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7. Ecological value
7. co o ica a ue
The fourth building block of the B Corp standard asks questions regarding the impact on the ecological value: • Does the organisation assess key suppliers on social, environmental and societal impact? • Has the organisation reduced gas, water and energy consumption and/or CO2 emissions in the past year? • Does the organisation have a recovery and recycling programme for the products and company facilities supplied?
Inspired by the books “The Blue Economy” (Pauli, 2012) and “Products that last” (Bakker, Hollander, Hinte, & Zijlstra, 2019), we reflect on the theme of ecological value. Pete Seeger inspires with the following quote which has been widely circulated on social media:
Theoretical perspectives
If we look at it from the perspective of ecological value, the following key questions arise: • Can I avoid having a negative (e.g., ecological) impact, for example by designing and producing my product differently? • Can I reduce the impact? • What can I do to offset my impact?
It is easier for the planet to live without us than for us to live without the planet!
Numerous scientific studies have shown that the supply of natural resources is finite. Whether we are talking about oil or, for example, lead and zinc - many of these raw materials will no longer be available in the foreseeable future, the initiative www.overshootday.org shows us. So, it is imperative to think about a circular strategy for your business.
The Blue Economy
The debates around circular business carry the risk of a negative approach. The press regularly reports that if countries go circular it would have a minimal effect. The beauty of the book “The Blue economy” (Pauli, 2012) is the hopeful and realistic message that we can do business in a more innovative, healthy, better and sustainable way. Pauli focuses on two basic principles:
1. Use nature as a source of inspiration for resources and techniques to work in a circular way; 2. Create a cycle so that there is no loss of raw materials.
Pauli cites numerous examples in his book, ranging from termite mounds as a source of inspiration from nature for temperature control in buildings to the use of silk as a sustainable raw material. To achieve a closed cycle, consider using coffee plant residues (less than 2% of the plant ends up in coffee) to grow mushrooms. Or another example, growing algae to produce algae oil as a replacement for palm oil.
Designing for eternity
There is much to gain from good design, as many products are designed for a limited lifespan. For example, one of the first light bulbs2 is still burning today!
Only, it was decided that such durability did not suit the business model of the time. Thinking about redesign and the associated business models is a challenging issue, therefore. The good news is that you can start today by examining your organisation's (production) process and asking yourself the following questions: • Can I redesign my process to make it circular? Take the jeans of Mudjeans, for example. By reusing old jeans and redesigning the production process, they make a difference. • Can I promote reuse? Like the Dutch firm Auping does, for example, by charging a deposit for their mattresses; • Can my product be easily repaired, restored, reconditioned and/or refurbished? The Fairphone is a good example. A phone that is easy to repair (by yourself), lasting longer as a result; • And if there is no other way: can my product be recycled, as has been done for years with waste paper?
Reflect on the business model
In our educational and consulting experience with many organisations, we see that organisations are often quick to conclude that working in a circular way offers many opportunities. To identify these opportunities, the first step is to reflect on the business model and the set-up of the value chain of your organisation from purchase and sales to production and delivery. The question is where to introduce circularity in the value chain. This is a typical question where you can involve students with fresh ideas. And in particular, let them look at how you can encourage circularity throughout the chain your organisation is a part of.
The previously mentioned book “Products that last” (Bakker, Hollander, Hinte, & Zijlstra, 2019), a result of a Delft University of Technology project, provides a number of clear examples of circular business models that are briefly explained below. Which business model can you use to move your business forward, looking at the basic models described below?
Classic durable model Based on this model, you offer a durable product with a long lifespan. Under the principle of: "It's expensive, but it never breaks down". The Miele washing machine is a typical example of this.
Hybrid model This model exists by the grace of cheaper products with a short lifespan. These are often added as a service to a physical product. For example, printer toners or coffee cups from Nespresso can be returned for reuse.
Middleman model The “middleman” exists because it lives off existing systems, resulting in reuse or extension of the life cycle of a product. For instance, selling second-hand goods, suppliers of refurbished equipment or smartphone repairers.
Access model Under this model you get access to the use of a product. You pay for usage and not for ownership. Examples include rental constructions, shared bikes, scooters and cars.
2 https://en.wikipedia.org/wiki/Centennial_Light
Performance model In the performance model, the provider is responsible for the performance. The provider decides which products/services will be used to deliver the agreed performance. Examples include a provider of cloud services, a taxi or the Mitsubishi M-Use where you pay for each lift movement. You are not delivering a product but a service of which a product can be a part.
Start by looking at current processes
A good place to start is by literally visualising your organisation's (production) process. By taking a step-by-step look at your own process, opportunities for circularity will become clear. The 10 Rs described in the diagram below offer an excellent departure point to mirror the processes.
Smarter production and smarter use
Extend the life cycle of a product
Recovering materials Refuse No longer use or offer something completely different so that use (of a harmful product) is no longer necessary Rethink Use a product more intensively, for example by reusing, swapping and sharing
Reduce Use fewer natural resources or use other nonhazardous materials
Reuse
Reuse by other than the original consumer or use of a discarded product that still functions well Repair Repairing and maintaining a defective product so that it remains in use Refurbish Restoring an old product so that it functions “as new” again Remanufacture Using parts of a discarded product in a new product with the same function Repurpose Using parts of a discarded product in a new product with a new function Recycle Recycling materials to reuse with the same or a lower quality Recover Incinerating materials to recover energy
Source: Netherlands Environmental Assessment Agency, Potting et al, Circular Economy: Measuring innovation in product chains, 2016
B Corp: what does the standard require?
The B Corp standard also provides insights for creating ecological value, which we summarise in a number of actionable principles.
Enhance environmental stewardship to use water, land and life as efficiently as possible
The B Corp standard presents numerous suggestions in this respect: are buildings sustainable, have measures been implemented to reduce the consumption of gas, water and light, and is there a green procurement policy? Three questions that allow you to take major steps forward. In addition to the more technical measures, the B Corp by default looks at the opportunities you offer your employees to work from home in order to reduce car mileage for commuting purposes. Also consider how you
can put into practice the mobility policy and, for example, motivate employees to ride their bicycle to work. Experience shows that a large proportion of employees live within cycling distance of their work yet still drive to work.
Measuring = Knowing
B Corp promotes and values the reduction of energy consumption. As with all elements of the standard, the adage “measuring = knowing” also applies here. By measuring energy consumption and the use of renewable energy, you encourage yourself (and others) to take action to save energy and reduce CO2 emissions.
Is waste really waste or the new gold?
A relevant starting point to optimise your regular business model from an ecological value perspective is the waste you produce. It is precisely by gaining insight into the waste streams that allows you to quickly make improvements as an organisation. The 10R model referred to in the theoretical section provides an excellent starting point and assists in determining whether waste is really waste or a “new” raw material.
Provide environmental education for colleagues and customers
By taking steps to improve your own environmental performance, you can create awareness among your employees and supply chain partners, such as customers and suppliers. In this way, you link the topic "ecology" with the topics "social and customer value" (Chapter 5) and "making an impact together with your customer" (Chapter 8). By making colleagues, suppliers and customers aware of the impact they have on the environment, great leaps forward can be achieved in the entire chain. One of the participants in the B Corp learning-workingdoing projects organises meetings at customers' premises to encourage employees to eat more healthily. Another example is organising sessions on digital working to reduce paper waste.
Work with conscious products and services
Looking at the products and services you provide, do you deliver multiple value? Do your products and services add value or not? A few examples: • You want to run a conscious café, but you still use plastic straws; • The fleet of cars your account managers use consists of cars that use fossil fuels; • You haven't looked at the energy consumption involved in the production of your product for ages; • The textiles you sell are produced using child labour and the process uses an extreme amount of water.
Surely, you can think of more examples from your own practice.
Reduce your ecological footprint
Within service organisations, the focus is on reducing energy and fuel consumption. For companies that produce or supply physical products, there is also the use of raw and auxiliary materials. Also consider the use of packaging materials and transport. Make agreements with parties in the chain to jointly reduce your ecological footprint.
Smyle
The start-up Smyle is a good example. They sell toothpaste in a jar instead of in a tube. By focusing on toothpaste in tablet form, they aim to reduce the waste stream of 1.5 billion plastic tubes we use worldwide each year.
For more information go to: www.wesmyle.com
