Developing Sustainable Future Markets for Renewables: Tools for Stakeholder and Consumer Integration

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1 Developing Sustainable Future Markets for Renewables: Tools for Stakeholder and Consumer Integration 3rd International Life Cycle Management Conference August, 27-29, 2007 in Zurich Research Group Sustainable Production and Consumption for Climate, Environment and Energy

2 Overview Sustainable Future Markets and Tools Sustainability Indicator Set for the Forest-Timber-Building Chain Integration into an Online-Tool Conclusions

3 Overall Challenge Delinking use of nature from quality of life Quality of life 4 8 Efficient production Satisfying consumption 10 Sustainable production and consumption Economic growth Use of nature 3

4 Sustainable Future Markets An emerging Research Field The term Sustainable future markets has not yet been elaborated intensively in the scientific or political debate; Within the BMBF research project SUstainable Markets emerge ( first suggestions for it s definition have been developed; Based on this research a working definition can be formulated: Sustainable future markets are emerging markets or future markets, on which such products and services are offered and sold, which provide an identifiable contribution to sustainable development. As evaluation criteria sustainability principles, regional, national or international sustainability targets and related indicators can be used. Those need to be specified according to the context (e.g. product or market region). The evaluation has to be draw on a defined system (product life cycle, use system, field of demand, region, ecosystem etc.). 4

5 Sustainable Future Markets for Building with Wood Research Project: Holzwende2020 HFM Holzforschung München 5

6 Sustainable Future Markets Requirements and Tools Sustainability requirements Directional safeness Supplier Tools for sustainability assessment Demand Development of effective supplier networks Tools for network management Market development tools Tools for customer and user integration Demand side orientation Development of sustainable future makrets for building with wood 6

7 Sustainable Future Markets User and Timing of Selected Tools User of management Research - organisations Lead user method Construction process research Resource efficiency analysis Single Enterprise Product design Focus groups Sustainability check for the entire value chain Innovation workshop Interactive construction site Networks Decision-maker wokshops Internet-based product catalogue Network coaching Innovation phase Diffusion phase Time 7

8 Overview Sustainable Future Markets and Tools Sustainability Indicator Set for the Forest-Timber-Building Chain Integration into an Online-Tool Conclusions

9 Developing a Sustainability Indicator Set for the Value Chain Addressing the Entire Value Chain 9

10 Developing a Sustainability Indicator Set for the Value Chain Addressing the Entire Value Chain Value chain phase Resource extraction (forestry) Wood and timber processing Building with timber Use and maintenance Refurbishment Deconstruction/ Recycling/ Disposal Value-chain-wide Sustainability initiatives (examples) UN Agenda 21, Chapter 11 provides guidance on how and why to combat deforestation. Ministerial Conference on the Protection of Forests in Europe (MCPFE) addresses issues on forests and forestry and declares recommendations for the protection and sustainable management on forests in Europe. Chain of custody certification certifies wholesalers, manufacturers and distributors who handle wood coming from forests certified according to standards such as FSC or PEFC. natureplus label European seal of quality for building products, construction materials and home furnishings that are environmentally friendly, do not have negative health effects and properly perform their function. Holzabsatzfonds (German Timber Promotion Fund) central marketing institution of the German forestry and wood processing industries Action Program Environment and Health North Rhine Westphalia (APUG NRW) aims to strengthen the links between environmental and health protection; promotes to take healthrelated aspects in refurbishments (incl. pollutant-free indoor air) into account. Waste Wood Ordinance (AltholzV) lays down requirements for the recycling and energy recovery as well as for the disposal of waste wood on the basis of the Closed Substance Cycle and Waste Management Act. Global Reporting Initiative (GRI) creates guidelines and standards in corporate sustainability reporting. 10

11 Developing a Sustainability Indicator Set for the Value Chain Aspects identified Aspects identified for the product chain: 1. Sustainable forestry 2. Efficient market exploitation 3. Processing of regional/ certified wood 4. Benchmarking / product labelling 5. Use cascades 6. Sustainability in the phase of planning 7. Utilisation of sustainable wood products 8. Sustainability during the construction phase 9. Improvement of living quality and safety 10. Cost efficiency in the operating stage 11. Sustainable end-of-life management Aspects identified for the company: 1. Sustainable business management 2. Sustainability management in the value-chain 3. Empowerment, cooperation and networking 4. Competitiveness and innovation ability 11

12 Developing a Sustainability Indicator Set for the Value Chain Indicators for the Assessment Category Aspects of category Indicators for Assessment 1) Sustainable forestry Product chain Company 4)..) 11) 1) 2) 3)... Sustainable end-of-life management Sustainable business management Sustainability management in the value-chain Empowerment, cooperation and networking Competitiveness and innovation ability Regular staff training on construction and refurbishment with wood Cooperation in (regional) cluster management or networks Cooperation with R&D institutions (knowledge and technology transfer) 12

13 Overview Sustainable Future Markets and Tools Sustainability Indicator Set for the Forest-Timber-Building Chain Integration into an Online-Tool Conclusions

14 Integration into an Internet-based Sustainability Checker Developing Questions for each Indicator Ergebnisdarstellung I 14

15 Integration into an Internet-based Sustainability Checker Aggregation of Results Ergebnisdarstellung I 15

16 Internet portal for training at Tool box for sustainable future markets Ergebnisdarstellung I 16

17 Overview Sustainable Future Markets and Tools Sustainability Indicator Set for the Forest-Timber-Building Chain Integration into a Software Tool Conclusions

18 Sustainable Future Markets Conclusions Conditions for the development of sustainable future markets are innovation alliances (actor cooperation) and the early integration of users and customers in the process of innovation (consumer integration). A number of management tools can support the development of sustainable future markets. Some tools have been specified for building with wood. Consideration of stakeholder demands and consumer needs can help to identify key issues in the chain and facilitates the promotion of sustainability in emerging markets. A value chain wide indicator set / assessment tool may support the decision making in SMEs in favour of sustainable development. 18

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