Sustainable Innovation


Take good care

 

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2016 has brought us many positive turns. Perhaps we start to understand how to keep this world a great place to live in? The Global Climate Agreements following COP21 in Paris were rectified. Renewable energy is taking over fossil fuels as the cost price decreases. The UN Sustainable Development Goals offer a shared framework for public and private sector to mitigate societal issues. Unfortunately we are still witnessing devastating wars,  severe inequality, and malnutrition issues .. we are not there yet.

My wish for 2017: Keep up the good work and take good care:

  • Take good care of the planet. Let’s keep the world the beautiful place and home as we know it. Use less stuff, use it longer, recycle and use renewables.
  • Take good care of the people. Pay respect and be gentle. Close to home and as far as you can reach. We are in this game together. Be kind.
  • Take good care of yourself.  Be the best version of yourself. Work hard and play hard. Make choices. Enjoy. Relax. Be inspired. Cycle. Paint. Play the piano ; ).

 Have a great 2017!

 

 



Before the flood

To document the devastating effects of climate change, Leonardo DiCaprio travelled around the world and spoke to scientists, governmental and industry leaders.

DiCaprio & team analysed the melted ice layers on Groenland, witnessed burning forests in Indonesia and inspected the white-washed ocean coral riffs out of a submarine. The science is clear. The future unfortunately isn’t.

We need the world to urgently switch to renewable energy, energy efficient buildings, sustainable cities, clean transport, less waste, act upon the Sustainable Development Goals.

A sign of the times – 2016: More information: https://www.beforetheflood.com.

You can watch the documentairy on You Tube: https://m.youtube.com/watch?v=90CkXVF-Q8M

the-journey-dicaprio

the-solutions-dicaprio



Social impacts of products

Underpinning company mission

Paint

An important reason to start measuring social impact is to underpin a company mission. More and more companies define company aspirations in terms of social impact. Take for instance Danone, that has a dual mission of business success and social impact. Philips aims to improve the lives of 3 billion people. And L’Oréal strives with its ‘Sharing Beaty for All’ program for all its products to have a social or environmental beneift. It is  important to substantiate these goals with tangible examples and report on progress based on solid metrics. How to do so?

Learning from NGOs and philantropy

Social progress is the ‘raison d’etre’ for Non-Gouvernemental Organisations (NGOs) and philantropic organisationsFor NGOs it would be unthinkable not to track the number of people lifted out of poverty, the income generated for small holder farmers or the number of girls educated. A number of tools and guidelines have become available to forecast and track progress , for instance those ‘Global Impact Investing Network’. The reporting guidelines of the Global Reporting Initiative provide inspiration as well for companies that wish to steer on social impact. However, these type of guidances do not always provide the level of granularity needed to steer the social impact of products.

Social impact through products

Companies can create the largest positive impact with their products and services. Through products companies have the ability to create the most significant impact in society: billions of end-users are reached, manufacturing processes can be changed in own organisation and supplier organisations. The choices companies make for their products have a direct effect on the impacts the products have on the planet and people. These impacts are created in all stages of the product life cycle from extraction of raw materials – all the way to the producten, use phase and the end of life of a product.

Life cycle approach

The impacts created by products can be related to all stages of the product life cycle, .’Life Cycle Analyses’ have become a common methodology to assess the environmental impact of a product. Take for instance the standard defined by the World Business Council for Sustainable Development (WBCSD) for life cycle assessments in the chemical sector. It is also possible to assess the social impacts along the life cycle. If you wish to integrate ‘people perspectives’ a good source is the Handbook for Product Social Impact Assessments developed by a group of industry peers.

Better for people and planet

DSM strives for products and innovations to be measurably better for the planet (Eco+) and people (People+)  based on a life cycle approach. By 2020 65% of DSMs products should be ‘Brighter Living Solutions’, measurably better for planet or people. Some examples:

  1. Alpaflor® Edelweiss is a personal care ingredient. It contributes to better skin health and comfort, and is sourced in a very socially sustainable way, contributing to good working circumstances and prosperity of farmers in the Swiss Valais region.
  2. Synthetic chains made of Dyneema® used for marine structure mooring are 8 times lighter and 70 times less noisy than steel chains. Users experience a safer and more comfortable use, shipping companies report improved operational efficiency.
  3. Medical gowns reinforced with breathable Arnitel VT® contribute to the protection of surgeons against virus and bacteria in high risk hospital environments, and allow surgeons to work in a comfortable way.
  4. Decovery® is a plant based and waterborne paint ingrediënt for paints. It is a solvent free and low odor product, and reduces health risks of the people involved in production and the users of the product.

Benefits of social impact measuring

Social impact measuring is useful to underpin company missions. Life cycle assessments can be instrumental to spot new innovation opportunities and business differentiators. They also help to train product developers and sourcing managers to choose the most sustainable alternatives, and marketeers to communicate the differentiators in a balanced way. More about business benefits here.

– based on the earlier published article by Karen Maas (Academic Director Impact Center Erasmus) and Jacobine Das Gupta (DSM Corporate Sustainability) in Dutch for NRC Live Impact Day

 



5 reasons to start measuring social impact

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Companies taking the lead 

In January politicians, leaders of multinationals, entrepreneurs and scientists gathered at the World Economic Forum in Davos to discuss today’s societal challenges. It is encouraging to see that the private sector is taking a leading role in defining plans to mitigate climate change, ensure health and safety and move towards a circular economy. Companies employ the most employees in the world and have the largest investment and innovation capabilities. Nowhere else such significant impacts on society can be made as by companies if they run their business in a responsible way. Think about sustainable sourcing policies, careful choice of materials, eco-design, production methods, creation of jobs and good working conditions.

Why should you start measuring social impact?

All impacts organisations have on society can be summarized as ‘social impact’. These can be from economic, environmental and social perspectives. How to measure this impact? How to identify the best opportunities for a maximum positive social impact? Where do companies create most impact? How to shift to new more sustainable consumption patterns? How to define priorities, and how to track progress?  Measuring impact has surfaced in recent years as a new important perspective in doing business. There are five reasons why:

(1) Underpinning company mission: An increasing number of companies have defined company aspirations and targets that explicitly refer to the social impact they aim to achieve. Philips aims to improve the lives of 3 billion people with health care solutions. DSM wants 65% of its products to have a measurably better environmental or social impact (Eco+ or People+). Underpinning these missions are  essential to monitor and manage performance.

(2) Requests for transparency: External stakeholders set higher expectations on transparency than before. Reporting financial and non-financial results are becoming common practise. Companies are not only asked to be transparent about their profits and revenues, but also to inform the general public about the status of ‘externalities’ such as the safety, health and employee engagement of their staff as well as the green house gas emissions of their sites.

(3) Consumer expectations: A large majority of consumers expects that companies take responsibility for healthy, safe and decent working conditions under which products are being produced. Two thirds of all consumers sense responsibility to purchase products that support environmental or societal goals (Globescan). Half of all consumers state they are even prepared to pay more for products that have a clear environmental or social benefit (Nielsen). Producers of goods or services that want to tap into this pull will need to come up with evidence that shows the positive impact on society is not biased, but real.

(4) Changing investor preferences: The investor community increasingly steers on the social impacts of investments. Before, most investors applied an exclusion policy, avoiding certain sectors. Nowadays investors increasingly steer their portfolio based on performance on several Environmental Social and Governance factors (ESG). For companies this is a reason more to track and manage these factors more closely.

(5) Employee engagement: Last but not least, the ‘sense of purpose’ of a company has become the most important reason for Millenials to work for that company (Deloitte). And this not only accounts for the Generation Y. Many people like to work for a company that has a social mission in its headlines. It inspires people to get up in the morning.

Impact measurement important for companies to flourish

Measurement of social impact is still in its early stages. There are ongoing discussions how to do this, and how to monetise externalities. Integration of impact measurement results in business cases is expected, and even on company balance sheets in the future. There is much to be explored, and much to gain. The progress in the coming decade will be instrumental to have better insights in the real social impact of companies, and be able to steer, for a healthy planet, a prosperous society and companies that flourish.

– by Karen Maas (Academic Director Impact Center Erasmus) and Jacobine Das Gupta (DSM Corporate Sustainability) published previously in Dutch: NRC Live Impact Day



Abundance or Scarcity? Age of Wonderland Designers’ new concepts.
October 22, 2015, 6:26 pm
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abundance - jdg

Most designers are determined to make this world a better place. Trained to analyse complex problems and people’s needs, they are used to develop new solutions that are desirable, sustainable, and fit for purpose. We need these competences to tackle our major challenges such as Feeding the world within planetairy boundaries, and Climate Change. In a world where abundance and scarcity co-exist, we need Design Thinking to come up with new products that work, people like, are sustainable from financial, environmental and social perspectives.

At the Dutch Design Week in Eindhoven designers are offered a stage to share their ideas to shape the world. One of the programs is ‘Age of Wonderland’, a social innovation program developed by Hivos and Baltan Laboratories. Each year six young creatives are invited to The Netherlands to develop their projects working with Dutch artists and companies. This years theme is ‘Balancing green & fair food’. The abundance of waste at one side, and scarcity of food and drink water have inspired Ahadi Katera from Tanzania and Achmad Fadillah from Indonesia to develop new concepts.

age of wonderland - jdg

Ahadi Katera, industrial engineering student from Dar es Salaam University, co-founded the social enterprise Guavay that collects organic waste and makes fertilizer from it using new ways. The venture uses both fermentation and composting to get nutrient rich fertilizers. Katera explains: ‘With a group of students we interviewed people in different neighbourhoods of Dar es Salaam. We observed a couple of challenges: 40% of the waste streams consists of organic waste: vegetables, fruits, eggs, bread. Most organic waste ends up on landfill, as the recycling industry is not full grown. Households produce on average 2kg of waste every day, and huge local food markets produce no less than 20 tons a day. At the same time, a few kilometres away, farmers badly need additives and nutrients to prepare the soil to grow new crops. There was clearly an opportunity here’.

 Guavay producing organic fertilizer in Dar es Salaam

Guavay producing organic fertilizer in Dar es Salaam

Katera and his team developed a system to collect and treat waste streams all the way from supermarkets and households. The venture created a potential to scale up process for converting of the collected vegetables, fruits and egg shells into fertilizer. The process takes approximately 15 days at the moment, and still being tested to shorten this period. The venture currently employs 4 people with a manager from the local community, people well-connected with government and enterprises. The fertilizer is being sold to farmers and florists.

To Katera success means that ‘all people involved are happy’: the families and supermarkets, the waste collectors and factory labourers, the farmers who can create better harvests, and the families who can enjoy tasteful and organically produced food. Guavay can be a blueprint for other cities, that want to turn their valuable organic waste into something so valuable and useful,

His visit in the Netherlands has brought new insights in waste collection, separation and composting systems to the African venture and also built interest to research on other potential products that can be made from organic waste, like liquid soap for dish and laundry washing and organic leather bags.  In return, Katera brought to the Dutch community grass roots experience, a deep understanding of local issues prompting the best possible solutions suiting the local situation, contributing to the lives of all people involved. Interested in more? Meet Katera October 25th at his workshop in Eindhoven.

circular process - photo credits sas schilten

From food to organic waste to fertilizer to crops to food – photocredits: Sas Schilten

One of the other Age of Wonderland 2015 creatives is Achmad Fadillah. Fadil is leading an industrial design practice in Bandung. Fadil is member of ADPII (Indonesia Alliance of Industrial Designers) and graduate from Industrial Design, Bandung Institute of Technology (Indonesia) and Scuola Politecnica di Design, Milan (Italy). Worried about the growing pollution of soil and water due to water bottles waste streams, he is exploring ways to re-use the bottles as toys. Fadil: ‘In Indonesia, people have no clean tap drink water available. Most people use bottled water. I saw with my own eyes how our environment is suffering from the plastic bottle waste. Why don’t we just re-use them for other things? Consumers don’t know what to do else than throw away the bottles. It seems there are not any plastic bottles that is easy to re-use’.

Fadil developed a prototype water bottle that can also be used as a toy or a brick. From the bottle-bricks new forms can be made such as towers, bridges, or, why not, refugee homes. The new type of bottles with an obvious 2nd life, 3D printed from ABS, are expected to motivate consumers not to throw away the bottle.

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Fadil bottles with an ‘after-life’ as toys & building blocks – photocredits: Sas Schilten

Working with Dutch designers has taught Fadil more about new possibilities for influencing user behavior.  Fadil brought nnew inspiration to European designers who search for new ‘after-functions’ or ‘second-lives’ that could be both useful and fun, after products has served their primary function. Fadil wants to continue his research in cooperation with a company that produces plastic bottles, or uses plastic packaging. if you want to know more, join Fadil Friday 23rd of October at his workshop in Eindhoven.

our curious engagement - jdg

It is great to see and learn from the journeys of the Age of Wonderland designers. Successfully addressing societal issues requires on the ground, grass roots knowledge and determined people: people who won’t rest before realising the right product or system that will solve the problems – best fit for purpose, desirable and sustainable.

 

 



How to integrate Social Metrics in LCM?
August 29, 2015, 5:06 pm
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LCM2015 Bordeaux conference websiteLCM2015

Don’t we all want to live in a prosperous world where people can thrive in good health, enjoying decent work or education ?

Companies have the ability to change the world as part of doing business. Corporate sustainability policies, supplier programs, CSR and employee engagement initiatives help to maintain a safe, healthy and fairly paid workforce within planetairy boundaries. They, however, do not always provide sufficient guidance for daily decisions.

How to make the right choices in daily work that can be precursors for the world we want? If you are a product developer, buyer or marketeer: How to make a good choice between product alternatives, supplier choices or the right messaging? What are the environmental and social aspects to take into consideration? What is ‘good enough’ and what are ‘aspirational’ levels? How present the outcomes in a consized but well balanced way  decision makers and customers understand?

Life Cycle Analyses (LCA) have become commonplace for academia and companies as the best way to measure environmental impact of a new product. LCA allows to identify differences and make informed choices as it gives insights in the with a good understanding of the created greenhousegas emissions, energy or water consumption and biodiversity along the lifecycle. Life Cycle Management (LCM) is about steering innovations and product portfolio along their life cycle.

Product social metrics or ‘Social LCA’ respresent the new area that will help to structurally integrate also the elements related to the ‘quality of life’ of people when assessing impacts of a product along the lifecycle. Assessing social impacts brings new dilemma’s such as how to measure working conditions, how to aggregate, and how to combine the impacts on different stakeholder groups such as employees, communities and end-users. Despite all dilemma’s and challenges a new method is emerging. The new methos is strongly driven by industries and building on the Social LCA guidance of UNEP-SETAC, DSM’s People LCA methodology, the Handbook of the Roundtable for Product Social Metrics and WBCSD Chemical Sector Working Group.

On September 1st, in Bordeaux at t the LCM2015 conference, practitioners from academic world and industries will share their experiences with Social LCA discussing the challenges and opportunities. Kithrona Cerri of the WBCSD and I will co-chair the debate. Be warmly invited! More information: http://www.lcm2015.org



Business benefits of measuring social impact of products

Consumers are acutely aware of the provenance of the goods they purchase. They have greater access to product information than ever before, and are empowered to make more responsible purchase decisions. There is now evidence that a majority are also willing to pay more for them. A study by marketing research group Nielsen found that 55% of online consumers across 60 countries would pay a premium for ‘green’ or socially responsible goods. Clearly therefore, there is now an opportunity for businesses to develop products and services that have demonstrable ecological or social benefits.

As consumers, we are accustomed to seeing ‘eco-labels’ on products and services. In contrast to the range of methodologies used to assess a product’s environmental impact, there is still a scarcity of tools and metrics to estimate the social impact of these products. A cross-industry social impact assessment method for products has not existed, even though many companies have implemented important social initiatives across their supply chains and operations.

Attempts to develop metrics for social impacts have often resulted in instruments that can be applied to a company as a whole, but are not easily translatable for the products within an industrial context and the daily practices of product developers and marketers. The main reason for this is that measurements of how a product affects society and individuals are difficult to quantify. For example, to prove that a product contributes to the wellbeing of end-users, a company would need consumer research to assess their increase in perceived wellbeing when using the product. The task is further complicated by the sheer volume of real-time product information that can now be accessed in different formats, and the social complexities of a globalised world in which the balance of economic prosperity is rapidly shifting.

Recently, the Roundtable for Product Social Metrics a group of European industry leaders including Ahold, AkzoNobel, BASF, BMW Group, DSM, L’Oréal, Marks & Spencer and sustainability consultants PRé Sustainability published the Handbook for Product Social Impact Assessment. The Handbook is the result of two years of close collaboration and is the first practical methodology tested and accepted by a group of major businesses for assessing a product’s social impact throughout its lifecycle. It has been formulated based on international standards and consultations with researchers, industry hubs, development organisations and NGOs.

The Roundtable has tested the methodology in 6 different pilots, assessing a variety of their products ranging from protective coatings and personal care products, to office chair components and automotive parts. The findings from these initial pilots, in particular insights into often complex value chains, were used to further refine the methodology. Three key stakeholder groups are taken into consideration: workers, consumers and local communities.

Stakeholder Groups Handbook PSIA
Stakeholder Groups taken into account in Handbook Product Social Impact Assessment
http://product-social-impact-assessment.com/handbook/

The assessment gives practical guidance for capturing social performance data. The resulting dashboard shows the performance in all life cycle stages, from raw materials extraction up till disposal. The pilots showed that the methodology can provide a clear framework by which companies can analyse lifecycle data.

Roundtable partners DSM, l’Oréal and AkzoNobel piloted the product social impact assessment approach on two products: a serum and a hand cream. Both products contain ingredients from AkzoNobel and DSM. They looked at the impact of the product on end-users as well as farmers’ wages and job security.

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Personal care product used to pilot methodology
http://product-social-impact-assessment.com/pilot-serum-hand-cream/

The assessment helped to highlight specific product differentiators that otherwise might not have featured so prominently on a product developer’s radar such as workers condition’s and local community impact. Other potential benefits arising from using the methodology are identifying new product ideas, identifying and mitigating supply chain risks and improving employee engagement. This approach has the potential to be beneficial for all companies that wish to innovate based on social impact performance metrics that take into account the whole value chain.

Extract of article The Guardian October 28th – by Jacobine Das Gupta (DSM) and Charles Duclaux (L’Oréal). http://www.theguardian.com/sustainable-business/2014/oct/28/new-tool-measure-social-impact-products