2. CONCEPT OF SUSTAINABLE DEVELOPMENT AND ITS PLANNING
In this chapter we describe the streamline concept of sustainable development and its planning, assessment. We also review related methodology about developing sustainable products and service.
2.1 Stream of Sustainable Development
The World Commission on Environment and Development (WCED, 1987) defined sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. The fuller definition given by the Brundtland Commission is worth quoting:
…Humanity has the ability to make development sustainable — to ensure that it meets the needs of the present without compromising the ability of future generations to meet their needs. The concept of sustainable development does imply limits — not absolute limits, but limitations imposed by the present state of technology and social organization on environmental resources, and by the ability of the biosphere to absorb the effects of human activities. But technology and social organization can be managed and improved to make way for a new era of economic growth … In the end, sustainable development is not a fixed state of harmony, but rather a process of change in which the exploitation of resources, the direction of investments, the orientation of technological development, and institutional change are made consistent with future as well as present needs...
At the Earth Summit in 1992, nations extended the above definition and adopted a set of principles to guide future development. The Rio Declaration on Environment and Development defines the rights of people to development, and their responsibilities safeguard the common environment (World Resources Institute, 1986/1994/1995/1996/1997). The Brundtland Commission also laid special emphasis on the multidimensional aspects of sustainable development:
There are many dimensions to Sustainability. First, it requires an elimination of poverty and deprivation. Second, it requires the conservation and enhancement of the resources base which alone can ensure that the elimination of poverty is
permanent. Third, it requires a broadening of the concept of development so that it covers not only economic growth but also social and cultural development. Fourth, and most important, it requires the unification of economics and ecology in decision making at all levels (Pearce et al., 1989).
The introduction of the concept of sustainable development sparked environmental debates and environmentalists became a dominant force in decision-making processes in many countries. Environmental protection bodies have been established with legal powers to approve or disapprove of development projects in a number of countries. Policymakers now have to take into consideration not only the size of GDP but also the quality of life, protection of the environment and preservation of natural resources for future generations.
Environmental conditionality is also receiving increased attention from bilateral and international donor agencies, we summarize some important international conventions for sustainable development in Appendix A.
2.2 Sustainable Development Planning
For planning purposes, there are several core concepts that underpin sustainable development (Ghosh et al., 2000). First, indefinite population growth in an environment of limited resources cannot surely be sustained. The need for feeding an ever increasing population might lead to deforestation and salinity and the consequent disruption of the ecological system. As a matter of fact, population growth, combined with the demand for a higher and higher material standard for living, has been the single most important factor in the ecological crisis of the present age. The ecological system in which we live evolved slowly over millions of years. It derives its stability and predictability because of its diversity and complexity. In their desire to maintain an ever-increasing population size, human beings are simplifying the complex ecosystem and creating future uncertainties.
Secondly, sustainable development must lead to intergenerational equity. The present generation must not overuse existing resources to adversely affect the potential material living standards of future generations (Siddique, 1997). In this context, it is important that every nation seeks to ensure that its use of renewable resources (such as agricultural methods and technology) is sustainable, and that its exploitation of nonrenewable resources (such as minerals, oil, gas and coal) is geared towards an efficient and optimum intertemporal use (Ghosh, 1977).
Thirdly, sustainable development must ensure elimination of poverty and deprivation.
This is very much linked to the distributional aspect of growth and development. If economic growth and development fail to reduce inequality and reduce poverty at national and international levels, sustainability of development will never be achieved. The World Summit for Social Development (1995) rightly observed:
We are deeply convinced that economic development, social development, and environmental protection are interdependent and naturally reinforcing components of sustainable development, which is the framework for our efforts to achieve a higher quality of life for all people. Equitable social development recognizes that empowering the poor to utilize environmental resources sustainably is a necessary foundation for sustainable development. We also recognize that broad-based and sustained economic growth in the context of sustainable development is necessary to sustain social development and social justice.
The above discussions highlight that sustainability of development is a broader concept that involves multiple criteria. It involves a pattern of economic development that would be compatible with a safe environment, biodiversity, ecological balance, intergenerational and international equity. Incorporation of sustainability into development planning is a precondition for achieving sustainable development.
The question is how to incorporate sustainability in development planning? Literature on sustainable development planning is of recent origin, and modeling sustainable development planning depends on the objectives of the planners. In what follows, we present an overview of recent attempts by researchers to model sustainable development planning.
Milne (1996) did a comprehensive review of sustainability and points out that
“sustainability is about integrating social, economic and ecological values”. However, the author mentioned that there is less agreement in the literature on how sustainability might be operationalized. The author also develops a relationship between sustainability and decision making. Kelly (1998) takes a systems approach to identify information infrastructure to assess the courses of action for sustainable development projects. The author posits that a system approach identifies the key linkages among the sustainable indicators and thus helps in the better implementation of the development projects.
Minns (1994) discusses the use of mathematical modeling tools for R&D investment decisions within a sustainable development climate. The author develops a concept called
“technology impact profiling”, which includes various sustainable development indicators.
Lesser and Zerbe (1995) discuss how a benefit–cost analysis tool can contribute to sustainable planning. The authors make the point that “values” to be used in benefit–cost analysis have to
be found based on preferences. Systematic thinking and the need for value trade-off in sustainable planning are highlighted by McDaniels (1994). The author reports an application in Canadian utility planning. Levy et al. (1995) employ the graph model for conflict resolution over groundwater in Cambridge, Ontario (Canada), and show that their model improves “strategic environmental planning by considering multiple participants, each of whom may have multiple objectives to fulfil with respect to a given dispute”. They also claim that by unifying the psychological, social and cultural approaches of risk analysis, management and perception, their model helps to promote a sustainable balance between economic growth and environmental protection.
Herkert et al. (1996) argue that technological innovation plays a critical role in the process of sustainable development. They therefore devise an operational knowledge-based decision support tool in order to assist researchers and technology policymakers in structuring and making decisions in the light of sustainable development goals. Slesser and Moffit (1989) use systems dynamics in order to develop an operational model of sustainable development.
Their dynamic model consists of several positive and negative feedback loops interconnected by flows of information, material, and energy to produce long-term scenarios of sustainable and nonsustainable development for the nation state. The authors assert that when applied, their dynamic model can maintain both economic development and ecological evolution within the one conceptual framework.
It should be noted here that planning sustainable development requires special consideration of the environment since the two are interlinked. Environmental planning is a diverse activity, comprising multiple approaches, and based on a range of options for direct action and indirect influence (Selman, 1999). It involves a rational human activity aimed at taking decisions that optimise welfare, both presently and at some time in the future. The literature also suggests that sustainable development planning is typically undertaken by the highest level planning group of a nation, and interests of the group members play significant roles in shaping the final outcome of the sustainable development plans.
The above discussions highlight three important issues of sustainable development planning. These are: (1) consideration of multiple criteria; (2) accommodation of group diversities and (3) the inclusion of group preferences.
2.3 Sustainable Products and Services Development
In response to the shift in environmental policy and law towards products, there are
increasing legal, market and financial pressures on manufacturing industries to develop sustainable products. For some time, concepts, approaches and tools have been evolving to help industry meet this aim. These include eco-design and sustainable product development.
There have been researching industry requirements for developing sustainable products and the ability of existing approaches and tools to meet these requirements. The research has identified a need for mainstream, pragmatic approaches to sustainable product development, as well as, to service development. In response, the sustainable product and service development (SPSD) method is being developed by many researchers in conjunction with industry and practitioners (Maxwell and van der Vorst, 2003).
Sustainable product and service development is an evolution of existing sustainable product development approaches in that it incorporates services as well as products and all triple bottom line (TBL) elements. Sustainable product development approaches used in industry to date mainly focus on reducing the environmental impacts of products. This is known as eco-design or design for environment and is well established in research terms and is increasingly seen in innovative product manufacturing companies mainly in the form of eco-design (Gertsakis et al., 1997).
There also design for ‘X’ approaches, which have subsets focused on specific areas, e.g.
design for disassembly, design for recycling, etc. (Simon et al., 1998). While a number of terms have evolved for this, these approaches all focus to different extents on identifying and reducing or, where possible, eliminating the environmental impacts of a product throughout its life cycle. The sustainable product and service development pyramid is introduced to illustrate the evolution of the design for X (Figure 2.1), eco-design and sustainable product and service development approaches towards sustainability.
Sustainability SPSD
Eco-design
Design for X
Product Development Approaches
Figure 2.1 Sustainable Product and Services Pyramid (Maxwell and van der Vorst, 2003)
A more sustainable result is likely to be achieved by incorporating the concepts at the top of the pyramid in the sustainable product and service development approach. If these are not incorporated, some of the environmental impacts of the product and/or service proposed may be minimized, but greater opportunities for producing a more sustainable product and/or service may not be realized.
The sustainable product and service development method builds on these existing concepts. sustainable product and service development is proposed as a suitable term for the process as it clarifies that the approach is applicable to both products and services as well as incorporating the all-important product service systems (PSS) concept (Reiskin et al., 2000).
Sustainable product and service development is about assessing the lifecycle of a function to be provided (from conception to end of life) and determining the optimum sustainable (environmental, social and economic) way of providing that function (through a product, service or product service systems) in line with traditional product and/or service criteria. The product and/or service lifecycle shown as Figure 2.2, it starts at conception where there is only a concept and design of a potential product, service or product service systems commences. If a product or product service systems is to be produced the remaining stages include raw materials through end of life as well as potential ‘recovery’ and ‘reuse’ options illustrated by the dashed lines.
Product Conception
Raw Materials
Production Process
Distribution Consumption End of Life
Figure 2.2 Product Life Cycle Stages (Maxwell and van der Vorst, 2003)
Sustainable product and service development can also be applied to an existing product and/or service, but ideally at the concept stage before a commitment to producing a product has been made. With only a concept, greater opportunities for the development of a more sustainable solution may be realized especially regarding environment (Hanssen, 1997;
Reiskin et al., 2000; Brezet and van Hemel, 1997). Figure 2.3 illustrates the main sustainable
product and service development process steps. Starting at the concept stage, one of the initial steps of sustainable product and service development is to consider how the functional requirement can be met—through a product, a service or some combination of a product service systems and optimizing the sustainability impacts of these options with traditional criteria. The use of sustainable product and service development may result in a product not being produced at all. This is in circumstances where it is more sustainable and feasible to meet the required functionality by the provision of a service.
AT CONCEPT STAGE, QUESTION THE FUNCTIONALITY
Can it be produced by a service, product or product service system?
Optimize sustainability impacts of each option with traditional criteria
DETERMINE THE LIFE CYCLE STAGES
DETERMINE SUPPLY CHAIN DYNAMICS
Determine the supply chain companies involve in the development of product and PSS proposed
Determine optimum target companies for direct SPSD implementation and role of all supply chain companies
OPTIMIZE SUSTAINABILITY IMPACTS
OEM & relevant supply chain companies optimize sustainability impacts for all remaining life cycle stages (raw materials to end of life) and development specification
Figure 2.3 Sustainable Product and Service Development Process (Maxwell and van der Vorst, 2003)
In practice, complete replacement of a product by a service is difficult to achieve. Some combination of product service systems is a more likely possibility (van Hemel, 1998). Once it has been determined whether a product, service or product service systems to be developed, the next stage is to identify the lifecycle stages and associated supply chain as relevant. A key element of sustainable product and service development is that it focuses on the supply chain
for the product and/or service rather than solely at an individual company level. The entire supply chain is assessed to determine the most effective target organization(s) in the chain for sustainable product and service development and how the supply chain management can be effectively utilized. Once this is determined, sustainable product and service development implementation can commence at the company level.
The next step is to assess the environmental and then social impacts for each product or product service systems life cycle stage from raw materials to end of life. The opportunities for elimination or minimization of these are optimized with the remaining traditional product and service criteria. The specific environmental and social issues to be assessed vary dependant on the product and/or service. To ensure a comprehensive approach, a checklist of typical environmental and social impacts to be considered per lifecycle stage is used.
Figure 2.4 illustrates a proposed structure for integrating sustainable development into product developing process. The requirement to produce sustainable products and/or services as relevant is integrated as one element of the existing corporate strategy. From here it is a core business criterion that can be incorporated into all other business functions for overall sustainability performance improvement. In particular, sustainable product and service development should be incorporated within the product development approaches used by the company. Other functions that traditionally feed into product development, e.g. quality, finance, purchasing, etc. will then be incorporated more easily with the sustainability criteria.
Further, where a company operates a system to manage their environmental performance, e.g.
environmental management system, sustainable product and service development should be imbedded within it.
Some multinational corporations that have implemented ecodesign have integrated it into their company’s existing systems for managing their environmental performance. For example, Nike and IKEA have integrated eco-design into their TNS (The Natural Step) approach. Electrolux and Philips include eco-design in their Product Orientated Environmental Management System (POEMS) (Croner, 2000).
Overall, by integrating sustainability in the corporate strategy it is set up as a core element necessary for improving business performance rather than a stand alone programme.
The optimization of social, ethical and economic issues is not included in eco-design in its present form. If sustainability is the aim, just reducing the environmental impact of a product using an eco-design approach is not enough (Byggeth et al., 2000; van Weenen, 2000;
Byggeth and Broman, 2000). In order to effectively integrate sustainability in product and service development, the environmentally superior products initiative uses this integrated
approach and illustrates that optimizing environment with other traditional product criteria works on both an environmental as well as business level for companies.
Marketing Finance
Production
Product Development
Environment Social MGT Health &
Safety Quality
Assurance Purchasing
Intellectual Property
Rights
Corporate Strategy
………
………
Produce Sustainable Products & Services
Figure 2.4 Integrating Sustainable Concept into Product Developing Systems (Maxwell and van der Vorst, 2003)
An illustration of the proposed criteria to be optimized in developing sustainable products and services is presented in Figure 2.5. In addition to the traditional product criteria, e.g. economic, quality, market, customer requirements, technical feasibility and compliance issues, the following sustainability criteria have been incorporated: environmental impacts, social impacts and economic impacts. Further, in order to effectively optimize the environmental and social impacts the functionality criterion is included.
The functionality and options for product service system are considered at the product conception phase. This incorporates dematerializations, whereby, the material and energy inputs into a product are reduced or replaced completely by an immaterial substitute for complete dematerialization. In reality, it is difficult to achieve complete dematerialization and still achieve the end product function. However, a combination of a product and service approach that reduces the product element is possible and has been achieved to environmental and commercial benefit by some companies. For example, in 2000, Xerox reduced their product material inputs by approximately 72,000 ton with an associated US$ 27 million
savings (Xerox, 2001).
Figure 2.5 Criteria for Optimizing Sustainability in Products and Services (Maxwell and van der Vorst, 2003)
The product service system approach decouples volume (producing lots of products) from profitability and focuses on the functionality, i.e. producing less product and managing it better as a product service system. Value is based on functionality, not on materials content.
The environmental benefits resultant from the product service system approach can include:
(1) A reduction in the volume of products produced;
(2) Increased dematerializations of product;
(3) Reduced waste generation due to the reduced volume of products produced as well as the eco efficiencies introduced into the production process.
There are also social impacts associated with product service system. For example the replacement of a product by a service can have implications in terms of employment for
Compliance with legislation
& industry / technical specifications
Technical Feasibility
Customer Requirements
Market
Demand Quality
Economic Impacts
Social Impacts Functionality
Environment Impacts
Sustainable Products &
Services Development
company personnel at many lifecycle stages. To date, industry tends to implement an eco(re)design approach whereby they start with an existing product and reduce its environmental impacts (Charter and Tischner, 2001). With the exception of a minority of
company personnel at many lifecycle stages. To date, industry tends to implement an eco(re)design approach whereby they start with an existing product and reduce its environmental impacts (Charter and Tischner, 2001). With the exception of a minority of