We undertake research, applications development and consulting on broad sustainability issues.

Transcription

1 Balancing Act - a triple bottom line analysis of 135 sectors of the Australian economy Barney Foran - CSIRO Resource Futures Manfred Lenzen & Christopher Dey - USyd The ISA framework We undertake research, applications development and consulting on broad sustainability issues. Our aim is to develop scientifically rigorous, quantitative, consistent and comprehensive approaches for Integrated Sustainability Analysis. Our research framework has applications including: quantitative triple bottom line (TBL) reporting ecological footprint analysis life-cycle assessment (LCA) environmental impact assessment (EIA) industry and population studies, and supply chain analysis The University of Sydney

2 Sustainability Analysis? concepts for environmental sustainability Life cycle assessment Life cycle management/thinking Carrying capacity Design for the environment (Eco-design) Cleaner technology Total quality environmental management Dematerialisation Eco-efficiency Industrial ecology Extended producer responsibility Sustainability Analysis? environmental analysis & procedural tools

3 Udo de Haes et al (2000) The Triple Bottom Line what is it? A powerful metaphor for considering economic, social and environmental concerns A reporting framework Indicators - qualitative v. quantitative Consistency, comparability, completeness Information for decision making A stimulus for organisational change governance (#4)

4 Economic: wages & pensions monies received & paid taxes paid and subsidies received Environmental: energy & greenhouse materials & effluents water & biodiversity Social: labour practices human rights bribery & corruption The boundary problem It is critical [that] the boundaries adopted for the purposes of reporting are clearly defined and obvious to readers of reports. Careful boundary definition also ensures a report can be verified and meaningful comparisons can be made between information from different reporting periods. Environment Australia (2003), Triple bottom line reporting in Australia: a guide to reporting against environmental indicators, June 2003.

5 The boundary problem 2 GRI Boundary Protocol (2005) Interdependencies in economies Supplier level:.... M L E T S B M L E T S B M L E T S B M L E T S B M L E T S B M L E T S B 2 Mining Legal Elect. Trans. Steel Banking 1 Downstream Organisation Boundary Upstream On-site Product 1 Product 2 Consumer Industry

6 Integration National data Structure and function and knock-on effects National Input- Output Tables Background to Input-Output Analysis Wassily Leontief (from 1930s) Nobel prize Elements found in many economic models: neutral from both an analytical and ideological point of view (Nobel Laureate Richard Stone) Static, snap-shot of the complex linkages in an economy Appropriate for reporting and linkage analysis Generalised IOA means that other production factors (eg. labour, imports, energy, etc) are incorporated Result is a common framework for different indicators

7 Average TBL sectoral multipliers (per $ of final demand) ECONOMIC Operating Surplus 38 /$ Export Propensity 16 /$ Import Penetration 19 /$ SOCIAL Generation 75 min/$ 34 /$ Government Revenue 21 /$ ENVIRONMENTAL Greenhouse Emissions 02 kg CO 2 /$ Water Use 41 litres/$ Land Disturbance 3.2 metres 2 /$ Key aspects of the report 10 macro indicators of TBL performance 135 economic sectors (industries/commodities) comparable since related to the same $ of final demand full chain analysis (no boundaries - all upstream) standard data sources (ABS, ABARE, AGO ) quantitative and repeatable benchmarks descriptions of sectors, future trends and opportunities

8 Eg. Sectoral spider diagram Commercial fishing Sector: Banking

9 Sector: Dairy products Wheat and other grains (Wh) Wheat & other grains rem dir 0.00 ($) 2.5 Wheat & other grains rem dir 0.0 (min)

10 Wheat and other grains (Wh) Wheat & other grains rem dir (kg CO2-e) Structural path analysis (kg CO 2 -e/$) Wh (0; 67.%) El Wh (1; 2.3%) Ch Wh (1; 7%) Fo Wh (1; 1%) Sc Cg Wh (2; 0.91%) Fe Wh (1; 0.9%) Wt Wh (1; 0.85%) Rd Wh (1; 0.83%) El Rf Wh (2; 0.47%) Rf Wh (1; 0.47%) Oi Fo Wh (2; 0.33%) El Wt Wh (2; 0.25%) El Ch Wh (2; 0.25%) El St Wh (2; 0.25%) Fr Sc Cg Wh (3; 0.21%) Ap Wh (1; 6%) Bc Mp Ho Wh (3; 6%) Confectionary (Cn) Water: 90 litres per $ (L) rem dir (L/$) Dc Dp Cn 32.4 (2; 35.%) Ri Fc Cn 12.4 (2; 13.%) Su Fd Cn 8.68 (2; 9.4%) Ws Cn 2.56 (1; 2.8%) Vf Cn 8 (1; 9%) Ri Fc Bp Cn 28 (3; 4%) Cn 23 (0; 3%) Wa Cn (1; 0.96%) Wh Fc Cn (2; 0.8%) Vf Fd Cn (2; 0.75%) El Cn (1; 0.65%) Ri Ws Cn (2; 0.62%) Bc Mp Fd Cn (3; 0.61%) Wh Cn 0.54 (1; 0.59%) Vf Ws Cn (2; 0.56%) Wh Fd Cn (2; 0.51%) Vf Fp Cn (2; 0.51%) Know your full production chain

11 Sector: Basic chemicals 0.35% of GDP (55 th ) Sector: Basic iron & steel 0.86% of GDP (29 th )

12 Sector: Aluminium 7% of GDP (82 nd ) Aggregation Sector Contribution to GDP 00 % of Total GDP primary Sector Number tertiary

13 Farming and Food Ag, For & Fish 3% GDP 2.5% GDP Food Mining and Manufacturing Mining 4.4% GDP 7% GDP Manufacturing

14 Construction and Transport-Communications Construction 5.6% GDP 8.7% GDP Transp & comm Private Services and Public Services Private services 26.1% GDP 16.7% GDP Public services

15 Macro issues What constitutes below average performance in an interdependent economy? Price and value of food Service industries are below average exporters Emissions embodied in exports Buy Australian Greenhouse intensities over time Greenhouse Intensity/$: Communications Sector 4.E-04 CO2e per constant $ 3.E-04 2.E-04 E-04 0.E+00 6.E direct indirect Greenhouse Intensity/$: Iron and Steel Sector Communications CO2e per constant $ 4.E-03 2.E-03 0.E direct indirect Basic iron and steel

16 The next generation model Time series More focused sectors More indicators Spatial analysis (states) Corporate TBL calculator Reaction National launch (May 24 th ) Complex messages (shopping) Farming and food Problems (rice and forestry) Policy and big business Citizens