Sustainability and Resilience in aTurbulent World

Joseph FikselExecutive Director, Center for ResilienceThe Ohio State University

Sustainability Advisor, Office of Research & DevelopmentU.S. Environmental Protection Agency

The content of this presentation reflects the views of the author and does not represent the policies or position of the U.S. EPA.

Our Expanding Footprint“If everyone alive today consumed natural resources and emitted carbon dioxide at the same rate as the average American, European, or Australian then we would need at least another three earths.” - WWF International

Enterprise Sustainability

“a business approach that creates long-term shareholder value by embracing opportunities and managing risks that derive from economic, environmental and social developments.”

- Dow Jones Sustainability Indexes

Ford Motor Company• World’s largest industrial green roof—Rouge plant• First American hybrid vehicle—2005 Ford Escape• Many recent models, e.g., Mustang, use soy foam for

seat cushions, as well as other renewable materials

DFE the HP WayHP’s TouchSmart all-in-one touch-screen PC saves up to 86 kWh per year energy savings through power management, ships in 100 percent recyclable packaging, and uses 55% less metal and 37% less plastic than standard PCs and monitors.

Sustainable Manufacturing• 60% recycled glass cullet, virtually zero waste• No visible plume, minimal environmental permits• High productivity, low ecological footprint• Atticat® insulation is Cradle to Cradle Certified• Self-directed work environment – no supervisors

Mount Vernon, OhioULF Insulation Plant

DuPont—Sustainable Chemistry• EcoConcept® water-based, primerless auto paint• About 25% reduction in energy and emission footprint• Saves $60 million capital, up to $12 million/yr operating• Adopted by Volkswagen facilities in Mexico and Spain

Caterpillar—Remanufacturing• Old engines restored to warrantied like-new condition• Global business is fast-growing, profitable, resilient• 4,000 employees at 17 dedicated facilities in 8 nations

Greening of Consumer Products

Greening of Service Industries

Life Cycle of an Aluminum Can

Can recycling

Sorting

Shredding

Remelting

Ingot Casting

Metal Fabrication

Can Production

Beverage Can Use

Primary Smelting

Alumina Refining

BauxiteMining

Consumer Market

Recycled cans require 5% of the process energy used for

virgin ore

Eco-LCA™ Web-Based Visual Interface

21st Century Pressures• Globalization and complexity• Accelerating technological change• Mounting stakeholder expectations• Threatened natural resources• Economic volatility• Global warming• Terrorism• Poverty• Disease Got Resilience?

The New Normal• Classical management approach

• Orderly operations punctuated by predictable disruptions

• Continuous improvement• Strategic planning

• Emerging systems approach• Tightly coupled dynamic systems with

unpredictable discontinuities• Continuous change• Adaptive management

Center for ResilienceAn interdisciplinary research center dedicated to improving the continuity, adaptability and

long-term sustainability of industrial enterprises and their environments.

Collaborators: American Electric Power, Dow Chemical, Owens Corning, Limited Brands, Nationwide, Procter & Gamble, Veolia, U.S. Business Council for Sustainable Development, City of Columbus,

Ohio EPA, Ohio Department of Natural Resources, U.S. EPA

Joseph Fiksel, Executive Director

Dept. of Integrated Systems Engineering

Bhavik Bakshi, Research DirectorDept. of Chemical and Biomolecular Engineering

Sustainability is the capacity for:• human health and well being• economic vitality and prosperity• environmental resource abundance

Resilience is the capacity to:• overcome unexpected problems• adapt to change (e.g., sea level rise) • prepare for and survive catastrophes

fitnesscontinuity

The Triple Value (3V) Model

Environment (natural capital)

waste and emissions may degrade the environment

ecological goodsand services are

utilized in industry

ecosystem services provide amenities for

communities

some waste is recovered and recycled

emissions may harm humans

natural resources may be depleted

Society (human & social capital)

Economy(economic capital) economic value

is created for society

talent is utilized in industry

Environment

Harmony &

SymbiosisNaturalResourc

es

Biotechnology

& Biomimicry

HumanResourc

es

Shared Value

Health & Well-being Nourishme

nt & Comfort

SocietyEconomy

Governments

Minerals Climate

Ecosystem Services

Enterprises

Infrastructures

People

Communities

Ecosystems

Organisms

Resilience of Tightly Coupled Systems

Ecosystem Services

Wastes

Economic value

• Anticipation• Flexibility• Recovery• Security • Efficiency• Visibility• Adaptability• Collaboration• etc…

• Turbulence

• Deliberate threats

• External pressures

• Resource limits

• Connectivity

• Sensitivity

Supply Chain Resilience

Pettit, Fiksel & Croxton, Journal of Business Logistics, 2010

Vulnerabilities Capabilities

More resilient(adaptive capacity)

Less resilient

Less sustainable

More sustainable (resource productivity)

Examples of Synergies and Trade-offs

Nuclear energyRain harvestingLean production

Smart gridGrey water use

Distributed assets

Corn ethanolBottled water

Business as usual

Diesel backupDesalinationRedundancy

Source: J. Fiksel, I. Goodman, A. Hecht, “Navigating Toward a Sustainable Future,” Solutions, Jan. 2014

Integrated Dynamic Model for Nutrient Reduction in New England

21

Waves of Innovation

Unintended environmental, health, or safety impacts over the product life cycle

Design for Environment

(1990’s)

Threat of resource scarcity and diminished opportunity for future generations

Design for Sustainability

(2000’s)

Complexity and turbulent change in global economic, social, & ecological systems

Design for Resilience

Challenge Response

Reference Book

www.resilience.osu.edu

Joseph FikselDesign for EnvironmentSecond Edition

A Guide to Sustainable Product Development (McGraw-Hill 2009, 2011)