04 asei 20121120_singapore final_ryu


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04 asei 20121120_singapore final_ryu

  1. 1. ASEM Eco-Innovation Index (ASEI) 2012Measuring Sustainable Future for Asia and Europe22nd November 2012 Singaporeby Sustinvest
  2. 2. ASEM Eco-Innovation Index (ASEI) 2012 Project Background of ASEI (1) The concept of Eco-Innovation was first developed and promoted in Europe. Since then, the concept has been diffused into national and regional policies and initiatives in Europe. There has been previous works on developing frameworks or guidelines to measure eco- innovation but only one index (Eco-Innovation Scoreboard) exists that quantitatively measure eco-innovation Eco-Innovation Scoreboard only measures European countries using data source focused on European countries such as EUROSTATS, EUROBARAMTER ASEM Eco-Innovation Index is the first attempt to measure eco-innovation of countries beyond Europe The concept of Eco-Innovation is slowly understood by Asian countries, thus important to include Asian countries when measuring eco-innovation status of countries. Strictly Private & Confidential 2
  3. 3. ASEM Eco-Innovation Index (ASEI) 2012 Project Background of ASEI (2) In line with the vision of ASEIC(ASEM SMEs Eco-Innovation Center), the ASEI anticipates Asian countries and companies particularly SMEs to participate in promoting eco-innovation To establish an active communication stage between Europe and Asia with eco-innovation data Stepping forward from understanding the concept of eco-innovation to measuring eco- innovation ASEIC Focus Expected Outcome of ASEI Sustainable Development  Encourage win-win development of SMEs in SMEs ASEIC Member countries  Enhance communication & Eco-Innovation partnership between Europe & Asia on eco-innovation Strictly Private & Confidential 3
  4. 4. ASEM Eco-Innovation Index (ASEI) 2012 Project  Objective: To develop as an international tool to quantitatively and qualitatively measure the level and status of eco-innovation of ASEM member countries  Project Duration Time: Started in June 2012 and expect to end in Dec 2012 (scheduled to be officially launched in December 2012)  Project Initiated by ASEIC (ASEM SMEs Eco-Innovation Centre) & Funded by SMBA (Small and Medium Business Administration)  Project Implemented by: Sustinvest (Korea’s first Social Responsible Investment & Sustainability Research & Consulting firm) with support of Sustainalytics Strictly Private & Confidential 4
  5. 5. ASEM Eco-Innovation Index (ASEI) 2012 Project  Expected Outcome: 1) Evaluate each country’s capacity and potential on eco-innovation and identify different levels of eco-innovation in Europe and Asia 2) Promote eco-innovation at regional and global level creating an active stage of communication between Europe and Asia 3) Encourage governments to enhance their eco-innovation related policies and regulations  What is Eco-innovation? “Eco-innovation is any form of innovation resulting in or aiming at significant and demonstrable progress towards the goal of sustainable development through reducing impacts on the environment, enhancing resilience to environmental pressures, or achieving a more efficient and responsible use of natural resources.” - European Commission Eco-Innovation Action Plan (2012) Strictly Private & Confidential 5
  6. 6. History of Eco-Innovation 1996 2000 2004 2006 2007 2008 2009 2010 2011 2012 2013 EU Commission: - OECD Project on Green Growth Environmental & Eco-innovation launch Technologies Action Plan - EU Commission Eco-innovation Project/Initiative (ETAP) initiative launch initiative launch European Forum OECD Workshop OECD Global Forum 12th European Forum on Eco-Innovation on Environmental on Environment & on Eco-Innovation Workshop/Forum Launch Innovation & Eco-Innovation Global Markets Environmental EU Eco-Innovation The Global Cleantech Performance Index launch Scoreboard launch Innovation Index launch Index Development (The Eco-Innovation (Cleantech Group & WWF) (Yale & Columbia University) Observatory) The concept of eco- Others innovation firstly introduced (Claude Fussler et al, 1996) 1st ASEM Eco- ASEM ASEIC ASEIC Innovation Index Established Launch Strictly Private & Confidential 6
  7. 7. ASEM Eco-Innovation Index (ASEI) 2012 Project  Why Measure Eco-Innovation? (1) 1) Importance of Eco-innovation in Green Growth Agenda Eco-innovation is a “key pre-requisite for sustainable development”* at macro level as it brings positive synergetic effects towards economic, social and environmental conditions of a country. *The future of Eco-Innovation The Role of Business Models in Green Transformation, OECD, 2011 “Eco-innovation aims to create both economic and environmental value, and business models act as a value driver and enabler of green technologies and solutions… Many governments now regard eco-innovation as part of their growth strategy” (OECD, 2012) “Eco-Innovation is increasingly perceived as a business opportunity, which could emerge in many different sectors. (UNESC, 2011) Strictly Private & Confidential 7
  8. 8. ASEM Eco-Innovation Index (ASEI) 2012 Project  Why Measure Eco-Innovation? (2) 2) Enhance Comprehensive Understanding of Eco-innovation “… no existing measurement approach can capture the overall trends and characteristics of eco-innovation. Further progress in benchmarking and indicators might include the development of an “eco-innovation scoreboard” which combines different statistics or the design of a new dedicated survey.” “Further progress in benchmarking and indicators might include the development of an “eco- innovation scoreboard” which combines different statistics or the design of a new dedicated survey” (OECD, 2009) “… the field of eco-innovation lacks statistics and indicators. The challenge consists very much of trying to align two well-developed but different set of indicator bodies, the environmental and the innovation set… a considerable need for conceptual as well as methodological clarifications in order to develop eco-innovation indicators.” “So far quantitative empirical analysis of eco-innovation is very limited…. Defining and operationalizing eco-innovation is the key problem” (EEA, 2006) Strictly Private & Confidential 8
  9. 9. Purpose of ASEM Eco-Innovation Index  Trends: Understand eco-innovation trends in Europe and Asia  Status: Identify the eco-innovation status of ASEM member countries  Gap Difference: Close the eco-innovation gap difference between Europe and Asia  Strength & Opportunities: Analyze strength and opportunities of eco-innovation for each country and region  Policy Making: Motivate emerging economies to accelerate the rate of developing and preparing appropriate eco-innovation policies and strategies at national & regional level  Raising Awareness: Raise awareness on eco-innovation at local, regional and global level  Encouragement: Encourage society and companies to increase eco-innovation efforts Strictly Private & Confidential 9
  10. 10. ASEI Development MethodologyStep 1. Analyze limitations and strengths of current sustainability and eco-innovation related index Define a clear concept of eco-innovation to be measured Study related research data and literature Gather feedback from renowned experts Determine assessment standards & countriesStep 2. Create assessment Select best available data source, Weighting Outcome Report Aggregation Measure & analyze framework criteria & indicators determination 1st ASEI 2012 Enhance & improve assessment tool and methodology 2nd ASEI 연구 기획 2013 Incorporate advice & feedback Expand country coverage Strictly Private & Confidential 10
  11. 11. Important Factors when building ASEI FrameworkStep 1. Analyze limitations and strengths of current sustainability and eco-innovation related index Define a clear concept of eco-innovation to be measured Study related research data and literature Gather feedback from renowned experts Determine assessment standards & countries Defining the Concept of eco-innovation-Assessment framework for eco-innovation vary depending on how eco-innovation is defined“So far quantitative empirical analysis of eco-innovation is very limited…. Defining and operationalizing eco-innovation is the key problem” (EEA, 2006) Pre-study of sustainability and eco-innovation related indexes: EPI (Environmental PerformanceIndex), GII (Global Innovation Index), GCI (Global Competitiveness Index), Cleantech Index, EIO(Eco-innovation Observatory Index), etc. Determine Assessing Countries Strictly Private & Confidential 11
  12. 12. Selection Criteria of Countries for 1st ASEI 46 ASEM member countries 1st Screening: Economic Level Select top 30 countries based on the average of 30 countries the countrys ranking of GDP in total and that o f GDP per capita 2nd Screening: Level of Environmental Load Select top 20 countries with heaviest environment 20 countries al load based on total CO2 emissions, CO2 emissi ons per capita, trends in CO2 emissions, level of w ater scarcity and water consumption per capita 15 3rd Screening: Information Availability countries Select 15 countries based on data availability and information credibility ASEI 2012 Assessed 15 Countries Austria, Belgium, China, Denmark, France, Germany, India, Indonesia, Italy, Japan, Korea, Malaysia, Sweden, Thailand, United Kingdom Strictly Private & Confidential 12
  13. 13. ASEI Development Methodology2nd Stage: Index Development & Assessment (1) Pre-studied eco-innovation frameworks consisted of input, process Create assessment framework and output criteria Select best available sources ASEI framework consists of four criteria: for indicators -eco-innovation capacity -eco-innovation activities -eco-innovation supporting environment Weighting determination -eco-innovation performance Aggregation Measure & analyze Qualitative Research Outcome: ASEI Report Strictly Private & Confidential 13
  14. 14. ASEI Assessment Framework Storyline Eco-Innovation Capacity Eco-Innovation Activities Includes indicators that Includes indicators that reflect reflect country’s capacity & country’s current eco-innovation potential to generate eco- activities (green technology, innovation EMS, etc) Eco-Innovation Supporting Environment Includes indicators that evaluate Eco-Innovation government’s effort in creating Performance supporting environment to promote eco-innovation and Includes indicators that enhance overall green measure a country’s resource competitiveness of companies, efficiency, economic, social industries and the economy and environmental performance Strictly Private & Confidential 14
  15. 15. ASEI Development Methodology2nd Stage: Index Development & Assessment (1) Create assessment framework Due to lack of statistical data source related to eco-innovation at national level, accountable generic data was determined to create composite indicators Select best available sources for indicators Currently available eco-Innovation indexes focus on measuring eco- innovation of advanced countries, mostly European countries using Weighting determination sources from EUROSTATS and other European research institutes. -Limited data is available to measure various aspects of eco- innovation of Asian countries. Aggregation Experts AHP Survey Process: - Environment/sustainable management experts were selected and Measure & analyze asked to participate in the AHP survey - Based on the experts survey results, relative importance of each indicators and its reliability were calculated. Qualitative Research - Based on the calculated importance, 20 indicators were selected and applied to the ASEI framework. Included SMEs representative indicators Outcome: ASEI Report Strictly Private & Confidential 15
  16. 16. ASEI Assessment Framework Criteria Indicators Country’s Economic Competitiveness General Innovation Capacity Eco-Innovation Level of Awareness on Sustainability Management Capacity Value of Investment in Green Technology SMEs Jobs in Green Technology Industry Renewable Energy Utilization level Green Patents Eco-Innovation Level of Commercialized Green Technology SMEs Activities Green Technology SMEs at Early Stage Level of Environmental Management Turnover of Environmentally Friendly MNEs Investment Maturity of Green Technology Industry Eco-Innovation Government’s R&D Expenditure in Green Industry Supporting Environment Level of Environmental Laws Country’s Commitment to International Environmental Agreement Green Industry Market Size Water Consumption Intensity Eco-Innovation CO2 Emission Intensity Performance Energy Sustainability Level Level of Environmental Impact on Society Strictly Private & Confidential 16
  17. 17. ASEI Development Methodology2nd Stage: Index Development & Assessment (1) Create assessment framework Select best available sources for indicators Weighting determination Aggregation Due to lack of statistical data source reliable qualitative research Measure & analyze was added to analyze the trends and issues on eco-innovation for each country Qualitative Research Research policies, regulations and programmes that are related to eco-innovation Outcome: ASEI Report Included business case studies representing various ways of implementing eco-innovation at firm level Strictly Private & Confidential 17
  18. 18. ASEI 2012 Results Eco-Innovation Eco-Innovation Eco-Innovation Eco-Innovation Country Capacity Activities Environment Outcome Austria 56 31 68 39 Belgium 70 37 61 34 China 55 32 70 32 Denmark 88 65 58 60 France 75 48 67 56 Germany 75 41 63 50 India 60 27 59 17 Indonesia 45 19 49 15 Italy 53 43 55 40 Japan 65 31 57 48 Korea 61 38 60 28 Malaysia 54 18 56 25 Sweden 85 79 79 67 Thailand 49 17 46 18 United Kingdom 82 66 87 47 Strictly Private & Confidential 18
  19. 19. ASEI 2012 Results: Regional Findings  European and Asian countries are at different stages of understanding and implementing eco- Eco-Innovation Capacity innovation 100 80  The EU is the frontrunner of eco-innovation 60 leading the global eco-innovation market, initiatives, 40 trade and industry. 20 Eco-Innovation Eco-Innovation Performance 0 Activities  In comparison to the EU countries, Asian countries are just starting to get familiar with the term “eco- innovation.” Europe and Asia are in different maturity level Eco-Innovation of eco-innovation. Supporting Environment  As late starter of eco-innovation, Asian countries are behind in all four criteria of examined scope of EU Average ASIA Average eco-innovation Strictly Private & Confidential 19
  20. 20. ASEI 2012 Results: Five Main Regional Findings (1)1. Growing Eco-Innovation Capacity in Asia 2. Importance of bridging the gap between Eco- innovation Capacity & Eco-innovation Activities Asian countries like Korea, India, China demonstrate rapid growth in eco-innovation  Top runners of eco-innovation show smaller gap capacity and growing awareness on green between eco-innovation capacity and eco- growth innovation capacities (e.g. Sweden)  Bridging the gap between eco-innovation capacity and eco-innovation activities is a100 challenge for both European and Asian countries 90 80 70  Governments need to play a central role through 60 government regulations and policies to transform 50 eco-innovation potential to actual activities that 40 can eventually improve the environmental 30 performance at national level. 20 10 0 Eco-Innovation Capacity Eco-Innovation Activities Strictly Private & Confidential 20
  21. 21. ASEI 2012 Results: Five Main Regional Findings (2)3. Growing Support for Eco-Innovation from Asian governments Strong correlation between eco-innovation supporting environment and eco-innovation activities (e.g. top runners of ASEI are United Kingdom, Sweden and Denmark) While the regional policy mix of European countries targets direct stimulation of eco-innovation (e.g. EcoAP) Asian countries have different policies and regulations with varying focused areas and targets related to eco- innovation set at national level Increasing support from the Asian governments on renewable energy, green technology and other environment related areas Strictly Private & Confidential 21
  22. 22. ASEI 2012 Results: Five Main Regional Findings (3) 4. Europe puts effort on both Non-Technical and Technical Eco-innovation  European countries demonstrate various types of non-technical eco-innovation via mostly changing its operation process, marketing strategy, designs of products and production process  Asian countries’ eco-innovation is more technical focused with green technology funding programmes 5. Different Stage in Eco-Innovation Performance  Many European countries are achieving both environmental and economic outcomes through good eco- innovation performance while Asian countries lag behind 6. Each Country has its own eco-innovation focus and strengths  Due to different economic, social, political and cultural environment and levels each country demonstrates eco-innovation activities on the basis of each country’s strength and opportunity Strictly Private & Confidential 22
  23. 23. ASEI 2012 Results: Country Findingse.g. Sweden Strictly Private & Confidential 23
  24. 24. Conclusion  Firm linkage between eco-innovation capacity, activities, environment and performance is crucial for eco-innovation to contribute to green growth  Integration of innovation and environment focused policies, national strategies, business models, regulations, awareness, products, designs, services, technologies and practices is beginning of any eco-innovation activities  Some Asian countries like Korea are striving their way to put eco-innovation at the heart of their green growth agenda following the frontrunners (European countries)  Qualitative and quantitative analysis helps to analyze the signs of what types of eco- innovation may emerge in the next ten years in which country and region  Broader understanding of the concept eco-innovation provides wider space for various eco- innovation activities to emerge in different sectors in a variety of novel ways Strictly Private & Confidential 24
  25. 25. ConclusionLimitations and Challenges Better quantitative data and qualitative analysis on eco-innovation are needed for more accurate measurement of eco-innovation Lack of availability of comparative data for eco-innovation puts the limitation on ASEI especially for Asian countries  ASEI 2012: 15 countries  ASEI 2013: 24 countries  ASEI 2014: 46 countries ASEM Member countries4Number of 6Countries  Expand number of countries to be assessed 24  Improve assessment framework improving 15 the limitations of ASEI 2012 2012 2013 2014 Strictly Private & Confidential 25