Eco-efficient services as route towards sustainable development

Transcription

1 Eco-efficient services as route towards sustainable development Markku Anttonen Aalto University BIZ February 7th BOR 101: Practices of the corporate social responsibility and the methods and approaches to study it Article thesis, based on findings in research projects in Journal of Cleaner Production, corrected proof

2 Research Questions What kind of services with potential to enhance eco-efficiency have emerged (articles I, II and III)? Which issues influence the supply and demand of these services (articles I and IV)? What kind of business models pertain to such services (articles II and III)? Big picture Routes to sustainability? Technological innovation Services Green growth Radical social change & degrowth 2

3 Focus: eco-efficient services as route towards sustainable development Background Eco-efficient services as a solution towards sustainable development The idea is not new, yet relatively few services exist why? Empirical research scarce Eclectic single or few cases analyzed Until recently outside mainstream business & management research This study increases substantially understanding on the eco-efficient services by analyzing over 250 existing services 3

4 Few core concepts Sustainable development Eco-efficiency Eco-efficient services Product - based: service additional to a good Use-oriented: access to use a good, archetype car-sharing Result oriented: Result through service, instead of an product Eco-efficiency Broad definition: a general goal of creating (economic) value while decreasing environmental impact (Huppes 2005) Energy / material efficiency A measure: a ratio between environmental impact and economic cost or value (Huppes 2005) A tool for: Product and process efficiencies (Lopez 2010) 4

5 Eco-efficient services WHAT Product-oriented services: guarantees, repair & maintenance services; customer owns the product Use-oriented services: leasing, shared use, etc. models; service provider owns the product Need / Result-oriented services: compensation is not related to product, but to fulfilling a need. Energy services & chemical management services. TO WHOM To consumers Challenging, happiness of owning, the importance of social sustainability i.e. links to quality of life and wellbeing B2B services More incentives, more prominent than consumer services Eco-efficient services only part of the eco-efficiency concept Sustainable homeservices and material efficiency services EXAMPLE OF NEED / RESULT BASED SERVICES: CHEMICAL MANAGEMENT SERVICES (CMS) 5

6 Chemical Management Services BASF Success Success tools Eco-efficiency analysis SeeBalance for Social Profile Other competences within BASF such as supportive units offering consultative services on REACH, logistics-, energy and waste management, laboratory services etc. CUSTOMER Other BASF business units, such as Coatings for example Create service and solutions pacages for customers based on the analysis by Success and customer needs Anttonen & Apajalahti 2/7/

7 BASF SUCCESS: Ecoefficiency tool Is an applied Life Cycle Analysis (LCA) and comply with ISO Soil, water and air emissions; energy use and materials usage Transformed to monetary costs Different impacts are weighted and compared with by using weighting product & process specific coefficients. Combined with social profile in Seebalance forming socio-eco-efficient Presentation name and author - 2/7/ CMS: environmental benefits 7

8 Mixed method methodology Data and analysis Surveys Interviews Focus groups Participatory observation 8

9 KEY FINDINGS Key finding Factors affecting on demand 9

10 Key finding Different types of needs regarding SD or EE Services has to have strong connection to customers everyday life and business Problem solving! Households: important characteristics are the comfort of everyday life skills for or empowerment of the customers B2B context eco-efficiency, not social Everyday business process recycling & waste avoidance Economic benefits Needs for relevant knowledge about material flows and their management and Households social sustainability 10

11 Sustainability Indicators Effects evaluated: /NA Material use 2. Energy use 3. Water use 4. Waste 5. Emissions 6. Space use Environmental benefit 1. Equity 2. Health 3. Safety & security 4. Comfort 5. Social contacts 6. Empowerment 7. Information & awareness Social sustainability Economic feasibility 1. Employment 2. Financial situation of the residents 3. Regional products & services 4. Profitability of the company 5. Profitability of the economy / region / community sustainability evaluation examples residents obstacles&incentives Business Models for Material Efficiency Services MASCO model provider takes care of the material savings investment project so that client neither invests own funds nor operational resources Material savings as additional service Same, but provider offers MASCO-services aside of its core business Management service for material flows Management of selected material group is outsourced to service provider Material efficiency consulting 11

12 Key finding Varied sources for eco-efficient service models B2B sector - chemical management services Sources for new services - not eco-efficiency, rather logistics or ICT innovations Major changes of business logic From products/goods to results Value capture - a cocreation process through shared savings contracts Key finding Contextualized business models (BM) Services, organization and profit logic depending on the focus along the value chain As an example, chemical management services 4)Full service approach 1) Upstream 2) Inhouse 3)ICT - approach Modified from Anttonen Greening From Front to Back Door? A Typology of Chemical and Resource Management Services. Business Strategy and the Environment, 19(3): CUSTOMER 12

13 To take with you Social sustainability is a key element at the household sector For future research: how to combine ecological aspects better to the social ones Services as solutions for everyday business needs at the B2B sector For future research: how to combine present needs with radical change, can services lead the way? BM thinking weak in eco-efficient services, eco-innovation etc. For future research: how to integrate business model thinking better into eco-efficient service discussions? Business innovations outside of eco-efficiency context can be good sources for eco-efficient service development To take with you Cleantech and radical eco-innovation research could benefit from research that analysis business model as an innovation and studies them a way to commercialize new technology This research has analyzed how existing business models may need to be modified or completely new ones invented so that they fit in with the technology or market in question Technological innovations are important but the technology as such has little value Value is created only when the technology and the business model are in line, solving the customer s needs i.e. the technology is useful. Different clean technologies different business models 13

14 To take with you Yet another interesting and relevant research topic the role of eco-efficient services in a future where material and energy degrowth or absolute decoupling would have become true. Degrowth also demands profound changes and innovations for business models and product-service systems what would be feasible, or how they could be produced (technological, management and technological innovation) What types of income flows there could be in a situation where the success of a company is defined differently than that it is now. Thank You for your attention Markku Anttonen Markku.anttonen@aalto.fi Thesis introduction: 14