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www.isa.org.usyd.edu.au The University of Sydney AUSTRALIA
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The University of Sydney AUSTRALIA Manfred Lenzen Barney Foran Christopher Dey Balancing Act A triple bottom line account of the Australian economy
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What is Balancing Act ? It is a complete life-cycle assessment of Australia’s industry sectors across 10 sustainability indicators.
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Why is Balancing Act new / special ?
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Economic: profits imports taxes and subsidies Environmental: energy & greenhouse material flow water & biodiversity Social: employment health and safety income A Global Reporting Framework The Triple Bottom Line -
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There are some problems with the GRI’s approach to the TBL.
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1: Investors need meaningful company benchmarks Water service provider A Pumping Catchment Water service provider B Pumping Catchment C D
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2: Policy makers want to avoid loopholes in legislation Dairy farming Transport Dairy processing A Water con- sumption 98% <0.1% 2% Dairy farming Transport Dairy processing A 1 A 2
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3: Producers need incentives for improving performance Dairy processing B Alum. / HDPE Packaging X Bio-plastic Packaging Dairy processing B Y
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4: Insurers need to see hidden risks, eg. carbon taxation Construction Pty C On-site emissions Embodied emissions from materials Water supplier Pty D On-site emissions Lower embodied emissions from materials
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Balancing Act shows how to solve the boundary problem. It is therefore relevant to investors, policy makers, producers and insurers.
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How does Balancing Act solve the boundary problem?
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FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES 4 3 FRGESFRGESFRGESFRGESFRGES 2 Aluminium for use FoodResourcesEnergyGoodsServices 0 1 Shipping of bauxite to smelter Manufacture of ship Iron ore for steel Energy for iron ore mining Steel for ship It looks at the whole supply chain.
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Integrating National Input- Output Tables Structure and function and knock-on effects Physical data
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The maths behind the model
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What did Balancing Act come up with ?
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Wheat and Other Grains
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Production layers
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Structural path analysis
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Black Coal
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Sector: Dairy Products
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Alumina and Aluminium
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Motor Vehicles and Parts
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Electricity Supply
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Banking
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Spin-off 1 : The BL 3 software for businesses
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Spin-off 2 : Detailed sustainability analysis for business and industry - Example: Aluminium
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detailed on- site audit complete supply- chain analysis
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FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES FRGESFRGESFRGESFRGESFRGES 4 3 FRGESFRGESFRGESFRGESFRGES 2 Aluminium for use FoodResourcesEnergyGoodsServices 0 1 Shipping to smelter Manufacture of ship Iron ore for steel Energy for iron ore mining Steel for ship Example: Australian aluminium
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Electricity> Al> exports 46.57 PJ (46.29%) Alumina> Al> exports 14.48 PJ (14.39%) Al> exports 8.24 PJ (8.19%) Electricity> Alumina> Al> exports 1.40 PJ (1.39%) Electricity> Al> stocks 0.78 PJ (0.78%) Petroleum and coal products> Al> exports 0.40 PJ (0.40%) Electricity> Bauxite> Alumina> Al> exports 0.34 PJ (0.34%) Bauxite> Alumina> Al> exports 0.29 PJ (0.29%) Iron and steel> Al> exports 0.26 PJ (0.26%) Alumina> Al> stocks 0.24 PJ (0.24%) 10 top upstream paths: energy use
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Al> exports 959,672 t (74.2%) Al> stocks 16,089 t (1.24%) Al> electrical equipm.> construction> investm. 4,514 t (0.3%) Al> electrical equipm.> exports 4,106 t (0.3%) Al> sheet metal> investment 2,963 t (0.2%) Al> basic iron and steel> exports 2,532 t (0.2%) Al> sheet metal> beverages> households 2,144 t (0.2%) Al> electrical equipm.> households 1,891 t (0.1%) Al> electrical equipm.> investment 1,496 t (0.1%) Al> medical,photogr.& scientif.equipm.>exports 1,437 t (0.1%) 10 top downstream paths: aluminium use
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Spin-off 3 : The Australian Triple Bottom Line Atlas
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Total energy requirement (GJ/cap)
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Energy intensity (MJ/A$)
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… and a whole continent. Covering the full supply chain …
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Spin-off 4 : Environmental Impact Assessment
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Emissions embodied in renewable energy technology
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Where from here ?
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Interlink time and space Multi-regional time series The Next Generation in Science
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Growth in Greenhouse Gas Emissions since 1970 ACCELERATORS: Population growth +1.1% Economic growth +1.5% Industrial structure+1.0% Export volume+0.8% Residential energy mix+0.1% RETARDANTS: Energy intensity of industry -1.3% Fuel mix -0.3% Final demand mix -0.2% Destination of final demand -0.2% Export mix -0.1% Richard Wood University of Sydney plus 4.5% /year minus 2.1% /year 2.3%
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Spatial impact modelling using GIS
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Complex TBL Accounting Which Way Forward ?
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www.bottomline3.com www.isa.org.usyd.edu.au For further info...
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