Chapter 1 – Fundamentals of Sustainability

Question 1

Which external stakeholder groups are interested in sustainability issues?

Answer 1

Legislator
* Economic,
* Regulatory and
* Persuasive
Environmental policy instruments

Investors/ Shareholders
* Environmental indices (DJSI)
* External sustainability reporting
(GRI/CDP)
* Extra Financial Risks

Non-governmental organizations, (corporate and private)
customers, other stakeholders
* Social standards (SA 8.000)
* Environmental standards (ISO 14.000)
* Supply chain information (CO2/eco-efficiency)
* Product information (Carbon Footprint, ISO 14040)

Question 2

What is meant by the 2030 UN Agenda for Sustainable Development?

Answer 2

• 17 Sustainable Development Goals (SDGs) of the
  United Nations
• Consideration of the social, ecological and
  economic dimensions of sustainability
• Valid: 2016-2030
• Inclusion of all states
  (developing and industrialized countries)

Question 3

What is meant by “weak sustainability”?

Answer 3

• Substitution between the three dimensions of sustainability is possible
• Social welfare requires only the sum total of a society’s capital stocks to be held constant
  -> Natural capital may be legitimately consumed to the extent that other capital stocks are
  built up.

Question 4

What factors are taken into account in the “slave calculator”?

Answer 4

Lifestyle incl. means of transport
Nutrition
Cosmetics
Gemstones/jewellery
Consumer electronics
Hobbies
Clothing

Question 4

What is meant by “strong sustainability”?

Answer 4

• Capital stocks must be kept constant in all three dimensions of sustainability
• “Constant Natural Capital Rule” (CNCR): Stocks of natural capital should be preserved
  -> Substitution of man-made capital for natural capital is not permitted.

Question 5

What effects occur in the context of production automation?

Answer 5

• **Displacement effect (negative): **Job losses due to automation
• Income effect (positive): Lower production costs → Lower product prices → Increase in real purchasing power → Increase in demand in other sectors → Increase in employment in other sectors (sectors 2, 3 and 4)
• Substitution effect (positive): Cheaper products → More purchases → Employment increase (or lower job losses) in same sector (sector 1)

Question 6

What are the economic consequences of climate change for companies (Stern Review)?

Answer 6

Economics of greenhouse gas stabilization and identification of climate change impacts and costs
Assumptions:
Temperature increase of 2°C by 2035 due to increase in greenhouse gas concentration
Stabilization of the climate requires an 80% reduction in emissions
Economic Consequences:
Emissions reduction and climate stabilization ex-ante costs approx. 1 % of gross domestic product
Unchecked climate change causes losses of 5-20% of global GDP

Question 7

What are the combinations of the individual sustainability pillars called (5):

Answer 7

• Only Economy/ Ecology/ Socity -> Economic/ Eco-/ Socio- effectivness
• Ecology and Economy -> Eco-efficiency (Socio-efficiency for Econ and Soci)

Question 8

What are the 17 Sustainable Development Goals (SDGs) of the
United Nations

Answer 8

1. No poverty
2. zero hunger
3. good health and well-being
4. quality education
5. gender equality
6. clean water and sanitation
7. affordable and clean energy
8. decent work and economic growth
9. industry, innovation and infrastracture
10. reduced inequalities
11. sustanable cites and communities
12. responsible consumption and production
13. climate action
14. life below water
15. life in land
16. peace, justice and strong institutions
17. partnerships for the goal

Question 9

Two measurses of inequality

Answer 9

Inequality of Wealth
Inequality of Income

Question 10

The Planetary Boundaries over time

Answer 10

2009 3 crossed
2015 4 crossed
2023 6 crossed out of 9

Question 11

Sufficiency Strategy

Answer 11

• Reducing per capita consumption by assuming individual responsibility
• Prerequisite: change in social values

Question 12

Resources:

Answer 12

Proven but currently technically and/or economically unrecoverable, as well as unproven but geologically
possible, future recoverable quantities of energy commodities (“yet to find”).

Question 13

Reserves:

Answer 13

Quantities of energy raw materials economically recoverable at today’s prices and with today’s technology.

Question 14

Population Growth 5 Stages

Answer 14

5 Stages:
Stage 1
* Brith rate HIGH
* Date rate HIGH
* Natural increase: stable or slow

Stage 2
* Brith rate HIGH
* Date rate Falls rapidly
* Natural increase: rapid increase

Stage 3
* Brith rate falling
* Date rate Falls slowly
* Natural increase: increase slows down

Stage 4
* Brith rate low
* Date rate low
* Natural increase: falling than stable

Stage 5
* Brith rate Rising again
* Date rate low
* Natural increase: stable or slow

Question 15

Name three events that have led to sustainable development:

Answer 15

1972: „The Limits of Growth“
Study by Meadows/Meadows on behalf of the Club of Rome
Finiteness of resources is shown
Important conclusion “Factor 4” (Weizsäcker et al. 1995): Double prosperity, halve nature consumption
1987: „Our common future“ („Brundtland-Report“)
Final Report of the World Commission on Environment and Development.
Development of the Concept of 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.“ (English translation)
1992: „Erdgipfel“ (engl. World conference)
UN Conference on Environment and Development (Rio Conference 1992)
Resolution of the “Agenda 21”: Action program for the implementation of sustainable development with concrete recommendations for action at local, national and international levels.

Question 16

Name the three strategies of sustainable development:

Answer 16

Quantitative change in material and energy flows
Efficiency Strategy
Sufficiency Strategy
Qualitative Changed. Material and energy flows
Consistency Strategy

Question 17

Name the three pillars of sustainability:

Answer 17

Ecology (Planet)
Economy (Profit)
Society (People)

Question 18

Name possible consequences of climate change (7):

Answer 18

Rise in sea level
Melting of glaciers
Changes in the wind system
Effects on the ecosystem, e.g. spread of heat-loving pests (e.g. bark beetles) and pathogens (e.g. malaria)
More extreme and more frequent droughts in Africa
Erosions, hurricanes, floods
Economic costs

Question 18

Name 5 NGOs:

Answer 18

WWF
Greenpeace
BUND
NABU
Fridays for Future

Question 19

Indicators for measuring resource consumption

Answer 19

1. Regeneration rate (for renewable resources):
   Speed and extent of restoration of systemic equilibrium.
2. Static range (for non-renewable raw materials)
   = 𝐶𝑢𝑟𝑟𝑒𝑛𝑡𝑙𝑦 𝑘𝑛𝑜𝑤𝑛 𝑟𝑒𝑠𝑒𝑟𝑣𝑒𝑠 / 𝑠𝑡𝑎𝑡𝑖𝑐𝑎𝑙𝑙𝑦 𝑎𝑠𝑠𝑢𝑚𝑒𝑑 𝑐𝑜𝑛𝑠𝑢𝑚𝑝𝑡𝑖𝑜𝑛
   -> Range is always a snapshot

Question 20

Global Challenges (4)

Answer 20

Population Growth
Resources Depletion
Climate Change
Inequality & Poverty

Question 21

Explain the most important aspects of the society:

Answer 21

• Human dignity and free development of personality as well as development opportunities
  for present and future generations are to be guaranteed
• Each member of the society receives benefits from the solidary society
• Each member of society must make a solidary contribution to society according to his or
  her ability to perform
• Social security systems can only grow in line with economic performance potential
• The existing performance potential should at least be preserved for future generations

Question 22

Explain the most important aspects of economics (4):

Answer 22

• Taking into account intergenerational and intragenerational equity, the economic system should efficiently satisfy individual and societal needs
• Prices must permanently perform the essential steering function on markets and reflect the scarcity of resources, sinks, etc. as far as possible
• Functioning markets, innovations, long-term orientation of entrepreneurial activity and adaptation to future requirements are to be promoted
• The economic performance of a society and its productive, social and human capital must at least be maintained over time

Question 23

Explain the most important aspects of ecology:

Answer 23

• The rate of depletion of renewable resources (e.g., wood) should not exceed their rate of
  regeneration
• Non-renewable resources (e.g., mineral oil) should only be used to the extent that their
  functions can be replaced by other resources
• Substance inputs into the environment should be based on the load-bearing capacity of
  the environmental media
• The temporal capacity of the environment to respond to anthropogenic inputs or
  interventions and to regenerate must be considered
• Hazards and unacceptable risks to human health from anthropogenic impacts are to be
  avoided

Question 24

Elements of sustainable development (4 gernal mottos)

Answer 24

1. Orientation on Human needs: Design of sustainable development processes must be based on addressing human needs.
2. Intergenerational equity: Consideration of the needs of present as well as future generations
3. Intragenerative justice: Consideration of the balance between industrialized and developing countries
4. Integrative aspect: Consideration of economic, ecological and social developments

Question 25

Efficiency Strategy

Answer 25

• Maximum principle: more material goods and services are produced with the same resource input
• Minimum principle: the same material wealth is generated with less resource input
• Factor X principle (Schmidt-Bleek 1993, Weizsäcker et. al. 1995)
• Problem: no consideration of effectiveness  Rebound effect

Question 26

Definition resource consumption

Answer 26

Consumption of renewable (wood, water) and non-renewable (coal, oil, minerals) resources

Question 27

Definition of Sustainability

Answer 27

Sustainable Development is „development that meets the needs of the present without compromising the ability
of future generations to meet their own needs.“

Question 28

Definition of Planetary Boundaries: Metrics for all boundaries (9)

Answer 28

The concept presents a set of planetary boundaries within which humanity can continue to develop and thrive
for generations to come. The boundaries are associated with nine essential Earth system processes that help
maintain the stability and resilience of the Earth system. They are:
1. Climate Change
2. Change in Biosphere Integrity
3. Modification of Biogeochemical Flows
4. Introduction of Novel Entities
5. Land System Change
6. Freshwater Change
7. Stratospheric Ozone Depletion
8. Ocean Acidification
9. Increase in Atmospheric Aerosol Loading

Question 29

Definition of Planetary Boundaries:

Answer 29

The idea of „limits to growth“
The planetary boundaries were first formulated by the Stockholm Resilience Centre in 2009, as an answer to
the question of whether or not nature had any identifiable limits that we couldn’t exceed, and attempted to draw
up a definitive list of thresholds that couldn’t be safely exceeded.

Question 30

Definition of Carbon Handprint

Answer 30

For companies, the carbon handprint is a measure of how much GHG emission reductions they can help their
customers achieve through their products and services, compared to a baseline product or service. The bigger
the handprint, the better.
The idea behind carbon handprint is to offer customers better visibility on the solutions that help them decrease
their carbon footprint.

Question 31

Definition of Carbon Footprint

Answer 31

Carbon footprint is a measure of the total greenhouse gas (GHG) emissions caused by an individual, event,
organization, service, place or product.
It’s typically measured as tons of CO2 equivalent (CO2e) per defined function or unit.

Question 32

Definition Global Multidimensional Poverty Index

Answer 32

• Measuring progress against the 1st Sustainable Development Goal “End poverty”.
• Consideration of 10 indicators in the areas of health, education and standard of living.
  → Presentation of the nature and extent of thedisadvantage

Question 33

Consistency Strategy

Answer 33

• Reorganization of material and energy flows so that a return to the natural material cycles is possible.
• Prerequisite: technical innovations

Question 34

Climate Risk Index

Answer 34

Determined figures for the period 1999-
2018: Worldwide …
→ 495,000 fatalities as a direct result of
extreme weather events.
→ 12,000 extreme weather events
worldwide
→ US$3.54 trillion loss (in purchasing
power parity) as a direct result of extreme

Question 35

CCPI - Climate Change Performance Index

Answer 35

• Compiled annually since 2007 by Germanwatch
• 58 countries (> 90 % of global energy-related CO2
  emissions)
• Relative ranking (better - worse)

Question 36

Carbon Handprint vs. Footprint

Answer 36

Handprint:
* Innovative approach to facilitate the measurement, evaluation and communication of the ecological, economic and social sustainability impacts of products.
* A measure of how much products and services are helping others cut their GHG emissions.
* You want it to be BIG.
Footprint:
* The existing approach focuses on negative ecological impacts on individuals, organizations or countries.
* A measure of GHG emissions For an individual, event, organization, service, place or product.
* You want it to be SMALL.

Question 37

Benefits of Carbon Handprint

Answer 37

Carbon handprint calculations make it easier to understand how a company’s products or services help reduce greenhouse gas emissions.
One of the main aims of Carbon Handprint is to help communicate, says Annamari Enström, Life Cycle Assessment Associate at Neste, a global leader in the field of renewable diesel and sustainable aviation fuel.
The Carbon Handprint shows the difference is when the customers use the products of a company, e.g., Neste, compared to when they use conventional products with similar functionality that have been available for decades.

Question 38

Graph: 3 Strategies for a Sustainable Development

Answer 38

• Sufficiency goes down and left
• Efficiency goes up and left
• Consistency jumps to the left

legend: y-Economic return
x-Expenditure of resources or environment