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Creating Integrated Value (CIV)

Creating Integrated Value: Beyond CSR and CSV to CIV

Paper by Wayne Visser & Chad Kymal

Abstract

Creating Integrated Value, or CIV, is an important evolution of the corporate responsibility and sustainability movement. It combines many of the ideas and practices already in circulation – like corporate social responsibility (CSR), sustainability and creating shared value (CSV) – but signals some important shifts, especially by focusing on integration and value creation. More than a new concept, CIV is a methodology for turning the proliferation of societal aspirations and stakeholder expectations – including numerous global guidelines, codes and standards covering the social, ethical and environmental responsibilities of business – into a credible corporate response, without undermining the viability of the business. Practically, CIV helps a company to integrate its response to stakeholder expectations (using materiality analysis) through its management systems (using best governance practices) and value chain linkages (using life cycle thinking). This integration is applied across critical processes in the business, such as governance and strategic planning, product/service development and delivery, and supply and customer chain management. Ultimately, CIV aims to be a tool for innovation and transformation, which will be essential if business is to become part of the solution to our global challenges, rather than part of the problem.

 

Creating Integrated Value (CIV) is a concept and practice that has emerged from a long tradition of thinking on the role of business in society. It has its roots in what many today call corporate (social) responsibility or CSR, corporate citizenship, business ethics and corporate sustainability. These ideas also have a long history, but can be seen to have evolved primarily along two strands – let’s call them streams of consciousness: the responsibility stream and the sustainability stream.

Two Streams Flowing into One

The responsibility stream had its origins in the mid-to-late 1800s, with industrialists like John D. Rockefeller and Dale Carnegie setting a precedent for community philanthropy, while others like John Cadbury and John H. Patterson seeded the employee welfare movement. Fast forward a hundred years or so, and we see the first social responsibility codes start to emerge, such as the Sullivan Principles in 1977, and the subsequent steady march of standardization, giving us SA 8000 (1997), ISO 26000 (2010) and many others.

The sustainability stream also started early, with air pollution regulation in the UK and land conservation in the USA in the 1870s. Fast forward by a century and we get the first Earth Day, Greenpeace and the UN Stockholm Conference on Environment and Development. By the 1980s and 1990s, we have the Brundtland definition of ‘sustainable development’ (1987), the Valdez Principles (1989, later called the CERES Principles) and the Rio Earth Summit (1992), tracking through to standards like ISO 14001 (1996).

Weaving Together a Plait

As these two movements of responsibility and sustainability gathered momentum, they naturally began to see their interconnectedness. Labour rights connected with human rights, quality connected with health and safety, community connected with supply chain, environment connected with productivity, and so on. The coining of the ‘triple bottom line’ of economic, social and environmental performance by John Elkington in 1994, and the introduction of the 10 principles of the UN Global Compact in 1999 reflected this trend.

We also saw integration start to happen at a more practical level. The ISO 9001 quality standard became the design template for ISO 14001 on environmental management and OHSAS 18001 on occupational health and safety. The Global Reporting Initiative and the Dow Jones Sustainability Index adopted the triple bottom line lens. Fair Trade certification incorporated economic, social and environmental concerns, and even social responsibility evolved into a more holistic concept, now encapsulated in the 7 core subjects[1] of ISO 26000.

Thinking Outside the Box

At every stage in this process, there have been those who have challenged our understanding of the scope and ambition of corporate responsibility and sustainability. Ed Freeman introduced us to stakeholder theory in 1984, John Elkington to the ‘triple bottom line’ in 1994, Rosabeth Moss Kanter to ‘social innovation’ in 1999, Jed Emerson to ‘blended value’ in 2000, C.K. Prahalad and Stuart Hart to ‘bottom of the pyramid’ (BOP) inclusive markets in 2004, and Michael Porter and Mark Kramer to ‘creating shared value’ (CSV) in 2011.

Typically, these new conceptions build on what went before, but call for greater integration and an expansion of the potential of business to make positive impacts. For example, Hart’s ‘sustainable value’ framework (2011) incorporates pollution prevention, product stewardship, base of the pyramid (BOP) and clean tech. Emerson’s ‘blended value’, much like Elkington’s ‘triple bottom line’ looks for an overlap between profit and social and environmental targets, while Porter and Kramer’s CSV focuses on synergies between economic and social goals.

Figure 1 – Sustainable Value

susval

Source: Hart, Stuart L. (2011). Sustainable Value. Retrieved from http://www.stuartlhart.com/sustainablevalue.html

The ‘How To’ of Integration

Creating Integrated Value (CIV) takes inspiration from all of the thought pioneers that have gone before and tries to take the next step. CIV is not so much a new idea – as the longstanding trend towards integration and the ubiquitous call for embedding of standards testifies – but rather an attempt to work out the ‘how to’ of integration. When companies are faced with a proliferation of standards (Standards Map alone profiles over 150 sustainability standards) and the multiplication of stakeholder expectations, how can they sensibly respond?

We have analysed some of the most important global guidelines, codes and standards covering the social, ethical and environmental responsibilities of business – such as the UN Global Compact, OECD Guidelines for Multinational Enterprises, ISO 26000, GRI Sustainability Reporting Guidelines (G4), IIRC Integrated Reporting Guidelines, SA 8000, UN Business & Human Rights Framework and Dow Jones Sustainability Index.

What we see are large areas of overlap in these guidelines, codes and standards across what we might call the S2QE3LCH2 issues, namely:

  • S2: Safety & Social issues
  • Q: Quality issues
  • E3: Environmental, Economic and Ethical issues
  • L: Labor issues
  • C: Carbon or Climate issues
  • H2: Health and Human rights issues

Our experience of working with business shows that most companies respond piecemeal to this diversity and complexity of S2QE3LCH2 issues (let’s call them SQELCH for short). A few large corporations use a management systems approach to embed the requirements of whatever codes and standards they have signed up to. Even, so they tend to do this in silos – one set of people and systems for quality, another for health and safety, another for environment, and still others for employees, supply chain management and community issues.

Knocking Down the Silos

CIV, therefore, is about knocking down the silos and finding ways to integrate across the business. In short, CIV helps a company to integrate its response to stakeholder expectations (using materiality analysis) through its management systems (using best governance practices) and value chain linkages (using life cycle thinking[2]). This integration is applied across critical processes in the business, such as governance and strategic planning, product/service development and delivery, and supply and customer chain management.

And what about value? Most crucially, CIV builds in an innovation step, so that redesigning products and processes to deliver solutions to the biggest social and environmental challenges we face can create new value. CIV also brings multiple business benefits, from reducing risks, costs, liabilities and audit fatigue to improving reputation, revenues, employee motivation, customer satisfaction and stakeholder relations.

Pursuing Transformational Goals

Our experience with implementing and integrating existing standards like ISO 9001 and ISO 14001 convinces us that, in order for CIV to work, leaders need to step up and create transformational goals. Without ambition ‘baked in’ to CIV adoption, the resulting incremental improvements will be no match for the scale and urgency of the global social and environmental crises we face, such as climate change and growing inequality.

One of the most exciting transformational agendas right now is the Net Zero/Net Positive movement[3], which extends the ‘zero’ mind-set of total quality management to other economic, social and environmental performance areas. For example, we see companies targeting zero waste, water and carbon; zero defects, accidents and missed customer commitments; and zero corruption, labour infringements and human rights violations. These kinds of zero stretch goals define what it means to be world class today.

Stepping Up To Change

In practice, CIV implementation is a 6-step process, which we can be described as: 1) Listen Up! (stakeholder materiality), 2) Look Out! (integrated risk), 3) Dig Down! (critical processes), 4) Aim High! (innovation & value); 5) Line Up! (systems alignment); and Think Again! (audit & review). Each step is captured in Figure 2 and briefly explained below. Of course, the process must also remain flexible enough to be adapted to each company context and to different industry sectors.

Figure 2 – Creating Integrated Value

civ

Source: Wayne Visser and Chad Kymal (2014)

Step 1: Listen Up! (Stakeholder Materiality)

The first step of the CIV process is Stakeholder Materiality Analysis, which systematically identifies and prioritises all stakeholders – including customers, employees, shareholders, suppliers, regulators, communities and others – before mapping their needs and expectations and analysing their materiality to the business. This includes aligning with the strategic objectives of the organization and then driving through to result measurables, key processes and process measurables.

The stakeholder materiality analysis is the first level of integration and should be conducted simultaneously for quality, cost, products, environment, health and safety and social responsibility. The analysis helps to shape a comprehensive set of goals and objectives, as well as the overall scorecard of the organization. When conducted holistically as a part of the organization’s annual setting of goals, objectives and budgets, it seamlessly integrates into how the business operates. A similar approach was developed and fine-tuned by Omnex for Ford Motor Company in a process called the Quality Operating System.

Step 2: Look Out! (Integrated Risk)

In parallel with the Stakeholder Materiality Analysis, the risks to the business are analysed through an Integrated Risk Assessment. This means the identification and quantification of quality, cost, product, environment, health and safety and social responsibility risks, in terms of their potential affect on the company’s strategic, production, administrative and value chain processes. The risk measures developed need to be valid for all the different types of risks and different entities of the business, and mitigation measures identified.

The first two steps of Stakeholder Analysis and Risk Assessment are requirements of the new ISO 9001, ISO 14001 and ISO 45001 (formerly OHSAS 18001) standards slated to come out in the next few years. For example, in the new ISO 9001 that is planned for release in 2015, it is called ‘Understanding the Needs and Expectations of Interested Parties’ and ‘Actions to Address Risks and Opportunities’. The evolution of the ISO standards is indicative of a shift in global mind-set (since ISO represents over a 100 different countries) to prioritising stakeholder engagement and risk management.

Step 3: Dig Deep! (Critical Processes)

In step 3, the Stakeholder Materiality Analysis and Integrated Risk Assessment are used to identify critical business processes, using the Process Map of the organization. It is likely that the most critical processes – in terms of their impact on SQELCH issues – will include Governance & Strategic Planning, Product or Service Development, Product or Service Delivery, Supply Chain Management, and Customer Chain Management. There may also be others, depending on the particular business or industry sector. This Critical Processes list should also include the most relevant sub-processes.

Step 4: Aim High! (Innovation & Value)

Step 4 entails the Innovation and Value Identification element. Using the Net Zero/Net Positive strategic goals, or others like Stuart Hart’s sustainable value framework, each of the critical processes is analysed for opportunities to innovate. Opportunity analysis is followed by idea generation and screening and the creation of a Breakthrough List. This is the chance for problem solving teams, Six Sigma teams, Lean teams, and Design for Six Sigma teams and others to use improvement tools to take the company towards its chosen transformational goals. The improvement projects will continue for a few months until they are implemented and put into daily practice.

Step 5: Line Up! (Systems Alignment)

In Step 5, the requirements of the various SQELCH standards most relevant for the organization, together with the transformational strategic goals, are integrated into the management system of the organization, including the business processes, work instructions and forms/checklists. Process owners working with cross-functional teams ensure that the organizational processes are capable of meeting the requirements defined by the various standards and strategic goals. This is followed by training to ensure that the new and updated processes are understood, implemented and being followed.

Step 6: Think Again! (Audit & Review)

Integration has one final step, Internal Audit and Management Review, which creates the feedback and continuous improvement loop that is essential for any successful management system. This means integrating the value creation process into the governance systems of organization, including Strategic Planning and Budgeting, Management or Business Review, Internal Audits, and Corrective Actions. This is what will ensure that implementation is happening and that the company stays on track to achieve its transformational goals.

Words Count, Actions Matter

To conclude, we believe Creating Integrated Value, or CIV, is an important evolution of the corporate responsibility and sustainability movement. It combines many of the ideas and practices already in circulation, but signals some important shifts, especially by using the language of integration and value creation. These are concepts that business understands and can even get excited about (whereas CSR and sustainability tend to be put into peripheral boxes, both in people’s heads and in companies themselves).

More critical than the new label or the new language is that CIV is most concerned with implementation. It is a methodology for turning the proliferation of societal aspirations and stakeholder expectations into a credible corporate response, without undermining the viability of the business. On the contrary, CIV aims to be a tool for innovation and transformation, which will be essential if business is to become part of the solution to our global challenges, rather than part of the problem.

Article reference

Visser, W. and Kymal, C. (2014) Creating Integrated Value: Beyond CSR and CIV to CIV, Kaleidoscope Futures Paper Series, No. 3.

Endnotes

[1] Organizational governance, human rights, labour practices, environment, fair operating practices, consumer issues, and community involvement and development

[2] It is interesting to note that the revised ISO 14001 being planned for release in 2016 includes a life cycle perspective for all aspects of operations including product design and delivery.

[3] This is captured eloquently in John Elkington’s book, Zeronauts (2012)

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Related pages

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[button size=”small” color=”blue” style=”info” new_window=”false” link=”http://www.kaleidoscopefutures.com”]Page[/button] Kaleidoscope Futures (website)

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Visser, W. and Kymal, C. (2014) Creating Integrated Value: Beyond CSR and CIV to CIV, Kaleidoscope Futures Paper Series, No. 3.

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8 lessons from Egypt in building a cleaner chemicals industry

8 lessons from Egypt in building a cleaner chemicals industry

Article by Wayne Visser

Part of the Sustainable Innovation & Technology series for The Guardian.

The technology is there to reduce the environmental impact of Egypt’s chemical sector, but finance and capacity are still lacking.

In previous articles, I have looked at the impacts of the chemicals sector and innovations like green chemistry. But how do we share the technologies that are making the chemicals sector more sustainable, especially in rapidly emerging countries?

To answer this question, I’m going to shine the spotlight on Egypt – where factories are discharging 2.5m cubic metres of untreated effluent into the rivers every day, much of it laced with toxic chemicals. The country also faces a water and energy crisis. But three Egyptian companies are tackling these environmental issues through technology adoption and transfer.

The first is Arab Steel Fabrication Company (El Sewedy), which has applied a technological solution to recover hydrochloric acid from its galvanisation process. Besides the obvious environmental benefits, the company is saving 345,000 Egyptian pounds (£30,000) a year. The second company, Mac Carpet, has used technology to create an automatic system for recycling of thickener agents, which saves it about EGP5m per year.

The third case is El Obour for Paints and Chemical Industries (Pachin), which manufactures paints, inks and resins. As with many chemical companies, the manufacturing process is very energy intensive. As part of a government programme to promote renewable energy in Egypt (part-funded by the EU), a technology company in Germany has installed solar collectors at the Pachin facility. These heat the water to 65C, then by using a heat exchanger, recover the heat and use it to keep the fatty acid store at an optimal temperature, saving the company EGP100,000 a year.

In all three cases, there are lessons to be learned.

1. Economic drivers

When asked about the top three benefits from implementing sustainable technology, El Sewedy and Mac Carpet Company both mentioned resource productivity and economic development. Environmental improvement was also a key factor (in the top three for both), but would have been insufficient on its own to motivate the technology change.

2. Skills development

Significant barriers to technology adoption for both companies were the lack of local qualified workers and institutional capacity. To overcome this, the technology provider and the Egyptian National Cleaner Production Centre (ENCPC) had to do training. Ali Abo Sena, an ENCPC representative, said that education was needed not only on the specific technologies, but also more broadly on the seriousness of the water crisis in Egypt.

3. Business continuity

For Pachin, energy consumption is not just an environmental issue, but one that is business critical. In 2013, the Egyptian government announced plans to ration subsidies for petrol and diesel fuel, and hiked fuel prices for heavy industry by 33% at the beginning of the year. Power outages have become more commonplace, resulting in significant disruption to business continuity and loss of economic value.

4. Market potential

The German solar company was prepared to part-fund, install and support the technology transfer to Pachin in Egypt because it enabled them to show a working demonstration of a project in a market that has massive potential for the business. The marketing benefits of sustainable technology in developing countries should not be underestimated.

5. Macro conditions

It is unlikely that the Pachin project would have been embraced so enthusiastically had Egypt not experienced an energy crisis – and accompanying rises in energy costs – in recent years. Although these macro conditions are beyond the control of sustainable technology providers, being sensitive to the opportunities that they can provide can help ensure that the correct markets are chosen for deployment.

6. Financial support

Although long-term economic development is an important benefit of the adoption of sustainable technologies, the high initial cost of the these projects and the relatively long payback period can be a significant barrier. In the case of Pachin, this was overcome by getting financial support for the project (from the EU and the technology provider).

7. Plan for scaling

A lack of qualified workers to install, operate and maintain Pachin’s solar technology was overcome by providing the relevant skills training. However, in order to ensure future scaling, a plan was also devised for moving towards local manufacturing (possibly through a joint-venture).

8. Local adaptation

The ENCPC – working as an intermediary – determined that the German solar technology was over-engineered for the local conditions. In particular, since the technology was made in Germany and had to comply with EU specifications and perform in a region with ambient sunlight, it was found that the insulation materials could be replaced with less expensive substitutes, which performed adequately under local conditions.

Major reductions in the environmental impacts of the chemicals industry – as well as economic benefits – can be achieved by adopting and transferring existing best practice sustainable technologies. The problem, therefore, is not our lack of sustainable technologies, but our ability to finance, incentivise and build capacity for their deployment where they are most needed in the world.

 

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Related websites

[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” new_window=”false” link=”http://www.kaleidoscopefutures.com”]Link[/button] Kaleidoscope Futures (website)

[button size=”small” color=”blue” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

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Visser, W. (2014) 8 lessons from Egypt in building a cleaner chemicals industry, The Guardian, 8 October 2014.

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Will green chemistry save us from toxification?

Will green chemistry save us from toxification?

Article by Wayne Visser

Part of the Sustainable Innovation & Technology series for The Guardian.

A swath of green chemistry initiatives could revolutionise the industry but just taking the toxic stuff out isn’t the answer, ingredients and design need to change.

The ‘green’ label has been so abused over the past few decades that it is wise to suspect PR spin (what many call greenwashing). In the case of green chemicals, however, there is at least some serious thinking and extensive application to back up its claims.

Let’s start with what it means. The OECD defines green chemistry as “the design, manufacture and use of efficient, effective, safe and more environmentally benign chemical products and processes”. More specifically, green chemistry should use fewer hazardous and harmful feedstocks and reagents; improve the energy and material efficiency of chemical processes; use renewable feedstocks or wastes in preference to fossil fuels or mined resources; and design chemical products for better reuse or recycling.

Popular categories of green chemistry include biochemical fuel cells, biodegradable packaging, aqueous solvents, white biotechnology (the application of biotechnology for industrial purposes), totally chlorine-free bleaching technologies and green plastics.

One research report suggests that the green chemistry market will grow from $2.8bn in 2011 to $98.5bn by 2020 and will save the industry $65.5bn through direct cost savings and avoided liability for environmental and social impacts.

Others are even more bullish, predicting growth in the bio-based chemicals market from $78bn in 2012 to $198bn by 2017, eventually accounting for 50% of the chemicals market by 2050.

Can we trust green chemistry?

One way to check is the US Environmental Protection Agency’s Design for the Environment (DfE) Safer Product Labeling Program. The Safer Chemical Ingredients List contains chemicals that have been screened to exclude CMRs (carcinogens, reproductive/developmental toxicants and mutagens) and PBTs (persistent, bio-accumulative, and toxic compounds) and other chemicals of concern.

At present, about 2,500 products carry the DfE Safer Product Label, with compliance verified by certifiers such as NSF Sustainability.

Beyond this, there are a host of multi-stakeholder initiatives that give further guidance, checks and validity to claims, including Clean Production Action’s GreenScreen, GreenBlue’s CleanGredients and iSustain’s Alliance Assessment.

All these hazardous chemical screening lists may seem like striving for ‘less bad’ rather than ‘good’, but they are also sparking innovations around the world.

Imagine what would happen if we substituted all our fossil fuel derived plastics with Brazilian company Braskem’s sugarcane ethanol derived Bio-PE (polyethylene) and Bio-PP (polypropylene), which removes up to 2.15 metric tons of CO2 for each ton produced.

What if many of the plastics used in the automotive sector were replaced by a new latex-free material produced through a dry powder coating technology by French project Latexfri? Or perhaps we could move to starches created by Ethiopian company YASCAI from enset, a local plant?

Another approach, which UNIDO has been promoting, is to move towards chemical leasing, where chemical manufacturers take responsibility for the safe recovery and disposal of the chemicals they sell. For example, in Colombia, a chemical leasing programme between Ecopetrol and Nalco de Colombia resulted in a reduction of the costs of the treatment process by almost 20%, with savings of $1.8m for Ecopetrol and $463,000 for Nalco.

In Sri Lanka, chemical leasing between Wijeya Newspapers and General Ink resulted in ink savings of around 15,000kg, equivalent to approximately $50,000 per year. In Egypt, Delta Electrical Appliances, Akzo Nobel Powder Coating and Chemetall Italy reduced consumption of chemicals for pre-treatment chemicals by 15-20% and for powder coating by 50% as a result of chemical leasing.

A new era for the chemical industry

Will all of these green chemistry initiatives revolutionise the industry?

Cradle to Cradle, a product certification scheme, hopes to do just that. Co-founder and German chemist, Michael Braungart, told me that in 1987 when he was analysing complex household products, he identified 4,360 different chemicals in a TV set and concluded: “It doesn’t help just to take any toxic stuff out of it”. Rather, products have to be redesigned so that all inputs are either biological nutrients (that can harmlessly biodegrade) or technical nutrients (that can be endlessly and safely recycled).

So does Cradle to Cradle represent the cutting edge of green chemistry? In my book, The Top 50 Sustainability Books, Braungart says: “I’m just talking about good chemistry. Chemistry is not good when the chemicals accumulate in the biosphere; that’s just stupid. Young scientists immediately understand that a chemical is not good when it accumulates in mother’s breast milk. It’s just primitive chemistry. So now we can make far better chemistry, far better material science, far better physics.”

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Related websites

[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” new_window=”false” link=”http://www.kaleidoscopefutures.com”]Link[/button] Kaleidoscope Futures (website)

[button size=”small” color=”blue” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2014) Will green chemistry save us from toxification? The Guardian, 24 September 2014.

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Why banning dangerous chemicals is not enough

Why banning dangerous chemicals is not enough

Article by Wayne Visser

Part of the Sustainable Innovation & Technology series for The Guardian.

To feed the world’s chemical addiction, production has had to grow rapidly over the last 40 years. Are companies doing enough to make products and processes safer?

The growth in chemical production in the past 40 years has been nothing short of explosive, with global output of $171bn in 1970 burgeoning to more than $4tn in 2010 (an increase of more than 2,000%). By 2050, the market is expected to expand further to more than $14tn (an increase of more than 250% from 2010), with the BRICS countries dominating and accounting for more than $6tn together ($4tn for China alone).

The message is clear: this is not an industry that is going away. We are all, with our modern lifestyles, totally hooked on chemicals, whether for energy (petrochemicals), colourants (paints, inks, dyes, pigments), food production (fertilisers, pesticides), health (medicines, soaps, detergents) or beauty (perfumes, cosmetics).

Yet, like all drugs, chemicals have some serious side effects. The World Health Organization (WHO) estimates that the chemical industry causes around a million deaths and 21m disability adjusted life years (DALYs) globally every year (based on 2004 data). DALYs are a measure of overall disease burden, expressed as the number of years lost due to ill-health, disability or early death.

The main cause of these serious health impacts are acute poisoning , occupational exposure and lead in the environment. What’s more, these WHO figures are almost certainly an underestimate, since they exclude (due to incomplete data) chronic consumer exposure to chemicals and chronic exposure to pesticides and heavy metals such as cadmium and mercury.

So here is the dilemma: chemicals are harming people – and even killing some of them – yet because of their benefits and the world’s addiction, they cannot be eliminated, even if the renewable energy and organic farming sectors continue their boom of recent years. Taking this as a starting point, the next question becomes: what has the chemical industry done to make its products and processes safer?

The industry has a self-regulatory programme called Responsible Care, which was created in 1985. According to the International Council of Chemical Associations’ (ICCA) decennial report on progress in 2012, 85% of the world’s leading global chemical companies have already signed up to its Global Charter. The ICCA can show significant improvements since 2002 in fatalities, injuries, carbon intensity and transportation incidents (others like water consumption, energy use and total carbon emissions are still heading in the wrong direction).

All this is part of ICCAs contribution to the UN’s Strategic Approach to International Chemicals Management (SAICM), which aims to achieve “sound chemical management” and to “minimise significant adverse impacts on the environment and human health” by 2020. That sounds good. But is it working? The data suggests we have a long way to go.

For example, in North America alone, 4.9m metric tons of chemicals are released annually into the environment or disposed of, according to 2009 figures. This includes nearly 1.5m metric tons of chemicals that are persistent, bio-accumulative and toxic; more than 756,000 metric tons of known or suspected carcinogens; and nearly 667,000 metric tons of chemicals that are considered reproductive or developmental toxicants.

Besides the health impacts of these emissions, the disruptive effects of chemical pollution on ecosystems also have significant economic consequences. The cost to the global economy of chemical pollution has been estimated at $546bn. This is projected to rise to $1.9tn by 2050, or 1.2% of global GDP. 57% of these externalities are associated with listed companies and their supply chains, and $314bn can be attributed to the largest 3,000 public companies in the world.

Scary numbers, but the chemicals sector says everything is under control. They are aware of the problems and are dealing with them, multilaterally and as a sector, through a plethora of initiatives – such as the Basel, Rotterdam and Stockholm Conventions, the US Toxic Release Inventory and the EU Registration, Evaluation, Authorisation and Restriction of Chemicals programme. The ICCA’s Chemicals Portal also offers free public access to product stewardship information. To date, product safety summaries are available for close to 3,500 chemicals.

And besides these collective efforts, most large companies now also have lists of chemicals they ban and those they prefer, such as Nike’s Considered Chemistry, Boots’ Priority Substances List, SC Johnson’s Greenlist and Sony’s Green Partners Standards. However, the issue is that these are defensive actions, a bit like trying to lock up a fierce lion in a cage, rather than taming it – or better still, exchanging it for a pet cat or dog.

Can the chemical sector ever be sustainable? The answer is maybe. The big leap forward – with a tantalising promise of not only making chemicals safer or ‘less bad’, but potentially harmless or even ‘good’ – is the emerging green chemistry industry, which I will explore in the next article.

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Related websites

[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” new_window=”false” link=”http://www.kaleidoscopefutures.com”]Link[/button] Kaleidoscope Futures (website)

[button size=”small” color=”blue” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2014) Why banning dangerous chemicals is not enough. The Guardian, 16 September 2014.

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Sustainable tech in Africa: 10 lessons from a cassava company

Sustainable tech in Africa: 10 lessons from a cassava company

Article by Wayne Visser

Part of the Sustainable Innovation & Technology series for The Guardian.

Cassava flour company C:AVA has valuable insight from five years’ experience spreading sustainable technology in Africa

To understand the potential impact of sustainable technologies and why their adoption is often difficult, especially in developing countries, it is helpful to examine a specific case study.

C:AVA, the Cassava: Adding Value for Africa Project, promotes the production of High Quality Cassava Flour (HQCF) as an alternative for starch and other imported materials such as wheat flour. C:AVA has developed value chains for HQCF in Ghana, Tanzania, Uganda, Nigeria and Malawi aiming to improve the livelihoods and incomes of at least 90,000 smallholder households, including women and disadvantaged groups.

The main opportunity for technology to make a difference is in the drying process. A flash dryer dries cassava mash very quickly, preventing fermentation. The flash dryers that were available in Nigeria before C:AVA’s intervention were run on used motor oil or diesel and tended to be highly fuel inefficient and costly.

C:AVA – led by the Natural Resources Institute of the University of Greenwich, working with the Federal University of Agriculture Abeokuta, and the Bill and Melinda Gates Foundation – evaluated the traditional flash dryers in 2009. Since then, they have introduced more efficient technology (double cyclone flash dryers). These involve heat exchange systems – using “waste” heat from one part of the process to feed into another part – better insulation and faster drying speeds. The efficiencies have increased the diesel fuel to flour production ratio by an 18 factor improvement according to C:AVA tests, reducing costs and CO2 emissions.

However, these achievements have not been easy. Over the last five years, C:AVA has learned 10 crucial lessons about the successful diffusion of more sustainable technologies in Africa:

1. Capacity building

A critical part of the technology transfer process was that C:AVA mentored a Nigerian fabricator to produce a flash dryer that meets international standards. As a result, new engineering knowledge and skills are being developed and embedded locally.

2. Regional trade and infrastructure

C:AVA organised experience sharing visits between cassava stakeholders in western and eastern Africa. Transporting a flash dryer from Nigeria to Malawi revealed significant constraints to technology transfer in the region due to poor transport infrastructure and high transaction costs (bureaucratic red tape).

3. Value chain fluctuations

Technology can improve one part of the value chain, but changes in other parts can neutralise these benefits. For example, prices of fresh cassava roots can vary by more than 300% in one season. So C:AVA is also working with others to ensure that farmers obtain higher yield per unit area of cassava.

4. Macro trends

It is critical to monitor how changes in the macro environment could impact the technology investment. In Malawi, C:AVA identified large markets for HQCF and organised raw materials in anticipation of the introduction of artificial drying. But due to a drought, cassava suddenly became a major primary food in a predominantly maize consuming nation, resulting in a raw materials shortage.

5. Working with investors

The new dryers required investors willing to make an investment of $200,000 (£120,600). This difficulty was overcome by addressing the fuel inefficiency of the traditional flash dryers, and working with potential investors on their business plans, identifying market opportunities and raw materials supply.

6. Finance dependent delays

For C:AVA, almost all project targets that were dependent on private investor decision making have been off-course. Technology projects need to include or seek guidance from private sector partners in determining their expectations and fixing their decision-making timelines within project cycles.

7. Expectations management

The perception that technology interventions will bring financial or tangible hand-outs can lead to disappointment and even hostility from potential beneficiaries when these expectations are not met. This can be exacerbated by development agencies providing short-term donations.

8. Policy support

C:AVA benefitted from a favourable government policy environment in Nigeria, particularly in the period between 2002 and 2007 when the Presidential Initiative on Cassava was in operation. Currently, the Cassava Transformation Programme of the federal government provides another favourable environment to promote the technology.

9. Private sector partners

One of the big lessons from C:AVA was that their set of collaborative partnerships, although well balanced in other respects, lacked private sector representation. As a result, when it came to getting access to capital, the technology adoption time was considerably delayed.

10. Spreading the benefits

To scale the positive impact, there are plans for spreading the more efficient flash dryer technology through south-south investments, (between developing countries). To this end, the Gates Foundation has funded demonstration projects in four additional countries, including Malawi, Ghana, Tanzania and Uganda.

 

With thanks to Richard Coles and Christopher Thorpe from Emagine and the University of Greenwich C:AVA team for the interviews and/or the information they provided.

 

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[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2014/10/article_sustech4_wvisser.pdf”]Pdf[/button] Sustainable tech in Africa: 10 lessons from a cassava company (article)

Related websites

[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” new_window=”false” link=”http://www.kaleidoscopefutures.com”]Link[/button] Kaleidoscope Futures (website)

[button size=”small” color=”blue” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

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Visser, W. (2014) Sustainable tech in Africa: 10 lessons from a cassava company. The Guardian, 26 August 2014.

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Meeting water and energy challenges in agri-food sector with technology

Meeting water and energy challenges in agri-food sector with technology

Article by Wayne Visser

Part of the Sustainable Innovation & Technology series for The Guardian.

Innovations in sugar cane processing to reduce water use and produce energy will help to meet future agricultural product demands

Worldwide, the overall growth in demand for agricultural products will require a 140% increase in the supply of water over the next 20 years compared to the past 20 years. While the bulk of this demand will be from irrigation, food processing plants can also be water intensive. So, any technological innovations in the industry that save water are welcome.

One such innovation is by Mars Petcare, which has developed a recirculation system that reduces the potable water used for cooling in its pet food production process by 95%. Wastewater is also down by 95% and gas by 35% through the use of a treatment method that keeps the water microbiologically stable.

In Brazil, water used in sugar cane processing has gone down from 5.6 to 1.83 cubic metres (m3) per tonne in recent years, due to improved technologies and practices in waste water treatment.

Further reductions can be made by replacing the standard wet cane washing process with a new technique of dry cane washing. Costa Rican company Azucarera El Viejo SA has found that this switch has resulted in more than 6m gallons of water being saved each day during the harvest season, netting savings of approximately $54,000 (£32,000).

Of course, in food processing, it is not only volume of water that is important, but also the quality of water effluent associated with the manufacturing process. In Brazil, sugar cane is partly processed into ethanol. Vinasse is a byproduct of this process that pollutes water. Technological innovation shows that, while in Brazil emissions of 10-12 litres of vinasse per litre of ethanol are standard, levels of 6 litres can be achieved.

Other examples of innovative water quality solutions in the agri-foods sector are Briter-Water, which has been piloted in the EU and uses intensified bamboo-based phytoremediation for treating dairy and other food industry effluent; and the Vertical Green Biobed, developed by HEPIA, a school from the University of Applied Sciences of western Switzerland, to improve water treatment of agricultural effluents.

Generating energy from agricultural waste

Besides water issues, agriculture is also very energy intensive, accounting for 7% of the world’s greenhouse gas emissions, according to 2010 figures. Even carbon emissions associated only with direct energy use by the sector stand at 1.4% of the world’s total. Energy efficiency technologies will certainly help, but there is an equally big innovation opportunity in generating energy from agricultural waste.

It is estimated that the global biofuels market could double to $185.3bn (£110.5) by 2021 and that next generation sugar cane bagasse-to-biofuels technologies could expand ethanol production in key markets like Brazil and India by 35% without land or water intensification. Experiences in this rapidly growing industry suggest some lessons which can be applied to sustainable technology innovation more generally.

Lesson 1: technologies must be ready-for-market

There are always competing technological solutions at the Research and Development (R&D) phase, but a critical test is which ones are ready to scale commercially. In the case of cellulosic biofuel technologies, despite early research into wheat straw and corn stover, sugar cane biomass ended up being more commercially attractive to big investors like Blue Sugars, Novozymes, Iogen, Beta Renewables, DSM and Codexis.

Lesson 2: partnership is critical for success

There have been few standalone projects announced. Instead, technology companies from the US and the EU have generally teamed up with large aggregators of bagasse like Raizen and Petrobras. Apart from technology transfer benefits, access to already-aggregated bagasse is economically essential.

Lesson 3: policy support and market demand attract investment

Brazil is especially attractive as a technology transfer destination due to a combination of policy certainty and strong ethanol demand. This combination is also stimulating parallel next generation biofuels. Most notably GraalBio and Praj have significant projects targeting other feedstocks such as straw.

Investment in biofuels can also generate significant economic value for agri-food processors. During the sugar cane harvest, the left over fibre is burned and converted into energy via bagasse-to-biogas production. During the 2011-12 harvest, approximately 38m kWh of energy derived from bagasse-to-biogas production was sold by Azucarera El Viejo to the Costa Rican Electricity Institute, bringing over $3m (£1.79m) of income to the company.

In Nepal, the Biogas Support programme installed over 250,000 domestic biogas plants in rural households between 1992 and 2011, using cattle manure to provide biogas for cooking and lighting, replacing traditional energy sources such as fuel wood, agricultural residue and dung. Besides health benefits from less indoor smoke, the project has cut 625,000t of CO2.

And in Rwanda, there is a proposal – yet to be approved and implemented – for two biofuels companies, Eco-fuels Global and Eco Positive, to invest $250m (£149m) and grow 120m jatropha trees, helping to make Rwanda self-reliant in biodiesel by 2025 and bringing jobs to 122 small oilseed-producing cooperatives with over 12,000 members.

 

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[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2014/10/article_sustech3_wvisser.pdf”]Pdf[/button] Meeting water and energy challenges in agri-food sector with technology (article)

Related websites

[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” new_window=”false” link=”http://www.kaleidoscopefutures.com”]Link[/button] Kaleidoscope Futures (website)

[button size=”small” color=”blue” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2014) Meeting water and energy challenges in agri-food sector with technology. The Guardian, 13 August 2014.

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Appointment as Vice President of Sustainability Services

PRESS RELEASE – FOR IMMEDIATE DISTRIBUTION

Released: October 1, 2014

Omnex Launches World-Class Corporate Social Responsibility Services

Omnex, an international consulting, training and software development organization headquartered in Ann Arbor, MI. is delighted to welcome Dr. Wayne Visser to their global team as Vice President of Sustainability Services.

“Every major corporate social responsibility (CSR) and sustainability code and standard talks about embedding,” says Visser. “I believe the best way to do this is by Creating Integrated Value (CIV) – a new methodology that combines Omnex’s deep experience in management systems implementation with my own work on innovation and transformation to achieve sustainable futures.”

Chad Kymal, CTO and Founder of Omnex, says “Omnex is very excited to add a global subject matter expert of the caliber of Dr. Wayne Visser. Under his leadership, Omnex will provide leading edge training and consulting for our clients interested in the fast-changing fields of corporate responsibility, sustainability and creating integrated value (CIV).”

Fast Company Magazine claims that “anyone interested in CSR will eventually come across Wayne Visser. He is very active in the field, and offers a unique and candid voice on the topic.” CSRWire calls him “one of the most prolific, creative and original thought leaders on CSR and author/editor of books on the subject”.

Visser is best known for his books and keynote speeches on sustainable business and his work as Director of the think tank Kaleidoscope Futures and Founder of CSR International. In addition, Wayne is Transnet Chair of Sustainable Business at the Gordon Institute of Business Science in South Africa, Adjunct Professor of Corporate Responsibility at Deakin Business School in Australia and Senior Associate at the University of Cambridge Institute for Sustainability Leadership in the UK.

A variety of sustainability courses and consulting services are now available through Omnex. For more information, contact Kate Shavrnoch at +01-734-761-4940 or www.omnex.com.

Omnex is an international consulting, training and software development organization specializing in management system solutions that elevate the performance of client organizations. Omnex provides consulting and training services in Quality, Environmental, and Health and Safety standards-based management systems like ISO 9001:2008, ISO 14001:2004, ISO/TS 16949:2009 and QOS. Omnex also leads the way with Lean, Six Sigma and other breakthrough systems and methods of performance enhancement, supported by Omnex Systems, LLC, providing software solutions for Enterprise Wide Quality Management Systems®.

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Art 2014

Click on the thumbnail images to view the pictures in the gallery

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Webinar: The Future of Business

The future of business: How to survive and thrive in a climate constrained world

Join us for a Webinar on August 28

Space is limited. Reserve your Webinar seat now at:

https://www2.gotomeeting.com/register/976040394

Climate change presents a significant long term risk, as well as an opportunity, for business and society. Dr Visser will summarize the latest scientific findings and trends to 2050, before looking at the range of business responses, from defensive, charitable and promotional approaches to more strategic and trans-formative actions. He will outline visions of a safe, smart, shared, sustainable and satisfying future in a climate constrained world, and propose steps for implementing a resilient strategy across five dimensions: re-assessing (performance), re-aligning (partnerships), re-defining (purpose), re-designing (products) and re-structuring (policies).

Dr Wayne Visser has been listed as one of the Top 100 Thought Leaders in Trustworthy Business Behavior and is the recipient of the Global CSR Excellence & Leadership Award. He is Director of the think-tank Kaleidoscope Futures and Founder of CSR International. Before getting his PhD in Corporate Social Responsibility, he was Director of Sustainability Services for KPMG and Strategy Analyst for Cap Gemini in South Africa. He is the author of twenty books, with his work taking him to 69 countries in the last 20 years. He lives in Cambridge, UK, where he is a Senior Associate at the University’s Institute for Sustainability Leadership.

Title: The future of business: How to survive and thrive in a climate constrained world
Date: Thursday, August 28, 2014
Time: 1:00 PM – 2:00 PM EDT

After registering you will receive a confirmation email containing information about joining the Webinar.

System Requirements
PC-based attendees
Required: Windows® 8, 7, Vista, XP or 2003 Server
Mac®-based attendees
Required: Mac OS® X 10.6 or newer
Mobile attendees
Required: iPhone®, iPad®, Android™ phone or Android tablet

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Tackling the food waste challenge with technology

Tackling the food waste challenge with technology

Article by Wayne Visser

Part of the Sustainable Innovation & Technology series for The Guardian.

Innovation in packaging and refrigeration can reduce waste – as can changes in behaviour.

The challenges of the 21st century will stretch our collective capacity for innovation like never before.

Take food security. Our mission, should we choose to accept it, is first to find 175-220m hectares of additional cropland by 2030; second, to increase total food production by about 70% by 2050, mostly through improving crop yields; and third, to achieve all this without damaging the land, poisoning ourselves or impairing the health of our finite and already fragile ecosystems.

The Food and Agricultural Organisation (FAO) estimates that meeting this challenge will require investment in developing countries’ agriculture of $9.2tn (£5.4tn) over the next 44 years – about $210bn (£123bn) a year (PDF) – from both private and public sources. Just under half of this amount will need to go into primary agriculture, and the rest into food processing, transportation, storage and other downstream activities. A priority will be finding ways to close the gaps between crop yields in developed and developing countries, which are around 40%, 75%, and 30-200% less in developing countries for wheat, rice and maize, respectively (PDF) – all while using fewer resources and less harmful substances.

This challenge is hard enough, but we also have to tackle the problem of 1.3bn tonnes of food wasted every year (PDF) – roughly a third of all food produced for human consumption. Fortunately, this is an area where technology can play a strong role, and where the economic, human and environmental benefits are compelling. An assessment of resource productivity opportunities between now and 2030 suggests that reducing food waste could return $252bn (£148bn) in savings, the third largest of all resource efficiency opportunities identified by a McKinsey study.

Reducing food waste through improved packaging

Although food waste is highest in Europe and North America (PDF), it is also a problem in developing regions like sub-Saharan Africa and south and south-east Asia.

According to the FAO, the total value of lost food is $4bn per year in Africa and $4.5bn a year in India, with up to 50% of fruit and vegetables ending up as waste. In developing countries including China and Vietnam, most food is lost through poor handling, storage and spoilage in distribution. It is estimated that 45% of rice in China and 80% in Vietnam (PDF) never make it to market for these reasons.

One of the most effective ways to reduce food waste is to improve packaging, for example by using Modified Atmosphere Packaging (Map) – a technology that substitutes the atmosphere inside a package with a protective gas mix, typically a combination of oxygen, carbon dioxide and nitrogen – to extend freshness.

This is a well-proven solution that calls for technology transfer rather than invention, which has been the approach of the Sustainable Product Innovation Project in Vietnam. Through the project, Map has been applied to over 1,000 small-scale farmers, resulting in reductions in post-harvest food waste from 30-40% to 15-20%.

Another simple packaging solution being promoted in developing countries is the International Rice Research Institute Super Bag. When properly sealed, the bag cuts oxygen levels from 21% to 5%, reducing live insects to fewer than one insect per kg of grain without using insecticides – often within 10 days of sealing. This extends the germination life of seeds from 6 to 12 months and controls insect grain pests (without using chemicals).

Improved storage and transportation

Besides improved packaging, a second way to reduce food loss and waste is through improved storage and transportation. A new report on creating a sustainable “cold chain” in the developing world estimates that about 25-50% of food wastage (PDF) could be eliminated with better, more climate friendly refrigeration. For example, Unilever has committed to using hydrocarbon (HC) refrigerants, which saved 40,000 tonnes of CO2 in 2013.

Waste into energy

Finally, even when food waste cannot be eliminated, its impacts can still be reduced, or even converted into benefits. For instance, animal by-products from slaughterhouses that are usually incinerated or disposed of in landfills can be treated by a new technology called the APRE process (PDF), which can treat 11 tonnes of dead animals every day, producing 4,000 metres cubed of bio-gas (60% of which is methane) and 44 tonnes of liquid fertiliser. The heat generated can be turned into electricity to be used in production or sold on.

As we can see, many technological solutions to agri-food waste already exist and only need to be more effectively shared and affordably adapted to local contexts. However, as always, technology is only part of the answer – something that Paris retailer Intermarché creatively, humorously and profitably demonstrates with its recent Inglorious Fruits and Vegetables campaign, which discounts and celebrates fresh food that does not comply with EU size and colour restrictions and would otherwise have been dumped.

The sustainability revolution is as much about changing perceptions, attitudes and behaviours – the software – as about changing the technology.

 

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[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/wp-content/uploads/2014/08/article_sustech2_wvisser.pdf”]Pdf[/button] Tackling the food waste challenge with technology (article)

Related websites

[button size=”small” color=”blue” new_window=”false” link=”http://www.waynevisser.com/books/the-quest-for-sustainable-business”]Link[/button] The Quest for Sustainable Business (book)

[button size=”small” color=”blue” new_window=”false” link=”http://www.csrinternational.org”]Link[/button] CSR International (website)

Cite this article

Visser, W. (2014) How to use technology to make our planet more sustainable, not less. The Guardian, 29 July 2014.

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