Creating a Sustainable Society: An Information Systems Strategy Richard T. Watson University of Georgia rwatson@uga.edu energyinformatics.info
Three centuries of industrialization Changed the chemical composition of air soil rivers oceans Essentials of life profoundly changed for some species
CO2 emissions
CO2 emissions
CO2 emissions India Japan Russia USA China
Ocean acidity Period ph Pre-industrial 8.179 Recent past (1990s) 8.104 2050 7.949
Monsoon & Gulf Stream
Sustainability The Brundtland Commission Sustainable development meets the needs of the present without compromising the ability of future generations to meet their own needs 1987
Eco-forces
Eco-efficiency The delivery of competitively-priced goods and services that satisfy human needs and bring quality of life, while progressively reducing ecological impacts and resource intensity throughout the life-cycle to a level at least in line with the earth s carrying capacity Eco-efficiency improves profits Eco-efficiency is a step towards sustainability
Eco-equity Equity between peoples and generations and, in particular, the equal rights of all peoples to environmental resources Political horizons are short Some cultures have a long-term perspective Sustainability is a global problem that requires all cultures to take the long-term view
Eco-effectiveness Transformation to sustainable business models Ultimate solution Mindset shift Cradle-to-cradle
Environmental burden Population Wealth Environmental burden Technology
Environmental burden Population Wealth Environmental burden Technology
IS and IT Different environmental consequences An information technology transmits, processes, or stores information Energy consumption Disposal An information system is an integrated and cooperating set of people, processes, software, and information technologies to support individual, organizational, or societal goals The transformative opportunity
The engineering focus
The seven wedges solution
Wedges Category Potential wedges Energy efficiency and conservation 4 Fuel shift 1 CO2 capture and storage 3 Nuclear fission 1 Renewable electricity and fuels 4 Forests and agricultural soils 2
Energy efficiency and the conservation wedge Wedge IS Efficient vehicles Reduced use of vehicles Efficient buildings Urban design, fleet management, telecommuting, mass transit Energy management and monitoring Efficient baseload coal plants
Geoengineering
The information perspective Information systems have transformed society in the last five decades Information systems need to be part of the solution mix for a sustainable society
A society in need of a transformation Political Technological Organizational Economic Individual
Potential for change Global free market economy Continue as is United Nations No major structural change New international organization National political systems No major structural change New legislation
Flexible factors Organizational New products and services produced Individuals New products and services consumed Technological innovation New products and services New means of production and distribution New organizational structures
Central role of organizations Produce goods and services Innovate Respond to Consumers Economic forces Government regulations Investors Advocacy groups Society s transformational engine
Duality of human behavior Rational Utilitarian Traditional economics Social Family Culture Imitative Opinion leaders Brands Status Behavioral economics
Duality of consumption Products & Services Market efficiency Commodities Perceptions Marketing effectiveness Prices
Sustainability through information Create an ecologically sustainable civilization through Rational information Prices Social information Perceptions Personal beliefs Social norms
The rational approach It is all about prices! What are the societal costs of pollution? Products & Services Market efficiency Commodities Perceptions Marketing effectiveness Prices
Effective markets The market economy efficiently allocates scarce resources provided resources are priced appropriately Prices are the major influence on demand The costs of pollution are typically not reflected in prices In pursuit of sustainability, market effectiveness requires that all products include their full environmental costs
Externalities Costs absorbed by society rather than producers Externalities have become global rather than national Markets work against sustainability when externalities exist Internalizing externalities will align the economic system with sustainability goals Emission taxes Environmental management regulations Recycling requirements
Commodities It is critical to get the price right for commodities because of the dominance of pricing in decision making Coal Natural gas Oil Electricity Commodities are a key cost component of many products and services
The power of pricing Electronic road pricing in Singapore Drop in morning and afternoon traffic after pricing introduced
What s needed? National laws, regulations, and taxes for converting externalities to internal costs Get the pricing system right and make the economy work in favor of sustainability International treaties mirroring national actions Carbon emissions respect no border A global monitoring organization
World Sustainability Organization Design and management of a world sensor network Verification of treaty compliance Resolution of disputes
The social approach It is all about perceptions! What is the impact of organization x on the environment? What is the impact of product y on sustainability? What are the societal benefits of individual behavioral change? Products & Services Market efficiency Commodities Perceptions Marketing effectiveness Prices
Information Organizational Mandate reporting of environmental impacts Parallels required financial reporting to protect investors Need to protect all current and future stakeholders in the earth
Global Reporting Initiative Founded in 1997 by US non-profits Supported by UN Environment Programme Voluntary reporting is not enough Compliance is limited to the socially responsible organizations Bias towards positive outcomes No enforcement system A verification system is required
Global Reporting Initiative gri Performance Indicators Categories and Aspects en 7/10 pr 1/2 so 1/1 la 2/3 hr 2/3 hr 0/1 Emissions, Effluents, and Waste Customer Health and Safety Community Employment Investment and Procurement Practices Security Practices en 2/2 pr 1/3 so 3/3 la 2/2 hr 1/1 hr 0/1 Materials Products and Services Product and Service Labeling Corruption Labor / Management Relations Non- Discrimination Indigenous Rights en 2/5 en 1/1 pr 1/2 so 1/2 la 2/4 hr 1/1 ec 4/4 Energy Compliance Marketing Communications Public Policy Occupational Health and Safety Freedom of Association and Collective Bargaining Economic Performance en 1/3 en 0/1 pr 0/1 so 0/1 la 1/3 hr 1/1 ec 2/3 Water Transport Customer Privacy Anti-Competitive Behavior Training and Education Child Labor Market Presence en 2/5 en 0/1 pr 1/1 so 1/1 la 2/2 hr 1/1 ec 1/2 Biodiversity Overall Compliance Compliance Diversity and Equal Opportunity Forced and Compulsory Labor Indirect Economic Impacts en = Environmental 17/30 pr = Product Responsibility 4/9 so = Society 6/8 la = Labor Practices and Decent Work 9/14 hr = Human Rights 6/9 ec = Economic 7/9
What s needed? Standardized electronic environmental reporting for all organizations above a specified environmental footprint A verification system for environmental reporting Complementary laws and regulations
Information product Compulsory labeling Food Pharmaceuticals Voluntary Carbon footprint Tesco has labeled 120 products A typical supermarket has about 50,000 products
Tesco Customers want us to develop ways to take complicated carbon calculations and present them simply CEO
Tesco Customers want us to develop ways to take complicated carbon calculations and present them simply and electronically CEO Green comparison shopping
What s needed? Standardized print and electronic labeling for products Standardized electronic labeling for services Publicly offered and privately generated A verification system for product and service reporting Ubiquitous access to product and service information Complementary laws and regulations
Perceptions
Information individual People respond to factors other than price Perceptions influence decisions Reputation Brands Information creates perceptions Organizational reputation Product characteristics
Information individual People need information to change Aggregate information gives no clues Information needs to match the decision cycle
The power of perceptions Seat belt usage in Victoria following legislation From voluntary to mandatory Prior Post
What s needed? Information Disaggregated Comparative Real time Ubiquitous access Device independence
Information systems change society
The information coupling principle Having the ability to learn what other entities are doing enables people and enterprises to coordinate their actions We need to identify those episodes where information-based tight coupling will result in societal and individual sustainability advances
Episodic Tight Coupling Episodes of self-managed tight coupling Tight coupling can be invisible to one of the partners Needs Electronic data exchange standards Web services Mobile devices
Community dashboards 12 6 noon 6 12 Water Electricity
The systems efficiency principle Societies are more efficient when the various parties can collect, analyze, and act on information relevant to their current problem Because of the many actors in large systems, the information needs of each participant are often unknown An open information market will enable participants to access and process the information they need
Questions What information should each party in the community broadcast? Assumes we can determine what information matters What information can each party in the community broadcast? Let the community work out how to use information What are the standards for information exchange?
Prices & perceptions What we consume determines the ecological state of the earth What we consume is determined by prices and perceptions Prices must be aligned with sustainability goals Perceptions must be influenced honestly, accurately, and with timeliness to support sustainability goals
A photon society Cheaper to move photons than bits than atoms Move photon-based information rather than atom-based information Cashless Paperless Webinar 3.0 Cloud computing Photons Electrons Atoms Fiber optic cables Wires Vehicles
Information systems strategy Get prices right Global sensor network Externalities are global Convert pollution data to environmental charges Make market mechanisms effective tools for sustainability
Information systems strategy Accurate, transparent, electronic, and standardized mandatory environmental impact reporting by organizations Brands and reputations have value Preferences are influenced by information
Information systems strategy Accurate, transparent, electronic, and standardized mandatory environmental impact reporting by product Ubiquitous comparison shopping Sustainability gaps identification Preferences are influenced by information
Information systems strategy Inform citizens of the environmental consequences of their decisions Disaggregated and granular information Comparative evaluation Real time Behavior is influenced by information
Information systems strategy Publish electronically everything that does not infringe privacy or competitive advantage Create open information markets Let entrepreneurs create value Support episodic tight coupling
We create tomorrow by what we consume today What we consume today is determined by information
Text Thanks