Eco-efficiency

5. Eco-efficiency • ”Resource-Productivity & Ecoefficiency” Friedrich Hinterberger and Phillipp Schepelmann • ”Eco-efficiency, creating more value with less impact” World Business Council for Sustainable Development, 2000. • "Defining and Measuring Eco-efficiency" Livio D. Desimone and Frank Popoff

6. Resource-Productivity & Ecoefficiency Friedrich Hinterberger Philipp Schepelmann

7. Definition: • “Doing more with less” • “Securing development with minimized use of natural resources”.

8. Interpretation: • “A partial translation of ecological science into economic terms”.

9. Sustainable development can be achieved: • if economical growth is accompanied by an absolute reduction of material and energy (decoupling)

10. Relations between ”resource productivity” and ”work”: • Restructuring our economy and societies will lead to an increase in employment (e.g. in the construction, transport and service sector). • New jobs will be created in the ecological sector • But that is not enough…

11. Re-evaluation and re-distribution of labour are needed: • Priority for the creation of useful employment • Reduction of working hours • Introduction of a minimal per capita support • Shifting the tax burden from labour to resource use • Re-evaluation of labour in the informal sector (e.g. housewives)

12. These reforms would result in a strengthening of local and regional economies (regional supply) and the primary sector (resource- and food-production) • “In a sustainable society labour will contribute to quality of life.”

13. Comprehensive strategy in Sweden. • Meta – a societal consensus on the objective of sustainable development which encompasses competitiveness, social justice and ecoefficiency • Micro – ecologically oriented enterprises and consumers • Meso – the reform of economic institutions and networks • Macro – fiscal, monetary and distributional conditions

14. Meta – awareness-raising, capacity- and consensus building, stake-holder dialogue • Micro – indicators for small and medium sized enterprises (SME), financial sector, consumer behaviour • Meso - awareness-raising, sectorial targets, culture and tradition-building • Macro – ecological tax reform and other instruments, EMU, indicators

15. Eco-efficiencyCreating more value with less impact World Business Council for Sustainable Development

16. In simplest terms, eco-efficiency means creating more goods and services with ever less use of resources, waste and pollution.

17. What Does Eco-efficiency Mean? Many business leaders, inside and outside the WBCSD, often express eco-efficiency as creating more value with less impact or doing more with less . Academic experts and practitioners term eco-efficiency the synthesis of economic and environmental efficiency in parallel , where the prefix eco stands for both economy and ecology.

18. Eco-efficiency in the Broader Context Eco-efficiency is a concept with much to offer for many. It can be used for a variety of purposes and applied on various levels.

19. Eco-efficiency is a key concept for helping companies, individuals,governments and other organizations to become more sustainable. • eco-efficiency is not sufficient by itself because it integrates only two of sustainability’s three elements,economy and ecology, while leaving the third, social progress, outside its embrace.

20. BUSINESS 1.Reducing the consumption of resources 2.Reducing the impact on Nature 3.Increasing product or service value POLITICAL 1.Identifying and eliminating perverse subsidies 2.Internalizing environmental costs 3. Shifting tax from labor and profit to resource use and pollution 4. Developing and implementing economic instruments 5. Promoting voluntary initiatives and negotiated agreements The Business and Political Agenda

21. Problem Some claim that a relative increase in company eco-efficiency is not enough. Answer Eco-efficiency is much more about innovation and the need for change toward functional needs and service intensity, to contribute to de-coupling growth from resources. How Do the Skeptics of Eco-efficiency Argue?

22. Problem 2. There is also the claim that using fewer resources per unit of production fails to deliver progress toward sustainability if the number of units continues to increase faster than the gains in resource productivity. Answer 2. In our view, it is more important to opt for a different way of living that can offer a better quality of life and more welfare for all, while limiting the use of resource and pollution to acceptable levels.

23. Problem 3.It is also claimed that eco-efficiency will not work in poor economies because preventing pollution is too costly and requires legal enforcement and substantial financial help. • Answer 3.Companies can achieve big improvements in developing countries and countries in transition where resources were previously not used efficiently.

24. The Business Agenda How companies turn the challenge of sustainablity into business opportunities

25. Seven Elements to Eco-efficiency • Reducing the material requirements forgoods and services • Reducing the energy intensity of goods and services • Reducing toxic dispersion • Enhancing material recyclability • Maximising sustainable use ofrenewable resources • Extending product durability • Increasing the service intensity of goods and services

26. 5 Elements for corporate Eco-efficiency reports1 organization profile2 value profile3 environmental profile4 Eco-efficiency Rations5 methodological Information

27. Plastics from ELVs The cars themselves are built from recycled materials using production methods which minimize waste and emissions

28. The Political Agenda How Governments can make eco-efficiency work for Society

29. The Political Agenda for Eco-efficiency • Identify and eliminate perverse subsidies • Internalize environmental costs • Shift tax from labour and profit to resource use and pollution • Develop and implement economic instruments • Promote voluntary initiatives and negotiated agreements

30. Eco-efficiency and Macro-economic Development • Eco-efficiency is a leadership practice to meet the future needs of society and reach a competitive and innovative economy. • By quantifying eco-efficiency with macro-level indicators governments can measure progress on eco-efficiency targets. • Incentives can be used to reward eco-efficiency and guide innovation in the right direction.

31. Twelve Action points for an Eco-efficient future Governmental leaders and civil servants • Set macro-economic eco-efficiency targets and conversion criteria for sustainable development • Integrate policy measures to strengten eco-efficiency • Work toward changing international policy rules and systems for trade and financial transactions etc.

32. Civil society leaders and consumers • Encourage consumers to prefer eco-efficient, more sustainable products and services • Support political measures to create framework conditions wich reward eco-efficiency Educators • Include eco-efficiency and sustainability in high school and university curricula and build it into research and development programs

33. Financial analysts and investors • Recognize and reward eco-efficiency and sustainability as investment criteria • Help eco-efficienct companies and sustainability leaders to communicate their progress and related business benifits to financial markets • Promote and use assessment tools and sustainability ratings to support the markets and to help widen understanding of eco-efficiency benefits

34. Business leaders • Integrate eco-efficiency into their business strategy • Report company eco-efficiency and sustainability performance openly to stakeholders • Support policy measures which reward eco-efficiency

35. "Defining and Measuring Eco-efficiency" Livio D. Desimone and Frank Popoff

36. Eco-efficiency means doing more with less The definitions has five themes: • Emphasis on service • Focus on needs and quality of life. • Considerations of the entire product life cycle • Limits to a eco capacity • Process view

37. The WBCSD has outlined the following actions to implement eco-efficiency: • Reduce the material intensity of goods and service • Reduce the energy intensity of goods and services • Reduce toxic dispersion • Enhance material recyclability • Maximize sustainable use of renewable resources • Extend product durability • Increase the service intensity of goods and services

38. Measuring Eco-efficiency • It is difficult to measure it. • Eco-efficiency measures environmental effect. • It can be measured between economic output and environmental input.

39. Eco Capacity The eco-efficiency bottom line is to make profits within the eco- capacity. Eco capacity is difficult to calculate but it is clear that limits are being reached in many places.

40. Measuring methods There is not one original method to measure eco-efficiency. Some companies measuring procedures: • Nova Nordisk • Sony Europe • Volvo • Dow Europe

41. Nova Nordisk Novo nordisk uses in measuring eco-efficiency eco-productivity indices (EPI). It is described by this formula: This index expresses the resource consumption index in physical units. In this method Novo Nordisk has the highest level in utilizing the resource which was 1990.

42. Sony Europe For measuring eco-efficiency this company used comparing the resource productivity of three different batteries and to calculate the resource productivity used this figure: By using this Company comparied three different kind of chargeable and non-chargeable batteries for making desision which one is the best eco-efficient product. This procedure is like comparing ”apples and pears”.

43. Volvo In measuring eco-efficiency Volvo used an ”eco-point” method. It requisites the Environmental Priority Strategies (EPS) system. With help of eco-point this company compared and chose one which is more eco-efficient. Eco-points were calculated for production, using product and product disposal at end of life for each material and results were been compared.

44. Dow Europe Dow Europé uses for measuring eco-efficiency “eco-compass” method. This method marks products in six level and compares them. 0.performance per functional unit decreases by 50%or more 1.performance per functional unit decreases by up to 50% 2.no significant variation from the base case 3.up to 100% change for the better per functional unit 4.up to 300% grow in performance per functional unit 5.more than 300% increase in performance per functional unit

45. Actions to implement eco-efficiency • Reduce the material intensity of goods and services • Reduce the energy intensity of goods and services

46. Actions to implement eco-efficiency • Reduce toxic dispersion • Enhance material recyclability • Maximize sustainable use of renewable resources

47. Actions to implement eco-efficiency • Extend product durability • Increase the service intensity of goods and services