Environment and Business Course Overview Instructor: Jerry Patchell; Office Hours: Tuesday 12:00-14:00 Room 2352A TA: Kaxton Siu; Office Hours: Tue &Thu 10:30-11:30 am Room 3002

Design for Environment l “systematic consideration of design performance with respect to environmental, health, and safety objectives over the full product life cycle.” l That is: reduce, reuse, and recycle through the all the stages of a product’s lifecycle.

Why Design for Environment? l Over 80% of a products environmental impacts are decided by design. l Design integrates all the stages of the product cycle. l Design integrates all business activities related to the product, inside and outside a company. l Good and Services companies.

Integration: what is it? The process of coordinating different elements for effective functioning of a whole system In practical terms: l Functional: making sure all the parts work together to achieve the design goals l Organizational: Assigning tasks to all members of an organization to achieve the design goals

What has to be Integrated? l The firm into sustainable development l The firm into industrial ecology l Environmental management into the firm l Product design is how integration is done.

Sustainable Development "Sustainable development is development that meets the needs of the present without compromising the ability of future generations to meet their own needs. ” (World Commission on Environment and Development 1987)

How can Business be Integrated into Sustainable Development? Environment EconomySociety

Sustainable Development as Integration Industrial Ecology Technology Politics Society Environment Industrial Ecology Industrial Ecology Economy  Business  Environmental Management

What is industrial ecology? 1.An ideal to mimic the way the nature’s ecosystems function. 2.A framework of principles and practices that enables companies, governments, consumers, and NGOs to work together to achieve that ideal

Unlimited Resource Extraction Materials ProcessingProduction Consumption Unlimited Dumping of Waste The Linear Industrial System Energy & material input Waste & pollution output

An Ecosystem Photosynthesis Solar Energy Detrivores HerbivoresCarnivores AirLand Water

Principles of Industrial Ecology Products, processes, services, and operations can produce residuals, but not waste. Every process, product, facility, constructed infrastructure, and technological system should be planned to be adaptable to forseeable environmentally preferable innovations. Every molecule that enters a specific manufacturing process should leave that process as a part of a salable product. Every erg of energy used in manufacture should produce a desired material transformation. Industries should make minimum use of materials and energy in products, processes, services, and operations. Materials should be the least toxic for the purpose, all else equal.

Principles of Industrial Ecology con’t Industries should get most of the needed materials through recycling streams (theirs or those of others) rather than through raw materials extraction. Every process, product, component, and part should be designed to preserve the embedded utility of the materials used. Every product should be designed so that it can be used to create other useful products at the end of its current life. Every industrial landholding, facility, or infrastructure system or component should be developed, constructed or modified to maintain or improve local habitats and species diversity, and to minimize impacts on local or regional resources. Close interactions should be developed with materials suppliers, customers, and representatives of other industries, with the aim of developing cooperative ways of minimizing packaging and of recycling and reusing materials.

Principles of Industrial Ecology con’t Or Waste equals food

Integration of Product, Material, & Energy Flow in an Industry Resource Extraction Materials Processing Parts Manufacture Product Assembly Distribution Consumption Materials Collection Recycling Social Infrastructure: Gov’t, industry assoc.s, NGOs, etc. Material & Energy Inputs Pollution Outputs Physical Infrastructure: roads, sewers, land use, electricity, etc.

Product, Material, & Energy Flow in an Industry Resource Extraction Materials Processing Parts Manufacture Product Assembly Distribution Consumption Materials Collection Recycling Social Infrastructure: Gov’t, industry assoc.s, NGOs, etc. Material & Energy Inputs Pollution Outputs Physical Infrastructure: roads, sewers, land use, electricity, etc.

Environmental Management l Environmental management is the planning and implementation of actions to reduce the environmental impacts of a organization. l Reduce, reuse, recycle, dispose of safely throughout business activities. l Coordination of DfE activities

Internal Process of a Firm Energy and Materials A Company Products Waste energy Waste materials DfE Reduce Reuse Recycle

Environmental Management: integrating environmental improvement across departmental and product boundaries Support Activities Human Resources Accounting Site and Facilities Purchasing Research & Development Environment, Health & Safety Primary Activities Logistics ProductionDistributionMarketing Integrating environmental improvements throughout a business’s divisions and upstream and downstream in product cycle Top Management

Product, Material, & Energy Flow in an Industry Resource Extraction Materials Processing Parts Manufacture Product Assembly Distribution Consumption Materials Collection Recycling Social Infrastructure: Gov’t, industry assoc.s, NGOs, etc. Material & Energy Inputs Pollution Outputs Physical Infrastructure: roads, sewers, land use, electricity, etc.

Environment and Business: an integrating approach l Chapter 1 Course Introduction: A Framework for Sustainable Business l Chapter 2 Sustainable Business l Chapter 3 Environmental Problems l Chapter 4 Society l Chapter 5 Technology l Chapter 6 Environmental Economics l Chapter 7 Environmental Politics l Chapter 8 Challenge of Integration l Chapter 9 Design for Environment l Chapter 10 Impact Assessment l Chapter 11 Environmental Management l Chapter 12 Environmental Programs

$10,000 Prize l HKUST’s Green Campus Initiative l Student Contest: best projects on the environment

Syllabus on Website l

Why does business have to change?

How can a business make a difference? l Technological limits l Knowledge limits l Power limits l Competitive limits l Governance limits

How can a business make a difference? l Integration into a collective solution by integrating Design for Environment into a company l Integration l Sustainable Development l Industrial Ecology l Design for Environment l Environmental Management

Integrate? l What does it mean? l What has to be integrated? l Integrated into what?

Environmental Management l Environmental management is the planning and implementation of actions to reduce the environmental impacts of a organization. l That is: reduce, reuse, recycle, dispose of safely.

Internal Process of a Firm Energy and Materials Company Products Waste energy Waste materials