INSPIRING CREATIVE AND INNOVATIVE MINDS

Going Green: The Way Forward in Creating Sustainable Businesses

by

Zainura Zainon Noor, PhDInstitute of Environmental and Water Resource Management (IPASA)

Universiti Teknologi Malaysiazainurazn@utm.my

Going Green…

The future of technology is most definitely green. With rising energy costs and the threat of global warming, many businesses are now recognizing the benefits of using technology to reduce their carbon footprint and to minimize waste, while

having a positive impact on their business.

“Our way of life will change radically, not only over the next 50 years but over the next 10 years. In my mind, those changes are a bigger business opportunity than the Internet ever was.”

Thomson Reuters

“Global warming is the largest economic opportunity of the 21st century...”

John Doerr, Kleiner Perkins Venture Capitalist

The People in the Know...

“

Green TechnologyUnderstanding the Concept

The field of “green technology” encompasses a continuously evolving group of methods and materials, from techniques for generating energy to non-toxic cleaning products.

The present expectation is that this field will bring innovation and changes in daily life of similar magnitude to the “information technology” explosion over the last two decades. In these early stages, it is impossible to predict what “green technology” may eventually encompass.

4

Lowering greenhouse gas emissions,

Increasing the efficient use of natural resources, and

Improving air and water quality

5

Unlike a traditional industry cluster – Green Technology is identified not by a connected supply chain but by the

objectives of the products and services that are developed within this industry;

DefinitionGreen TechnologyUnderstanding the Concept

Research & Development of alternative energies,

Building new efficient homes and facilities, and

Operating cleaner more efficient utilities

6

Green Technology spans all levels of education and skill sets including those used for;

DefinitionGreen TechnologyUnderstanding the Concept

7

Other Areas of Green Technology GREEN BUILDING

Green building encompasses everything from the choice of building materials to where a building is located.

ENVIRONMENTALLY PREFERRED PURCHASINGThis involves the search for products whose contents and methods of production have the smallest possible impact on the environment, and mandates that these be the preferred products for government purchasing.

GREEN CHEMISTRYThe invention, design and application of chemical products and processes to reduce or to eliminate the use and generation of hazardous substances.

GREEN NANOTECHNOLOGYNanotechnology involves the manipulation of materials at the scale of the nanometer, one billionth of a meter. “Green nanotechnology” is the application of green chemistry and green engineering principles to this field.

8

Other Areas of Green TechnologyIndustrial Ecology

Industrial Ecology: -

Firms interconnected through the practice of industrial ecology constitute an industrial ecosystem

- No waste

- Energy efficiently utilized (possibly solar power)

- No materials beyond those required to start the system

- Complete recycling within the system

Sugarrefinery

Pulp plant

Papermill

Cementmill

Fertilizerplant

Alcoholplant

Sugar Alcohol

Cement

NaOH

Pulp

Sugar canefarm

MolassesAlcoholresidue

Bagasse

Wastewater

NaOHrecovery

Black liquor

White sludge

Filter sludgeSugarcane

Compound Fertilizer

Paper

The Guitang Group, beyond sugar refining in China

10

Other Areas of Green TechnologyDesign for Environment

Design for environment considers environmental impact at all stages of a product lifetime (e.g. life cycle analysis):

• Raw materials acquisition• Manufacturing• Packaging• Distribution• Installation• Operation• Ultimate fate

Firms interconnected through the practice of industrial ecology constitute an industrial ecosystem

11

Other Areas of Green TechnologyDesign for Environment

raw material extracting & processing

manufacturing

packaging &distribution

product use

end-of-life

recycling

repair & reuse

cradle-to-grave design paradigm

cradle-to-reincarnation

design paradigm

DfE Example - XeroxRaw Materials New Components Build

Certified Reprocessing

Certified Reprocessing

Deliver

Customer Use

Closed Loop Recycling

Third Party Recycling

Alternative Uses

Return to Suppliers

Materials for Recycling

Sort/Inspect

Disposal Goal: Zero to Landfill

Dismantle

Remove

Other Areas of Green TechnologyDesign for Environment

13

Other Areas of Green TechnologyGreen Products and Services

A green product is one that uses smaller amounts of materials that are less hazardous to produce and that have a lower potential to expose people or the environment to hazardous substances, pollutants, and wastes in its use and disposal, e.g. – a hybrid car.

A green service provides the same for a service, e.g. - a good public transportation system

14

The opportunity for economic development and profitprofit

Green Technology’s growth is being driven by :-

LegislationLegislation and government policies providing incentives and requirements for cleaner development and green

technology

Demand for sustainable energy sources & materials due to advances in technology and increased costsincreased costs of traditional

energy and commodities

Impacts of the ‘current technology’ to the environment e.g. climate change to global warming

The Driver

The DriverGHG Emission/Climate Change

GHG % Contribution to Global Warming

CO2 50%

CH4 20%

N2O 10%

HFCs 15%

PFCs Trace

SF6 Trace

16

The DriverGHG Emission/Climate Change

17

The DriverRanking- Environmental Performance Index

• EPI initiators – Yale University Center for Environmental Law and Policy– Columbia University Center for International Earth Science Information

Network

• Collaborators– World Economic Forum, Switzerland– Joint Research Center of European Commission, Italy

• One of the crucial policy categories is climate change− CO2 emissions which gives 25% out of total score

• Website– http://epi.yale.edu

18

The DriverRanking- Environmental Performance Index

19

The DriverRanking- Environmental Performance Index

EPI for Malaysia

Rank Environmental Health Ecosystem vitality

26 96.7 71.2

Indicators Score Indicators Score

SanitationDrinking waterUrban particulateIndoor air pollutionHealth ozone

9398.392.594.796.7

Regional ozoneSulfur dioxide emissions Water quality Water stress

Conservation risk Effective conservation Critical habitat Marine protected areas

Irrigation stress Growing stock Agricultural subsidy 96.0%Marine trophic index Trawling intensity Intensive crop land Burn land areaPesticide regulation

Carbon emission per capitaCarbon emissionIndustrial CO2 emission

95.195.969.699.2

99.497.366.732.7

10097.996.010060.597.199.990.9

73.754.483.6

The DriverTowards Sustainability

20

Many unsustainable aspects of technology cause environmental pollution, loss of land productivity, and exhaustion of essential resources.

We enter the anthropocene in which human influences dominate.

Sustainability can be defined as managing Earth and its resources so that future generations may have hospitable conditions and a satisfactory standard of living for an indefinite period of time.

If we do not change direction, that will not happen!

The DriverTowards Sustainability

21

Evolution of the environmental movement from pollution detection and treatment to sustainability

The DriverTransforming the Economy

Status Quo → climate change and green tech have been separate areas of focus

Climate change → regulations and emission trading (cap & trade)

Green tech → business opportunities, revitalize industry and the economy, green collar jobs, exports

Align policy and business objectives/actions to achieve sustainable energy infrastructure

The Opportunity of Green Technology

The growth and expansion of green technology offers an opportunity that is seldom found in economic or

workforce development, the chance to support dynamic economic growth, while improving the environment and re-invigorating employment opportunities for individuals

that have struggled in the knowledge-based economy.

The Opportunity of Green TechnologyEconomic Growth

Green technology employers exist in an innovative, profit driven environment. Venture capitalists have

invested billions in this industry, and employers have indicated they expect to increase employment

substantially both important indicators of dynamic economic growth.

The Opportunity of Green TechnologyEnvironmental Sustainability

Green tech as a whole is focused on developing effective solutions to the environmental challenges of the day using the latest innovative technologies.

The underlying objective of most firms in this industry is to attain greater sustainability in how we produce

and provide goods and services.

The Opportunity of Green TechnologyEquitable Opportunities

The growth of other high-technology clusters has not necessarily created new jobs for all facets of the

workplace, often times those individuals that do not have a bachelor’s degree or higher are left out of the

economic dividends generated from emerging clusters. Green technology and its promise of

advanced manufacturing and assembly occupations can provide economic opportunity for a broad array

of educational backgrounds.

27

Green Technology

theWorkforce

Opportunities in Malaysia

Energy & Technology

Solar powerWind powerEnergy Storage & TransportationR&D

BuildingDesignConstructionBuilding Materials

Public Sector & Utilities

Planning EnergyWater

The Opportunity of Green TechnologyEmployment Opportunity

C-Level Market DriversConvergence on Green and Infrastructure

1. CEO – viable strategy in new era, stakeholder pressure

2. CFO – business case with new revenue streams and higher ROIs

3. CTO – new product and operational competitiveness

4. CIO – beyond cost effective solutions, IT solutions to enable new revenue streams

5. VP responsible for CSR, sustainability, environmental reporting upward and outward –beyond managing risks, to capitalizing on opportunities

Bottom Line: Corporate Brand is Paramount

Linking Green Technology, Climate Change, Disclosure & Action

GREEN TECH

GHG Reduction Projects

Corporation

Verified Offset Credits

Verified GHG Responsible

Products

Verified Excess Permit

Verified GHG Responsible

Products

Green Tech GHG Commodities and

Revenues Value Chain

$$ $$Sales Sales

Demand Demand

Internal to the companies:

30

- Lack of information and expertise

- Low environmental awareness

- Competing business priorities, in particular, the pressure for a short term profits

- Financial obstacles

- Lack of communication in firms

- Middle management inertia

- Labour force obstacles

Green Technology from Business PerspectiveBarriers

External to the companies:

31

The failure of existing regulatory approaches

Green Technology from Business PerspectiveBarriers

Internal to the companies:

32

Improvements in productivity and competitiveness

Environmental management systems and continuous improvement

Environmental leadership

Corporate environmental reports

Environmental accounting

Green Technology from Business PerspectiveMotivators and Drivers

External to the companies:

33

Innovative regulation

Economic incentives

Education and training

Buyer – supplier relations

Soft loans from Financial institutions

Community involvement

International

trade incentives

Green Technology from Business PerspectiveMotivators and Drivers

Governmental Effort

Development of a new government legislative and regulatory framework that would support

development of green technologies and promote a culture of resource use

optimisation.

Implementation of ‘Green Policy’ which seeks to promote low-carbon technology & ensure sustainable

development while conserving the natural environment and resources.

Governmental Efforts

To provide a conducive environment for Green Technology development which includes the introduction & implementation of

innovative economic instruments, and the establishment of effective fiscal and financial mechanisms to support the growth of green

industries.

Aims

Objectives of the policy include: -1. To decrease energy consumption while enhancing economic

development.

2. To facilitate growth of the green technology industry and enhancing its contribution to the national economy.

3. To increase innovation in green technology development.

4. To enhance Malaysia’s green technology competitiveness globally besides ensuring sustainable development for future generations.

5. To enhance public education and awareness about green technology and encourage its use in everyone’s daily lives.

Governmental Efforts

Governmental Efforts

Green PolicyEn

ergy

Envi

ronm

ent

Econ

omy

Soci

al

What’s Next?Future Governmental Effort

Incentives for the private sector that adopts green technology

List of Achievements Up till June 2009, Malaysia has attracted more than RM 12 billion in

investments from the solar photovoltaic industry through foreign direct investments.

Perak will become the first state in Malaysia to adopt the Power Purchase Agreement (PPA) for solar energy - a financial scheme which allows users capital-free access to solar equipment over a long-term contract to buy electricity at a fixed price lower than that charged by utility companies.

MPOB will invest RM60 millions to build three biodiesel plants

List of Achievements A property-developing company in Malaysia, Sime Darby, has embarked

on developing Energy Efficiency (EE) and sustainable townships. 13,200 houses currently under construction in its two townships will be equipped with EE building materials, such as solar power heating and energy-saving light bulbs.

TNB pays a biomass power plant RM0.21 per KW/hour and to a mini hydro power plant RM0.16 per KW/hour for electricity produced. When they sell carbon credits, the plants earn additional RM0.03 per KW/hour. This is 15-18% more revenue.

41

“If we do not change direction, we are likely to end up where we are headed,” (old Chinese proverb).

“If we make the effort to learn its language, Earth will speak to us and tell us what we must do to survive.”

42