1. Design and Services for the Future Michael Lettenmeier Managing Director D-mat Ltd. Michael.Lettenmeier@iki.fi Hållbar utväckling = Lönsam utväckling? Symposium om Faktor 10 Loka Brunn 25.11.2005

2. Michael.Lettenmeier@iki.fi From Germany to Finland 1988 D-mat Ltd. Consulting, training, research, projects Factor 10, MIPS, resource productivity Companies, authorities, colleges and schools, NGOs Rubbish! – Handbook for waste counselling (fi) 1994 MIPS – the new arithmethics of nature (fi) 2000 Factor X - Entering markets eco-efficient 2000-2002 Eco-efficiency - Business as Future (fi) 2002 Eco-efficient 2002 -fair FIN-MIPS Transport 2003-2005 Der ökologische Rucksack (de) 2004

3. Design and Services for the Future Hållbar utväckling: Need for Factor 10 MIPS: Tool for Factor 10 –MI: Dematerializing our products –S: Sustainable product-service-systems Examples of products and companies

4. Resource productivity: more from less More benefit out of less material and energy More welfare with less environmental damage Unsustainable level of natural resource consumption Carrying capacity of nature exceeded already Total material consumption steadily growing Consumption distributed unequally –increasing poverty problems –increasing social problems around the world Source: Wuppertal Institute

5. Finland consuming... Material consumption –non-renewable materials: + 2,5 % / a –renewable materials: + 0,6 % / a TMR top class: 500 000 000 tn / a = 100 tn / cap. / a = 300 shopping bags / cap. / week Source: Thule Institute, Univ. Oulu

6. ... not alone Industrialized countries (20 % of world population) consuming –86 % of all aluminium –81 % of all paper –80 % of all iron and steel –76 % of all wood materials ca. 4/5 of all natural resources

7. Which future? A = Present situation B = Consumption p. cap. in developing countries as in industrialized countries now C = Same as B, incl. growing population D = Halfing global resource consumption, doubling global welfare => resource productivity! Developing countries Industrialized countries

8. Targets in discussion (up to 2050): Factor 4: doubling global welfare and halfing material flows Factor 10: decreasing material flows of industrialized countries to 1/10, maintaining at least present welfare => resource productivity!

9. Resource productivity works already CompanyStarting solution / comparison Developed solutionFactor X Virke OyWoman‘s blouse polyester/cotton Woman‘s blouse polyester/viscose 1,7 Mitron OyDisplay (fluorescent tube, 1 year of use) Display (LED, 1 year of use) 6 Finton OyConcrete balcony (1 year of use) Steel balcony (1 year of use) 3 Primalco Oy Wine packaging and transport in disposable bottle Wine packaging and transport in reuseable bottle 1,9 ZazaTavolo table, 1 year of use New Tavolo table, 1 year of use 2

10. You cannot improve what you cannot measure 60 million companies globally producing 6 million different products and offering 60 million different services which all are constantly changing 6 billion consumers in 200 countries using these products and services Resource productivity requires handable measures

11. MIPS – indicator of resource productivity material input  life-cycle-wide natural resource consumption of the commodity service unit  life-cycle-wide benefit produced by the commodity MI _____ S material input per service unit

12. Material input (MI) = life-cycle-wide natural resource consumption of the commodity expressed in mass units (e.g. kg) = commodity’s own mass + the ecological rucksack (materials that are not visible in the product, but are used somewhere in its life cycle)

13. Material flows indicate environmental pressure holtistic, though rough indicator  hard to make illustrative indicators out of individual environmental problems Avoiding harmful substances is not enough  material flows are threatening the environment

14. Preventative approach Production and consumption Traditional approach Resource input Waste Waste water Air emissions Chemicals Nature protection From environmental protection From cleaning at the end of pipe to efficient resource use to resource productivity

15. MI of products: examples tuote kg abiotic /product kg biotic /product kg water /prod. kg air /prod. kg top soil / product jeans 5,11,612000,153 tooth brush 0,12 -1,50,03- coffee maker 52 -2406,5- VW Golf A4 18710 -3320003710-

16. Examples of MI-factors raw- material kg abiotic / kg mat. kg biotic / kg mat. kg water / kg mat. kg air / kg mat. kg top soil / kg mat. aluminium 37 -105011- steel 9,3 -820,8- copper 350 -3701,6- spruce 0,74,79,40,2-

17. Examples of MI-factors for electricity electricity kg abiotic / kWh kg biotic / kWh kg water / kWh kg air / kWh kg soil / kWh average power (D) 4,7 -830,6- average power (FIN) 0,50 -1860,21- electr. sold by Hels. Energia 0,63 -310,37- wind power 0,07 -0,170,001-

18. Examples of MI-factors for goods transport transport (Finland) kg abiotic / ton km kg biotic / ton km kg water / ton km kg air / tn.km kg soil / ton km lorry 0,4 -3,60,06- railway 0,54 -15,30,02- air (domestic) 5,6 -2662,8- sea (short dist.) 0,75 -3,130,13-

19. Examples of MI-factors for person transport transport (Finland) kg abiotic / person km kg biotic / person km kg water / person km kg air / pers. km kg soil / person km car 1,44 -12,40,14- bike 0,38 -12,10,02- bus 0,32 -2,790,06- train (long dist.) 1,37 -29,30,04- air (domestic) 0,56 -26,60,28- sea (baltic area) 0,26 -2,420,31-

20. Company level: decreasing MI Faxtor X -example: Finn Karelia Virke Oy 50/50 polyester/cotton -blouse (weight 231 g) Material inputs: –raw materials 69,5 % (4,18 kg) –packages 6,2 % (0,37 kg) –electricity consumption3,3 % (0,2 kg) –other energy consumption 7,7 % (0,46 kg) –transports13,4 % (0,8 kg) MI total: 6,01 kg  ecological rucksack: 5,78 kg Changing cotton to viscose: MI 6,01 kg  3,54 kg (factor 1,7)

21. Comparison of rucksacks (blouse 231 g) 1. 50/50 polyester/viscose 3,3,kg 2. 50/50 polyester/cotton 5,78 kg 3. 100% cotton 8,14 kg 4. 100% wool 44,26 kg Huom. Finn Karelia Virke Oy:n kaikki tuotteet ovat sekotteita

22. The blouse in use use and maintanance by consumer: power consumption! 50 times washing –PES/CO +40 C981 kWh MI per 1 blouse 4,02 kg 50 times washing + drying –PES/CO +40 C1647 kWh MI per 1 blouse 6,75 kg –100% cotton +60 C3484 kWh MI per 1 blouse 14,28 kg

23. Service-unit (S): more out of less S = benefit provided by a product quantified, unit defined case by case (e.g. using times, years of use, ton-km) target: increasing number of service-units = more use / longer life / more functions of product  growing S  smaller MIPS  growing resource productivity MI ___ S

24. How to increase the service-unit (S) ? 1.Increasing longevity durability repairability maintainability upgrading resusability etc.

25. Factor X Finland - case Primalco MIPS-comparision of packaging systems for wines: Reuse vrs. one-way for wine bottles Bottling french wine in Finland vrs. bottling in France Comparison of packaging systems: –Wine transport France - Finland (bottles on trailer vrs. wine in tank) –Bottling in France vrs. bottling in Finland –Transport up to the Alko retail store

26. Case Primalco: - packaging of french wine - solid resources kg / wine bottle

27. Products are only service-delivering machines Example: Cooling chamber integrated in the kitchen wall uses cold outside air in the winter has CFC-free insulation material uses 50-80 % less energy compared to a conventional refrigerator cooling system is separated from the cooling chamber  can be exchanged long lasting (e.g. lifetime of a house)  material efficiency is increased by a factor 7 compared to a conventional refrigerator Source: Wuppertal Institute

28. From thinking in products to thinking in services What the consumer needs is the service the product is providing –no fridge, but cold food and drinks –no lawn mawer, but short grass –no car, but getting to another place –no washing machine, but clean clothes –no book or magazine, but the content  Replace products by the use of libraries, car- sharing, laundries etc.

29. How to increase the service-unit (S) ? 2. Business from products to services Selling office space use instead of the building (YIT) Selling good room-air quality instead of air- conditioning devices (Ender GmbH) Selling flexible mobility instead of cars (City Car Club) Selling office furnishing service instead of furniture (ISKU) Selling communication solutions instead of devices (Sonera) => Combining the benefit of customer, company and environment

30. Factor X – Entering Markets Eco-efficient Factor X –project 2000-2002 –15 companies, 10 consultants –1 case (product or service) per company –MIPS-concept Lendable poster exhibition – 65 posters Eco-efficient 2002 –fair – 3 days – 100 exhibitors – 5000 visitors – 10 conference events

31. Factor X Finland - Case studies Mitron Oyinformation panel for public transport ISKU office furniture unit incl. packaging Virke Oy women blouse Finton Oy balcony system Primalcopackaging system for wine KESKOlemonade NOKIAmobile phone SLU (soccer) soccer match FIN - D SLU (basket-ball)training of a champions’ league team SLU (ice-hockey) one year’s activities of a junior team OrienteeringWorld Championship 2001 in Tampere HUShip operation Sonera e-work YIT - Rapidofacility management VR - Groupperson-km by rail Paperipalvelu Oyfolder Zazatable

32. Factor X Finland - case Mitron Information display old display –fluorescent tube –regulating card –power card –glass control unit –LDC-module –mechanical and electrical parts new display –led –regulating card –power card –glass control unit –LDC-module –mechanical and electrical parts

33. Factor X Finland - case MITRON MI comparison of replacable parts fluorescent tube display: »cover 1,65 kg (ZnFe) MI=14,85 kg »back cover 0,3 kg (Al) MI=18,3 kg »plastic parts 0,22 kg (Ps) MI=1,54 kg »fluor. tube, inverter,... MI=35 kg MI=>70 kg Led - display: »cover 0,96 kg (ZnFe) MI=8,64 kg »back cover 0,15 kg (Al) MI=9,15 kg »resin (Harz??) 0,38 kg (Ps) MI=5,2 kg »rubber, plastic parts, … MI=10 kg MI=>33 kg

34. Factor X Finland - case Mitron development of the service unit fluor. tube diplay vrs. led-display life span  2 a vrs. 11 a functionality energy consumption - 60 % nearly endless circumstances (IP 68) considerably thinner construction light regulation phosforescence characteristics  Factor 6

35. Case Mitron Benefits of eco-intelligent design »money savings through resource saving »marketing benefits, new markets »increasing consumer interest »increasing credibility among the employees »possibility for increasing empoyment »realizing environmental targets without legal constraints and without inevitable increase of costs

36. MIPS calculation for 2 buildings of Helsinki University Paula Sinivuori Helsinki University Abiotic resources, kg/m2/a

37. Abiotic MIPS-figures, kg/m 2 /a Earth excavation Technical equipment Heat consumption Power consumption

38. Change in abiotic resource consumption useful life 100 a => 200 a: –31% recycled instead of virgin metals: –20% longer renovation circles: –10% lower power and heat consumption: –5% average power to wind power: –25% Total potential for improvement:Factor 4 Sensitivity analysis: Factor 4 buidling feasible

39. Lindström ltd. – MIPS of drying hands MIPS = solid resource consumption / 1 times of drying hands Calculation includes: Roll towel lasting 100 washing times 1 paper towel / drying once (incl. packaging and waste disposal) Hot air dryer 2110 W, drying 30 seconds Way of drying hands Roll towel narrow Roll towel wide Paper towel 1 p. / drying Hot air dryer 30 s / drying MIPS g / drying once 3,22,7177,2 Helsinki University 2003

40. Alternative options for waste policy in the Helsinki Metropolitan Area (Ville Salo, Univ. Helsinki, Env. Economics) Present sit. Prevention Recycling A Recycling B MB plant Incinerator Municipal wate in the Helsinki Metropolitan Area: resource cosumption over the life- cycle for different options, tons / a

41. Water Supply, Delivery and Wastewater Treatment Energy Supply Dematerialising the Management of Municipal Services 11th Annual International Sustainable Development Research Conference June 6-8, 2005, Helsinki, Finland Adeline Maijala – Helsinki University of Technology (TKK) Tarja Teppo – Helsinki University of Technology (TKK) Michael Lettenmeier – D-mat ltd. Elina Virtanen – Helsinki University of Technology (TKK) Salla Hänninen – Helsinki University of Technology (TKK)

42. Results

43. Improvements in resource consumption Same technology, optimisation: –Less digging (change dimensions and material) => factor 1,1-1,3 –Less virgin material (reuse ground, ground material represents 70% of the material input) => factor ? –Locate under green areas => factor 1,2-1,3 –Use the existing network more efficiently => factor ? Change of technology: –No-dig => factor 7-13 Change of system -No network => factor 2 – 3,5 (Reckerzügl for sewage systems) -Combination of rain water and bottled water => factor ? -Dry toilets => ca. factor 2,5 (Reckerzügl)

44. No-Dig technology

45. Material intensity of the energy from Kymijärvi power plant in Lahti Abiotic resource consumption per kWh of energy produced (power and heat): Original plant: 1,83 kg/kWh Incl. gasification unit: 1,53 kg/kWh ( –16% ) Average Finland: 0,5 kg/kWh * Average EU 15: 1,8 kg/kWh ** * Vihermaa 2005 ** Hacker 2003 Original plant Incl. gasification unit MI hard coalMI transport

46. Scenario: coal from Poland Decreasing MI-factor of hard coal: 5,1 kg/kg => 2,2 kg/kg Shorter railway transportat: 4000 km => 500 km Longer shop transport: 200 km => 800 km Change in process (not quantified): increasing need for desulphurication and limestone

47. Scenario: coal from Poland Influence of gasification: Factor 1,2 ( –16%) Influence of Poland coal:Factor 3,9 ( –74%) Influence of Polish coal on gasification option: Factor 3,3 ( –69%) Original plant Incl. gasification Polish Coal

48. Examples of Factor X project CompanyStarting solution / comparison Developed solutionFactor X Virke OyWoman‘s blouse polyester/cotton Woman‘s blouse polyester/viscose 1,7 Mitron OyDisplay (fluorescent tube, 1 year of use) Display (LED, 1 year of use) 6 Finton OyConcrete balcony (1 year of use) Steel balcony (1 year of use) 3 Primalco Oy Wine packaging and transport in disposable bottle Wine packaging and transport in reuseable bottle 1,9 ZazaTavolo table, 1 year of use New Tavolo table, 1 year of use 2

49. Factor X Finland - experiences: MIPS - potential for application Comparisons of eco-efficiency Product development understandable principle sufficiently quick tool for situations requiring selection Business development increasing the benefits of customer and environment product-related services (product + additional service) utilisation-related services (product owned by producer) business focus from products to services

52. Hållbar utväckling = lönsam utväckling?

53. Resource efficiency: new tools in sight FRAME (Finnish res. and mat. efficiency agency) –Feasibility study made by ministry of the environment –Coordination and development of counselling, education, research, product development, etc. –EU LIFE-proposal for establishing MASCO (material saving contracting services) –Working already in the energy sector (ESCO) –Feasibility study by Helsinki University

54. States and EU needed: shift of taxation focus from labour to resource use High taxes on labour, low taxes on resource use (84% of the taxes in EU15 are levied from labour and labour use)  unemployment, waste of natural resources, luonnonvarojen tuhlausta, cutting down of welfare states, social problems, etc. Shift of taxation focus from labour to resource use taxation without rising total taxation  stimulation for employment, resource saving, maintaining of welfare system

55. Factor 10 rising to big challenges: 1.Environmental impacts are a complex entity  Navigating in a jungle of environmental problems 2.The globalization of economy  Directing the development into the right direction  Controlling life cycles around the world 3.Price competition and production orientation bringing western enterprises down  Learning to create the jobs of tomorrow

56. Efficiency is not enough: PC-computers in Germany 19941998 Factor el. cons. / PC / time (W) 380 55 7 el. cons. / all PCs (TWh/a) 2,14,10,5

57. Factor 10 needs also sufficiency Increasing consumption tends to waste the gains in efficiency  sufficiency in consumption Benefits of increased efficiency should be transferred to developing countries  more equal distribution of welfare Are there any limits go growth?

58. List of wishes Own house. Sauna. Swimming pool. Tennis ground Water plane. Own island. Harem. Good condition. Immortality. That’s all. So far. - Mauritz Nylund

59. Further information www.wupperinst.org www.mips-online.info www.factor10-institute.org http://thule.oulu.fi/ecoef www.product-life.org www.seri.at www.faktor10.at www.aachener-stiftung.de www.mips-online.fi

60. Tack! Further information: D-mat ltd. Michael Lettenmeier Tel. +358 40 54 12 876 Michael.Lettenmeier@iki.fi Drawn pictures: www.seppo.net