Eco-efficiency1. ”Resource-Productivity & Ecoefficiency”

Friedrich Hinterberger and Phillipp Schepelmann

2. ”Eco-efficiency, creating more value with less impact”World Business Council for Sustainable Development, 2000.

3. "Defining and Measuring Eco-efficiency" Livio D. Desimone and Frank Popoff

Resource-Productivity & Ecoefficiency

Friedrich Hinterberger

Philipp Schepelmann

Definition: “Doing more with less” “Securing development with minimized

use of natural resources”.

Interpretation: “A partial translation of ecological

science into economic terms”.

Sustainable development can be

achieved: if economical growth is accompanied

by an absolute reduction of material and energy (decoupling)

Relations between ”resource productivity” and ”work”:

Restructuring our economy and societies will lead to an increase in employment (e.g. in the construction, transport and service sector).

New jobs will be created in the ecological sector

But that is not enough…

Re-evaluation and re-distribution of labour are

needed: Priority for the creation of useful

employment Reduction of working hours Introduction of a minimal per capita support Shifting the tax burden from labour to

resource use Re-evaluation of labour in the informal

sector (e.g. housewives)

These reforms would result in a strengthening of local and regional economies (regional supply) and the primary sector (resource- and food-production)

  “In a sustainable society labour will

contribute to quality of life.”

Comprehensive strategy in Sweden.

Meta – a societal consensus on the objective of sustainable development which encompasses competitiveness, social justice and ecoefficiency

Micro – ecologically oriented enterprises and consumers

Meso – the reform of economic institutions and networks

Macro – fiscal, monetary and distributional conditions

Meta – awareness-raising, capacity- and consensus building, stake-holder dialogue

Micro – indicators for small and medium sized enterprises (SME), financial sector, consumer behaviour

Meso - awareness-raising, sectorial targets, culture and tradition-building

Macro – ecological tax reform and other instruments, EMU, indicators

Eco-efficiency Creating more value with

less impact

World Business Council for Sustainable Development

In simplest terms, eco-efficiency means creating more goods and

services with ever less use of resources, waste and pollution.

What Does Eco-efficiency Mean?

Many business leaders, inside and outside the WBCSD, often express eco-efficiency

as creating more value with less impact or doing more with less .

Academic experts and practitioners term eco-efficiency the synthesis of economic and environmental efficiency in parallel , where the prefix eco stands for both economy and ecology.

Eco-efficiency in the Broader Context

Eco-efficiency is a concept

with much to offer for many. It can be

used for a variety of purposes and

applied on various levels.

Eco-efficiency is a key concept for helping companies, individuals,governments and other organizations to become more sustainable.

eco-efficiency is not sufficient by itself because it integrates only two of sustainability’s three elements,economy and ecology, while leaving the third, social progress, outside its embrace.

The Business and Political Agenda

BUSINESS

1.Reducing the consumption of resources

2.Reducing the impact on Nature

3.Increasing product or

service value

POLITICAL1.Identifying and eliminatingperverse subsidies2.Internalizing environmental

costs3. Shifting tax from labor and

profit to resource use and pollution

4. Developing and implementingeconomic instruments5. Promoting voluntary

initiativesand negotiated agreements

How Do the Skeptics of Eco-efficiency Argue?

Problem1. Some claim that a

relative increase in company eco-efficiency is not enough.

Answer1. Eco-efficiency is

much more about innovation and the need for change toward functional needs and service intensity, to contribute to de-coupling growth from resources.

Problem2. There is also the claim

that using fewer resources per unit of production fails to deliver progress toward sustainability if the number of units continues to increase faster than the gains in resource productivity.

Answer2. In our view, it is more

important to opt for a different way of living that can offer a better quality of life and more welfare for all, while limiting the use of resource and pollution to acceptable levels.

Problem3. It is also claimed that

eco-efficiency will not work in poor economies because preventing pollution is too costly and requires legal enforcement and

substantial financial help.

Answer3. Companies can

achieve big improvements in developing

countries and countries in transition where resources were previously not used efficiently.

The Business Agenda

How companies turn the challenge of sustainablity into

business opportunities

Seven Elements to Eco-efficiency

Reducing the material requirements for goods and services

Reducing the energy intensity of goods and services

Reducing toxic dispersion Enhancing material recyclability Maximising sustainable use of renewable resources Extending product durability Increasing the service intensity of goods and

services

5 Elements for corporate Eco-efficiency reports

1 organization profile2 value profile3 environmental profile4 Eco-efficiency Rations5 methodological Information

Plastics from ELVs

                                                                                                       

The cars themselves are built from recycled materials using production methods which minimize waste and emissions

The Political Agenda

How Governments can make eco-efficiency work for Society

The Political Agenda for Eco-efficiency

Identify and eliminate perverse subsidies Internalize environmental costs Shift tax from labour and profit to resource

use and pollution Develop and implement economic

instruments Promote voluntary initiatives and negotiated

agreements

Eco-efficiency and Macro-economic Development

Eco-efficiency is a leadership practice to meet the future needs of society and reach a competitive and innovative economy.

By quantifying eco-efficiency with macro-level indicators governments can measure progress on eco-efficiency targets.

Incentives can be used to reward eco-efficiency and guide innovation in the right direction.

Twelve Action points for an Eco-efficient future

Governmental leaders and civil servants Set macro-economic eco-efficiency targets

and conversion criteria for sustainable development

Integrate policy measures to strengten eco-efficiency

Work toward changing international policy rules and systems for trade and financial transactions etc.

Civil society leaders and consumers

4. Encourage consumers to prefer eco-efficient, more sustainable products and services

5. Support political measures to create framework conditions wich reward eco-efficiency

Educators

6. Include eco-efficiency and sustainability in high school and university curricula and build it into research and development programs

Financial analysts and investors

7. Recognize and reward eco-efficiency and sustainability as investment criteria

8. Help eco-efficienct companies and sustainability leaders to communicate their progress and related business benifits to financial markets

9. Promote and use assessment tools and sustainability ratings to support the markets and to help widen understanding of eco-efficiency benefits

Business leaders

7. Integrate eco-efficiency into their business strategy

8. Report company eco-efficiency and sustainability performance openly to stakeholders

9. Support policy measures which reward eco-efficiency

"Defining and Measuring Eco-

efficiency"

Livio D. Desimone and Frank Popoff

Eco-efficiency means doing more with less

The definitions has five themes:

1. Emphasis on service

2. Focus on needs and quality of life.

3. Considerations of the entire product life cycle

4. Limits to a eco capacity5. Process view

The WBCSD has outlined the following actions to implement eco-

efficiency:

1. Reduce the material intensity of goods and service2. Reduce the energy intensity of goods and services3. Reduce toxic dispersion4. Enhance material recyclability5. Maximize sustainable use of renewable resources 6. Extend product durability 7. Increase the service intensity of goods and services

Measuring Eco-efficiency

1. It is difficult to measure it.2. Eco-efficiency measures environmental

effect.3. It can be measured between economic

output and environmental input .

Eco Capacity

The eco-efficiency bottom line is to make profits within the eco- capacity. Eco capacity is difficult to calculate but it is clear that limits are being reached in many places.

Measuring methods There is not one original method to measure

eco-efficiency.Some companies measuring procedures:

Nova Nordisk Sony Europe Volvo Dow Europe

Nova NordiskNovo nordisk uses in measuring eco-efficiency

eco-productivity indices (EPI). It is described by this formula:

EPI=

indexed turnover inconstant prices

indexed resourceconsumpsion

X 100

This index expresses the resource consumption index in physical units.

In this method Novo Nordisk has the highest level in utilizing the resource which was 1990.

For measuring eco-efficiency this company used comparing the resource productivity of three different batteries and to calculate the resource productivity used this figure:

Resourceproductivity

= (economic value added)X(product lifetime)(material consumed-recycled)+(energy consumed+(lifetime

energy used)for production and recycling

By using this Company comparied three different kind of chargeable and non-chargeable batteries for making desision which one is the best eco-efficient product.

This procedure is like comparing ”apples and pears”.

Sony Europe

Volvo In measuring eco-efficiency Volvo used an ”eco-point” method.

It requisites the Environmental Priority Strategies (EPS) system.

With help of eco-point this company compared and chose one which is more eco-efficient.

Eco-points were calculated for production, using product and product disposal at end of life for each material and results were been compared.

Dow EuropeDow Europé uses for measuring eco-efficiency “eco-

compass” method.

This method marks products in six level and compares them.

0.      performance per functional unit decreases by 50%or more

1.      performance per functional unit decreases by up to 50%

2.      no significant variation from the base case3.      up to 100% change for the better per functional unit4.      up to 300% grow in performance per functional unit5.      more than 300% increase in performance per

functional unit

Actions to implement eco-efficiency

Reduce the material intensity of goods and services

Reduce the energy intensity of goods and services

Actions to implement eco-efficiency

Reduce toxic dispersion

Enhance material recyclability

Maximize sustainable use of renewable resources

Actions to implement eco-efficiency

Extend product durability

Increase the service intensity of goods and services