13th Greening of Industry Network Conference, June 15-17, Waterloo, Ontario, Canada Leo Baas, Erasmus University Rotte

1. 13th Greening of Industry Network Conference, June 15-17, Waterloo, Ontario, CanadaLeo Baas, Erasmus University Rotterdam Industrial Ecology as Regional Corporate Sustainability System

2. Activities and product groups that cause 70 to 80% of the total environmental impacts in society • Mobility: automobile and air transport • Food: meat and dairy, followed by other types of food • The home, and related energy use: buildings, and heating-, cooling-, and other energy using appliances JIE 10:3

3. Global trends in environment related issues within multi-national corporations • Cleaner Production (ecology, economy) • Industrial Ecology (ecology, economy) • Corporate Social Responsibility (ecology, economy, social aspects)

4. CONCEPT INNOVATION CULTURE STRUCTURE/ PROCESS Idea Diffusion Outcome Cleaner Production Industrial Ecology Market Companies Government Experts Citizens Existing Routines New Practices Sustainable Management Internalised Concepts New Routines Transition Transition processes: from Idea to New Routines

5. Concepts on Different Levels

6. Rotterdam Industrial Symbiosis • INES Project 1994-1997 (INdustrial EcoSystem) • INES Mainport Project 1999-2002 • R3: Sustainable Enterprises 2003-2010

7. Rotterdam Industrial Symbiosis Aim of Industrial Symbiosis Activities in the Rotterdam Harbor and Industry Complex The decoupling of economic growth and environmental pollution, the closing of loops between companies, the optimizing of energy streams, the joint use of facilities, and co-siting

8. Rotterdam Industrial Symbiosis Joint facilitation of Staff Organisation for the Strategy Platform R3 – Sustainable Enterprises in the Rotterdam Harbour and Industry Complex - as Strong Network of Stakeholders from: • Industry • National and Local Government • Academia • Special Task groups • Environmental Advocacy Organisation

9. Co-siting at the Huntsman site

10. Rotterdam Industrial Symbiosis Waste heat (from Shell, later others): • District heating: agreement in December 2004: Construction infra-structure in 2005/2006 3000 houses in 2007 500,000 houses in 2020 • Heat and CO2: From Shell refinery to 400 Greenhouses from July 2005

11. R3 Rest Heat Infrastructure

12. Embeddedness • Human activities are embedded: they are shaped by the context in which they occur • Five dimensions of embeddedness: Cognitive, Cultural, Structural, Political, Spatial & Temporal

13. Cognitive embeddedness • The way in which individuals and organisations collect and use information • The cognitive maps they employ in making sense of their environment • The mental disposition of individuals

14. Cognitive embeddedness II • Bounded rationality: Assumption of a rational actor model, however, individuals and organisations have limited capacities for information processing and decision-making • Systems thinking: Individuals have different strategies for problem solving • Characteristics ofchange agents: Relation to social change processes

15. Spatial and temporal embeddedness • The way in which geographical proximity (learning, building trust) and time (evolution of industrial systems) influence economic action

16. Transformation Equality Reform Status quo Inequality Eco-centered Techno-centered Virtually none Phases to sustainable development Sustainability CP IE

17. Cluster Capabilities • Technical capability: The ability to mobilise and apply knowledge related to diminishing the ecological impact of existing production and consumption processes, and the development of more sustainable products and services • Value capability: The ability to integrate the concerns around the sustainability values of industrial activities

18. Cluster Capabilities • Boundary capability: The ability to look at activities in terms of the selection of an optimal system boundary by actors when they develop Sustainability goals and form clusters • Actualisation capability: Given the selection of a system boundary, actors need to be able to mobilise the players that are part of the present or envisioned future system

19. Cluster Capabilities • Trust capability: This capability refers to the ability to build up, and be part of inter-organisational relationships based on trust • Regulatory capability: This capability refers to the ability of organisations to shape regulations in such a way that they contribute to the cluster’s goals • Unlearning capability: Learning processes within clusters include unlearning processes: the questioning and shedding of institutionalised routines that provide a barrier to collaborative approaches to sustainable development

20. Three levels of analysis • At the organisational level, it focuses on how the organising principles of the firm shape the social structure of co-ordination, and the behavioural routines and work roles of the organisational members within which the knowledge of the firm is embedded • At the regional level, it focuses on how the actors from governments, industry and stakeholders are embedded in institutionalised routines • At the societal level, it draws attention to the way societal institutions shape organisational routines and co-ordination rules.

21. Trust Influencing forms of sustainability in: * Society * Individual organisations * Networks of organisations Mission Strategic platform Vision Sustainability Transition Learning processes Reflection Projects System innovations * Space * Water * Mobility * Energy * Air * By-products Uncertainty Time Reflective learning from projects to system innovations

22. Rotterdam Industrial Symbiosis `To C or not to C’ Sustainability Routes: • Fuels & Resources: bio mass, syngaz, wind, H2 • Infrastructure: rest heat use, warmth infra- structure, clean fossil (CO2 removal) • Industrial ecology: co-siting, continuous design, stimulation and application of innovative and efficient production processes

23. Maasvlakte2 on Industrial Ecology basis • Industrial Ecology as attractor for industry • Industrial cluster of Maasvlakte2

24. Rotterdam Industrial Symbiosis • Spontaneous developments: • Heat delivery from a chemical company to a truck cleaning company • Happy Shrimp farm • Outsourcing utilities in a new plant

25. Happy Shrimp farm Two young Professionals at the Rotterdam Port Authority: • Sensitive for concept in 2003 • Feasibility study in 2004 • Business plan in 2005 • Decision-making process IS and location: 2005-06 • Opening plant at 2 September 2006 • Start breeding process in March 2007 • First batch fresh king-size shrimps in September 2007

26. Green & Blue Green and Blue Sustainable farming of sea vegetables Taste of Nature, Koppert Cress, Bass & Gill, Happy Shrimp Farm

27. System concept O2 Sunlight CO2 & NOx Biofuel Airlift system Farm-water media Water & heat Waste heat

28. Rotterdam Industrial Symbiosis The clock for social change needs time • Acknowledgement: Evaluation INES projects • Vision: Transition to Sustainable industrial district • Trust: Goodwill and Competence built up on dialogues in Strategy platform • Long term programme: ROM Rijnmond programme 1993 – 2010: transition on the basis of reflexive evaluation of sustainability projects in practice

29. It Takes a System to Change a System • A comprehensive organisational support and involvement, including stakeholders’ participation • Multi-loop learning processes • Vertical and horizontal integration • The implementation of industrial ecology should be integrated within the economy, ecology, technology, culture, and sustainability plans of the region • Trust, transparency and confidence must be developed through an open, reflective and on-going dialogue designed to ensure involvement of stakeholders in charting the future of their organisations and regions as part of the transition to sustainable societies

30. Do not miss the point!

32. Nothing is more practical than a good theory!