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Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
Innovating for Sustainability Webinar
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Innovating for Sustainability Webinar

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Is your company an Optimizer, Transformer or Systems Builder? …

Is your company an Optimizer, Transformer or Systems Builder?

New research from NBS reveals companies fall into three stages of innovation. Richard Adams, PhD of the University of Exeter explains the three stages and shares innovative ways to foster sustainability in your organization. Also discover how Tim Hortons turned used coffee cups into drink take-out trays ---- spurring green innovation in their company.

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  • The Network for Business Sustainability is a global not-for-profit organization with a strong industry base in Canada. Our mission is to bridge the gap between academic researchers and business decision-makers. Our goal is to help develop new, more sustainable methods of doing business. Ours is a virtual network of more than 3,000 subscribers made up of academics and business leaders from around the world, all with an interest in sustainability. Our network is hosted by the Ivey Business School in London, Canada and our primary source of funding is Canadian federal research grants, so there is a public mandate to much of what we do. All of our resources are publicly available and we encourage you to visit our website to download, share and use our knowledge and tools. You ’ ll find them at www.nbs.net in the Knowledge Centre.
  • Our research agenda is guided by a Leadership Council, composed of 17 sustainability thought leaders from industry, government and NGO ’ s. 13 Small and medium companies 12 national industry associations such as the Retail Council of Canada, the Canadian Electricity Association, etc. And 1,800+ subscribers from industry
  • In 2012, our Leadership companies asked “How can business help pchange people’s behaviour to benefit society?” Understand that this was not an exercise in pure philanthropy. These leaders asked the question because they understand the business benefit of positive behabiour change. Whether you’re a cereal company encouraging people to eat breakfast every day or an electric utility asking homeowners to change their lightbulbs, there are tangible business reasons to encourage positive behaviour change. To answer the question, NBS put out an international call for proposals and selected Dr. Ute Stephan of the University of Sheffield and her colleagues Malcolm Patterson and Ciara Kelly. Over the course of a year, they examined the best research in the world, guided by academic and industry advisors. At this point, I’ll hand things over to Dr. Stephan herself to explain their findings.
  • Transcript

    • 1. Innovating forSustainabilityHost: Anthea RoweManager, Content Development, NBSPresenter: Dr. Richard AdamsUniversity of Exeter
    • 2. Our Mission: Change Business Practice byBridging the Gap between Industry and AcademiaResearchersResearchers ManagersManagersNBSNBS• Network of 3,500 subscribers• World-class academic thinkers• Global cross-sector sustainability business leaders• Produce rigorous, academic, executive-friendly toolsand resources on critical sustainability topicsAnthea Rowe
    • 3. Business Leaders17 Leadership Companies13 Small/Med Companies12 Industry Associations(30,000 businesses)1,800 Individual SubscribersNBS Leadership Council
    • 4. Innovating forSustainabilityDr. Richard AdamsUniversity of ExeterMay 8, 2013
    • 5. Research QuestionWhat innovation activities do firms engage into become sustainable?Research team: Richard Adams, Sally Jeanrenaud, John Bessant,, HannahMetcalfe, University of Exeter and David Denyer, Cranfield University Schoolof ManagementAdvisors: Stuart Hart (Cornell University), Dan Burt (Suncor), ScottMacDougall (Suncor), Wendy Perkins (RIM), Matt McCulloch (PembinaInstitute), Luc Robitaille (Holcim) and Georgina Wainwright-Kemdirim(Industry Canada).Read the Report: nbs.net/innovation
    • 6. Sustainability-Oriented Innovation (SOI)• SOI Defined– Deliberate changes– To products, processes, services,organizations or wider systems– Delivers environmental and social as well aseconomic value.Read the Report: nbs.net/innovation
    • 7. The Business Case for SOI– Compliance– Bottom line impact– First mover advantage– Stakeholder pressure– Social legitimacy/Licence to operate– Doing the right thingRead the Report: nbs.net/innovation
    • 8. Sustainability-Oriented Innovation (SOI)“Sustainability is becoming an integral part of the businessstrategy…because, quite frankly, it’s good for business.Conserving resources…produces cost savings today whilealso helping to make sure the communities in which weoperate are strong and successful markets well into thefuture”Sanjeev ChadhaPresident, PepsiCo Middle East & Africahttp://www.pepsico.com/
    • 9. Dimensions of SOIOperationalOptimizationOrganizationalTransformationSystemsBuilding
    • 10. Model of SOI – Operational Optimization
    • 11. SOI for Eco-EfficiencyCompliance: e.g. reduction and minimisation of pollutionRead the Report: nbs.net/innovation
    • 12. SOI – Design for sustainability• Are components derived from scarce resources?• What is the content of recycled material?• What levels of waste or pollution are generated in production?• Could the production process use less energy or water?• At end of life, can product components be recycled, re-used,disassembled?• Is packaging and distribution optimised for sustainability?• Do suppliers subscribe to your sustainability principles• Is the workforce assured a safe and healthy workenvironment?• Are workers in the supply chain equally assured?
    • 13. One Result of Asking Sustainability Questions…• 150 million lbs of packaging waste from Food andConsumer Products lines (2005-2010)• The Packaging Eco-Calculator™Read the Report: nbs.net/innovation
    • 14. Another Result of Asking Sustainability Questions…• Xerox’s cartridge-free ink• 90% less printing waste• Recycled and recyclable packaging• No metal toner cartridges, no plastic casings, no fusingsubsystem, no messy toner particulates
    • 15. Model of SOI – Organizational Transformation
    • 16. Using Tools to Routinise and Embed SOIUse of tools raises a set of questions• Which tool?• What to target?• Where to apply – damaging,singly, whole, new?• Integrate into existing processes
    • 17. Inspiration from New Sources for Radical SOIhttp://biomimicry.netwww.thenaturalstep.comwww.cfm-online.comBiomimicryBackcastingPeripheral vision
    • 18. Sustainable Supply Chain Management,Networks and Collaborationshttp://sclinsights.comExtending beyond the boundaries of the firmhttps://uk.fsc.org/www.msc.org
    • 19. Industrial Symbiosis – the Kalundborg ExampleInteractions and alliances between industry and stakeholderswww.emeraldinsight.com
    • 20. National Industrial Symbiosis Programme• To enable companies to identify their wastestreams and redirect as a resource for otherorganisations• After two years:– New markets worth £99m– Industry cost savings £71m– 1.8m tonnes landfill saved– 2m tonnes CO2 avoided– 5.4m tonnes raw material and 2.5m tonnes watersaved– 1,200 jobs securedhttp://www.nispnetwork.com/
    • 21. Model of SOI – Systems Building
    • 22. Reframing the Business for Sustainability
    • 23. Servitization
    • 24. Novel Innovation Platforms• Cradle-to-cradle innovation; closed loopproduction; circular economy principles; netpositive contributor• Cradle-to-cradle principles– Signal intentions and commit to the new paradigm– Strive for good growth rather than just economicgrowth– Innovate more: don’t optimise, aim to perfect– Prepare to learn: be adaptable and flexible to permitnew ways to grow– Exert intergenerational responsibilityMcDonough, W. & Braungart, M. (2002). Cradle to cradle: remaking theway we make things. London: North Point Press.
    • 25. SOI and the Bottom of the Pyramidwww.gereports.comwww.tatanano.comDelivering products and services to the under-servedpopulations of less-developed economies through:•Frugal innovation•Resource constrained innovation•Jugaad innovation•Reverse innovation
    • 26. The Practices of SOIOperational Optimization OrganizationalTransformationSystems BuildingProductinnovationEfficiencies....Dematerialisation….Renewables....Recyclables….New platforms….ServitisationInnovationprocessExisting innovation processes…Use tools like LCA to understand and reduce product impacts…Experiment with new innovation platforms (EMS, biomimicry, frugal/reverse innovation, industrialsymbiosis)…Cradle-to-cradle and Closed-loopInstitutionalinnovationWork with regulators for product/process innovation….…SOI at core of organisationalvision…....Broaden networks to include NGOs, IAs, lobby groups etc.What will changeEmissions…Processes...Product…Product lifecycle…Supply chain...Servitisation... Businessmodels…….Wider systemsInvolving whomProduction line…....R&D…….Cross-functional…….TMT….…Immediate stakeholders…Customers….Wider socio-technical- Institutional- Community- Environmental- EcosystemsExtent ofambitionEasy wins……………………....………Experimentation………………………Radical solutionsOpportunityidentificationRegulations……..Efficiencies…..…Competitive advantage……..Lifecycle analysis…..…Knowledge networks……..Biomimicry…..…Bricoleurs……..BoPTargets andguidelinesSet efficiency targets and policies (reduce waste/energy use by 20%)……..Set audacious goals:zero waste, net positive energy……..Change systems behaviourCollaborations Instil SOI internally……Extend into organisational ecosystem….…Forge systemic partnerships
    • 27. Using the Model• Common practices and leadingpractices• Baseline measure– What have we got, what are we currentlydoing?– Audit existing practice– Benchmark against other firms• Identifying opportunities– For quick wins– Greatest need– Planning the journey• Discussion and debate – starting andcontinuing the conversation“Of everything that we could be doing, what might we bedoing and how well do we manage that?”
    • 28. Innovating forSustainabilityRichard Adams: r.j.adams@exeter.ac.ukAnthea Rowe: arowe@nbs.net
    • 29. Cup to Tray Recycling Program Innovation
    • 30. Tim Hortons - A Long and Proven HistoryGenerallylong andhealthyrelationshipswithfranchisees,suppliers andpartners49-yearhistory:6 years as apublicly-tradedcompany
    • 31. Source: NPD CrestWhy is it Important for Tim Hortons to Recycle Coffee Cups?
    • 32. Since opening, Chinamugs available fordine-in guestsFirst cup diversionprogram launched onPrince Edward IslandCups and other paperpackaging divertedfrom over 650restaurant locationsTravel Mugs introduce– 1stcup free anddiscounts followedMulti-stream recyclingunits developedCup to Tray programlaunched in Nova Scotia1978 2000 2006 2008 2010Recycling facility toursand mill tours andtrialsContinuedcollaboration, milltours and marketdevelopment and 850restaurant locationsdiverting coffee cupsProven Leadership - Cup Innovations Timeline1964 2011 2012
    • 33. Cup to Tray Recycling Program• Launched October 20, 2011 in Nova Scotia• First implementation of “closed loop”recycling for our industry• First opportunity to communicate to ourguests across a province• Scalable and repeatable
    • 34. Cup to TrayRecyclingProgramProcess
    • 35. How we did it• Unlearning outdated knowledge• Tracking use and looking to expansion• Part of overall tracking of diversion programs for SR reporting• Long-term supplier relationship• Team member and guest education• Feedback from waste haulers and recycling processors• Closed Loop recycling program• Learning from local industry professionals
    • 36. Measuring Success• Restaurant owner and team memberfeedback• Community and guest engagement• Cost neutral program• Media coverage• Expansion opportunities
    • 37. Lessons Learned• Include all stakeholders even if you feel theymay not be supportive• Proceed slowly and methodically• Push limits of current practices• Don’t be afraid to fail
    • 38. Thank you!Carol PattersonSenior Manager, Regulatory Affairspatterson_carol@timhortons.com
    • 39. Contact Us!Richard Adams: r.j.adams@exeter.ac.ukAnthea Rowe: arowe@nbs.net

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