APPLIED SUSTAINABILITY TOPIC. BAA Munich Chapter

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1 APPLIED SUSTAINABILITY TOPIC BAA Munich Chapter Febbraio 2014

2 BAA Applied Sustainability Topic Our work in BAA is to promote attention onto all the company functions that may be involved in the development of a sustainable culture and stimulate the further analysis of this topic. In the company, all the functions are involved in this process: Strategy (company management) Personnel Finance Production Purchasing Internal communication Marketing To date, in most companies in the world, only Marketing is seen and the other functions behind it are not yet active.

3 What does sustainable development mean? For modern companies, sustainable development means being able to develop covering their needs without compromising the chances for future generations to be able to do the same.

4 Two concepts are cardinal points of this development NEEDS: especially the fundamental requirements of the poor peoples of the planet; EXHAUSTIBILITY according to this, our planet does not have unlimited resources and is not able to dispose of increasing quantities of refuse and emissions.

5 The sustainable development model has three dimensions Sustainable development (Rio Conference 1992) pursues three aims: economic efficiency the most important decisional lever social solidarity ecological responsibility These aims interact and should not be considered in isolation.

6 Green Economy: IWI beyond GDP Indicators relevant for the environmental and social dimension of economic growth must flank the GDP to measure green growth and the progress of society. The Inclusive Wealth Index (IWI), presented in 1992 at the conference in Rio (which required Targets and Indicators), is a sustainability index which enables evaluation of the variations in productive capital, human and natural. At last, from 2015, after 23 years, it will help to define the new aims of sustainable development in the framework of the overall strategy of the United Nations.

7 (Data: Wealth Report 2012 UNU-IHDP) This shows how slow changes to cultures and procedures introducing sustainability to international processes have been to date. Sustainable development is more topical than ever. The principle of sustainability is entering national and international political agendas dictating aims, priorities and constraints for national governments.

8 Various indices have been created over the years SEEA (System of Integrated Environmental and Economic Accounting), used today by the United Nations. EPI (Environmental and Sustainability Index) of the World Economic Forum. These are constructed quantitatively, based on the stocks of natural resources, according to a view of ecologic and economic balance. HDI or Human Development Index, used in the Report on the United Nations Development Programme, is offered as a measure of the quality of life of individuals starting from the analysis of three dimensions - life expectancy, education and gross national income.

9 Green Economy Indicated by various bodies as a possible accelerator of an economic upturn and, at the same time, a panacea to present and future climatic and environmental problems. The primary objective of governments remains a return to pre-crisis growth rates (or higher ones) but increasing industrial production could easily translate into the use of greater quantities of natural resources and energy (fossil fuels, raw materials, etc.) and, as a result, the generation of higher emissions of greenhouse gases. The recent choices of many countries to dedicate significant financial resources to the energy sector and, in particular, green technologies such as: renewable sources (wind, photovoltaic, geothermic, solar thermic, etc.), energy efficiency, sustainable mobility etc. should be seen in this light.

10 Progressive greening There is still much to do in these terms: Organisation for Economic Co-operation and Development (OECD) - the quota of those employed in green industrial sectors in the strict sense is generally less than 1% of the total of the economy. A greening of the overall economic system (the so-called traditional industries - refineries, steelworks and cement factories, etc.), and the possible gains in energy efficiency that can be achieved through new organisational methods or the creation of products which consume less energy while in use, is in progress. OECD, one of the main players in this international debate; it is the leading promoter of the distinction between emissions (or environmental services) originating from production and those attributable to consumption.

11 Current situation in Europe 2012: CO2 emissions from the combustion of fossil fuels in the EU fell by 2.1% compared to 2011 (4.1% in 2011 compared to 2010) (data Eurostat, the European Union Statistical Office). CO2 emissions make a significant contribution to the warming of the planet and account for about 80% of all greenhouse gas emissions in the EU. They are influenced by factors like climatic conditions, economic growth, population size, transport and industrial activity. In 2012, CO2 emissions fell in 23 EU states. The countries with the highest levels of emissions in absolute terms were: Germany (728 million tonnes = +0.9%), Great Britain (472 million t.), Italy (366 million t.), France (332 million t.), Poland (297 million t.) and Spain (258 million t.). These 6 countries account for more than 70% of CO2 emissions among the EU with 27 members. Malta +6.3%, Great Britain (+3.9%) and Lithuania (+1.7%).

12 Problems with Climate Change CO2 emissions from fossil fuel use and cement production per capita (Data: EDGARq.2 source of population data UNPD 2011)

13 Institutional and individual responsibility Europe Services 19% Agricolture 23% Industry 27% Families 31% The family sector has the greatest external environmental costs, with Euro 15.2 billion (31%), followed by industry, with Euro 12.9 billion (27%), agriculture, forestry and fishing with Euro 10.9 billion (23%) and services with con Euro 9.4 billion (19%). The rest is from transport (data: ECBA Project).

14 Institutional and individual responsibility , , , , , , , , ,00 - health damage of family vehicles heating systems manufacturing industry transport and logistics services electricity and gas sector commerce Within these macro areas, the environmental and health damage of family vehicles (7.8 billion), family heating systems (7.2 billion) and the manufacturing industry (7.1 billion) can be identified and underlined. The external costs of transport and logistics services (3.9 billion), the electricity and gas sector (3.7 billion) and commerce (3.1 billion) are also high.

15 The greatest damage is by the property sector If you look at the sum of these factors, to see where the greatest responsibility lies, it is obvious that the property sector, with all its ancillary industry and life cycle (materials industry, construction, transport, maintenance, heating, cooling and demolitions), is by far the most responsible of all. CO2 emissions by sector industry transport construction

16 Causes and effects 1% Balance sheet of general costs: 72% 27% greenhouse gases main atmospheric pollutants heavy metals 27% of the costs are due to greenhouse gases (climate change) 72% for the main atmospheric pollutants (health): alteration of biodiversity, air, water and wildlife pollution 1% for the emissions of heavy metals (health) (Data: Environmental Cost-Benefit Analysis Project) From this it can be deduced that the greatest DAMAGE of all of NON-SUSTAINABILITY of national economic systems is TO HUMAN HEALTH, physical and psychological, above all other costs.

17 What to do We have seen how responsibility is shared between institutions, companies and the behaviour of families. There are five things to do that, if co-ordinated, move in the direction of reducing sustainable development, without exclusion, about which we need to talk, and talk, and talk in: politics companies families

18 CASE HISTORIES Companies are the most important drivers, ahead of institutions and families. Many international companies have introduced true sustainability protocols in many steps of the production chain, although moving in the direction of obvious economic benefits and welfare of people. Despite this, the interventions have not been painless - the greatest obstacle has always been a conservative culture in the company population. Every change towards sustainability should be accompanied by a major internal communications campaign and change management because every process of innovation has always started from a radical change of structure of headquarters with the certification criteria Leed (Leadership in Energy and Environmental Design)

19 Microsoft In recent years, it has always won: Milan office: Park of 60,000 m 2, car parks of 40,000 m 2, and total surface area of 50,000 m 2, canteens, restaurant, bar, conference centre and auditorium, fitness centre, fitness and jogging trails, crèche and kindergarten. It features high efficiency, functionality and flexibility of the spaces, technology and high construction standards. In the construction: - use of high yield systems active (installations that adapt to the most innovative solutions); - passive (use of low environmental impact systems and technologies) such as, for example, district heating, geothermics, photovoltaics, recovery and reuse of rainwater and the careful use of high energy efficiency materials. The building guarantees a saving of 30% on management costs.

20 Microsoft

21 Unicredit The most debated criteria but also most promoted by the company were (new office in Milan) latest generation property discipline aimed at the optimisation of work spaces (11-14 m 2 /per person); quality of life there desk-sharing, paperless, Wi-Fi, no telephone, park, laundry, privacy, meeting rooms and smart-working, also for top management. Although the criteria are indicatively the same as those at Microsoft, the process started more recently and is taking longer to reach full operation.

22 3M The same process as Unicredit was started earlier by 3M in an effective way with the transfer to a new office in Milan with the same criteria, designed by MCArchitects, one of the leading international studios of sustainable architecture. Also like iguzzini.

23 STATEMENTS 1. Keep pressure on public institutions firm so that they maintain the commitments made at Kyoto and confirmed during the 18th United Nations conference of December 2012 in Doha (Qatar) (reduction of emissions). Not all countries are respecting them in an aligned manner.

24 STATEMENTS 2. NON-CONSUMPTION is the most effective renewable source Before any renewable source It is completely useless talking about renewable sources before a general education of companies and families on non-consumption and the reduction of the energy requirement. For example, in Italy, an enormous awareness-raising campaign was conducted on alternative consumption with incentives reaching 65% to make buildings more efficient (purchase of photovoltaic panels) but nothing was done to grant these only after a change in consumption habits. This is the central theme. The residual requirement must be covered with renewable sources. How much does not using them cost? According to the World Future Council, an independent body set up in Germany in 2007 to promote policies against climatic change, the figure is not just large but enormous trillion (i.e. 3,400 billion) dollars a year, or 9.3 billion a day in the world.

25 STATEMENTS 3. Companies as the driver The economy is driven by companies rather than families. There are examples of companies which have implemented virtuous behaviour in the direction of: reducing the space necessary for their business; improvement of the quality of life and general well-being of their employees. Although this requires time, ALL THESE EXAMPLES had serious problems with internal obstacles caused by the change of culture required in their company populations.

26 STATEMENTS 4. Education of families In addition to great awareness of the costs of transport and the home, more attention should be given to the origin of food and its environmental cost Annual emissions per capita linked to different eating habits Meat from conventional agriculture Meat from organic agriculture Vegetarian from conventional agriculture Vegetarian from organic agriculture Vegan from conventional agriculture Vegan from organic agriculture Emissions expressed in km covered by car (at 119 gm CO2/km)

27 STATEMENTS 5. Education of the young at school at home at work in the media more renewable sources = saving

28 ARCH. ISABELLA GOLDMANN Goldmann & Partners srl Piazza Mondadori 3, Milano tel mail. web. magazine online MEGLIOPOSSIBILE

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