Designing Sustainability: Transforming Supply Chains Into Sustainability Circles ™ John A. Thornton International Conference on Business and Sustainability: Designing Sustainability Portland, Oregon USA October 15-17, 2008 www.bizandsustainability.org John Thornton © 2008

Designing Sustainability: Transforming Supply Chains Into Sustainability Circles ™

Designing Sustainability Status Quo: Destroy & Recycle Lifecycle Analysis / Carbon Footprinting Re-use Re-Use (End-of-Life) Use Design Product Materials Selection Process Development Product Development Process Culture Community People Designing Sustainability Sustainability Circle (Cyclical) Sustainability Chain Supply Chain (Linear) Transformation to Sustainability Systems New Way: Distributed & Local Old Way: Centralized & Distant Proximity and New Paradigms Designing Sustainability: Supply Chain Carbon Footprinting Lean Sustainability Sustainability Starts w/ Lean (Manufacturing) Eco-Efficiency / Resource Productivity Sourcing John Thornton © 2008

Designing Sustainability Status Quo: Destroy & Recycle Lifecycle Analysis / Carbon Footprinting Re-use Re-Use (End-of-Life) Use Design Product Materials Selection Process Development Product Development Process Culture Community People Designing Sustainability Sustainability Circle (Cyclical) Sustainability Chain Supply Chain (Linear) Transformation to Sustainability Systems New Way: Distributed & Local Old Way: Centralized & Distant Proximity and New Paradigms Designing Sustainability: Supply Chain Carbon Footprinting Lean Sustainability Sustainability Starts w/ Lean (Manufacturing) Eco-Efficiency / Resource Productivity Sourcing John Thornton © 2008

Designing Sustainability Status Quo: Destroy & Recycle Lifecycle Analysis / Carbon Footprinting Re-use Re-Use (End-of-Life) Use Design Product Materials Selection Process Development Product Development Process Culture Community People Designing Sustainability Carbon Footprinting Lean Sustainability Sustainability Starts w/ Lean (Manufacturing) Eco-Efficiency / Resource Productivity Sourcing John Thornton © 2008 Sustainability Circle (Cyclical) Sustainability Chain Supply Chain (Linear) Transformation to Sustainability Systems New Way: Distributed & Local Old Way: Centralized & Distant Proximity and New Paradigms Designing Sustainability: Supply Chain

Designing Sustainability Status Quo: Destroy & Recycle Lifecycle Analysis / Carbon Footprinting Re-use Re-Use (End-of-Life) Use Design Product Materials Selection Process Development Product Development Process Culture Community People Designing Sustainability Carbon Footprinting Lean Sustainability Sustainability Starts w/ Lean (Manufacturing) Eco-Efficiency / Resource Productivity Sourcing John Thornton © 2008 Sustainability Circle (Cyclical) Sustainability Chain Supply Chain (Linear) Transformation to Sustainability Systems New Way: Distributed & Local Old Way: Centralized & Distant Proximity and New Paradigms Designing Sustainability: Supply Chain

Sustainability: Integrated System Design Approach Integrated into a whole systems approach: John Thornton © 2008 Design for Proximity Sustainable Manufacturing: Cradle-To-Cradle TM or Lean Sustainability Business Model: Own, Lease, Share, or Usage Capital Structure: Social and Environmental Investors Community Development: Social Equity and Culture Sustainability Systems Restorative: Regenerative systems Eco-efficiency: Low-impact Energy Use: Renewable Electricity, Smart Grid

Transformation to Sustainability Systems John Thornton © 2008 Supply Chain Status Quo

Transformation to Sustainability Systems John Thornton © 2008 Sustainability Chain Emergent Supply Chain Status Quo

Transformation to Sustainability Systems John Thornton © 2008 Sustainability Chain Emergent Supply Chain Status Quo Sustainability Circle Future

Supply Chain Sales Company User John Thornton © 2008 Material Manufacturer Raw Material Suppliers Product Manufacturer Parts Manufacturer

Sustainability Chain: Use & Service Long Use Reuse of Products User Material Manufacturer Raw Material Suppliers John Thornton © 2008 Product Manufacturer Parts Manufacturer Sales Company

Sustainability Chain: Use and Recycle Final Disposal Reuse of Products Landfill Product End-of-Life Raw Material Suppliers Open Loop Materials Recycling Reuse of Products User of recycling materials Material Manufacturer Long Use User John Thornton © 2008 Product Manufacturer Parts Manufacturer Sales Company

Sustainability Chain: Use and Recycle Final Disposal User of recycling materials Reuse of Products Landfill Product End-of-Life User Raw Material Suppliers Parts Manufacturer Product Manufacturer Long Use Sales Company Open Loop Materials Recycling Material Manufacturer Closed Loop Materials Recycling John Thornton © 2008

Sustainability Circle ™ Final Disposal User of recycling materials Reuse of Products Closed Loop Materials Recycling Open Loop Materials Recycling Landfill Product End-of-Life User Material Manufacturer Raw Material Suppliers Parts Manufacturer Product Manufacturer Sales Company Long Use John Thornton © 2008

Sustainability Circle ™ Final Disposal User of recycling materials Reuse of Products Closed Loop Materials Recycling Open Loop Materials Recycling Landfill Product End-of-Life User Material Manufacturer Raw Material Suppliers Parts Manufacturer Product Manufacturer Sales Company Long Use John Thornton © 2008 Original Equipment Manufacturer         

Sustainability Circle ™ Final Disposal User of recycling materials Reuse of Products Closed Loop Materials Recycling Open Loop Materials Recycling Landfill Product End-of-Life User Material Manufacturer Raw Material Suppliers Parts Manufacturer Product Manufacturer Sales Company Long Use John Thornton © 2008  3 rd Party Recycler    Original Equipment Manufacturer         

For Questions or More Information: [email_address] Phone: 503-806-1760 John Thornton © 2008