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Roland Geyer

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It is the material and energy flows in the life cycle of a product ... 30,000 bushes, flowers and trees. 20,000 honey bees. Energy recovery from paint fumes ... – PowerPoint PPT presentation

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Title: Roland Geyer


1
From Corporate Environmental Managementto Green
Business Models
Roland Geyer The Donald Bren School
ofEnvironmental Science and Management Universit
y of California at Santa Barbara
2
Is there a relationship between corporate
financial performance and corporate environmental
performance?
3
Monday January 31 2005
Search this site
ExxonMobil reports annual profits of
25bnBusiness US oil giant reports annual
profits that exceed the GDP of Syria.More
business news
Global warming 'may kill off polar bears in 20
years'Life Many Arctic animals could be extinct
within 20 years because of global warming,
conservationists warn.Special report climate
change
Source http//www.guardian.co.uk/
4
There certainly seems to be a relationship
between Exxons corporate financial and
environmental performance
A US company never reported higher profits. For
at least 650,000 years, CO2 concentration has
never been higher than 300 ppm.
5
  • Who should solve our environmental problems?
  • Companies
  • Consumers
  • Government
  • NGOs

6
We are all part of the way we produce and consume
goods and services. We are all equally
responsible.
Needs Wants
Services
Source of Materials Energy Water Land
Sink for Wastes Emissions
Products
Production
Anthroposphere
Ecosphere
Industrial production and consumption systems use
the environment as source of resources and sink
for wastes and emissions
7
Corporations just happen to play a crucial role
in the production of goods and services
Needs Wants
Services
Source of Materials Energy Water Land
Sink for Wastes Emissions
Products
Corporations
Anthroposphere
Ecosphere
  • Only about 15 of all businesses are
    incorporated,
  • Corporations account for nearly 90 of business
    receipts and 80 of net profits.

8
The Development of Environmental Policy in Europe
1970s - Introduction of environmental
regulations (single process, single site and
single medium)
1990 - Integrated pollution control(single
process, single site, all mediums)
1999 - Integrated pollution prevention and
control (whole environmental performance of a
plant)
2003 - Integrated product policy (adoption of
life cycle perspective)
Source European Commission White Paper COM(203)
302 final
9
What is a Life Cycle Perspective?
Raw materials mining
Primary materials production
Component manufacture
Final product assembly
Product use and maintenance
Product disposal
Service
10
Life Cycle Assessment of Products
Environmental impact categories
Life cycle stages
Life cycle assessment aims at quantifying the
environmental impacts acrossall relevant
environmental concerns and all relevant life
cycle stages.
11
It is the material and energy flows in the life
cycle of a product that cause the environmental
problems
Air emissions
Material Transformation Process
Products
Raw materials energy
Solid wastes
Waste water
12
If environmental problems are caused by material
and energy flows, solving them is also a
material and energy issue.
  • There are essentially three ways to reduce the
    environmental impacts of material and energy
    flows
  • Increase material and energy efficiency
  • Substitute materials and energy sources
  • Reuse recycle materials and energy

13
Examples for increased resource efficiency
  • Advanced High Strength Steels (AHSS) in
    automotive applications (25 weight reduction)
  • Mass reduction of beverage containers
  • Continuous casting technology in metals
    production
  • Drip lines instead of sprinklers for irrigation
  • Carsharing businesses
  • Spaceframe design concept
  • Miniaturization in the electronics industry

14
Examples for substitution of materials and energy
sources
  • Crop-based ethanol instead of gasoline
  • MTBE instead of lead as oxygenate in
    automotive fuels
  • Steel versus aluminum versus magnesium
    versus composites in automotive
  • Timber versus steel versus concrete in
    construction
  • Glass versus aluminum versus PET versus
    laminated cardboard in packaging
  • Bio-based plastics versus petroleum-based
    plastics (e.g. polylactic acid)
  • Lead-free solder (e.g. tin silver copper
    antimony)

15
Examples for reuse and recycling of materials and
energy
  • Recycling of metals, e.g. steel and aluminum
  • Recycling of paper and cardboard
  • Recycling of carpet and apparel
  • Combined-cycle and combined heat and power (CHP)
    power generation
  • Remanufacturing of single-use cameras
  • Refurbishment of cell phones
  • Reuse of construction components

16
  • How should companies implement these 3
    strategies?
  • Focus only on profits and environmental
    compliance
  • Retrofit the strategies into a going concern
  • Build them into the business model

17
Retrofit example Fords Dearborn Plant
  • 10.4 acres of green, living roof
  • 30,000 bushes, flowers and trees
  • 20,000 honey bees
  • Energy recovery from paint fumes
  • Gold LEED certified
  • Clean Air Excellence Award

18
Q What is a green business model? A A business
model that relates corporate financial
performance to corporate environmental
performance.
  • Necessary ingredients
  • Meaningful environmental performance measures
  • Environmentally preferred products or services
  • A business case for those products and services

19
Green business model - Example 1 Nucor
  • Worlds largest steel recycler (19 scrap-based
    steel mills)
  • First company to produce flat steel products
    from secondary (EAF) steel
  • Tradition of technological innovation with
    environmental benefits (e.g. strip casting)

Environmental impacts of making 1 kg of primary
(BF/BOF) and secondary (EAF) steel
(kg CO2 eq)
(g p-DCB eq)
(g ethylene eq)
(g SO2 eq)
(g PO4 eq)
20
Green business model - Example 2 Kodaks Single
Use Camera
  • Kodaks single use cameras were introduced in
    1987 as disposable products.
  • Soon they were a target of environmental
    pressure groups.
  • In 1990/91 Kodak redesigned the cameras to
    facilitate recycling and re-use of parts.
  • Today, single use cameras are designed so that
    77 to 90 (by weight) of the product can be
    remanufactured.
  • Everything else is recycled.
  • In the U.S., the recycling rate for single use
    cameras is greater than 75.

21
Green business model - Example 3 InterfaceFLOR
and Evergreen Lease
  • InterfaceFLOR is the worlds largest
    manufacturer of carpet tiles.
  • Interface created the Evergreen Leasing System
    in 1995 together with the Southern California
    Gas Company for its Energy Resource Centre in Los
    Angeles.
  • Interface uses life cycle assessment to evaluate
    its environmental performance.
  • Interface is the first carpet manufacturer to
    use fibers from polylactic acid.
  • Interface has very ambitious programs for
    recycled content and end-of-life recycling.
  • Failure of the leasing scheme to secure a
    significant market share.

22
  • Summary
  • Corporate Social Responsibility is good (see
    Fords Dearborn plant). The future belongs to
    corporations with green business models.
  • Green business models require that corporations
    rethink their products and service (e.g. Exxon
    vs. BP).
  • Green business models require meaningful
    environmental performance measures (e.g. life
    cycle assessment).
  • Successful green business models still require a
    business case(see Evergreen Leasing System).
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