Post on 03-Jan-2016
description
Virtual dematerialisation:
ebusiness and factor X
Presentation by
Michael Kuhndt,
Wuppertal Institute,
Eco-efficiency and Sustainable Enterprise Group
Michael Kuhndt – Wuppertal Institute
Use of natureUse of nature
Qualityof lifeQualityof life
EconomicgrowthEconomicgrowth
factor 4factor 4
88
1010
The overall challengeDelinking Use of Nature from Creation of Life Quality
Contribution of ICT/
e-commerce?
Michael Kuhndt – Wuppertal Institute
The overall challangeLinking Micro-Macro analysis
MACROA Specific Goal on National Level: Factor 10 increase in Resource Productivity
MICROMaterial ProductionFactor 5
Manufacturing/ AssemblyFactor 0.5
Use and ServiceFactor 2
Waste Management
Factor 2
MESOSector AFactor 10
Sector BFactor 5
Sector CFactor 15
Sector…Factor 10
The Overall Goal: Sustainable Development
Michael Kuhndt – Wuppertal Institute
MACRO-Level
ICT sector
e-business typesE- commerce, E- work, E- goverment
MESO-Level
Case studiesMobile computing, e-banking, digital music, Telework
MICRO-Level
MIPS
The analytical approach
Michael Kuhndt – Wuppertal Institute
Towards a sustainable e-society
1. Small is beautiful?
2. From Atoms to Bits
3. The user tips the balance
4. Develop a better understanding
Michael Kuhndt – Wuppertal Institute
11. Small is beautiful? Scaling down devices doesn’t necessarily contribute to dematerialisation
2. From Atoms to Bits
3. The user tips the balance
4. Develop a better understanding
Towards a sustainable e-society
Michael Kuhndt – Wuppertal Institute
Small is beautiful? HP Case studyLife-cycle of electronic products
Raw Materials extraction
Disposal
Transport
Use of electricityProduct and Stand-by
Component manufacturing
Heat shields Display Switches Cables Keyboard Hard DiskCasing Modem PWB and sub-components Batteries Power supply
Packaging
Michael Kuhndt – Wuppertal Institute
Source: Wuppertal Institute
Weight, excl.
packaging (kg)
Abiotic raw
materials (kg)
Material intensity
factor (kg/kg)
PC 23.1 1500* 65
Notebook 2.8 434 155
Handheld 0.8 81 101
Personal organiser (paper-based) 0.4 4 10
* Estimations from 1998 (outside the scope of the HP study)
HP Case studyMaterial intensity of manufacturing
Michael Kuhndt – Wuppertal Institute
Reduce Material Input
Increase Service Units
Small is beautiful? Strategies for Increased Resource Efficiency (MIPS)
MIS
Michael Kuhndt – Wuppertal Institute
Potential savings of abiotic raw materials by shifting from primary to secondary materials
Abiotic material consumption for casing and non-elecronics in kg
Product0% recycled
metals80% recycled
metals*Savings
Notebook 64.6 kg 12.7 kg 51.9 kg
Handheld 19.5 kg 7.0 kg 12.5 kg
Source: Wuppertal Institute
* for aluminium, copper and magnesium
HP Case study Scenario for the use of secondary materials
Michael Kuhndt – Wuppertal Institute
Source: Wuppertal Institute
0
100
200
300
400
500
600
700
1 2 3 4 5
Number of persons per notebook
Mat
eria
l in
ten
sit
y p
er p
ers
on
in
kg
Paper-based organizer
Handheld use (electricity)
Handheld (production and transport)
Notebook use (electricity)
Notebook (production and transport)
HP Case study Scenario for the shared use of notebooks
Michael Kuhndt – Wuppertal Institute
Small is beautiful? Recommendations
Digital Europe research highlighted the importance of the ICT infrastructure as a major factor for resource consumption of e-business and e-government.
– the system-wide effects of ICT and its applications should be considered. Often, the early manufacturing stages and the use phase are neglected within evaluations. (business and science)
– extending the ICT lifetime, shared use of ICT equipment and extended warranties. (policy and business)
– application of design for environment should be promoted, e.g. regarding the use of secondary (recycled) materials. (business)
Michael Kuhndt – Wuppertal Institute
2Towards a sustainable e-society
1. Small is beautiful?
2. From Atoms to BitsE-commerce: Shifting physical products to e-services contributes to dematerialisation.
3. The user tips the balance
4. Develop a better understanding
Michael Kuhndt – Wuppertal Institute
(1) Communication
information marketing
negotiation and contract
(2) delivery
(3) payment
Buyer Seller
From Atoms to BitsE-commerce:Three different phases and two actors
Michael Kuhndt – Wuppertal Institute
Communi-cation
Option 1
Option 2
Option 4
Option 3
Option 5
Option 6
Production& Delivery
Payment
offline offline
offline offline
onlineoffline
online
online
online
online offline online
Option 7
online offline
online
online
online online
offline offline online
Options for product based Ecommerce
From Atoms to BitsEcommerce: Degree of electronic support
Options for information-
based Ecommerce
Michael Kuhndt – Wuppertal Institute
Three “distribution scenarios”
Physical RetailCD is purchased by the consumer in a local CD store.
Online Shopping CD is ordered online at an Internet shop and delivered to the consumer.
Digital Delivery The consumer downloads the respective song(s) via the Internet, instead of purchasing a physical product (CD).
EMI Case studyComparing the 3 scenarios
Michael Kuhndt – Wuppertal Institute
EMI Case studyComparing the scenarios
1.561.31
0,67
Physical Retail
Scenario
Online Shopping Scenario
Material intensity
(kg)
Material intensity to enjoy56 MB of data (music):
Digital Delivery Scenario
Michael Kuhndt – Wuppertal Institute
Raw Materials &Energy Sources
Monthly accountstatement
Transport to/storage at Central Clearing House
Transport/Transmissioncredit slip
Intake and processingcredit slip
Production & Supply credit slip
Filling outcredit slip
General process flowchart
Service unit:Payment of a single bill to a specified receiving account
Scenarios- traditional banking - online banking
Barclays Bank Case study Overview: Process and service unit
Michael Kuhndt – Wuppertal Institute
Material Intensity per bill payment in kg
2.68 kg = ten beverage cans 1.06 kg = four beverage cans
Traditional = 2.7 kg Online = 1.1 kg
Abiotic raw materials for one beverage can: 0.28 kg
Barclays Bank Case study Results: Online vs. Traditional Scenario
Michael Kuhndt – Wuppertal Institute
E-banking is less material intense than traditional banking.
The main savings occur at:- reduced need for building infrastructure (branches)- related electricity, energy, water etc. savings- reduction in consumer traffic
but…
Barclays Bank Case study Balancing environmental and social issues
- what about users without internet access
- lack of trust into the network- …
Michael Kuhndt – Wuppertal Institute
Resource consumption for Human needs
0 2 4 6 8 10 12 14 16
miscellaneous
public administration
leisure
education
health
clothing
nutrition
housing
Material Input per capita (t), Western Germany 1990
non saleable production
soil excavation
erosion
mineral raw materials
fossile energy carriers
biotic raw materials
Michael Kuhndt – Wuppertal Institute
From Atoms to BitsRecommendations
E-commerce can – under specific circumstances – provide significant resource efficiency potentials, especially if physical products are shifted to e-services.
– the framework conditions for the uptake of e-service applications need to be enhanced. Fast and affordable Internet connections, trust and an e-society literacy are important pre-conditions. (policy)
– public administration/ businesses should offer and request e-services (push & pull -strategy). (policy and business)
– scientific assessments on the dematerialisation potential should be carried out in sectors in which the use of ICT can potentially offer significant dematerialisation potentials. (science)
Michael Kuhndt – Wuppertal Institute
3Towards a sustainable e-society
1. Small is beautiful?
2. From Atoms to Bits
3. The user tips the balanceConsumers play an increasingly decisive role in the life-cycle wide environmental impact.
4. Develop a better understanding
Michael Kuhndt – Wuppertal Institute
Three “distribution scenarios”
Physical RetailCD is purchased by the consumer in a local CD store.
Online Shopping CD is ordered online at an Internet shop and delivered to the consumer.
Digital Delivery The consumer downloads the respective song(s) via the Internet, instead of purchasing a physical product (CD).
EMI Case studyComparing the 3 scenarios
Michael Kuhndt – Wuppertal Institute
EMI Case study Conclusion: Consumers relevance increases
Sh
are
on
to
tal
mat
eria
l in
ten
sity
(%
)
Physical retailing
0
50
Producer Retailer
100
Consumer
Online shopping
0
50
Producer Retailer Consumer
100
0
50
Producer Retailer Consumer
100Digital distribution
Case study on digital music
Michael Kuhndt – Wuppertal Institute
EMI Case studyComparing the scenarios
1.561.31
0,67
Physical Retail
Scenario
Online Shopping Scenario
Material intensity
(kg)
Material intensity to enjoy 56 MB of data (music)
broadband
5,5
56k modem
Digital Delivery Scenario
Michael Kuhndt – Wuppertal Institute
The User tips the BalanceRecommendations
In an e-society shifting from tangible to intellectual assets, habits and awareness are increasingly decisive for the overall material intensity, otherwise efficiency gains might be offset.
– Training and empowerment for a e-society literacy is needed, allowing users to handle digital information without re-materialisation. (policy)
– Cross sectoral co-operation and communication strategies, e.g. product service panels, seem to be promising approaches to influencing the environmental effects outside direct control of the sector. (business)
– A better understanding of the size and potential impact of rebound effects is urgently needed. (business and policy)
Michael Kuhndt – Wuppertal Institute
4Towards a sustainable e-society
1. Small is beautiful?
2. From Atoms to Bits
3. The user tips the balance
4. Develop a better understandingMonitoring the environmental impacts of ICT is still a major challenge.
Michael Kuhndt – Wuppertal Institute
CO2-emissions, Germany 1999
Total industry (excluding construction)
80%
Construction2%
Wholesale; transport, etc.11%
Financial intermediation; real estate, etc.
1%
Public administration etc.4%
Agriculture etc.1%
ICT0.6%
Monitoring the environmental impacts ICTs share of CO2-emissions – only 0.6% !
Michael Kuhndt – Wuppertal Institute
Develop a better understanding Assessing ICTs decoupling potential
• Does ICT affect material consumption on the national level?• Comparison of three European countries
No final evidence, as data availability low!
Growth of ICT-sector
Eco-efficiency in ICT sector
Eco-efficiency through ICT applications
Results:
• No agreement on ICT sector definition • Integrated environmental and economic
indicators don’t span longer time periods
• No sector-specific data on ICT investment available
• Input-/Output table allow only rough estimations
Significant structural change can not be observed
Dematerialisation stronger in ‘old’ industry sectors
No provable link between ICT application and dematerialisation
Focus:
Michael Kuhndt – Wuppertal Institute
Develop a better understanding Recommendation
Quantifying the environmental effects caused by new technologies is still a major challenge. Knowledge about the environmental effects along the entire product chain is a necessary precondition for the identification of efficient
improvement options.
– statistical classification systems for ICT infrastructure and applications on the macro-level need to be improved. (policy)
– cost accounting systems need to be combined with internal material flow data (material flow accounting) to improve the supply chain communication. (business)
Michael Kuhndt – Wuppertal Institute
Towards a sustainable e-society
1. Small is beautiful?
2. From Atoms to Bits
3. The user tips the balance
4. Develop a better understanding
Michael Kuhndt – Wuppertal Institute
The way ahead
-Data availability
- in statistics
- along the value chain
- Do ICT and e-business improve eco-efficiency in the “old sectors” ? If so, how can this role be enhanced?
-Lifetime of products
- Obstacles and drivers for a shared use
- Lifetime extension through upgradability and exchange of second hand goods
- Are policy instruments and concepts such as EPR and IPP appropriate and efficient approaches in an e-society?
-Education
- Business, policy makers and consumers
Michael Kuhndt – Wuppertal Institute
More information @ your fingerprint
www.digital-eu.org michael.kuhndt@wupperinst.org