Services for Sustainability Conference
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1 Services for Sustainability Conference Held in Brussels April 3 rd 2014 Report of the Participatory Workshop 'Servicizing from Vision to Practice' Stephen Morse Centre for Environmental Strategy University of Surrey Guildford Surrey UK This project has received funding from the European Union s Seventh Programme for research, technological development and demonstration under grant agreement No SPREE. All rights reserved. This report was produced by SPREE consortium with the financial assistance of the European Union and is available on SPREE website free of charge to visitors for non-commercial use, provided that the European Union is duly credited. The contents of this document are the sole responsibility of the SPREE Consortium and can under no circumstances be regarded as reflecting the position of the European Union. SPREE - Servicizing Policy for Resource Efficient Economy - is a project within the Seventh Programme and is co-funded by the European Union (Grant Agreement ). The project duration is from July 1, 2012 June 30, 2015.
2 Executive Summary A 3 hour participatory workshop was held on the afternoon of April 3rd 2014 as part of the SPREE project's 'Services for Sustainability' conference in Brussels. The workshop was part of the EU FP7 funded project Servicizing Policy for Resource Efficient Economy (SPREE). Participants (approximately 16 people) were divided into four groups, three of which were asked to focus on one of the SPREE sectors: Water, Mobility and Agri-food. The fourth group was asked to take a more general perspective. Participants came from a range of sectors: EC officials representing the European Commission's perspective, Industrial Organization and Businesses' representatives from the three sectors, academic experts and NGOs. Each group was asked to explore the question 'servicizing from vision to practice' with a focus on the European Union. The following points emerged as key issues; Importance of education, ecodesign, innovation and technological development, change of mindset, new business models and a catalytic role for the EU. The following report consists of an introduction to the context of the workshop; summary of the group's discussion; key results and insights. The composition of the report was based on short videos taken during the groups' presentation, as well as still photos and written materials from the workshop. 2
3 Introduction A participatory workshop was held on the afternoon of April 3rd 2014 as part of the FP7 funded SPREE 'Services for Sustainability' conference. The workshop was held in Brussels and was part of the EU FP7 funded project entitled Servicizing Policy for Resource Efficient Economy (SPREE). It had the theme 'servicizing from vision to practice'. The aim of the SPREE project is as follows: The aim of SPREE project is to identify potential Servicizing Policies and simulate their effect on absolute decoupling of economic growth and resource use, while achieving societal benefits. Servicizing Systems facilitate the transition from selling products to providing services. With the exception of ICT, these are still quite rare. SPREE therefore is dedicated to promote the implementation of Servicizing Systems in three different sectors: water, mobility and agri-food. (SPREE Project Proposal) The morning session of the 3rd April comprised various speakers from the SPREE project presenting their mid-term findings to an audience that included key informants from academia, policy, private and 'third' sectors. The session included opportunities for questions and discussion, but it was also felt by the project team that the participants need to be provided with a forum where they could express their views on what they had heard about SPREE and help set out opportunities for further exploration. The workshop was part of Work Package 9 (dissemination and Exploitation). The objectives of this WP are: To ensure the proper dissemination & exploitation of project results through the transfer of knowledge among stakeholders and policy makers in Europe and world-wide. To ensure that the vision and results of the project become highly influential and accepted and implemented by policy makers. To raise awareness for the purpose of promoting Servicizing Systems and Servicizing Policy. 3
4 Participants for the workshop were identified by the SPREE team and invited to attend both the morning presentations and the participatory workshop. The Brussels workshop follows a similar participatory workshop held at the Delft University of Technology, faculty TPM on April 11th In this earlier workshop the aim was to garner the views of a range of stakeholders engaged in 'servicizing' or servicization and use this to help address all three of the objectives listed above. In the Brussels workshop of April 2014 the aim was to garner some feedback on the initial findings of the project and help provide advice for the coming fieldwork and interpretation of results and possible implementation pathways. Workshop Participants (approximately 16 people) were asked to divide themselves into one of four groups. Three groups aligned to match the sectors within SPREE; Water, Mobility and Agri-food. The fourth group was asked to look at more general aspects of servicizing. Each group comprised approximately 4 people. Participants came from a range of sectors: EC officials representing the European Commission's perspective, Industrial Organization and Businesses' representatives from the three sectors, academic experts and NGOs. Each group was asked to explore the question of 'servicizing from vision to practice' with a focus on the European Union. The timetable was as follows: : Introduction to the session : Process 1. Rich picture analysis of servicizing from vision to practice (in the European Union) : Coffee : Group presentations in plenary : Process 2. Identify some key issues to address and tasks that needed to be done (and relate them to the rich picture) : Group presentations in plenary : Closing remarks 4
5 The workshop began with a scoping exercise using the Rich Picture device (Process 1) followed by a second process which invited the participants to focus on what they saw as the key issues and tasks that arose from the scoping exercise. These issues and tasks were then prioritised by placing them in a matrix according to importance and ease of management. More details on the theoretical underpinning and use of processes 1 and 2 can be found in Bell and Morse (2012). Results A summary of the insights from each of the sectoral group are set out as follows. Also included are the rich pictures and, where appropriate, the identification of key issues and tasks that the group felt needed to be addressed to support servicizing. As per the report on the Delft workshop (Morse, 2013) it should be noted that as far as possible the language used in this report is that expressed by the participants. Hence terms such as servicizing and servicization are employed almost interchangeably. In the SPREE project the definition of servicizing is as follows: Servicizing is a transaction where value is provided through combination of products and services and where satisfaction of customer needs is achieved by selling function of the product rather than product per se and/or by increasing the service component of the offer. Thus, each offer represents a continuum of products and services, which can be further servicized. Servicizing can take place both on supply and demand side, i.e. it can focus on systems of provision, e.g. production processes or servicizing products in the design stage, as well as on consumption systems, i.e. the way product functions and services are offered to and used by consumers. Servicizing can lead both to increased and decreased environmental, economic and social impacts. Water sector The group began with the question 'why do we need water?' Water is needed to help provide services - cleaning and hygiene. Manufacturers should come up with good solutions to use water more efficiently. Companies should think about what type of water is required. Maybe we don't need to use 5
6 water for some services. For example, toilets that use little (if any) water and self-cleaning clothes. The only water we cannot do away with is for hydration. Rainwater could be collected in a centralised system although local systems could also be used. Linkages between kitchen/bathroom providers and water providers are necessary. Need for co-design (co-eco-design) of water-using systems. There is a need for government policy to help provide incentives. This puts a lot of responsibility on manufacturers; requires new technology and innovation. Consumers also need to be prepared to accept these new types of system. Water group - Rich picture 6
7 Summary of Process 2 results for the water group Easier to manage -Metering and awareness of use of water -New business models -Technology/innovative systems -Self-sustaining products -Right pricing -Price water or price polluted water? -Metering -Experiments Less easy to manage -Ownership of water -Citizen awareness/education -Sanitation manufacturers linked to fertilizer producers -Basic water budget (use more = pay more) -Pricing of services -Industry and manufacturers to change -New sewage installation Less important More important 7
8 8
9 Mobility sector The group began by taking a very general vision of the future of mobility. Today our mobility is dominated by private cars but the vision is for low carbon mobility. By 2030 we need a bigger share of bicycle, public transport, car sharing. It is important to provide choices. However, as well as low carbon transport another important aspect to consider with transport is resource use (ecological rucksack). Resource use in transport should decrease by 30% in 2030 compared to Mobility should become 'resource light'. Reducing carbon is an indicator in SPREE but material footprint should also be included. Mobility has multiple perspectives and there is need for change on many levels (individual, education, communication, technology, urban planning, infrastructure, national, international) A change in individual mindset is required to help move towards a more sustainable position. Change at the policy level is also needed. Education is very important - not just for children but also for policymakers and politicians. The desired change is not just about technology. Democratic solutions are important - could be something as simple as providing a place for bike hire. There is an important role for the EU in helping to create/promote the vision. Legislation is important but this is only part of the story - the EU should also facilitate more research. There is EU legislation on car insurance but not car sharing - this is all local. For example there should be something that facilitates car sharing across borders. 9
10 Mobility group - Rich picture 10
11 Summary of Process 2 results for the mobility group Easier to manage -Advertising: current promotion of cars is very strong but this needs to change. -Better products/eco-design/better functionality from less resources -Change mindsets - peoples attitude towards mobility (car as a status symbol) Less easy to manage -City design/better spatial strategy -Too many cars and car journeys: need to promote better public transport -Need more information on car hire and car sharing -Car manufacturers and employment; These are very important to local economies Less important More important 11
12 Agri-food sector Servicizing is not a panacea but it can help lead to something that is more sustainable by stimulating thinking. It has a revealing element and provides an invitation to think about food differently. Agri-food systems are currently all about making money. This leads to drawbacks such as obesity and a reduction in diversity. This provides a threat to system resilience and disruptions in the system are manifesting themselves (e.g. bees are dying). Agriculture relies on ecosystems but ecosystems are threatened. We need to move to a position where what we produce and consume is more in tune with our ecosystems. Needs have been transformed into desires by marketing. Children are being pushed by marketing towards unhealthy eating. There is a need for more integrated policy making but having a systemic vision is difficult. Policies should encourage research and education of the farmers. We need criteria with which to assess servicizing. Stakeholders are not equal; they don't have access to equal resources. Servicization in Integrated Pest Management (as in the SPREE project) is an example but it needs to be evaluated. It scratches the surface of what is required. What needs to be done in order to make agriculture more sustainable is complex and knowledge intensive. Needs to be linked with other elements of the food system. EU should have a role in promoting experimentation and learning and not just with policies. Indeed policies can be obstacles to sustainability and need to evolve. 12
13 Agri-food group - Rich picture 13
14 Summary of Process 2 results for the agri-food group Easier to manage -Demonstration of successful projects : this would facilitate switching to better practices -Foster experimentation on servicizing -Investment in servicizing Less easy to manage Less important -Develop education and learning - change the mindset of people -Nutrient recycling -Cost of energy and energy use -'Lock ins' because of regional specialisation - intensification -Bee death (and other important insects) -Improve knowledge along food chain More important "General" group Different stakeholders are involved in change and it is important to prioritise the needs of people. But the group preferred the idea of citizens rather than consumers in order to help bring about systemic changes It is necessary to start from a very early age to help bring about systemic change. But not all stakeholders are interested in systemic change; todays winners do not necessarily want to move towards a new situation. Information needs to be reliable. This raises the issue of trust. How to best provide information for consumers - labelling, IT systems, educate younger generation (long term perspective). However, is this information being conveyed very well with eco-labelling systems? Are consumers aware as to what is happening or is it just green-washing? Needs a move towards a collaborative consumption with citizens. There is a greater role for consumer associations to help inform consumers of possibilities. 14
15 An important consideration with servicization is the quality of the product. At present the quality of goods is not the best as companies try to concentrate on selling more. This raises the importance of eco-design. Need to avoid an over-reliance on indicators such as the GDP for policy development. There is a need for other indicators to play a role e.g. the Happy Planet Index. Education system should be changed. At present it is too focussed on careers - everybody wants to be a few things (doctors, lawyers) but we also need farmers, shoemakers etc. "General" group - Rich picture 15
16 Overview Given that the workshop only ran for three hours, it did generate a number of useful insights with regard to the promotion of servicizing and has provided some food for thought for the sector teams in SPREE (Surrey University, Oxford University, and Santiago de Compostela University). Admittedly some of these insights are quite general, especially those arising from the agri-food group, as specific expertise was missing. However, the reflection did nonetheless provide some pointers. Some of the issues that emerged across the groups are specific to the sectors, but some more general points can be identified: Importance of education for servicizing. This emerged from three of the groups (mobility, agri-food and the general group) in particular. But even for the water group, education could be seen as an underlying factor that would contribute to facilitate consumer acceptance of new systems. Eco-design. This was a special thrust of the water group but was also mentioned by the general team. Need for innovation and technological development appears in all groups. A change of mindset is required, linked to the need to develop new visions. By some aspects, this is related to the education point made above but is broader. In effect it requires a shift in the thinking of consumers or citizens as the general group put it across the board towards an acceptance of the important of the environment and servicizing as a means of reducing that impact. Although it has to be said that there was a general acceptance that servicizing per se is a not a panacea it is not the sole answer. Related to the changing of mind sets, new business models are needed in all sectors. Underlying many of the issues identified, all four groups recognised a catalytic role for the EU especially through policy, support to research and development of standards. Last but not least, all groups recognise the need for systemic change. This is only expressed explicitly in the agri-food and general groups but the degree and breadth of necessary innovation identified in the water and mobility groups imply radical changes that can be considered as systemic. 16
17 These points fit to some extent those made during the first participatory workshop in Delft during 2013 (Morse, 2013). The latter are summarised by the following headings: 1. Design 2. Trust and dependency 3. Definition of servicizing 4. Shifting the mindset 5. Finance 6. Sustainability 'Eco-design' and to a lesser extent the points made under 'Innovation and Technological Development' fit into topic 1 in this list while 'Importance of Education', 'Change of Mindset' and 'Developing New Visions' come under topic 4 ( Shifting the mindset ). 'New Business Models' fits to some extent under topics 4 ('Shifting the mindset') and 5 ('Finance'). The relative absence of 'Trust and dependency' along with 'Definition' and 'Sustainability' in the Brussels workshop probably reflects both the fact that these issues were presented in detail by SPREE team during the morning conference and therefore "taken for granted" to a large extent, and the scope of the question the groups were asked to consider. In the 2013 workshop the groups were invited to consider servicizing in broad terms as a feed into the planning of fieldwork - while in the 2014 workshop the groups were asked to focus more on making servicizing work. Still, it is interesting to see how the same points keep emerging with regard to servicizing, even when groups are asked to focus on a specific sector and consider steps to help promote it. What comes specifically out of this workshop, across all groups, is how profound are the changes that each group expects, with clear references to new visions and systemic changes, whether this is expressed explicitly or not. Perhaps unsurprisingly given that the workshop took place in Brussels with a significant representation from the European Commission, the groups saw a significant role for the EU in terms of helping to promote servicizing. There are a number of facets to this, with education and information provision being seen by all groups as being part of the need to change mindsets. Also important is a facilitation of further research (mobility and agri-food groups) and legislation (mobility group). 17
18 Acknowledgements The author would like to acknowledge editorial support from Dr. Laurent Bontoux and Ms. Yael Marom in the writing of this report. References Bell S and Morse S. (2012). Resilient Participation: Saving the Human Project? Routledge, Abingdon. 224 pages. Morse S (2013). Services for Sustainability. Report of a Workshop Held at the Delft University of Technology, faculty TPM, April 11th
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