The relationship between technology, innovation and environmental management
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1 INSTITUTE OF TECHNOLOGY AND SUSTAINABLE PRODUCT MANAGEMENT The relationship between technology, innovation and environmental management Prof. Dr. Gerhard Vogel Institute of Technology and Sustainable Product management Vienna University of Economics and Business Administration 18 th IGWT Symposium September 24 th 28 th 2012 Rome, Italy
2 Unstable techno-socio-economic system fossil energy fertilizer pest control natural environment Raw Materials Energy photosynthesis minerals food chain Production Consumption Decomposition mineralisation waste wastetreatement waste Hazardous substance accumulation Eco-System 2
3 Unstable techno-socio-economic system fossil energy fertilizer pest control natural environment + Raw Materials Energy - photosynthesis minerals food chain Circular economy Production Consumption Decomposition mineralisation waste wastetreatement waste Hazardous substance accumulation Eco-System 3
4 Stable techno-socio-economic system fossil energy fertilizer pest control natural environment + Raw Materials Energy restriction limitation photosynthesis minerals Decomposition mineralisation food chain waste Sustainable Circular economy wastetreatement Production Consumption waste Hazardous substance accumulation Eco-System 4
5 This requires a new way of thinking and acting as problems can only be solved in a complex manner and only through systemic thinking purely technical and economic actions must be corrected by ethical considerations exponential developments have to be mastered sustained chronic environmental damage may have a long latency period which can be followed by a sudden onset some problems migrate before they can be identified and assessed globally attuned research and cooperation activities are needed 5
6 It needs to be apparent that all stakeholders join forces and actively implement the sustainability principle in their own field of competence. May 2001, the EU Commission presented its Sustainable Development Strategy (SDS), which was reviewed and revised by the European Council and the European Commission in June The updated Sustainable Development Strategy identified sustainable consumption and production as a key challenge for establishing sustainable development. 6
7 Following measures were proposed: developing an action plan on sustainable consumption and sustainable production; establishing a dialogue between the European Commission, member states, trade and industry and other relevant stakeholders to set up common guidelines for assuring environmental and social compatibility of products and production processes; evaluating the "green" public procurement schemes practised in the member states; fostering ecological innovation and environmental technologies through research and market penetration; Commission Proposal on the Extension of Performance Specifications for Electrical Appliances and Motor Vehicles; supporting the launch of information campaigns for agricultural products (applies to member states and retail trade). 7
8 PATHWAYS TO SUSTAINABLE CONSUMPTION AND A SUSTAINABLE ECONOMY There are two basic approaches Dematerialisation Immaterialisation 8
9 Dematerialisation avoid or reduce the use of resources and the generation of waste, especially toxic and harmful substances (qualitative aspect), material or energy consumption (quantitative aspect), in the stage of product design, production, sale systems, consumption disposal systems, including transport at all stages. 9
10 Dematerialisation by reducing the material and energy consumption for each specific function unit of goods and services e.g. eco-design of products, production- transport-, packaging processes by marking products as eco-friendly and motivating consumers to increase their demand for such products (e.g. eco labelling, eco motivation, eco advertising, etc.) 10
11 Dematerialisation by intensifying the multiple use of goods (rental or leasing instead of purchase, product sharing, etc.) by the purchase of environmentally friendly products, recycled products, etc. by product leasing or selling services instead of selling / buying products 11
12 Immaterialisation Measures towards sustainable development before/at/after the point of sale (POS) Avoiding or reducing the input of resources and the production of waste by changing public consumption patterns from a lifestyle which is focused on the purchase and use of as many products, commodities and services as possible with high resource consumption to a lifestyle which is focused on the purchase of only products that satisfy the basic needs as well as services in the fields of culture health education & training social services and other leisure activities such as sport 12
13 Immaterial consumption is therefore defined as the demand for services which require less material resource input (raw materials, fuels), have a low environmental impact (emission, waste), are (sustainably) beneficial to health, social competence, wellbeing, culture, morality and motivation of individual consumers and to public welfare, create (qualified) jobs (at local level), and "trigger" the spread of a culture dominated by immaterial consumption. The effect of immaterial consumption may be characterised as a "material effect", "waste effect" "benefit effect", "job effect" "culture effect", "social effect". 13
14 The unsustainable solution Actual development GNP Waste / Ressourceconsumption The direct correlation between GNP and ressource consumption / Waste generation 14
15 The sustainable solutions for Decoupling Options of dematerialisation GNP Waste / Ressourceconsumption better Options of immaterialisation Waste / Ressource- GNP consumption Slight decoupling Strong decoupling 15
16 I. FROM A LINEAR ECONOMY TO A SUSTAINABLE CLOSED-LOOP ECONOMY unsustainable system Demand for products Income Resources Time Time Emissions Mass Time PRODUC- TION DISTRI- BUTION CON- SUME DIS- POSAL Mass Time POS 16
17 The change of demand at the POS to a sustainable system Demand for products eco prod. Demand imm services Income Time Resources Emissions Mass Time PRODUC- TION DISTRI- BUTION CON- SUME DIS- POSAL Mass Time POS 17
18 All stakeholders join forces and actively implement the sustainability principle in their own field of competence. 18
19 Raw material tax Regulations for Eco Design Taking back obligations Education for Eco Consume Price / Eco label Landfill tax ban on organic Subst on landfills Instruments for Sustainable Development 19
20 The unsustainable development of total household waste in AUSTRIA in t Waste from households and similar infrastructures Separate collected second Materials Direct landfilled Trend for Sust.Developm. TIME 20
21 There are differences from the 1:1 correlation Correlation between affluence and waste quantities 2005: : : : : : : : : : : : : : 0.96 kg of house hold wa ste per 100 purchase powe r 2005: : 1.24 Purchase power parity (PPP) in 2005 ( /inh.a) Household waste in 2005 (k g/inh.a) Berlin Budapest Copenhagen Munich Paris Stockholm Vienna Zurich VOGEL, FRIEDRICH, KRYDL: Waste Management in European Cities; International Comparison of Waste Management Parameters, Short Version, Published on Behalf of the City of Vienna (MD 48), Vienna
22 I. CASE STUDIES ON DEMATERIALISATION Production: Pulp and paper production in Austria Wood digester scrubber acid solution SO 2 booster Chemical Recycling Mg(HSO 3 ) 2 -Magnesium- Hydrogensulfit- Process Mg(HSO 3 ) 2 absorption steamplant Pulplye flew-gas- SO 2 hydratise pulp thick solution Mg(OH) 2 Magnesium- Hydroxid Water MgO Ash MgO Magnesiumoxid Energy, Steam, Electricity 22
23 BOD 5 reduction by the new technology 98,6% Energy self-sufficient Chemical recycling 90% a payback period of two years 23
24 Distribution (packaging): The use of reusable crates of the "Austrian crate pool" to supply food retailers with greengroceries leads to a material reduction of 91% Standardised plastic crates are now replacing one-way corrugated boxes One-way Box Multi-way Box Difference in t in % Weight per Box in kg 1,00 1,35 Fillings per year Number of Boxes Total Weight in t/year ,2 24
25 Negative example: Soft drink and mineralwater packaging in Austria Waste Minimization pilot project Vienna 2004/2006 Situation before January ,5 l 116,3 l 25
26 Situation since June 2010 kg HH waste / l 1 l One way 3,6 kg 1,5 l OW 3,2 kg Result for the consumer: 101 l 3 0,5 l OW 2,9 kg 2 l OW 2,8 kg The cheapest option for 100 Euro 56 l 111 l 2 prices / weights at SPAR Vienna 1220 June 19, 2010 till Jan ,5 l ref. bottle = 116 l Cola= 0,6 kg waste since June ,5 one way = 101 l Cola = 3,2 kg waste 116 l 1 = 6,7% less Cola =430% more waste 26
27 Product design and consumption The role of EU Fundamentals of EU Policy The EU has recently taken a number of important sustainability measures within its environmental policy that affect producers, wholesalers/retailers, consumers and the waste management industry. Many of these measures are intended to increase the efficiency of material utilisation to decouple economic growth from the squandering of resources. 27
28 Here are some examples: Directive 2000/53/EC of the European Parliament and of the Council of 18 September 2000 on end-of life vehicles RoHS - EU - Directive on the Restriction of the Use of Certain Hazardous Substances in Electrical and Electronic Equipment 2002/95/EG WEEE - EU Directive 2002/96/EG on Old Electrical and Electronic Devices 28
29 These directives establish guidance on: the ban of certain ingredients such as mercury, six-valued chromium, cadmium and lead construction (easier disassembly, repair) take-back obligation Reuse Recycling disposal regulations for eco-design and eco-labeling 29
30 Example Household washing machines Year of construction 1990 Consumption of electricity 1.5 kwh water: 100 Liter Year of construction 2012 Consumption of electricity : 0.85 kwh = minus 43% Water : 40 Liter = minus 60% 30
31 31
32 Economic life time of household appliances in Austria El. cooker Dishwasher Washing machines Freezer Refrigerator important for consumers who intend to buy a new applicance they are persuaded to choose the most resource-friendly product available on the market; otherwise suboptimal appliances will remain in use over lengthy periods. 32
33 The consumer is able to reduce energy consumption and CO 2 emission by choosing certain options of use. A research project conducted at the Institute of Technology and Sustainable Product Management has rendered the following results: Benefit of operating a washing machine with solar hot water: 33
34 Miele Washing machine using cold water el. Max Power 2000 W el.energy consumption 0,68 kwh Time 150 min 34
35 Miele Washing mashine All water using solar warm water el. Max Power 2000 W el.energy consumption 0,20 kwh Time 95 min 35
36 Energy savings in a washing machine by using hot water, multiple washes and multiple hot water fillings at the start of the washing process 36
37 Dematerialisation Examples of Austria The options on reuse Case study: lease or buy 37
38 Disposal (public-sector service): In this area, the special regulations governing the conduct of large public events apply. A fine example of resource saving and waste reduction is the traditional "Oktoberfest" in Munich: Use of deposit reusable dishes and separate collection of recyclables at the Oktoberfest in Munich: development of residual waste volumes as an indicator of resource squandering 38
39 CASE STUDIES ON IMMATERIALISATION I. There are only few scientifically based examples on immaterialisation to date. was able to achieve the first research results in this field in a study conducted on behalf of the Lower Austrian government. An explanatory model was set up to compare the social and resourceeconomic implications of material and immaterial consumption 39
40 Immaterial consumption demand on evaluation OPTIMAL IMMATERIAL CONSUMPTION WASTE - REDUCTION SAVING ENVIR. DAMAGE FINANCE BUDGET LEISURE TIME BUDGET JOB INTSITY RESOURCE SAVING ENERGY SAVING 40
41 Immaterial consumption demand on evaluation SPORT- CAR MAGIC-FLUTE WASTE - REDUCTION FINANCE BUDGET LEISURE TIME BUDGET WASTE - REDUCTION FINANCE BUDGET LEISURE TIME BUDGET SAVING ENVIR. DAMAGE JOB INTSITY SAVING ENVIR. DAMAGE JOB INTSITY RESOURCE SAVING ENERGY SAVING RESOURCE SAVING ENERGY SAVING 41
42 Immaterialisation Examples of Austria The secret of services: example theater 42
43 Immaterialisation Examples of Austria A comparison of wellness centres 43
44 Social and resource-economic data on immaterial consumption from Vienna's FITNESS sector Expenses of 100 in FITNESS Maria Wenig Club Danube Manhattan Kieser Consumption of leisure time in h 2,8 22 9,2 10,5 Time of employees in h 2,5 1,5 1,2 1,8 Materialconsumption in kg 0 0,08 0,05 0,35 Energyconsumption in kwh Waterconsumption in l Wastegeneration in kg 0,06 1,29 0,27 0,18 CO 2 -Emissions in kg 0,1 9,93 6,77 3,85 44
45 Social and resource-economic data on immaterial consumption from Vienna's FITNESS sector 45
46 Social and resource-economic data on immaterial consumption from Lower Vienna s COSMETIC sector Expenses of 100 in COSMETICS La Luna Marisa Shannon Ina Ganzheit B.Island Consumption of leisure time in h 2,14 2,33 3,57 2,13 3,13 1,49 Time of employees in h 1,65 5,12 9,71 1,89 11,78 2,34 Materialconsumption in kg 0,03 0,01 0,05 0,02 0,03 0,02 Energyconsumption in kwh 24,38 21,96 19, ,63 11,41 Wastegeneration in kg 0,21 1,61 1,91 1,66 0,07 0,26 CO 2 -Emissions in kg 3,26 0,96 1,63 1,98 1,31 2,25 46
47 Social and resource-economic data on immaterial consumption from Vienna's COSMETIC sector 47
48 Social and resource-economic data on immaterial consumption from Lower Vienna s CINEMA sector Expenses of 100 in CINEMA Admiral BSL Gloriette Megaplex Consumption of leisure time in h 28,5 18,7 22,2 27,2 Time of employees in h 2,2 14,5 8,6 0,8 Materialconsumption in kg 0,02 0,11 0,11 0,16 Energyconsumption in kwh 25,08 112,76 39,96 38,62 Wastegeneration in kg 0,14 0,16 0,06 0,13 CO 2 -Emissions in kg 5,7 25,05 8,88 11,42 48
49 Social and resource-economic data on immaterial consumption from Vienna's CINEMA sector 49
50 Social and resource-economic data on immaterial consumption Comparism between material and immaterial consumption patterns Viennese Data 50
51 Immaterialisation Examples of Austria The result on dematerialisation / Immaterialisation STANDARD GENERATION OF HOUSEHOLD WASTE average 4,98 kg for 100 EXAMPLE DEMATERIALISATION Consumption of mineral water in one way glass bottle 23,7 kg for 100 Consumption of mineral water in refillable glass bottle 19,0 kg for 100 Consumption of mineral water in refillable PET bottle 1,08 kg for 100 EXAMPLE IMMATERIALISATION Nordic Walking 1,11 kg for 100 Shiatsu 0,014 kg for
52 Impact of increased demand for individual immaterial consumption services on the labour market Satisfaction of customer needs per gainfully employed person 1 masseur 1 employee at the printing machine 68 1,546 52
53 Impact of increased demand for individual immaterial consumption services on the labour market Vienna Population New consumers in % total Consumers per Job New Jobs
54 Immaterialisation Examples of Austria TARGET: Increasing the share of immaterial consumption Current situation in AUSTRIA 54
55 Immaterialisation Examples of Austria TARGET: Increasing the share of immaterial consumption In future FURTHER IMMATERIAL CONSUMPTION 18% FURTHER MATERIAL CONSUMPTION 82% 20-30% 80-70% 55
56 CONCLUSION We could show identified ways to decouple resource consumption, environmental pollution and CO 2 emission from consumer expenses. Especially the social and resource-economic implications of immaterial consumption should become a near-term focus as this appears to be a sound solution to the resource problems in our western industrialised nations. To solve our resource/environmental problems as well as our social problems, we need to put all outlined tools in all fields of competence of our economy and society to good use. Because of their projected complexity, interdisciplinary and international collaboration will be urgently needed. 56
57 INSTITUTE OF TECHNOLOGY AND SUSTAINABLE PRODUCT MANAGEMENT Thank you for your attention Prof. Dr. Gerhard Vogel Institute of Technology and Sustainable Product management Vienna University of Economics and Business Administration Augasse 2-6, A Wien, Austria, Tel , Fax , Mobil Phone: gvogel@wu.ac.at
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