A series of Q&A questions. (case study) The knowledge of Business and Sustainable Development is required
MGMT 2004
Week 1:
Introduction Thinking Critically About Sustainable Tourism
Lecturer: Hossein Mohammadi
School of Management, Curtin University
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ELECTRONIC WARNING NOTICE FOR COPYRIGHT STATUTORY LICENCES
Cleaner Production
Eco-Efficiency & Eco-Effectiveness
At the end of this lecture you will be able to:
- Explain the workings of Cleaner Production; Eco-effectiveness and Eco-efficiency in the business context
- Differentiate between cradle-to-grave and cradle-to- cradle principles
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How can cleaner production, eco-efficiency, and eco-effectiveness assist businesses to improve environmental performance as desired by CSR?
Foundational concepts:
- Carrying capacity
- Circular Economy
- Cradle to cradle
- Cradle to grave
- Decoupling
- Dematerialization
- Linear Economy
- Resources intensity
- Reuse Economy
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When does Mother Nature become natural capital or resources?
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Global resource extraction 1980-2013
Global material extraction more than doubled in the past 30 years, from around 36 billion tonnes in 1980 to almost 85 billion tonnes in 2013, an overall growth of 132%. Two distinct phases of material extraction can be identified. A period of modest growth between 1980 and around 2002, with only a short period of stagnation caused by the collapse of the former Soviet Union. From 2003 onwards, growth of global material extraction increased significantly, mainly driven by the rise of emerging economies such as China and India. Growth rates were unevenly distributed among the main material categories. Particularly the extraction of industrial and construction minerals increased significantly (by more than 240%), indicating the continued importance of this resource category for industrial development, in particular for building up housing, energy and transport infrastructure in emerging economies. Global extraction of metal ores increased by 183% and fossil fuels by 82% in the period of 33 years. Increases in biomass extraction amounted to 61%. The share of renewable resources in total resource extraction thus is constantly decreasing (from around 39% in 1980 to less than 27% in 2013).
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Global resource intensity 1980-2013
NOTE:
Resource intensity is a measure of materials or natural resources (e.g. fossil fuel, water) used per GDP + GHG (GDP = the value of goods and services produced over a year, GHG=carbon emissions)
This analysis addresses the question, whether on the global level, a de-coupling between economic growth and material extraction could be observed over the past 30 years. It can be seen that between 1980 and 2013, world GDP (in constant prices) grew by almost 150%. At the same time, global material extraction increased by around 130%. Across the whole time period, a slight relative de-coupling could be observed.
However, the dynamic changed completely around the year 2000. Before the millennium, material intensity of the world economy decreased constantly, indicated that a relative de-coupling occurred. In the year 2000, 20% less materials were required to produce a US$ of global economic output compared to 1980. However, since 2000, the material intensity curve bounds upward, indicating that in the past 15 years, not even a relative de-coupling can observed. Due to the rapid expansion of material extraction activities in many world regions, growth rates in extraction are even above the global growth rates for GDP. Currently, the world economy is therefore on a path of re-materialisation and far away from any – even relative – de-coupling.
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E.g. Running out of water
http://voices.nationalgeographic.com/2012/03/14/are-we-running-out-of-water/
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E.g. Running out of fossil fuels
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In Linear Economy, raw materials are used to make a product, and after its use any waste (e.g. packaging) is thrown away. It works according to the ‘take-make-dispose’ step plan:
- Resources are extracted
- Products are produced and used
- Discarded and disposed as waste
So system cares about maximizing the amount of products produced and sold but does not care about the waste.
Linear Economy
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- Decoupling = using less resources per GDP (i.e. dematerialize) + minimizing environmental impacts
- Dematerialization = the reduction in the quantity of materials required to fulfil economic functions in our society i.e. wise use of resources or do more with less (see Wernwick et al., 1990)
Decoupling/Dematerialization:
A way forward for sustainability paradigm shift?
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Environmental Impacts …
Pollution is the introduction of wasteful substances (visible or invisible) into an environment causing harm, instability or disorder to the natural functioning of ecosystems (and their inhabitants).
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Pollution (1)
Air Pollution
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Pollution (2)
Land Pollution
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Pollution (3)
Most city skies are virtually empty of stars
Light Pollution
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Pollution (4)
Noise Pollution
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Thermal Pollution is the degradation of water quality due to processes that change ambient water temperature e.g. caused by discharging clean but hot water used as a coolant in a power plant
Pollution (5)
Thermal Pollution
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Pollution (6)
Visual Pollution
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Pollution (7)
Water Pollution
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PASSIVE
Ignore pollution
PROACTIVE
Cleaner Production
Eco-Effectiveness Eco-Efficiency
How Businesses Deal with Pollution(s)?
REACTIVE
Dilution and dispersion
CONSTRUCTIVE
End-of-pipe treatment
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The “Cost of Pollution” Iceberg
Source: Bierma et al. (1998)
THE HIDDEN COST
OF WASTE
Company Image
Liability
Regulatory
Compliance
Treatment &
Disposal
Lost Raw
Materials, Energy,
Labor
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Three Well-Known Pollution Reduction Principles
Polluter pays principle:
It identifies that people or organisations responsible for pollution are accountable for any social or environmental damage and should be responsible for paying the costs of damages
Cradle to Grave principle:
Using techniques e.g. Life Cycle Assessment to find ways to minimise pollution associated with business activity
Cradle to Cradle principle:
Using techniques e.g. Life Cycle Assessment to find ways to prevent pollution associated with business activity i.e. it pursues economic, ecological, and social values through the practice of intelligent design and zero waste
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E.g. Preferred Options for Dealing with Pollution
https://www.mbawa.com/waste-management-and-recycling/
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“The continuous application of an integrated preventive environmental strategy applied to processes, products, and services to increase overall efficiency and reduce risks to humans and the environment.” (UNEP, 1992)
Guiding Principles
Precaution
Reducing externalities through redesign of industrial systems of production and consumption which currently might be material-intensive.
Prevention
Making changes upstream in the system of production and consumption
Integration
Integration across economic, social, and environmental boundaries to achieve efficiency
Cleaner Production
Lecture 4
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