What  is  sustainable  business  innova/on?  

Tobias  Webb  Founder,  Innova/on  Forum  

Lecturer,  corporate  sustainability,  King’s  College  London  www.innova/on-­‐forum.co.uk  Tobiaswebb.blogspot.com    

RATKAISUN  PAIKKA  2015,  Helsinki,  Finland,  May  12  2015  

hQp://innova/on-­‐forum.co.uk/  

hQp://tobiaswebb.blogspot.com  

Innova/on:  An  overused  term?    

What  is  innova/on?  Do  we  have  the  /me?  

Innova&on.  Noun:  the  ac/on  or  process  of  innova/ng.  "innova/on  is  crucial  to  the  con/nuing  success  of  any  organiza/on”    synonyms:  change,  altera/on,  revolu/on,  upheaval,  transforma/on,  metamorphosis,  reorganiza/on,  restructuring,  rearrangement,  recas/ng,  remodelling,  renova/on,  restyling,  varia/on;  More  a  new  method,  idea,  product,  etc.  

 plural  noun:  innova&ons  "technological  innova/ons  designed  to  save  energy"  

So,  good  that  we’ve  cleared  that  up  then…  

How  does  innova/on  apply  to  sustainable  business?    

Product  Innova&on:  Hybrid/electric  cars  

Service  Innova&on:  Ligh/ng/electronics  as  a  service  (Phillips,  Samsung)  

Process  Innova&on:  New  ways  of  managing,  engaging  new  stakeholders,  managing  new  issues    

 

Kuok  Khoon  Hong  –  Wilmar    

Strategy  Innova&on:  Circular  Advantage  strategy  (more  than  just  a  few  products)  

 

Royal  DSM  

Copyright  ©  2015  Accenture  All  rights  reserved.  

In  our  research  we  found  five  circular  economy  business  models  Business  models  of  the  circular  economy  

Circular  Supply-­‐Chain  

Recovery & Recycling

Product  Life-­‐Extension  

Sharing  PlaCorm  

Product  as  a  Service  

Source: Circular Economy book project

Copyright  ©  2015  Accenture  All  rights  reserved.  

Success  stories  are  becoming  many  

16  

Impact  

Source: Circular Economy book project 1 Estimated from company data

Circular Supply-chain

Recovery & Recycling

Product as a Service

Product Life-Extension

Sharing Platform

Examples  Project  Liberty  plant  opened  with  $75m  annual  produc/on  value  

Sustainable  biofuels  and  bio-­‐based  materials  

$250m  rev.,  100%  growth  (2013)  Leisure  rental  of  unused  proper/es  

“Pay  for  power,  not  panels”  home  energy  systems   $6bn  market  capitalisa/on  

$3bn  turnover1,  4000+  employees,  50%  lower  price,  60%  less  CO2  

Remanufacturing  of  industrial  equipment  

Circular  Economy  success  stories  

Between  2008-­‐13,  reducing  waste  to  landfills  created  over  $1billion  in  value  

Reducing  manufacturing  waste  sent  to  landfills  

Will  process  up  to  10,000  metric  tons  of  recycled  scrap  /  month  

Invested  $48  million  in  auto    aluminum  recycling  facility  

Makes  fully  compostable  packaging,  using  mycelium  (fungus)  as  a  glue  

Recognized  with  numerous  awards  for  sustainability  and  was  named  a  Tech  Pioneer  by  the  World  Economic  Forum  

New  services  to  maintain  &  repair  customers’  assets  

39%  of  its  $9billion  net  sales  is  from  Asset  Efficiency  Op/miza/on  offering  

How  can  companies  prepare  to  innovate?  Eight  steps  

1.  Engage  &  inspire  employees  and  management  2.  Invest  long  term  in  R&D  3.  Persuade  suppliers  to  think  differently    4.  Engage  difficult  stakeholders  (NGOs,  investors)  5.  Work  with  other  businesses  and  academics  6.  Be  open  about  the  challenges  7.  Celebrate  and  support  experimenta/on  8.  Use  radical  transparency  for  business  advantage    

Thank  you.  And  now…  

Ques/ons?