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ManagingaCompanyintheComingGreenEconomyEdwardClarence-SmithUNIDORepresentativeChina,DPRK,Mongolia21June2010第一页,共四十二页。TheGreenEconomyiscomingPresidentHuJintao,atUNGeneralAssembly,Sept.2009“Wewillstepupoureffortstodevelopagreeneconomyandlowcarboneconomy”PremierWenJiaobei,commentingFifthChina-EUBusinessSummit,Nov.2009“WeagreedthatiftheChina-EUComprehensiveStrategicPartnershipistomoveforward,itshouldbeanchoredonafoundationofeconomiccooperation,behi-techdriven,andmakegreeneconomyapriority.”

VicePremierLiKeqiang,atInternationalConferenceonGreenEconomyandClimateChange,May2010“TheChinesegovernmentattachesgreatimportancetothedevelopmentofgreeneconomyandcopingwithclimatechange.”第二页,共四十二页。Today’sPresentationWhydoweneedaGreenEconomy?WhatwouldaGreenEconomylooklike?ManagingaCompanyinaGreenEconomy第三页,共四十二页。Development-GlobalPoliticalContextDevelopingcountrieswanttodevelop.Puttingitverysimply,theywanttobecomeliketheUS,likeEurope,likeJapan.第四页,共四十二页。5IndustrializationisKeyDevelopmentisonlygoingtohappenthroughindustrialization.Thatishowthe“rich”countriesdeveloped,andnoonehascomeupwithadifferentwayofdoingit.BUTthatcreatesaproblem!第五页,共四十二页。EcologicalFootprint–AnIntroductionOureconomiesneedtheplanetfortwothings:Asthesourceofthematerialresourcesweconsume(crops,animals,cleanwater,coal,oil,minerals,landforbuilding,…)Astheplacewhereallthewasteandpollutionwegenerategetsbrokendown,absorbed,andmadeharmless.“EcologicalFootprint”isameasure,inhectaresperperson,oftheamountofbiologicallyproductivelandandseaareaweneedtoregeneratetheresourcesweconsumeandtoabsorbandmakeharmlessthewasteandpollutionwegenerate.第六页,共四十二页。7EcologicalfootprintofdifferentnationsSource:Factor5第七页,共四十二页。AGrimFutureContinuingthesegrowthtrendsissimplyunsus-tainable.EcologicalFootprint:IfeveryonelivedlikedEuropeans,ourecologicalfootprintwouldbe~5hectares/person.Thatwouldneed2.5Planets!IfeveryonelivedlikedAmericans,ourecologicalfootprintwouldbe~10hectares/person.Thatwouldneed4.5Planets!!!Theplanetwillcollapse,andsowillwe.第八页,共四十二页。TheUnderlyingProblemDevelopmentistoomuchseenasimproving/maintaininganECONOMICstandardofliving.Thismeansconsuminglargeamountsofresources.Butdevelopmentshouldbemuchbroader:personal,social,cultural,political,…ItshouldbeaboutincreasingourQualityofLife第九页,共四十二页。QualityofLife:HumanDevelopmentIndexHumanDevelopmentIndex(HDI):acompositestatisticusedtorankcountriesbylevelof“humandevelopment”.HDIiscomposedfromdataon:Lifeexpectancyatbirth(indicatorofpopulationhealthandlongevity)Adultliteracyrateandenrollmentratesinprimary,secondary,andtertiaryeducationalinstitutions(indicatorofknowledgeandeducation)PercapitaGDP(indicatorofeconomicstandardofliving)第十页,共四十二页。11HumanDevelopmentIndexandEcologicalFootprintofNationsSource:GlobalFootprintNetworkandWWF2006GreenEconomy第十一页,共四十二页。TheChallengefortheDevelopingCountriesdecreasetheecologicalfootprintincreasethequalityoflifeEconomicgrowthGreenEconomyshould:

第十二页,共四十二页。TheChallengeoftheFuturedecreasetheecologicalfootprintincreasethequalityoflifeEconomicgrowthSowhatdoesthismeanforacompany?GreenEconomyshould:

第十三页,共四十二页。ThechallengeforCompaniesReducetheecologicalfootprintoftheirfactories;Reducetheecologicalfootprintoftheirproducts;Improvethequalityoflifeoftheircustomers;Improvethequalityoflifeoftheiremployees;Improvethequalityoflifeofthecommunitiesinwhichtheyarelocated.Today,focusontheecologicalfootprintaspects第十四页,共四十二页。ReducingtheEcologicalFootprint:

TwosetsofstrategicoptionsAcompanycanchangeitsbusinessmodeltosellgreenproducts/offergreenservices:“GreenIndustries”.

Itcankeepondoingwhatit’sdoingbutdoitinagreenerway:ThroughitsproductsAttheprocesslevel(inthefactory)Beyondthecompany=>“GreeningofIndustries”15第十五页,共四十二页。Twosetsofstrategicoptions:

CreateGreenIndustriesGreenExistingIndustries16第十六页,共四十二页。HugeNumberofOpportunities-1Companiescanstartmanufacturinggreentechnologiesandproducts:Renewableenergy:wind,solarthermal,photovoltaic,hydroelectric,biomass,geothermal,tidal,hydrogen,smartgrids,….EquipmentandproductstoimproveenergyandmaterialsefficiencyWater:watertreatmentandpurification,moreefficientuseofwater,…Transport:electriccars,hydrogen-fueledcars,fasttrains,planesusingbiofuels,…Wasteandpollution:technologiesforrecyclingortreatingwasteandpollution第十七页,共四十二页。HugeNumberofOpportunities-2Companiescanstartofferinggreenservices:Wastecollectorsandtransporters;Eco-designfirms:designfirmsthatspecializeindesigningproductsfromanenvironmentalpointofview;ESCOs:companiesthatmanageotherorganization’senergyforthem;Environmentalconsultants;Laboratoriesthatspecializeinenvironmentalmeasurementandanalysis….第十八页,共四十二页。Twosetsofstrategicoptions:

CreateGreenIndustriesGreenExistingIndustriesThroughproductsAttheprocesslevel(inthefactory)Beyondthecompany19第十九页,共四十二页。Throughproducts-goodsRedesignyourgoodssothat:Theycanbemadewiththeleastamountofmaterials(“dematerialization”);Theyconsumetheleastamountofmaterialsandenergyduringuse(“lifecycleanalysis”);Theycanbeeasilyrecycledattheendoftheirusefullife.第二十页,共四十二页。Dematerialization-example第二十一页,共四十二页。Lessconsumptionduringuse-exampleASSESSMENTOFENVIRONMENTALIMPACTWashingMachine第二十二页,共四十二页。Recyclingatendoflife–theideal第二十三页,共四十二页。Recyclingatendoflife–therealitytoday第二十四页,共四十二页。ManagingaProcesstoGreenGoodsPointstoremember:Youneed(accessto)strongeco-designcapabilities.Youneedtoeducateyourusers.Youneedtoworkwiththerecyclingindustry.

第二十五页,共四十二页。ServicesratherthanGoods

Customerswantaservice;thegoodtheybuyoffersthemaservice.Sowhynotselltheserviceratherthanthegood?i.e.,leasetheproductratherthansellit.Strongenvironmentaladvantages:Thegoodscanbeusedmoreefficientlyandforlongerperiodsoftime;So,lessgoodsaresold=>lessmaterialsareconsumed;Theycanberecycledbetterattheendoftheirusefullife.Therearemanyexamplesouttherealready.26第二十六页,共四十二页。Officeequipment…Lookingforaphotocopier,faxmachine,printer,digitalprojectororofficeshredderforrentalhire?OMMhasasolutionforyou.Wehaveafullrangeofofficeequipmentforallyourofficeequipmentrentalneeds.WecanprovideofficeequipmentforshorttermhireandLongtermrentalforallyourofficeequipmentrequirementsincludingCanoncolourphotocopiers,computers,digitalprojectors,officeshredders,faxmachinesandofficefurniturethroughoutLondonandthehomecountiesTermscanrangefrom1day,1week,1monthor1yeardependantonyourrequirementsandallofficeequipmentrentalscomecompletewithfreedeliveryandmaintenanceservicebyqualifiedengineers.Wehaveanextensiverangeofstockandsubjecttostocklevelscanrespondquicklyandefficientlytoyourrequirements.Pricesaredependantonthetermoftherentalperiodandthetypeofofficeequipmentyouwishtorent.

OMMUK第二十七页,共四十二页。…AutomobilesinCitiesReservationandtransfer24hadayFeesfrom€1,50/hourand€0,40/kmAll-inratesincludefuelEnvironmentallyfriendlyvehicleswithlowCO2At200majortrafficnodesinAustriaCombinationofferswithpublictransportDenzelMobility,Switzerland第二十八页,共四十二页。WhysellServicesratherthanGoods?Advantagesfortheserviceuser:GettheserviceyouwantDon’thavetodealwithalltheotherproblemsthatcomewithownershipDoesn’tcostyoumore,andoftencostsyoulessBusinessadvantagesfortheserviceprovider:Canmakeasmuch,ifnotmore,money“Lockin”yourcommercialrelationshipCanbecomepartoftheclient’sinnovationefforts(strongerlock-in)第二十九页,共四十二页。Twosetsofstrategicoptions:

CreateGreenIndustriesGreenExistingIndustriesThroughproductsAttheprocesslevel(inthefactory)Beyondthecompany30第三十页,共四十二页。InthefactoryRedesignyourprocessessothat:Theyusetheleastamountofmaterialandenergyinputs;Theygeneratetheleastamountofpollutionandwaste;Theyusetheleastamountoftoxicmaterials;Theymaximizetheuseofrecycledinputs;Theymaximizetheuseofrenewableinputs.第三十一页,共四十二页。MinimizingMaterialandEnergyInputs:

PurchasesofFuel–newspapermanufacturingModernMillQ1Q3第三十二页,共四十二页。33MinimizingPollution,ReducingToxics:

Useofsolvent–manufactureofpackagingandothertape

Ina3MplantinBrazilmanufacturingpackagingtapeandothertypesoftape,theyreplacedasolvent-basedprocesswithanew,water-basedprocess.Theplantreducedtoxicsolventemissionsby45tonnesayear.Also,itnolongerneededequipmenttoburnthesolventemissions,eliminating25tonnesofCO2emissionsayear.Theprojectsavedtheplantover$850,000initsfirstyearofimplementation.Source:3MPollutionPreventionPaysProgramme,2005第三十三页,共四十二页。Maximizingtheuseofrenewableresources

Useofsolarthermal–textileproduction第三十四页,共四十二页。Maximizingtheuseofrenewableresources

Useofphotovoltaics–productionofelectricity第三十五页,共四十二页。ManagingaprocesstogreenfactoriesPointstoremember:ManagementcommitmentApplyingasystematicapproachChangingattitudesInvolvingallemployees,motivatingthem,trainingthemReportingprogress–internallyandexternally第三十六页,共四十二页。Twosetsofstrategicoptions:

CreateGreenIndustriesGreenExistingIndustriesThroughproductsAttheprocesslevel(inthefactory)Beyondthecompany37第三十七页,共四十二页。Goingbeyondthecompany–1Useyoureconomicleverage:Usesuppliersthatarealsocommittedtobeinggreen(“greeningthesupplychain”)Procureservicesfromprovidersthatarecommittedtobeinggreen(greenenergysu

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