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Industrial ecology (part of the green supply chain series)

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Industrial ecology (part of the green supply chain series)

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Learning objectives:
- Introduce the basic definition and concepts of industrial ecology
- Introduce to industrial symbiosis, its advantages and opportunities
- Demonstrate that industrial symbiosis is created best through self-organising, like the example of Kalundborg
- Give basic introductions to the headway made by academics in modelling industrial symbiosis and other minor aspects

Learning objectives:
- Introduce the basic definition and concepts of industrial ecology
- Introduce to industrial symbiosis, its advantages and opportunities
- Demonstrate that industrial symbiosis is created best through self-organising, like the example of Kalundborg
- Give basic introductions to the headway made by academics in modelling industrial symbiosis and other minor aspects

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Industrial ecology (part of the green supply chain series)

  1. 1. INDUSTRIAL ECOLOGY (PART OF THE GREEN SUPPLY CHAIN SERIES) Sunday, 19 February 1 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  2. 2. › Introduce the basic definition and concepts of industrial ecology › Introduce to industrial symbiosis, its advantages and opportunities › Demonstrate that industrial symbiosis is created best through self- organising, like the example of Kalundborg › Give basic introductions to the headway made by academics in modelling industrial symbiosis and other minor aspects LEARNING OBJECTIVES Sunday, 19 February 2 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  3. 3. Industrial ecology is a pretty sophisticated supply chain strategy Extended …Producer Industrial Resp. Ecology (EPR) Life Cycle (IE) Assessment Green (LCA) Purchasing Supplier management Business as usual Sunday, 19 February 3 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  4. 4. Consider it a Life Cycle Assessment applied to the whole business › Life Cycle Assessment = products › Industrial Ecology = whole organisation › Frosch & Gallapoulos, 1989: › “The use of energies and materials is optimised, wastes and pollution is minimised and there is an economically viable role for every product of a manufacturing process.” Sunday, 19 February 4 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  5. 5. Broadly speaking, there are 6 elements to this concept Creating industrial ecology Balancing input Dematerialisati- and output to on of industrial natural capacity output Tibbs’ 6 elements of Promote Industrial Ecology Changing industrial renewables, processes to discourage non- emulate natural renewable Long-term ones policy alignment Sunday, 19 February 5 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  6. 6. Elements which command a very different type of organisation Traditional industrial system Vision of industrial ecology › Non-renewable energy and fossil › Material cycles and energy cascades fuels › Renewable energy and resources › Depletion of natural resource stocks › Utilisation of waste and by-products › Generation of waste, emissions and › Cooperative networks comprising of pollution different organisations and › Too much for the natural industries environment to assimilate › Substitution of fossil fuel to zero emission energy › Full elimination of waste › Transition of waste to a resource of value Sunday, 19 February 6 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman. Images from abc.net.au and wikipedia.org
  7. 7. Industrial symbiosis is the practical business approach to achieving IE › i.e. using industrial ecology for economic/business reasons such as reducing costs or increasing revenues › Waste is expensive: › Initial purchase… Wasted unused resource… Disposal! Everything that leaves Everything coming the company is an into the company is OPPORTUNITY TO SELL a COST Sunday, 19 February 7 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  8. 8. It is a compelling business strategy centred on 4 main benefits Improve long-term resource To reduce costs or increase revenue scarcity Motivations Regulatory pressure for efficiency New business opportunities Sunday, 19 February 8 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  9. 9. Obtainable around 3 main opportunities or approaches By-product Exchange of materials between 2+ parties for use as reuse substitutes for materials Utility or Pooled use and management of commonly used resources infrastructure such as energy, water and waste-water sharing Joint provision of Meeting common needs across firms for ancillary services services such as fire suppression, transportation and food provision Sunday, 19 February 9 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  10. 10. The best way to create industrial symbiosis is to let it organise itself Planned model Self organising A conscious effort Emerges from economically Identifies different industries driven choices by private actors and locates them together Industrial Starts slowly, expands gradually Forms stakeholder groups to symbiosis Organisations are not at all guide the process and influence conscious that they are creating planning an industrial symbiosis! But stakeholder groups This one is by far the are also essential most successful Sunday, 19 February 10 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  11. 11. Kalundborg is the world’s best example of this › Kalundborg, Denmark › Started in 1970’s and 80’s › Was not about creating something new and innovative, it was simply about exploiting mutually beneficial business opportunities Sunday, 19 February 11 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman. Image from Bruce Chung / asknature.org
  12. 12. These partnerships arose naturally, for mutual economic benefit Liquid fertiliser Sulfur Statoil Backup gas BPG Gyproc A/S production refinery wall-board plant Lake Municipality of Energy E2 Tisso Kalundborg Asnaes Power Station Sludge Fish farming Fly ash A-S Soilrem Organic residue Novo Nordisk A/S Novozymes A/S Cement and Farms Pharmaceuticals roads Sunday, 19 February 12 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  13. 13. IS is quite unsuited to modelling, but experts have still tried “Organisations are not at all conscious that they are creating an industrial symbiosis!” › They are therefore incredibly difficult to find and create models for, but people have still tried… Coordination Partners share Formation of a Model driven by regional knowledge on sustainable #1 efficiency sustainability industrial district Model Initiation & pilot Development Uncovering event #2 Sunday, 19 February 13 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  14. 14. Experts have identified, however, what makes › waste suitable for IS Technical specifications of the resource › Its availability (in terms of quantity and timing) › Whether additional processing is necessary › Any delivery costs › Impact of new materials › Consistency of waste product (i.e. the certainty that it will be sufficient) Sunday, 19 February 14 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  15. 15. Various case studies have identified common barriers to adoption › How organisations are organised › Operations, finances, behaviours, structures, etc. › i.e. difficult to organise › Potential negative externalities › Few opportunities › The suitability of waste reuse and/or sharing Sunday, 19 February 15 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman. Image from premierbarriers.co.uk
  16. 16. And some have advised government for how to support them › Facilitate the establishment of stakeholder support groups › Bring to light resource exchanges that are not yet known › Support exchanges taking shape › Provide incentives Sunday, 19 February 16 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  17. 17. Unit 7 Course Material, Managing Social and Environmental Responsibility, 2011, SOAS CEDEP Vogel, 2005, The Market for Virtue Chertow, 2007, Uncovering Industrial Symbiosis Welford & Frost, 2006, Corporate social responsibility in Asian supply chains REFERENCES Sunday, 19 February 17 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.
  18. 18. Unit 7 Course Material, Environmental Auditing and Environmental Management Systems, 2011, SOAS CEDEP Finkbeiner, Inaba, Tan, Christiansen & Kluppel, 2006, The new international standards for life cycle assessment: ISO 14040 and ISO 14044 REFERENCES Sunday, 19 February 18 of 18 2012 Inspired by SOAS CeDEP study programmes. Presentation © 2011 by Darren Willman.

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