Sustainable Innovation Flashcards
Sustainable Development aims?
Three pillars
“to meet the needs of today without compromising the
ability of future generations to meet their own needs”
Global Consumption Challenge
Americans represent 5 percent of the world’s population but consume 30 percent of the world’s resources
Future scenarios Map
Sustainable Innovation
Sustainable Innovation or ‘sustainability-driven’ innovation is ‘the creation of new market space, products and services or processes driven by social, environmental or sustainability issues.’
Sustainable Innovation Drivers
- Environmental and Resource issues:
– Resource consumption and shortages, climate change, pollution, loss of biodiversity - Legislation and Sustainable Consumption and Production Policies:
– Packaging, WEEE and EEE, Producer Responsibility Obligations,
Carbon Taxes, Vehicles ELV and Electric, Bans - Light Bulbs, Plastic
bags single use… - Competition, Financial and Market/Consumer Demand:
– Courtauld Commitment, Dow Jones Sustainability index, Eco labelling… - Social and Ethical
– CSR, Fairtrade, Inclusivity…
5 Steps to Success in Sustainable innovation?
- View Compliance as Opportunity
- Making Value Chains Sustainable
- Designing Sustainable Products and Services
- Developing New Business Models
- Creating Next-Practice Platforms
Is Tesla a sustainable Innovation?
- Company aim - “accelerate the world’s transition to electric mobility with a full range of increasingly affordable electric cars”
- The aim and strategy would indicate that this was a
sustainability driven innovation - Tesla’s valuation is 5 times that of Volkswagen because the market has concluded that, as the auto industry goes electric, Tesla will not only lead the industry, but dominate it. (First to market advantage and technology patents)
- Disruptive Innovation
Sustainable Innovation Spectrum
What is a ‘more’ sustainable product?
– Uses less resources in its manufacture
– Uses less resources in its use
– Uses renewable resources
– Last Longer - Can be repaired, reused, recycled etc.
– Causes less damage to the environment - emissions
– Need to consider all aspects of the products impacts at all stages - life cycle thinking
Incremental Sustainable Product Innovation?
Radical Sustainable Product Innovation (SPI)?
Incremental - improvements to existing products and services
Radical - New Products and Services. Often disruptive in nature – Electric Vehicles
* Tesla example demonstrated radical SPI
* However most established companies have too much to lose to disrupt the status quo.
* Therefore, a more incremental approach is adopted to sustainability through product improvement.
* Radical changes tend not to be disruptive to the current business model
Life Cycle Thinking?
Life cycle thinking is defined as a production and
consumption strategy that aims at taking into account all of
the impacts (environmental, economic and social) that a
product or service will have throughout its life cycle, “from
cradle to grave”.
Product Lifecycle Stages?
- Materials Extraction
- Manufacturing
- Use
- Disposal
– Distribution is included in stages
Life Cycle Assessment?
an objective process used to evaluate the environmental burdens associated with a product, process or activity by identifying and quantifying energy and materials used and wastes released to the environment and to evaluate and implement opportunities to effect environmental improvements
LCA Methodology 4 Phases?
1.Definition of the goal and scope
2.Life-cycle inventory analysis
3.Life-cycle impact assessment
4.Life-cycle interpretation
What does the functional unit of an LCA consider?
LCA considers the function not the product
– What does it do
– How long for
– What other consumables
– How many are needed
– What other functions are provided
* This is called a Functional Unit
* Helps avoids unfair or misleading comparisons
- Has limitations such as performance characteristics
LCA Impact Damage Framework 3 stages and examples?
