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Sustainable Development
Only an expense for companies?




                                 1
Content


• The role of the engineer in companies
• Sustainability in the company
• Sustainable companies, examples




February 21, 2007                         2
Design of products, processes and
systems

• Traditional: 3 phases
   • Commissioning/assignment
   • Design
   • Implementation/Use

• Similar division of responsibilities
   • Executives/managers
   • Engineer
   • Executives/user/government

February 21, 2007                        3
Traditional division of tasks of
engineering design:




                         Design requirements




                                                           Quality check
Commissioning                                  Engineer,                     User
  authority                                    designer                    Customer



               Conclusion: all moral/ethical decisions outside the
                        realm of engineering design?
February 21, 2007                                                                     4
Role engineer in the company: only
designer?

•    Engineers are not only responsible for the design job. They also
     are involved in
      • Analysis
      • Suggestions
      • Feed back
      • Evaluation

•    SD is not an extra requirement in the program of requirements
     for the design because:
      • ????

February 21, 2007                                                       5
Sustainable Design


• Focus on functional requirements of user
   • Car --- need for mobility or need for access of
     services, green wheels
   • Packaging--- need for product protection
   • Clothes---Need for comfort/need for self expression
   • Paper--- Need for data storage and transmission

• Interact, break the walls

February 21, 2007                                      6
Is a company only about making as much
 money as possible?



license to operate: a company has to respect the margins
    set by law and public opinion
    • A company might trigger new legislation
    • Consumers might take action: Brent Spar




February 21, 2007                                      7
Time Horizon: should we optimize
money now, or in future

• If you have an apple tree, you might cut it for the
     wood, rent it to somebody by an annual auction, or
     pick apples yourself to sell on the market. The first
     activity will give you the quickest return. The last
     activity will probably yield the highest return in the
     long run as the harvester will probably take care that
     the tree will remain in good shape and no auctions
     have to be organized.
Companies which never made any profit are
sold for high prices
February 21, 2007                                             8
Principle of subsidiarity

Greedy management does not imply that all individuals in the
   company are, they have their own morals and interests




 Chance
In innovation you are never sure what brings money




February 21, 2007                                              9
Earning money by Green Products?


• Green electricity
• Gist-Brocades: solving effluent water problem created
  a new business
• effectiveness of consumer protest:
   • conditions of chickens were improved,
   • seal hunting was curbed
   • Green wheels



February 21, 2007                                     10
Sustainability in mission




February 21, 2007           11
Example: 3M – Pollution Prevention
Pays


•      Eliminate or reduce a pollutant.
•      reduced energy/materials use
•      avoidance of pollution control equipment




February 21, 2007                                 12
PPP Results at 3M, 1975-2002


• 4973 project
• prevented emissions of 857,282 tons of pollutants
• saved $894 million

• Prevented accidents?




February 21, 2007                                     13
Other examples


Unilever, water, Fisheries




Anglo American,

Johnson & Johnson
February 21, 2007            14
SD, value for the company


•      product performance and production costs
•      reputation and public image improvements:
       motivation of personnel also
•      coherence of various parts of the company:
       increasing effectiveness and flexibility




February 21, 2007                                   15
=Forest stewardship council



 February 21, 2007            16
Many companies engage


• World Business Council for Sustainable Development
  (WBCSD)
• People Planet Profit
        190 international companies
           economic growth,
           ecologic balance
           Social progress
• Corporate Social Responsibility

February 21, 2007                                      17
Nothing New?


• Robert Owen – New Lanark mills
• Jacob van Marken, Delft yeast plant
• Fourier




February 21, 2007                       18
Dow Jones Sustainability Index




February 21, 2007                19
Companies need new Managers:




    • Increasing Complexity of technology
    • Globalisation
    • Emancipation of citizens




February 21, 2007                           20
Company Technology Assessment?



In the longer run Chemical Industry cannot
afford to be in war with society,

Aernoud Loudon, CEO AKZO-Nobel,
president CEFIC


                                             21
SD : a better understanding of the
company’s self interest
    • because one needs the cooperation of
      stakeholders
    •         workers,
    •         consumers,
    •         stock owners
    •         neighbors, media, local officials
    - because more Sustainable technologies
      might become the standard at the
      market
February 21, 2007                                 22
In a modern civil society, authorities are
no longer commanders but process
organizers


    • Consensus based strategy
    • Coordination of various activities
    • Communication with stakeholders




February 21, 2007                            23
Sustainable Development for Engineers


Modern engineers must have a holistic approach, so they
  can not only use their expertise in a scientific or
  technological context but are also sensitive to social,
  environmental and political needs. The best technical
  solution of a challenge is not always the one most
  acceptable to society.
Therefore engineers must also be skilled communicators,
  able to translate challenges and possible solutions
  between society and science.

Jeroen van der Veer
Chief Executive Royal Dutch Shell
February 21, 2007                                      24

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21.02, Mulder — Sustainable entreprises

  • 1. Sustainable Development Only an expense for companies? 1
  • 2. Content • The role of the engineer in companies • Sustainability in the company • Sustainable companies, examples February 21, 2007 2
  • 3. Design of products, processes and systems • Traditional: 3 phases • Commissioning/assignment • Design • Implementation/Use • Similar division of responsibilities • Executives/managers • Engineer • Executives/user/government February 21, 2007 3
  • 4. Traditional division of tasks of engineering design: Design requirements Quality check Commissioning Engineer, User authority designer Customer Conclusion: all moral/ethical decisions outside the realm of engineering design? February 21, 2007 4
  • 5. Role engineer in the company: only designer? • Engineers are not only responsible for the design job. They also are involved in • Analysis • Suggestions • Feed back • Evaluation • SD is not an extra requirement in the program of requirements for the design because: • ???? February 21, 2007 5
  • 6. Sustainable Design • Focus on functional requirements of user • Car --- need for mobility or need for access of services, green wheels • Packaging--- need for product protection • Clothes---Need for comfort/need for self expression • Paper--- Need for data storage and transmission • Interact, break the walls February 21, 2007 6
  • 7. Is a company only about making as much money as possible? license to operate: a company has to respect the margins set by law and public opinion • A company might trigger new legislation • Consumers might take action: Brent Spar February 21, 2007 7
  • 8. Time Horizon: should we optimize money now, or in future • If you have an apple tree, you might cut it for the wood, rent it to somebody by an annual auction, or pick apples yourself to sell on the market. The first activity will give you the quickest return. The last activity will probably yield the highest return in the long run as the harvester will probably take care that the tree will remain in good shape and no auctions have to be organized. Companies which never made any profit are sold for high prices February 21, 2007 8
  • 9. Principle of subsidiarity Greedy management does not imply that all individuals in the company are, they have their own morals and interests Chance In innovation you are never sure what brings money February 21, 2007 9
  • 10. Earning money by Green Products? • Green electricity • Gist-Brocades: solving effluent water problem created a new business • effectiveness of consumer protest: • conditions of chickens were improved, • seal hunting was curbed • Green wheels February 21, 2007 10
  • 12. Example: 3M – Pollution Prevention Pays • Eliminate or reduce a pollutant. • reduced energy/materials use • avoidance of pollution control equipment February 21, 2007 12
  • 13. PPP Results at 3M, 1975-2002 • 4973 project • prevented emissions of 857,282 tons of pollutants • saved $894 million • Prevented accidents? February 21, 2007 13
  • 14. Other examples Unilever, water, Fisheries Anglo American, Johnson & Johnson February 21, 2007 14
  • 15. SD, value for the company • product performance and production costs • reputation and public image improvements: motivation of personnel also • coherence of various parts of the company: increasing effectiveness and flexibility February 21, 2007 15
  • 16. =Forest stewardship council February 21, 2007 16
  • 17. Many companies engage • World Business Council for Sustainable Development (WBCSD) • People Planet Profit 190 international companies economic growth, ecologic balance Social progress • Corporate Social Responsibility February 21, 2007 17
  • 18. Nothing New? • Robert Owen – New Lanark mills • Jacob van Marken, Delft yeast plant • Fourier February 21, 2007 18
  • 19. Dow Jones Sustainability Index February 21, 2007 19
  • 20. Companies need new Managers: • Increasing Complexity of technology • Globalisation • Emancipation of citizens February 21, 2007 20
  • 21. Company Technology Assessment? In the longer run Chemical Industry cannot afford to be in war with society, Aernoud Loudon, CEO AKZO-Nobel, president CEFIC 21
  • 22. SD : a better understanding of the company’s self interest • because one needs the cooperation of stakeholders • workers, • consumers, • stock owners • neighbors, media, local officials - because more Sustainable technologies might become the standard at the market February 21, 2007 22
  • 23. In a modern civil society, authorities are no longer commanders but process organizers • Consensus based strategy • Coordination of various activities • Communication with stakeholders February 21, 2007 23
  • 24. Sustainable Development for Engineers Modern engineers must have a holistic approach, so they can not only use their expertise in a scientific or technological context but are also sensitive to social, environmental and political needs. The best technical solution of a challenge is not always the one most acceptable to society. Therefore engineers must also be skilled communicators, able to translate challenges and possible solutions between society and science. Jeroen van der Veer Chief Executive Royal Dutch Shell February 21, 2007 24