Sustainability: From Cost to Asset

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

+

Page 12: Sustainability: From Cost to Asset

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

Page 13: Sustainability: From Cost to Asset

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

Page 14: Sustainability: From Cost to Asset

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)

+

Page 15: Sustainability: From Cost to Asset

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

Page 16: Sustainability: From Cost to Asset

NOW OPTIMIZE

Secondary OutputsWhat do you discard?

Tertiary OutputsEnergy loss (eg. body heat, radio waves)

InputsWhat do you need to do your job?

Page 17: Sustainability: From Cost to Asset

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.

Page 18: Sustainability: From Cost to Asset

YOU CAN NOW CREATENew revenue streams

Business opportunities

Secure and dignified jobs

A greatly reduced environmental footprint

Socio-economic stability

Resource security

Page 19: Sustainability: From Cost to Asset

LOOKING FOR THE NEXT STEP?

Page 20: Sustainability: From Cost to Asset

We help organizations turn sustainability from cost to asset

Find out more:http://www.scenariosciences.com