G-STIC Making ICT deliver sustainability - Co-design for sustainable living

G-STIC Making ICT deliver sustainability - Co-design for sustainable living Coordinated by: CSCP GeSI - Imec Marco van der Ree, Senior Advisor 16 June, 2017 www.scp-centre.org

Making ICT deliver sustainability - Co-design for sustainable living at G-STIC Cross-cutting theme 23-24 October 4 session Setting the Stage - ICT opportunities for sustainability across all sectors and SDGs From opportunity to impact: sustainable lifestyles enabled by ICT Private sector developing solutions for sustainability: hardware, software and connectivity Collaboration for results and accelerated implementation, testing/experiencing ICT sustainability innovation through Living Labs www.scp-centre.org Slide 2

Who we are Think & Do Tank Founded in 2005 by the United Nations Environmental Programme (UNEP) and Wuppertal Institute of Climate, Environment and Energy. Headquarters in Wuppertal, Germany The Centre provides scientific support to clients from the private and the public sector, in the field of sustainable consumption and production (SCP) Team 60 Members with interdisciplinary backgrounds International Scope and activities in four continents all photos CSCP www.scp-centre.org Slide 3

The CSCP Mainstreaming Sustainable Lifestyles Policy & Business Models Infrastructure, Products & Services Habits & Behaviours Sustainable Lifestyles www.scp-centre.org Slide 4

Sustainble Living

Consumption trends: Does a good life require more than one planet? < 1 planet 1 2 planets 2 4 planets > 4 planets Source: Happy Planet Index www.scp-centre.org Slide 6

Vision of Sustainable Living 2050 Sustainable Footprint (7~10t/a) Current Footprint (56t/a) www.scp-centre.org Slide 7

What does this mean in terms of lifestyles? Average Middle Class Consumer in Europe Bernd (34) Self-employed Family Wife (age 33) 2 children (age 4 and 1) Food Eats meat every second day Buys regional and organic food when possible, but needs to be comfortable as well Living Jogging, skiing in the winter and playing tennis in the summer Shopping once a week, brand aware Moving Consumption 4 planets Housing Middle sized house (7 rooms) in the countryside Heating and energy production with wood One car (in addition to the one from his wife) as highly dependent for getting to work and child care, shopping (no public transport or shopping facilities in walking distance For holidays, likes to travel by car/airplane www.scp-centre.org Slide 8

Prototyping innovations Lifestyle-driven approach to impacts to actions www.scp-centre.org Slide 9

Sustainable lifestyles Understanding and addressing how we live Step-wise assessment Step-wise solution-oriented action www.scp-centre.org Slide 10

How to turn challenges into opportunities? Looking at the home Renewable energy Collaborative consumption Repairable furniture Circular products Sustainable mobility options Energy saving products Sustainable eating & cooking Prosumers www.scp-centre.org Slide 11

Individual Lifestyle Is Embedded in the City Understanding the Sustainable City through a lifestyle and behaviour-centric perspective Redefine value of sustainable city Transformation from livable city with reduced emission and resource consumption to One Planet City enabling sustainable living to sustain systematic change Energy Communi cation Food Water Transport Logistic www.scp-centre.org Slide 12

Business models and ICT for Sustainble Living

www.scp-centre.org Slide 14

Moving from a problem- to a systemic solutionoriented approach in mobility Policy and infrastructure solution Sweet spots Product and business model solution Lifestyle hotspots Mobility Integrated multimodal transportation systems ICT enabled car sharing Financial instruments for the rush hour Potential cost and time savings Renewable-energy powered car Smart grid ICT enabled prosumers of renewable energy Zero plus homes: positive energy houses that use surplus for mobiliyt Increased health www.scp-centre.org Slide 15

Using the UN Sustainable Development Goals A wholistic assement provides for an evaluation of the effects Positive contributions via hand-prints (green lines) or the reduction of negative effects via footprints (organge lines) www.scp-centre.org Slide 16

How can business innovations contribute to the SDGs while adding value to consumers? SDG-based framework to connect business and sustainable lifestyles Two possible angles: from products to lifestyles or from lifestyles to products Social progress Individual wellbeing Handprint & Footprint SDG criteria for Sustainable Lifestyles Ecosystem protection Resource use CO 2 emissions Water & Waste www.scp-centre.org Slide 17

What is a business model? The building blocks Business model: A business model describes the rationale of how an organisation creates, delivers, and captures value Customer segments Customer relationships Key activities 9 building blocks of business models Value proposition Channels Revenue streams Key resources Key partnerships Cost structure Source: Osterwalder and Pigneur (2010). Business Model Generation. Self-published. www.scp-centre.org Slide 18

Business models for sustainable living and consumption Consumers Enabling role of governments, development agencies service providers, and innovation centres Key driving actor for value creation towards sustainable consumption Product design Service & function based offerings Prosumers Consumer choice influencing Collaborative consumption Waste as a resource Business Production Use End-of-life Key focus of efforts in value chain Source: CSCP, CRI, EEA (2014). Reflections and Lessons Learnt from EEA s Work on Innovative Business Models for Sustainable Lifestyles. Collaborating Centre on Sustainable Consumption and Production and Copenhagen Resource Institute. Working Paper for the European Environment Agency. www.scp-centre.org Slide 19

Practical examples of business models Consumer has important role to play in each of these business models Production of bags from plastic waste: Trashy bag (Ghana) Chemical leasing: UNIDO projects in Egypt, Mexico, Russia, Sri Lanka, Serbia Urban farming: V-roof (China) Promoting fair trade and green products : ECHOstore (Philippines) Car sharing: Easyway (Colombia) Recycling of end-of-life mobile phones: Mazuma (UK) Source: CSCP, CRI, EEA (2014). Reflections and Lessons Learnt from EEA s Work on Innovative Business Models for Sustainable Lifestyles. Collaborating Centre on Sustainable Consumption and Production and Copenhagen Resource Institute. Working Paper for the European Environment Agency. www.scp-centre.org Slide 20

Multi-Stakeholder Guideline Scaling Up Business Impacts on Sustainable Living Objective of guideline: Advice stakeholder groups on how to support businesses in scaling up their positive impacts on sustainable living. Entrepreneur Multi-national corporation Policy maker Development organisation Civil society organisation Financial institution Source: CSCP (2014). Scaling Up Business Impacts on Sustainable Living: One Goal, Three Scaling Up Pathways, Seven Success Factors. Multistakeholder guideline. www.scp-centre.org Slide 21

Rapid ICT developments are enabling and scaling up new innovative business models for sustainable consumption Rapid developments of ICT First (mainstream) smart phone was launched by Apple only 10 years ago! E.g. Industry 4.0, Internet of Things, cloud based solutions Examples of existing ICT products enable more sustainable consumption E-mobility: All leading car manufacturers have developed electronic vehicle models Home office: Increasing flexibility to work from different locations and during travels Energy: Small scale and connected renewable energy systems Future ICT products Workplace: Virtual reality immersion through wearable technology E-health: Social robots, 3D bioprinting Food: Advanced soil and crop monitoring and management devices Challenges to address Data privacy and security for consumers Collection and processing of large volumes and complex e-wastes Issues related to mining operations and conflict minerals www.scp-centre.org Slide 22

Key findings Business models for sustainable living and consumption Need to shift business focus from production to consumption From optimising existing production processes towards enabling sustainable consumption Requires multi-disciplinary, multi-stakeholder approaches and long-term commitment ICT and consumers are key enablers for business models for sustainable consumption and living Trend will continue and deepen across sectors Opportunities for leapfrogging resource-intensive consumption developing and transition countries Create international learnings, but need for customised and localised solutions Linking with existing programs (e.g. EU funded SWITCH Asia Program on Sustainable Consumption and Production - http://www.switch-asia.eu/). Scaling up impacts and business models More focus needed on scaling up impacts through value creation (e.g. longer and shared use of products, product design and substitution, end-of-life) Need to carefully consider success factors for scaling up throughout process www.scp-centre.org Slide 23

Making ICT deliver sustainability - Co-design for sustainable living at G-STIC Cross-cutting theme 23-24 October 4 session Setting the Stage - ICT opportunities for sustainability across all sectors and SDGs From opportunity to impact: sustainable lifestyles enabled by ICT Private sector developing solutions for sustainability: hardware, software and connectivity Collaboration for results and accelerated implementation, testing/experiencing ICT sustainability innovation through Living Labs www.scp-centre.org Slide 24

Contact: Marco.vanderree@scp-centre.org www.scp-centre.org