Sustainability through Risk Assessment: A Case Study in Resource Risk

1. SustainabilitythroughRisk Assessment A Case Study in Resource Risk > Author: Gaya Gamage Supervised by: Dr. Carol Boyle 24 February, 2007

2. CONTENT > • Introduction to research concept • Formway Furniture Ltd. • Issues with concept of sustainability • Reason for research • Proposed solution • Case study research • Aim and objective • Methodology • Results • Future work

3. FORMWAY FURNITURE >

4. CONCEPT > SUSTAINABILITY Traditional Sustainable development: • “Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: • The concept of needs, in particular the essential needs of the world's poor, to which overriding priority should be given; and • The idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and future needs.” (WCED, 1987, p. 43) • Concepts in definition: • Needs • Continuity • Ethical (environmental, social, etc.) responsibility

5. CONCEPT > SUSTAINABILITY OF SYSTEM Traditional Sustainable development Concepts in definition: • Needs • Continuity • Ethical (environmental, social, etc.) responsibility Sustainability for Production system: • To provide for the needs of the system; • To ensure the continuation of the system by allowing the supply of those needs to be met; while • Ensuring the system does not have detrimental effects on environment, society, economy, etc.

6. PROBLEM > Problem • Difficult to operationalise sustainability • Difficult to determine if in fact a process, product or system is functioning ‘sustainably’. • Difficult to prevent ‘unsustainability’ through focussing on sustainability unless the process, product or system fails, thereby showing that it was unsustainable. • Potential solution • Assume that any action that ultimately prevents the continuation of the process, product or system is unsustainable. • Determine when and how the process, product or system would become unsustainable and take appropriate actions.

7. REASON FOR STUDY > OBJECTIVE • We have: • Definition for sustainable development • Past experience • Vision for the future • We don’t have • Means to operationalise concept • Means to determine whether a process is sustainable or not (until failure) • We need: • Means to determine if a process is developing sustainably, so as to prevent unsustainable practices that can lead to system collapse

8. THE BIGGER PICTURE > TOOLS • Life Cycle Assessment • Risk Assessment • Environmental and Sustainability Assessment • To a large extent, risk assessment and sustainable development both serve the same purpose: to ensure continuation whilst minimising adverse effects. • No theoretical link between environmental assessment, sustainability assessment and the more practical and more widely accepted risk management theory • Hence a framework integrating the selected tools would be beneficial

9. Risk Sustainability Assessment Environment Society Production system Economy Opportunity Company CONCEPT > LCA

10. RESEARCH > METHODOLOGY > CASE STUDY Case study X Sustainability Assessment Framework Identify needs Sustainability scoring system to score significance Temporal Evaluate significance (probability and consequence) Identify risk to resource inputs Spatial Develop risk management strategy Case study results and tested framework

11. LCA Risk Assessment RA-sustainability interface METHODOLOGY > SUSTAINABILITY ASSESSMENT FRAMEWORK Identify needs Sustainability scoring system to score significance Temporal Evaluate significance (probability and consequence) Identify risk to resource inputs Spatial

12. Raw Material extraction Landfill production of components Re-use & recycle Assembly of components In-use Packaging LIFE CYCLE ASSESSMENT (LCA) > WHAT IS IT? • Assessing the environmental impacts; • Build an inventory of inputs and outputs; • Make a qualitative and quantitative evaluation; • Identify the most significant aspects. Source: (International Standards Organisation (ISO))

13. + RISK AND RISK ASSESSMENT > Risk is the possibility of loss, damage, or any other undesirable event. “The combination of the sum of the probabilities of risk events and their consequences”(Burton and Pushchak, 1984). • Issue with risk • Negativity • Uncertainty • Can risk be used as a good measure of sustainability?

14. Communicate and consult Monitor and review Establish the context Identify risks Analyze risks Evaluate risks Yes Accept Assess risks No Treat risks RISK ASSESSMENT AND MANAGEMENT> Source: (AS/NZS 4360:2004)

15. CASE STUDY > FORMWAY PRODUCT: SCREENS • Purpose of screen: To provide a barrier between workspaces to enable privacy in order to maximize productivity during tasks • MCC: screen made from steel frame and polyester panel • Dimensions: 1500 x 1000 (cm)

16. CASE STUDY > FORMWAY PRODUCT: SCREENS • GRID 2– updated version of GRID screens made from aluminium frame and polyester panel • Dimensions: 1500 x 1000 (cm)

17. SCOPE OF STUDY > • LCA used to determine raw materials of significance • All materials considered are from virgin sources (i.e. no recycled content); • The products contain a number of steel and plastic fasteners that were excluded from the study due to their negligible percentage weight as compared to the other materials; and • Component production processes were excluded from the study • Risk Assessment to determine the level of risk to the production system • Risk identification • Risk evaluation

18. LCA > SINGLE SCORE RESULTS • Raw materials of significance from LCI include: • Fossil fuels (energy, coal for steel making) • Bauxite (for aluminium making) • Iron (for steel making)

19. RISK ASSESSMENT > IDENTIFICATION

20. RISK ASSESSMENT > IDENTIFICATION

21. RISK ASSESSMENT > IDENTIFICATION

22. NEXT STEPS > • Risk evaluation • Need to determine analysis criteria • Draw up a risk matrix per resource taking into account the spatial and temporal aspects of the risks identified. • Risk – Sustainability interface • Need to develop a scoring system that will turn the risk evaluation into appropriate sustainability scores • Develop a simple tool that will allow scoring using Excel/VB

23. EXPECTED OUTCOMES > • Identification of needs to a system, with particular respect to the office furniture manufacturing industry; • Identification of critical opportunity/risk to the furniture production system leading to system success/collapse; • Development of a conceptual framework/methodology to identify opportunity/risk to system success/collapse; • Development of a tool for the application of the conceptual framework for sustainability assessment; • Case study results on application of the methodology and tool in the office furniture industry (based in New Zealand); and • Recommendations on addressing and managing some of the risks to the system.

24. Questions?