1. Making $ense of Sustainability Wellington 6 th August 2010

2. New Thinking “The volume of education… continues to increase, yet so do pollution, exhaustion of resources, and the dangers of ecological catastrophe. If still more education is to save us, it would have to be education of a different kind: an education that takes us into the depth of things.” E.F. Schumacher

3. Our Vision is of a sustainable human society. Our Core Purpose is to develop a genuine commitment to, and competence in, sustainable development throughout society.

4. Strategic focus – systems approach Scientific foundation Develop learning organisations Strategic focus – systems approach Scientific foundation Develop learning organisations What’s different about The Natural Step?

5. "It was not until at least ten years later, we understood how much money Electrolux had saved and earned from applying the TNS Framework to foresee changes on markets and legislation". Leif Johansson, CEO Volvo and former CEO Electrolux “… start at the other end. Start by defining completely sustainable products rather than trying to improve the existing, flawed one.” Nigel Stansfield, Innovation Director, Interfaceflor The Natural Step

6. Sustainable development Development which meets the needs of the present without compromising the ability of future generations to meet their own needs Our Common Future (Bruntland Report), 1987 A dynamic process which enables all people to realise their potential and improve their quality of life in ways which simultaneously protect and enhance the Earth’s support systems Forum for the Future (UK)

7. Global ecological footprint Adapted from Global Footprint Network - http://www.footprintnetwork.org/en/index.php/GFN/page/world_footprint/ http://www.footprintnetwork.org/en/index.php/GFN/page/world_footprint/

8. Defining sustainability ENVIRONMENT SOCIETY ECONOMY Sustainable bearable viable equitable

9. Environment Society Economy Used under creative commons licence

10. What do you think are the main sustainability issues?

11. The Great Squeeze

12. 100,000200,000300,000400,000500,000600,000 300 500 400 600 180 200 220 240 260 280 Temp. in C° CO 2 Concentration Today’s CO 2 Concentration Projected Concentration After 50 More Years of Unrestricted Fossil Fuel Burning CO 2 [ppmv] Age (years Before Present) Temp. in C°

16. 70% of crude oil is refined into transportation energy 98% of transportation energy comes from oil 70% of crude oil is refined into transportation energy 98% of transportation energy comes from oil

17. 94% of all materials involved in production process = waste before the product is sold 1.2% of total materials used after 6 weeks remain as useful product Source: Robert Ayres, Industrial Metabolism Resources / materials Products / services 6% product

18. © Time until 1 % remains Recycling rate50%75%90%99% Beverage can, three weeks duration 5 months11 months31 months27 years Car chassis, fifteen years duration 100 years240 years650 years6900 years Ref. Factor X concept from a Sustainability Perspecitive, Holmberg & Carlsson, 1999.

19. Chris Jordan 2009 ©

20. 9 Planetary Boundaries 1. Climate change (105%) 2. Interference with Global –Nitrogen Cycle (200%) –Phosphorus Cycle (90%) 3. Stratospheric Ozone Depletion (100%) 4. Atmospheric Aerosol Loading (TBD) 5. Chemical Pollution (TBD) 6. Ocean Acidification (98%) 7. Global Fresh Water use (60%) 8. Land System change (75%) 9. Rate of Biodiversity Loss (200%) Source: Dr Johan Rockström, Stockholm Environment Institute and an international group of experts 100 % = max safe limit Red indicates limit exceeded TBD = To Be Determined

21. Social inequity “ Declining ecosystems and increasing pollution tend to correlate with the erosion of our spiritual and non- material well-being, in developing and developed countries alike. Growing social stresses are all too often taken as the norm today.” Senge – The Necessary Revolution 2008 From 1980 to 2000 the share of global income for world’s poorest 25% fell from 2.5% to 1.2% Source: World Bank

22. We are here

23. © 2010 The Natural Step

24. Availability of natural resources for productive use Availability of natural systems for productive purposes and enjoyment Demand for finite natural resources Government intervention / regulation / taxes Consumer pressure for change Lifestyle aspirations globally Costs (resources, waste, insurance etc) Poverty and inequality Breakdown of trust Copyright © The Natural Step

25. What are the main issues that present risks or opportunities for your organisation?

26. BP – comic relief

27. Vision/Outcome Strategies Actions Metrics/Tools Evaluate

28. Principles of sustainable business Strategies Actions Metrics/ Tools Ecological reality Vision/Outcome Evaluate

30. Accumulating concentrations of substances taken from the Earth’s crust Accumulating concentrations of persistent substances that do not easily break down in nature Destruction of and damage to natural systems Creating barriers to people meeting their basic needs worldwide 4 basic disruptions to natural cycles Copyright © The Natural Step

31. Adapted from Planning for Sustainability – TNS Canada

32. Ray Anderson on The Natural Step

33. What is sustainable? 1.We only take what nature replaces. 2.We make only what nature can process. 3.We avoid breaking nature’s systems. 4.We ensure that globally people are able to meet their basic needs.

34. WHAT WE TAKE Continually reduce and eliminate our dependence on mined metals, minerals and fossil fuels - extract less, reuse, recycle, use renewable resources WHAT WE MAKE Continually reduce and eliminate our use of manufactured non-degradable chemicals and substances - use natural alternatives and recyclable materials WHAT WE DESTROY Continually reduce and eliminate our dependence on activities that cause physical encroachment upon the natural environment - draw resources from sustainably managed eco-systems, restore nature, protect biodiversity HOW WE SHARE Ensure that people everywhere are treated fairly and with respect to enable them to meet their needs efficiently – look after people, share resources fairly Adapted from The Natural Step Framework 4 System Conditions Sustainability objectives

35. © 2009 The Natural Step What do people need?

36. A Awareness and understanding B Baseline / Benchmark C Compelling vision / creative solutions D Down to action Successful planning

37. A Awareness and understanding B Baseline / Benchmark C Compelling vision / creative solutions D Down to action Successful planning

38. What do we deliver? Earlier stages in the supplier chain Use of product/service What do we depend on? What is left? Energy Water Transport Land, Building, Equipment Investment People Products Services Waste By-products Copyright © The Natural Step

39. Your business system What raw materials do you use and where do they come from? What other materials and substances are used? Energy use – electricity, gas, petrol, diesel, other – and what for? Water – how much and what for? Transport – how many vehicles and what for? Emissions – what are your other liquid / gas by-products? Waste – hazardous, landfill, recycling - what waste and from where? Labour practices – impacts of your business on people – employees, supply chain employees, local communities? Community – Are you a valued and beneficial corporate citizen? How do you help people meet their needs?

40. Fossil fuels / other mined materials ( oil, petrol, gas, minerals, heavy metals ) Meeting people’s needs ( working conditions, job satisfaction, creativity, health ) Synthetic substances and chemicals ( pesticides, insecticides, chemical cleaners, plastics, preservatives ) Physical impacts on nature and natural systems ( food, trees, water, air, soil, landfill waste ) © 2010 The Natural Step

41. What are the significant impacts; future risks and opportunities?

42. What can you build on? Waste Energy Water Purchasing What initiatives and processes are already in place? Employees Customers Leadership Policies and plans

43. A Awareness and understanding B Baseline / Benchmark C Compelling vision / creative solutions D Down to action Successful planning

44. Ray Anderson - Vision

45. 1. Begin with the end in mind Present Future 2. Plan backwards from the vision to the present 3. Move step by step towards the vision Back-casting The Natural Step to planning for success! Back-casting The Natural Step to planning for success! © 2010 The Natural Step

46. Interface: Vision “To be the first company that, by its deeds, shows the entire industrial world what sustainability is in all its dimensions: People, process, product, place and profits — by 2020 — and in doing so we will become restorative through the power of influence.”

47. InterfaceFLOR – Commitments 1. 1.Eliminate Waste: Eliminating all forms of waste in every area of business 2. 2.Benign Emissions: Eliminating toxic substances from products, vehicles and facilities 3. 3.Renewable Energy: Operating facilities with renewable energy sources – solar, wind, landfill gas, biomass and low impact hydroelectric 4. 4.Closing the Loop: Redesigning processes and products to close the technical loop using recovered and bio-based materials 5. 5.Resource-Efficient Transportation: Transporting people and products efficiently to reduce waste and emissions 6. 6.Care for people: Creating a culture that integrates sustainability principles and improves people’s lives and livelihoods 7. 7.Redesign Commerce: Creating a new business model that demonstrates and supports the value of sustainability-based commerce Source: http://www.interfacesustainability.com

48. By 2020, DNV will be one of the most sustainable communities in the world. This in part will be achieved through a leadership role assumed by the municipal government in its own operations. As an organisation, the immediate challenge before the district is to demonstrate how sustainability can be implemented considering these values:

50. Developing a vision What would the characteristics of your organisation be if its operations and policies were fully aligned with the four sustainability principles?

51. Developing a vision 1.Make a list of your key stakeholders (employees, customers, suppliers etc) 2.Choose the 3 or 4 most important 3.What would each stakeholder group be saying about you as a sustainable organisation?

52. List the high-level strategic goals that your organisation needs to achieve to be a sustainable organisation Strategic goals

53. Whistler

54. Benefits of new natural gas supply proposal - C$42m Secure supply of energy Meet all forecasted energy demands Cleaner – natural gas = 15% lower GHG emissions than LPG Pay for itself within 50 years (assuming all new energy loads will use natural gas) Natural gas supply required to avoid need for diesel generators during Olympics Cost savings by laying pipe in conjunction with road upgrade No current energy alternatives - several renewable energy heating systems under investigation – and geothermal is technically feasible

55. Whistler’s energy vision Copyright © The Natural Step Canada

56. Forecasted Growth and Natural Gas Supply Heating Cooking Fireplaces Transportation © The Natural Step

57. District Energy, N.Gas /GSHP Natural Gas Bio Gas Gasoline, Natural Gas Biofuel, Hybrids Today Sustainable Future Heating Cooking Fireplaces Transportation Bio gas Wood Biofuel Fuel cells Hydrogen Other? GSHP Biofuels Fuel cells Other? Electric/Propane Propane Gasoline Diesel Transition Backcasted from Sustainability… Adapted from Terasen Inc. © The Natural Step

58. Olympic Village Was: 100% Natural Gas Now: 100% Renewables © The Natural Step

60. For each of your strategic goals, identify one or two key milestones that must be achieved along the journey

62. FleetRight size; reduce trips; alternative fuels Waste management Less paper; composting; expand recycling PurchasingMore investigation; better protocols Building and properties Ambitious minimum standards; reduce water usage Alternative energyPilot on-site alternative energy for council equipment and facilities; pilot large scale projects Employee health and well-being Incentivise health and safety culture; support learning on sustainability; support commuting alternatives Strategic planningConnect sustainability with everyday operations; act as ambassador and support education

63. Guiding principles

64. For each of your strategic goals, develop an action plan of next steps that work towards achieving the milestones you’ve identified

65. Easy wins first Reduce waste Identify financial benefits Easy wins first Reduce waste Identify financial benefits Guiding principles

66. Ray Anderson - waste

67. Back-cast from the ideal solution, and work out the next step towards achieving that goal Guiding principles

68. What are your priorities? Biggest expenses? Most significant purchases? Where can you be more efficient? What can you do without – through efficiencies or redesign? What different materials, products, substances might you use? What are your biggest risks and greatest opportunities? Where do you want to get to as an organisation? What are your values?

70. For each of your strategic goals, identify what you need to measure to know how close you are to achieving the goal

72. Developing a business case

77. Business case – the Benefit $ Increase turnover - more customers, better offer Improve margins / reduce costs –More efficient use of resources (materials / energy) –Increase staff productivity and better retention Reduce risk –Regulatory / compliance –Reputation and customer perception Develop enduring competitive advantages Avoid tax – regulatory risks Attract the best staff

78. Getting started Form a team –Who should be at the table? –Who are the ideal people? –Include a cross-section of the organisation –Diverse skills –Influencers –Sceptics –Ensure time is budgeted

79. Governance and decision-making Is there a shared understanding of sustainability that can be integrated into long-term goals? Is sustainability a strategic priority? Is there credible leadership and commitment on the issue? Organisation-wide sustainability analysis? Project based sustainability analysis? Training programmes? Ongoing internal communication? Policies and procedures? Connected to / communicated with external stakeholders? Sustainability progress reporting?

80. Poutama 2 - overview Quick re-cap of TNS framework How to drive sustainability initiatives –Developing the in-house team –Supporting structures Identifying the right initiatives Developing a persuasive business case –Gaining permission and support –Measuring success

82. Further resources Case studies – www.thenaturalstep.orgwww.thenaturalstep.org Planning guides (available free on the website) Benchmarking tools –PROBE for Sustainable Businesses Life-cycle Assessment tools E-learning For more information contact Simon Harvey – natstep@naturalstep.org.nz

83. The Natural Step approach is based on 20 years of scientific research and applied experience. TNS works with some of the world ’ s largest companies and a growing number of local and national government organisations. For further info contact Simon Harvey natstep@naturalstep.org.nz