Virtual dematerialisation: ebusiness and factor X

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?


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


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


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


11. Small is beautiful? Scaling down devices doesn’t necessarily contribute to dematerialisation






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


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


Reduce Material Input

Increase Service Units

Small is beautiful? Strategies for Increased Resource Efficiency (MIPS)

MIS


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


* for aluminium, copper and magnesium

HP Case study Scenario for the use of secondary materials



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


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)


2Towards a sustainable e-society


2. From Atoms to BitsE-commerce: Shifting physical products to e-services contributes to dematerialisation.




(1) Communication

information marketing

negotiation and contract

(2) delivery

(3) payment

Buyer Seller

From Atoms to BitsE-commerce:Three different phases and two actors


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


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


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


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


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


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- …


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


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)





3. The user tips the balanceConsumers play an increasingly decisive role in the life-cycle wide environmental impact.



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


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


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


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)






4. Develop a better understandingMonitoring the environmental impacts of ICT is still a major challenge.


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% !


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:


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)


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


More information @ your fingerprint

www.digital-eu.org [email protected]

Virtual dematerialisation: ebusiness and factor X

Documents

Transcript of Virtual dematerialisation: ebusiness and factor X