earth, inc. using nature’s rules to build sustainable profits
DESCRIPTION
EARTH, INC. Using nature’s rules to build sustainable profits. Look deep into nature, and then you will understand everything bett er . - Albert Einstein . Gregory Unruh Harvard University Press 2010. Value Chain (Unruh, 2010). Supporting Activities (HR, R&D, Infrastructure) . Margin. - PowerPoint PPT PresentationTRANSCRIPT
EARTH, INC.Using nature’s rules to build sustainable profits
Gregory UnruhHarvard University Press
2010
Look deep into nature, and then you will understand everything better.- Albert Einstein
Supporting Activities (HR, R&D, Infrastructure)
Value Chain (Unruh, 2010)
Inbound Logistics Operations Outbound
LogisticsSales &
Marketing Service
Margin
Value-adding steps
The Value Chain in its Biospheric Context
Natural Capital Manufacturing Post-
consumer
TAKE MAKE WASTE
Biosphere Rules
• Materials Parsimony• Power Autonomy• Value Cycles• Sustainable Product Platforms• Function over Form
Business benefits of materials parsimony
Biosphere rule Business benefit
Materials parsimony Reduced supplier complexityReduced production complexityReduced toxics riskVolume purchase discountsImproved health and safetyImproved worker productivityImproved product attributesImproved environmental performance`
1. Materials ParsimonyMinimize the types of materials used in products with a focus on
materials that are life-friendly and economically recyclable.
1. Materials Parsimony
Negative Screen
TOXIC
Positive Screen
RECYCLABLE
Parsimonious materials palette
Business benefits of power autonomy
Biosphere rule Business benefit
Power autonomy Reduced energy costsReduced compliance costsReduced processing costsImproved environmental performanceImproved customer performanceOptimized for renewable energy
Maximize the power autonomy of products and processes so they can function on renewable energy
2. Power Autonomy
2. Power Autonomy
100%
foss
il fu
els
Power autonomy convergence point
Total power demand
Renewable power generation
Y
X
Today Future
Power autonomy factor= (X/X+Y)
Renewable generation
curve
The ‘Joe Ling’ efficiency
curve*
*Joe Ling, VP of 3M, initiator of eco-efficiency programs (3P: Pollution Prevention Pays - 1975)
Business benefits of value cycles
Biosphere rule Business benefit
Value cycles Input cost savingsReduced processing costsReduced supplier riskIncreased control over brand reputationImproved asset managementImproved customer information
3. Value CyclesRecover and reincarnate materials from end-of-use goods into
new value-added products.
3. Value Cycles
Product manufacturing hierarchy
Product level
Components level
Materials level
Product
Shallow-loop recycling
Deep-loop recycling
4. Sustainable Product Platforms
Business benefits of sustainable product platforms
Biosphere rule Business benefit
Increasing product Compound above benefits through scale platforms Compound above benefits through scope
Foundation to accumulate learning by doingBuild robust cross-industry platform demand
Leverage your value cycle as a product platform for scale, scope, and knowledge economies.
Platform Governance Spectrum
Vertical integration Partnership Open-sourced
Sole control of all platform elements
Example: Shaw Industries (carpeting)
Collaborative coordination of platform tasks
Example: Coca-Cola, Patagonia
Self-organizing coordination through market forces and open standards
Example: Commodities (steel)
5. Function over FormFulfill customers’ needs in ways that sustain the value cycle
Business benefits of function over form
Biosphere rule Business benefit
Function over form Generate ongoing revenue stream Greater customer knowledgeIncreased control over asset base Convergence into expanded offerings
Materials
PVC and Nylon
Company sideCustomer side
Functional value provision
Accumulating knowledge economies
Reverse
logis
tics
Installed baseFunctional
relationship
Process technologiesReentry
2.0
Convert &
Cool Blue
Tac-Tiles &
Entropy
Evergreen
lease
The Interface value cycle