Challenges and Change Processes: Implementing Resource Efficiency Measures in Industrial Areas

Bilel Bellaj, TunisiaEdith Kürzinger, Germany

Challenges and Change Processes: Implementing Resource Efficiency

Measures in Industrial Areas

Bilel Bellaj, TunisiaEdith Kürzinger, Germany

Challenges and Change Processes: Implementing Resource Efficiency (RE) Measures in IA

1. Successful implementation of RE measures needs an effective change management

2. RE is more dependent on vision, innovative incentives, and creative stakeholder co-operation than on technical know-how

3. RE beyond CO2 emissions and waste management: applying a behavioural approach and a broader “resilience” perspective to cope with challenges

Challenges and Change Processes: Implementing Resource Efficiency Measures in IA

1. Successful implementation of RE measures needs an effective change management

2. RE is more dependent on vision, innovative incentives, and creative stakeholder co-operation than on technical know-how

3. RE beyond CO2 emissions and waste management: applying a behavioural approach and a broader “resilience” perspective to cope with challenges

Definition of Resource Efficiency“At the most basic level, resource efficiency captures the notion of ‘doing more with less’.”

“..the input–output relation of processes which consume or transform raw materials, water, and energy, while minimizing or mitigating adverse environmental impacts resulting from these processes.”

Classical Definition of Resource Efficiency (RE)

TMR Total material requirementRMC Raw material consumptionDMI Direct material input

Definition of Resource Efficiency‘doing more with less’ and differently, e.g. phasing out use of non-renewable and using renewable resources and for the benefit of all(social inclusion, distribution)

Definition of RE from “resilience” perspective: Change Process from use of non-renewable to renewable resources

More than absolute decoupling of economicgrowth from resource consumption isneeded!

Definition of Resource Efficiency

‘doing more with less’ and differently,

and

stay within ecosystemic limits and preserve natural capital

“Resilience” perspective: a different socio-economic develop-ment model…based on sustainable use of renewable resources

generation of NPO

RawMaterials

Energy

Water

InputsDesiredfinal pro-

duct

Non-ProductOutput (NPO)

-

Total NPO-costs

Input -costs of NPO +

Input-costsof NPO +

Processing -Costs of NPO +Processing -Costs of NPO + Disposal -

Costs of NPO =Disposal -

Costs of NPO =

10- 30 % of total produc-

tion costs

Process Outputs

.

+

The NPO Concept – identifies blind spots in Resource Efficiency

GHG* GHG

GHG

*Greenhouse Gases

®

How? Avoiding Non-Product Output at company level = Increasing Resource Efficiency and Profitability

maximisation

minimisation

NPO = all material, water and energy, used in the production / service processwhich do not end up in the final product / service (definition)

Total cost of NPO =inputs costs + processing costs + disposal costs + opportunity costs

How: Increasing Resource Efficiency at Industrial Area (IA) level

Minimisation of resource use(TMR, RMC, DMI) Transition to use ofrenewable insteadof fossil resources(long term)

• Closed loops of resources / water use• Re-use of residues in companies and IA• valorisation of residues• Sale of residues for re-use / recycling• Waste collection and (pre-)treatment• Effective and efficient waste transport

and disposal (grouped)

Minimisation ofresidues, effluentsemissions etc.

IA

Systemic Intervention by IA Management: Higher RE by Turning Waste into Input, Charguia 2, Tunisia

Cardboard waste goes to final disposal

1-Identifies win-winopportunities

2-motivates compa-nies to supply waste carton to new business

4-supports the cre-ation of the newcompany

Compact & re.use of wastecarton (sale)Job creationfor young en-terpreneurPrize for equip-ment design

Com-pany

providesequip-ment

start-up

IA

From waste to raw material & higher resource efficiency

Definition of Resource Efficiency

RE Change Process: Functional Public Lighting through Creative Stakeholder Management and Behavioural Change (Interest-Based Negotiation)

STEG

Munici-pality

Interest:Functional publiclighting Security at night(women)

No complaintsMake use of infra-structure investment

Interest:Payment of bill which datesfrom time before existence of IA

Interest:Avoid paying bill (lack of funds)Less police interventionGeneral security in IA No protests by IA companies

Position:Not my billMunicipalityhas obligationto pay

Position:No moneyYour problem IAPlease pay IA

Position:I want my money beforeproviding electricity to IA (part of municipality whohas unpaid old bill)

Solution: IA pays bill by instalments to STEG!Municipality compensates in kind (machine time)STEG provides electricity . Functional lightingMore than 1 year needed!!!

bill is only 600 € !IA owns the problem

Challenges and Change Processes: Implementing Resource Efficiency Measures in IA

1. Successful implementation of RE measures needs an effective change management

2. RE is more dependent on vision, innovative incentives, and creative stakeholder co-operation than on technical know-how

3. RE beyond CO2 emissions and waste management: applying a behavioural approach and a broader “resilience” perspective to cope with challenges

Definition of Resource Efficiency• Cycle of change = Systemic view

on / of IA

Possible roles of IA management• Stocktaking of what works well in IA through

Appreciative Inquiry and development of a joint vision

• Identification of optimisation potentialsin RE at IA level via SMIA / GEDZI sustainability diagnosis & training &coaching

• Optimised use of existing IA infrastructure & promotion of available sites (avoiding sunk costs)

• Facilitation of consultancy/training in REtopics for companies & thematic working groups

• Innovative services:Promotion of green and inclusive employment (e.g. waste management, green areas)Green infrastructure approach for IA (water, energy, waste, land use, infrastructure

• Communication and negotiation with relevant stakeholders, such as providers, recycling

as a

How? IA Management as Change Agent towards Increased Resource Efficiency

Qualities of a successful IA “change

agent”

Credibi-lity

Deter-mination & moti-vation

Open-ness & sensiti-

vity

Toleran-ce of

ambigui-ty

Ability to

manage conflicts

15

Change Agent “IA Manage-ment” ….

Enthusia-stic

passionate inspiring

Strongcommitted

communica-tive

dynamic

Effectivefacilitatornetwor-

ker

Capacityfor self-

evaluation, -reflection &

-analysis

Involved in personal & others’ learning process

Comprehen-sion of socio-economic &

physical environment

Capacity to act as

responsi-ble citizen

Critical & systemic thinking

Creative pro-blem-solving

Working in co-operation with others

Anticipation instead of reactivity

16

Systemic Intervention by IA Management: Enhanced RE in Water Use, Agareb, Tunisia

1600 m3 /day of brackish

waste water

Olive cultivation

1-Negotiates w/company &

stakeholders

2-Provides inno-vative ideas:

- reuse by othercompany

- irrigation of IA’sgreen areas

Reuse of 700 m3 / day by other com-panies

Massive protests by neighbour-

hood(agricu-lture)

IA

Zero waste water

1 st Measure : Water Evaporation Basin

2 nd Measure : Construction of Water TreatmentPlant

After water treatment: 600 m3/ day (40%) are reused by the same company in closed circuit.

3rd Measure: Negotiating and Selling TreatedWaste Water

Higher RE by selling the treated water • IA is creating a new strategy of

cooperation in the industrial area

• less consumption of natural resources : client companies are buying treated water for use in own process

• Reduction of the cost of production for buyer companies

4th Measure: a New Perspective on Waste Recycling

• Innovative use of waste sludge by cement industry: waste-to-energy

• Innovative use of the sand as input for another industry which results in good quality bricks or cement

• Working with university researcher to find other innovative solutions for waste (sludge, sand, water…) : technology transfer (GIZ project)

Challenges and Change Processes: Implementing Resource Efficiency Measures in IA

1. Successful implementation of RE measures needs an effective change management

2. RE is more dependent on vision, innovative incentives, and creative stakeholder co-operation than on technical know-how

3. RE beyond CO2 emissions and waste management: applying a behavioural approach and a broader “resilience” perspective to cope with challenges

Definition of Resource Efficiencyas a

Challenge 1: Stumble stones for RE Change Processes: Biases in decision making and behaviour

Anchoring – the common human tendency to rely too heavily, or "anchor," on one trait or piece of information when making decisions.

Attentional Bias – implicit cognitive bias defined as the tendency of emotionally dominant stimuli in one's environment to preferentially draw and hold attention.

Backfire effect - Evidence disconfirming our beliefs only strengthens them Example Mr. Trump and „fake news“

Bandwagon effect – the tendency to do (or believe) things because manyother people do (or believe) the same. Related to groupthink and herd behavior.

• Bias blind spot…

• Choice-supportive bias ….• Confirmation bias….• Congruence bias…• Contrast effect…• Denomination effect …• Distinction bias…

https://www.youtube.com/watch?v=JiTz2i4VHFwVideo on how your brain works

Definition of Resource Efficiencyas aCreative approach: nudging. Helps to overcome these

biases for successful RE Change Processes

To overcome the human tendency to

• Maintain status quo

• Procrastinate (postpone) change(s)

• Move with the group

• Help people to decide themselves for solutions which are healthierand more sustainable, without

- new regulatation- change of incentives

(economic and others)

A nudge is any aspect of the choicearchitecture that alters people’s behavior in apredictable way without forbidding any options or significantly changing theireconomic incentives.

- Thaler & Sunstein 2008,6b

Source: Hansen, PG (2016) The Definition of Nudge and Libertarian Paternalism: Does the hand fit the glove? The European Journal of Risk Regulation

The concept of Nudging starts form the “real” behaviour of people

Definition

Definition of Resource Efficiency

1 Explore – Understand whose behaviour (respect RE) you want to be changed

2 Enable – Start from where people are : why this behaviour

3 Encourage to change behaviour – Enhance – introduce –reassess

4 Engage – Facilitate public discussion and gain approval

5 Exemplify – Change own behaviour (IA management, leadership, government/administration)

6 Evaluate – Elaborate what works & scale up

as aRE Change Processes and Use of “nudging”

Definition of Resource Efficiencyas aExample of RE Change Process through Use of “nudging”

47 % more of wasteDeposited in containers

http://www.polledemaagt.com/blog/2011/12/07/a-piece-of-tape-to-save-energy-hivos-small-experiment/75 % of people used stairs https://youtu.be/ZosBOC0fh2w

Making electricity consumption and price visible

-> You used 48 % morethan vour efficientneighbour!

-> This costs you aboutxxxx per year!!!

IA : Rehabilitation of Infrastructure –Nudge‘Inconscient!

After many years of inundation and a long negotiation process with the companies,they accepted to play by the rules and contribute 50 % of the rehabilitation costs and start rehabilitation

For the prosperity of my company I

contribute to the rehabilitation of my

Zone

as aChallenge 2: Strengthening of “Resilience” (of IA)

as aWhat is Resilience (of IA)?

• Avoidance of undesired an uncontrollable situations by successful adaptation of ecological and the social systems (of IA) to new circumstances

• Absorption of external shocks under uncertainty situations• Change without losing the overall structure, functions, feedbacks, and

identity (of IA)• Ability to self-organise, using all available resources (financial capital,

human resources, technology, infrastructure, knowledge, and institutions) (in IA)

• Capacity building for continuous learning and adaptation (of/in IA)

Definition of Resource EfficiencySocio-economic resilience of IA?

as aSocio-economic resilience of IA

Resilient IA

Green&inclusive EconomyAdaptationMitigation: RE and useof renewable resourcesCarrying capacity

Sustainable DevelopmentSustainable LivelihoodsRisk ManagementSustainable MobilitySustainable Consumption

- Protection of the natural resource bases and ecosystemic functions improving the resilience capacity and livelihoods, also for future generations- alternative economic development and not measured by GDP growth (alone)- Increased to be prepared for unexpected changes / shocks in order to minimise possible damage- Improved performance of the socio-economic system during periods of stability and growth

Green and Inclusive Economy

Sustainable management of green areas & biodiversity

Efficient use of renewable resources & water

Clean air

Resilient, decent, green jobs, equality

Resilient neighbourhoods(employment, services,

livelihoods)

Reduction of GHG emissions –

outphasing of use of fossil sources to respect carrying capacity

Resilient Eco-mobility

Sustainable Management of resilient IA (SMaresIA)

Preservation of intact ecosystemicservices, (water balance, micro-

climate ..)

Sustainable use of soil and land (retrofit)

Sustainable construction & re-use of materials

Climate-resilient infrastructure

Sustainable consumption

Resilient Municipa-

lities / Cities

Sustainable Products (design, repair, retrofit)

Future Desired Situation of Resilient Industrial Areas – more Topics than GHG Emissions

Definition of Resource EfficiencyFacilitating change at company level:

->Cradle to cradle approach

• RE throughout supply / value chain

• From fossil to renewable resources: avoiding externalities

• Product policy and design: renewable materials, product life/ repairability, extended producer liability, reusability, recyclability

• From product to sustainable services: renting integrated services instead of buying products (Stihl, office equipment, E-mobility)

• Out-phasing use of non renewable sources• Closed material loops through the design

for environment (DfE)

IA level: sound (resource) management of unaddressed topics:

• Joint stocktaking of what works and development of vision “resilient IA”

• IA within local carrying capacity: Vulnerability assessment?

• Promotion of resilience criteria for IA and companies

• Green / Climate-resilient infrastructure

• Sustainable management of land / soil / surfaces

• Recycling of construction materials (sand!!)

• Eco-Mobility and Sustainable IT application

• Preservation / restitution of eco-systemic services & biodiversity

• New, green and “greened” jobs: e.g. repair and maintenance

• Mediation of social conflicts & Stakeholder manage-ment in IA, surrounding ecosystems, & respective neighbourhood….

as aSustainable Management of Resilient Industrial Areas SMaresIA and the role of IA management

Systemic Intervention by IA Management: Entrepreneurship in Green & Inclusive Economy, Tunisia

Electronic waste is not sorted & goes to garbage or final disposal

IA contributesto the business success by sup-porting the collection of electronics and components

Recycling of electronic com-ponents in IA company (new jobs for wo-men) Behaviour change: separa-tion of E-waste

Certificate of correct delivery of E-waste

Clearing of accountedstock

IA

From hazardous waste to recycling & job creation

http://collectun-d3e-recyclage.com/

IA Supports Improvement of Social Performance IA works on a push strategy toward member

companies:

• Managing a school rehabilitation projectsponsored by companies

• Supporting associations of youth & scouts

• Promoting cultural activities in the IA and city

Scout participation in the school rehabilitation project

IA Management as Mediator of social conflictsIA supports the identification of strategies for solution of conflictsand a better relationshipbetween companies, workersand community

Bilel BellajConsultant, Trainer, University lecturerIBD, University of SfaxEmail: bilelbellaj@gmail.comPhone: +216 98656042 Professional social media accounts

https://www.linkedin.com/in/bilel-bellaj-b873374b/

Edith KuerzingerConsultant, trainer, coach, facilitator*Freelance, PREMAnet e.V.*Email*Kuerzingeredith@aol.comPhone +49-2244873322 /+49-1714049518

Professional social media accountsWebsite(s): www.premanet.net

https://www.linkedin.com/in/edith-kuerzinger-8698094/