Sustainability Using
The Natural Step Framework
January 23, 2008
Agenda
The Fundamentals of The Natural Step
• Bob Willard: The Business Case for Sustainability
• Sustainability Overview
• Science & the Natural Step Framework
• Case studies
Applying The Natural Step
• Guest Speaker
• Exercise: How to develop a sustainability plan
• Taking the Natural Step back to your organization
Green vs. Sustainability
Green
Sustainability
• Detail focused
• Whole systems focus
• Tactical
• Strategic
• Ecological
• Triple bottom line
• Focus on being less “bad”
• Focus on aligning with
nature’s cyclical processes
• Lacks common definition of
success
• Capable of defining success
Living Planet Report 2006, WWF
US Fishing Landings: 1830 - 1990
http://www.st.nmfs.gov/st1/econ/oleo/chap2.pdf
Species Extinction
“Approximately 20-30% of plant and animal species … are likely
to be at increased risk of extinction if increases in global average
temperature exceed 2.5-4.5oF” – UN IPPC Report 4-6-07
Global Perspective
Decline in Life Supporting Resources
Margin for Action
Population x Affluence x Technology
?
Path to Sustainability
Origins of The Natural Step
The Character of Environmental Problems
has changed:
Local
Global
Few Large Sources
Diffuse
Short Time Delay
Long Time Delay
Low Complexity
High Complexity
A Systems Perspective Emphasizes:
• Focusing "upstream"
• Principles rather than details
• Shared framework and a common language
• Unalterable system conditions
Basic Science
•
Matter and energy do not disappear
•
Matter and energy tend to disperse
•
Value of matter is in its concentration and structure
•
Photosynthesis is principal process by which net order is produced
Earth as a System
Open System
with respect to
energy
Closed System
with respect to
matter
“Photosynthesis pays
the bills”
Slow geological
cycles - materials
from the Earth’s
crust
1) Nothing disappears
2) Everything disperses
Sustainability is
about the ability of
these cycles to run
forever.
How we influence cycles
Physically inhibit
ability of nature to
run cycles
3
Barriers to people
meeting their
basic needs
worldwide
4
1
Relatively large flows
of materials from the
Earth’s crust
2
Introduce persistent
compounds foreign
to nature
Sustainability defined: The four System Conditions
In a sustainable society, nature is not subject to systematically increasing:
1
Concentrations of substances
extracted from the earth's crust
2
Concentrations of substances
produced by society
3
Degradation by physical means
and, in that society, people are not
subject to
4
Conditions that systematically
undermine their capacity to meet their
needs.
System Condition #1
In a sustainable society, nature is not subject to
systematically increasing
… concentrations of substances extracted from the
earth’s crust.
System Condition #2
HALOGENATED
COMPOUNDS
chlorodifluoromethane
chlorotrifluoromethane
dichlorofluoromethane
chloromethane
trichlorofluoromethane
dichloroethylene
Freon 113
methylene chloride
chloroform
1,1,1 – trichloroethane
carbon tetrachloride
trichloroethylene
chloropentane
chlorobenzene
iodopentane
3-methyl-1-iodobutance
chloroethylbenzene
dibromodichloromethane
dichlorobenzene
chlorodecane
trichlorobenzene
ALDEHYDES
acetaldehyde
methyl propanal
n-butantal
methylbutanal
crotoaldehyde
n-penanal
n-hexanal
furaldehyde
n-heptanal
benzaldehyde
n-octanal
phenyl acetaldehyde
n-nonanal
methyl furaldehyde
n-decanal
n-undecanal
n-dodecanal
KETONES
acetone
methyl ethyl ketone
methyl propyl ketone
methyl vinyl ketone
ethyl vinyl ketone
2-pentanone
methyl pentanone
methyl hydrofuranone
2-methyl-3-hexanone
4-heptaonone
3-heptaonone
2- heptaonone
methyl heptaonone
furyl methyl ketone
octanone
acetaphenone
2-nonanone
2-decananone
alkylated lactone
phthalide
OXYGENATED ISOMERS
C4H6O
C4H8O
C5H10 O
C4H6O2
C6H12 O
C7H10 O
C7H14 O2
C6H6O2
C6H14 O2
C6H16 O
C7H8O2
C7H10 O2
C9H18 O
C8H6O2
C10H12 O2
C10H14 O
C10H16 O
C10H18 O
C10H20 O
C10H22 O
C9H8O2
In a sustainable society, nature is not subject to
systematically increasing
C11H20 O
ALCOHOLS
methanol
isoproponal
2-methyl-2-propanol
n-proponal
1-butanol
1-pentanol
x-furfuryl alcohol
2-ethyl-1-hexanol phenol
2,2,4-trimethylpenta-1,3-diol
x-terpineol
ACIDS
acetic acid
decanonic acid
SULFUR COMPOUNDS
sulfur dioxide
carbon disulfide
dimethyl disulfide
carbonyl sulfide
NITROGEN COMPOUNDS
nitromethane
methyl acetamide
benzonitrile
methyl cinnoline
ESTERS
vinyl propionate
ethyl acetate
… concentrations of substances produced by society.
HALOGENATED
COMPOUNDS
chlorodifluoromethane
chlorotrifluoromethane
dichlorofluoromethane
chloromethane
trichlorofluoromethane
dichloroethylene
Freon 113
methylene chloride
chloroform
1,1,1 – trichloroethane
carbon tetrachloride
trichloroethylene
chloropentane
chlorobenzene
iodopentane
3-methyl-1-iodobutance
chloroethylbenzene
dibromodichloromethane
dichlorobenzene
chlorodecane
trichlorobenzene
ALDEHYDES
acetaldehyde
methyl propanal
n-butantal
methylbutanal
crotoaldehyde
n-penanal
n-hexanal
furaldehyde
n-heptanal
benzaldehyde
n-octanal
phenyl acetaldehyde
n-nonanal
methyl furaldehyde
n-decanal
n-undecanal
n-dodecanal
KETONES
acetone
methyl ethyl ketone
methyl propyl ketone
methyl vinyl ketone
ethyl vinyl ketone
2-pentanone
methyl pentanone
methyl hydrofuranone
2-methyl-3-hexanone
4-heptaonone
3-heptaonone
2- heptaonone
methyl heptaonone
furyl methyl ketone
octanone
acetaphenone
2-nonanone
2-decananone
alkylated lactone
phthalide
OXYGENATED ISOMERS
C4H6O
C4H8O
C5H10 O
C4H6O2
C6H12 O
C7H10 O
C7H14 O2
C6H6O2
C6H14 O2
C6H16 O
C7H8O2
C7H10 O2
C9H18 O
C8H6O2
C10H12 O2
C10H14 O
C10H16 O
C10H18 O
C10H20 O
C10H22 O
C9H8O2
C11H20 O
ALCOHOLS
methanol
isoproponal
2-methyl-2-propanol
n-proponal
1-butanol
1-pentanol
x-furfuryl alcohol
2-ethyl-1-hexanol phenol
2,2,4-trimethylpenta-1,3diol
x-terpineol
ACIDS
acetic acid
decanonic acid
SULFUR COMPOUNDS
sulfur dioxide
carbon disulfide
dimethyl disulfide
carbonyl sulfide
NITROGEN
COMPOUNDS
nitromethane
methyl acetamide
benzonitrile
methyl cinnoline
ESTERS
vinyl propionate
ethyl acetate
ethyl-n-caproate
isoamyl formate
ETHERS
dimethyl ether
dihydropyran
EPOXIDE
Chemicals found in Mother’s Milk
System Condition #3
In a sustainable society, nature is not subject to
systematically increasing
… degradation by physical means
System Condition # 4
In a sustainable society
people are not subject to conditions that systematically
undermine their capacity to meet their needs .
environment
society
economy
What is the purpose of business?
• “Business that focuses just on money doesn’t invest in
the future -- in its employees, new ideas, markets or
products -- and won’t be around for long. Any successful
business is part of society, and exists to meet society’s
needs.”
– Sir John Browne, Group Chief Executive, B.P.
Meeting Human Needs
Subsistence
Identity
Creation
Idleness
Participation
Freedom
Affection
Protection
Understanding
Human Scale Development,
Manfred Max-Neef
How can a business be socially sustainable?
Start with the basics:
• The Golden Rule: “Do unto others as you would have them do
unto you”.
• Make decisions with: Participation, Transparency,
Accountability, Honesty.
Examples
•
TerraClean – special rates for employees’ children's day-care centers
•
Doubletree - Tri-Met Passes for all employees
•
SERA Architects – ESOP, PTO in exchange for all transportation
benefits
•
Portland Roasting – Farm Friendly Direct program buying coffee
directly from farmers and investing in community
•
New Seasons – Neighborhood hiring and support, health benefits for
family including partners
•
Rejuvenation – ESL support, paid service days, Katrina project,
interest free loan to support home buying
Specific opportunities
We will never learn to take
care of nature until we learn
to take care of each other.
Four System Conditions
In a sustainable society, nature is not subject to systematically
increasing…
1. … concentrations of substances extracted from the
earth’s crust;
2. … concentrations of substances produced by society;
3. … degradation by physical means;
and in that society,
4. people are not subject to conditions that systematically
undermine their capacity to meet their needs .
How many pounds of material does it take to make
one laptop computer?
40,000 pounds or 20 tons
- Paul Hawken
• Ecological - species, atmosphere, oceans, land ,water
• Health of workers, society, self
• Competition, prices, shortages, insurance
• Customer pressure, boycotts, bad publicity
• Social stigmas, recruiting problems
• Governments regulations, standards
Capacity
Demand
Hitting the Wall
Interface, Inc.
• World’s largest commercial floor covering company
• First U.S. company to adopt TNS principles
• “Mission Zero” - eliminate negative impact by 2020
• Finance long term investments with short term savings
Interface
- from Interface web site
Interface - Seven Steps to Sustainability
1.
Eliminate waste
2.
Eliminate toxic emissions
3.
Use renewable energy
4.
Close the loop: create circular material flows
5.
Resource efficient transportation
6.
Sensitivity hookup: educate local community
7.
Redesign commerce: Evergreen Lease
Collins Pine
• NW forest products firm founded in 1855
• Long history of sustainable forestry practices
• Trained 600 Klamath Falls employees
• Using TNS principles for all capital purchases
Materials
P
E
T
Water
Air
WET
CAT
JAT
Recycle PP & DT
Energy
E-Team
JTS
Teams
Adopt a-Hwy.
Community
Product
Waste
Hot Lips Pizza
• Small Portland company - five stores
• Looking for distinctive market position
• Focused on sustainability & TNS
• Cut electric bill by 50%
• Changing to seasonal menu
• Benefits: financial, employees,
customers
Hot Lips Pizza
2004 BEST Award - Small Business Innovation
QuickTime™ and a
Graphics decompressor
are needed to see this picture.
QuickTime™ and a
Graphics decompressor
are needed to see this picture.
Whistler, B.C.
• International ski resort
• Effective community diffusion
– Early Adopters
– Supported by business, government and nonprofit
– Community Roll Out
• Whistler 2020 Sustainability Plan
– Goal to be fully sustainable by 2060
– Move toward 100% renewable energy & zero waste
– Provide affordable local housing to 75% of work force
• Won award as “… one of the most liveable communities and best
in the world in planning for the future.” (Nov 2005)‫‏‬
U.S. Army
Sustainability
Strategy
A
Sustainability Planning Process
Defensive
Enterprise
Restoration
Backcasting
Strategic
Enterprise
D
C
B
A-B-C-D Analysis
Sustainability Planning Process
A - Awareness
What do you know about sustainability and why it
matters?
B - Baseline Mapping
What does your organization look like today?
C - Clear and Compelling Vision
What does your organization look like in a sustainable
society?
D - Down to action
How will you manage and prioritize steps to sustainability?
Sustainability Analysis of Water Bottle
Sustainability Analysis of Water Bottle
SC1 – petroleum based
SC2 – traces of arsenic, phthalates, trihalomethane
SC3 – “mined” water removed from natural water cycle
SC4 – priced higher than gasoline
Sustainable Water – Alignment with Natural Step
Goal: Everyone has potable water where and when they need it
Four System Conditions
In a sustainable society, nature is not subject to systematically
increasing…
1. … concentrations of substances extracted from the
earth’s crust;
2. … concentrations of substances produced by society;
3. … degradation by physical means;
and in that society,
4. people are not subject to conditions that systematically
undermine their capacity to meet their needs .
Which sustainability tools should I use?
• Natural Step
• Zero Waste
• Triple bottom line
• Factor X
• Cradle-to-cradle
• Eco-footprint
• Natural Capitalism
• Life Cycle Assessment
• Precautionary principle
• Environmental
Management Systems –
ISO14001, EMAS, SMS
Five Level Model
Game of Chess
1. Systems Level
Chessboard, rules of the game
2. Success Level
Capturing King - Checkmate
3. Strategy Level
Strategies for opening, middle and end game
4. Action Level
Tactics for moving pieces
5. Tools Level
Books, classes, computer programs
Five Level Model
1. Systems Level
Sustainability
Nature’s laws & science
Social and economic principles
2. Success Level
TNS system conditions + profit
(Triple Bottom Line)‫‏‬
3. Strategy Level
Natural Capitalism, Cradle-to-Cradle
4. Action Level
Recycling, biofuels, organic farming, etc.
5. Tools Level
EMS/SMS, LCA, Eco-Footprint, LEED
A
Sustainability Planning Process
Restoration
Backcasting
D
C
B
A-B-C-D Analysis
Sustainability Objectives
To eliminate your organization’s contribution …
1. … to systematic increases in concentrations of
substances extracted from the earth’s crust;
•
… to systematic increases in concentrations of
substances produced by society;
1. … to the physical degradation of nature;
1. … to conditions that undermine people’s ability to
meet their needs .
Consensus Sustainability Goals
• Zero net increase of carbon emissions (carbon neutral) – SC#1
• Energy sources are 100% renewable – SC#1
• Zero discharge of persistent bio-accumulative toxins (PBTs) – SC#2
• Zero loss of biodiversity and productive natural systems – SC#3
• Zero waste – SC#4
• Support people's abilities to meet their needs - SC#4
Sustainability Strategies
• Dematerialize: Shift business model from matter to service
• Favor the substitution of biological materials where possible
• Radically increase efficiency
• Design closed-loop systems
• Invest in ecosystem infrastructure
From Natural Capitalism
Direct Action Questions
•
Right Direction: Are we taking measures that lead
toward overall success?
•
Does it move toward eliminating a violation?
•
Are tradeoffs involved?
Direct Action Questions
•
Flexible Platform: Are we taking measures that can be
further developed as future options become clearer?
•
Are future sustainability options still available or is
this a dead end?
•
Is the sunk cost of this option a barrier to switching
later?
•
Key question: What Next?
Direct Action Questions
•
Return on Investment: Are we taking measures that
provide adequate levels of financial return?
•
What are the direct costs of this action?
•
What direct savings or increased revenues might
accrue?
•
What risks are there of not taking this action?
•
What intangible benefits/capital will this action
provide? (Image, recruitment, community good will,
etc.)‫‏‬
D – Direct Action
• Right Direction: Are we taking measures that lead
toward overall success?
• Flexible Platform: Are we taking measures that can be
further developed as future options become clearer?
• Return on Investment: Are we taking measures that
provide adequate levels of financial return?
Making Trade Offs
Vs.
Compact fluorescent
Incandescent
CFLs last
longer
CFLs cost more
Compact Fluorescent
Lightbulbs (CFLs)
save energy
CFLs have mercury
that can build up
Making Trade Offs
Vs.
Compact fluorescent
Incandescent
“A more creative methodology than
to trying to estimate if the impacts
outweigh the benefit is to start the
planning process from a point where
the trade-offs don’t exist.”
Russel Johnsson, Head of
Environmental Affairs, IKEA
IKEA Analysis
1. Does the decision move toward sustainability?
Improve?
SC#1
SC#2
SC#3
SC#4
Systematically
reduces dependence
on energy derived
from a mixture of
nuclear (i.e.
Systematically
reduces
concentrations of
persistent
compounds for
refining uranium and
fossil fuels.
Reduce
encroachment on
land for new power
infrastructure, and
mining of uranium
and fossil fuels.
Improves energy
efficiency that
reduces need for
extra power plants
and capital costs.
Increase
encroachment on
land for mining
mercury.
Economic barrier to
some people because
CFL lights are more
expensive.
uranium) and fossil
fuels (i.e. carbon,
sulfur, mercury).
Also, nuclear waste
is created as a
product of nuclear
energy production.
Trade-off?
Systematically
increases flow of
mercury if light
bulbs not disposed of
properly.
IKEA Analysis
2. Does this initiative provide a stepping-stone
toward sustainability?
– Seek vendors with lowest mercury content
– Set up mercury recycling program
– Use strong market presence to educate public on CFL benefits,
create higher demand
3. Does this initiative provide a sufficient return to seed
future investments?
– Life cycle costs are lower with CFL
– Costs come down as volume increases
IKEA Example
• Created criteria that exceeded EU eco-labelling scheme
• Found Chinese producer that was competitive on price,
performance, and exceeded efficiency and mercury
requirements.
• Prices cuts for 11W CFLs
• Cooperation with Swedish NGO on education campaign on
energy (and cost) savings.
• Advertise in all major newspapers a free give-away of CFLs for
two week period (600,000 were given away)‫‏‬
• Cooperation with Swedish NGO on review of manufacturing
practices. Documented on video and made available in stores
• Free take-back of all mercury containing light sources.
• Contracted recycler to capture mercury where 98 to 99
percent is recovered.
Strategies for Success
• Create a sustainability team
• Get management and staff actively
involved
• Start small with quick wins
• Publicize successes
• Budget time and money to support
the effort
• Ultimately build into business
planning
Lessons Learned
• Importance of a solid framework - shared mental model
• Key to success – Backcasting from a vision of a fully
sustainable system
• Collaboration – built on consensus, no “enemies”
• Patience - Natural Step, not Natural Leap