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Business Transitions: A Path to Sustainability

The CapSEM Model

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About this book

This open access book represents a journey documenting the development of tools and methodologies over 3 decades and asks where the future lies. It further develops seminal work carried out under the auspices of the Capacity building in Sustainability and Environmental Management (CapSEM) project co-funded by the EU Erasmus programme from 2016-2019 as well as research projects such as IGLO-MP2020, SUSPRO, and SISVI. It gathers existing paradigms of environmental management within the relevant frameworks which have driven the way in which this discipline has developed. It seeks to both challenge and support the way in which business sectors have approached this previously, with a more holistic and overarching model being provided, moving through four very distinct levels. It therefore provides not only a different approach, but a different way of thinking. Systems thinking is characterized by four levels: Process, Product Value Chain, Organisational and Systemic which combines Material Flow Analysis (MFA), Life Cycle Assessment (LCA), Corporate Social Responsibility (CSR) and Industrial Ecology (IE) principles. In its practical application, Corporate Social Responsibility, for example, thus becomes an integral part of a much wider business strategy and impacts on all business activity, not added value for its own sake, but a valuable component in a wider toolbox as a fundamental part of any business strategy and plan, changing, flexing and developing over the years.

The book is divided into 4 parts: moving from context and background, to the theoretical model or toolbox, onto its practical application in case studies and culminates in looking at the future and potential developments. It represents the multi-disciplined collaboration at NTNU and beyond, exemplifying its use in a wealth of business sectors and a range of stakeholders from construction to textiles to wind power as outlined in the European Circular Action Plan.

Table of Contents

Frontmatter

Sustainability: Challenges and Opportunities

Frontmatter

Open Access

Chapter 1. Business Challenges in the Transition to Sustainability
Abstract
The first chapter of this book presents a brief history of Sustainable Development (SD) and takes a closer look at business and industry and their attitudes and actions towards sustainability regarding technological development, environmental issues and challenges for organizations. The goal of the chapter is to advocate for the growing need for competence building in sustainability amongst business leaders as well as societal stakeholders. It prepares the reader to understand how this can be done via the tools and strategies that are discussed in the following chapters of this book.
Annik Magerholm Fet, Martina Keitsch

Open Access

Chapter 2. The CapSEM Model
Abstract
Organizations may feel pressurized to improve their sustainability performance and increase their orientation towards sustainability, but may not have either the knowledge as to where, or the capacity, to begin. This chapter therefore presents a systematized methodology of assessment and management tools for sustainability and environmental management known as the Capacity building in Sustainability and Environmental Management Model (the CapSEM Model). To help streamline their application for the business sector and industry, the methods and tools are positioned in relation to four levels of development: (1) production processes, (2) products and value chains, (3) organization and management and (4) larger systems, for example, industrial sectors or social systems.
The discussion and analysis of tools presented in this chapter and explained throughout this book, address the growing need to engage stakeholders and to consider environmental, social and economic impacts across the entire life cycles of products in business strategies and organization management. The CapSEM Model Levels move from incremental business tools and their application in production processes, to holistic tools for change in organizations and larger systems. The transition to sustainable societies is considered analogous to growth in both systems and performance complexity.
Annik Magerholm Fet, Haley Knudson

Open Access

Chapter 3. Sustainable Development Goals and the CapSEM Model
Abstract
This chapter discusses the links between Sustainable Development Goals (SDGs) and the CapSEM Model. It suggests placing these SDGs along the four Levels of the model to serve as a starting point for organizations’ engagement with the goals and their objectives. The location of SDGs in the nested system perspective or ‘wedding cake model’ according to Griggs et al. (Nature 495:305–307, 2013) and later Rockström and Sukhdev (New way of viewing the sustainable development goals and how they are all linked to food. Stockholm Resilience Centre/Stockholm University, 2016) situates the economic system within the societal system, which is situated within the system of the biosphere and helps to conceptualize the interconnections between SDGs and the dimensions of sustainability. Taking a similar systems thinking approach, the CapSEM Model situates sustainability and environmental management methods and tools within the systems of business operation and production. Extending and merging these two perspectives, the SDGs are placed along the CapSEM Model to provide a point of engagement for organizations to align their activities with SDG objectives.
Annik Magerholm Fet, Haley Knudson, Martina Keitsch

The Toolbox: Methodologies and Theories

Frontmatter

Open Access

Chapter 4. Input-Output Analysis and Cleaner Production
Abstract
This chapter gives an overview of the basic principles for analysing material flows for production processes. This type of analysis is based on a calculation of materials going in and out of a process. Typical materials to be accounted for are energy, raw materials and other supporting materials. Likewise, outputs from a production process are waste of different types, emissions to air, water and soil, as well as noise, radiation, vibrations, and loss of heat. In an input-output analysis, the by-products from the process are also accounted for. The chapter also explains the principles of cleaner production starting with the motivation from corporate leadership to make production processes cleaner: to reduce waste and emissions and use material in a more efficient way. The concept of Cleaner Production (CP) also embraces strategic changes for making production and products cleaner and greener. However, the purpose of the chapter to provide information about basic principles for collecting information to be used in an environmental account for organisations, which will help them improve their overall environmental performance.
Annik Magerholm Fet, Cecilia Haskins, Magnus Sparrevik

Open Access

Chapter 5. Looking Beyond the Factory Gates: Life Cycle Assessment, Supply Chain Management and Design for Environment
Abstract
This chapter gives an overview of the principles of life cycle assessment (LCA), supply chain management (SCM) and design for the environment (DfE). They are all placed at Level 2 in the CapSEM Model as tools for enhancing the product by improving the actual production processes that take place at different stages and subsystems in the life cycle of a product. One way of analysing and ameliorating the environmental performance of a product can be by analysing the environmental aspects and impacts initially by performing a life cycle assessment aimed at finding the most significant environmental impacts in the life cycle of the product. These hotspots can then be identified under different suppliers in the upstream value chain. Results from this analysis should then be addressed in the design of a new product, and further result in changes to the supply chain by supply chain management. An optimal solution for improving the environmental impacts at the different stages of the life cycle of a product, can be achieved at the end by introducing this into design principles as better specification of the performance at each stage in the life cycle of the product. This chapter also introduces green public procurement as a driver for change in the supply chain.
Annik Magerholm Fet, Luitzen de Boer, Martina Keitsch

Open Access

Chapter 6. Communicating Product Life Cycle Performance through Labels and Declarations
Abstract
This chapter gives an overview of the development of different eco-labelling schemes over a timeline of about 50 years. The main focus is, however, the standards for product declarations developed under the ISO 14000-family. Hereunder standards for product categories rules (PCRs), environmental product declarations (EPDs) as well as standards for different eco-footprints as, for example, carbon footprints of products (CFP) and water footprints of products (WFPs). The chapter also gives a brief description on how to develop and implement product labels for various purposes.
Christofer Skaar

Open Access

Chapter 7. Environmental Management Systems
Abstract
This chapter gives an overview of the history of the development of environmental management systems (EMS) and the purpose of an EMS. It expands on the description of the different steps of an EMS under the model Plan-Do-Check-Act and clarifies the use of concepts within EMS. Companies are motivated by external pressure from stakeholders, national and international authorities, customers demanding greener products etc., as well as the ability to attract new employees and avoid negative publicity. Standards belonging to the ISO 14000-family for environmental management include both product-related standards and audit and evaluation standards.
Annik Magerholm Fet, Ottar Michelsen

Open Access

Chapter 8. Analytical Frameworks, Impact Categories, Indicators and Performance Evaluation
Abstract
This chapter introduces the background for indicators to be used to monitor and communicate the environmental performance of different systems and activities. They are anchored in the DPSIR-analytical framework which stands for driving force, pressure, state, impact, and response. This framework is fundamental to our understanding the background for many of the tools and standards for analyzing, measuring, communicating, and reporting on environmental performance. DPSIR has been developed as a global model for understanding and analyzing the status of the Earth due to changes in environmental conditions and how to respond to these changes. The model can also be adapted for smaller systems, for example, for city or regional systems (Level 4 in the CapSEM Model), for organizations (Level 3), for products systems (Level 2) and for productions processes (Level 1).
Annik Magerholm Fet

Open Access

Chapter 9. Reporting Schemes
Abstract
This chapter gives an overview of different reporting schemes which can be used by companies to communicate their environmental, as well as their sustainability, performance. Connections between different reporting schemes, underlying data and the CapSEM Model are explained. The most common sustainability reporting schemes are described within the context of their intended use by the reporting organization. The chapter also addresses the content for writing a sustainability report together with the use of tools and performance indicators to present quantitative information.
Annik Magerholm Fet, Magnus Sparrevik

Open Access

Chapter 10. Business Models for Sustainability
Abstract
The concept of business models for sustainability (BMfS) has attracted research attention in the fields of corporate sustainability, entrepreneurship and management. BMfS are a way of linking sustainable innovation to an organization’s business model, and as a means for management to operationalize sustainable activities and strategies across an organization’s value chain. This chapter provides the history and description of BMfS as both a tool and conceptual logic that divides activities into three components – value proposition, value creation and delivery, and value capture. Practitioner tools are introduced, along with a brief conceptual overview.
Haley Knudson

Open Access

Chapter 11. Closing the Loop: Industrial Ecology, Circular Economy and Material Flow Analysis
Abstract
This chapter explores the principles supporting industrial ecology (IE), circular economy (CE) and material flow analysis (MFA). IE concerns constructing industrial and societal processes according to ecological principles. One of the main features within IE is the principle of closing material loops by avoiding pollution. Insights from IE further aid in building the understanding essential for establishing the principles of circularity in the resource economy. MFA is viewed as an analytical method rooted in the field of IE and Systems Engineering (SE).
Annik Magerholm Fet, Paritosh C. Deshpande

Open Access

Chapter 12. Systems Engineering
Abstract
The value of systems science approaches to address sustainability topics has been formally recognized since the publication of Limits to Growth (1972) and the application of system dynamics to investigate the synergies between planetary activities. Since then, these methods have been applied to address the chaos and reverse the consequences of the anthropomorphous influences at the root of today’s wicked problems – climate change, species extinction, unbalanced social equity. Systems engineering provides theory and practices that are both systemic, systematic, sustainable, and based on the foundations of systems science.
Annik Magerholm Fet, Cecilia Haskins

From Theory to Practice: Case Studies

Frontmatter

Open Access

Chapter 13. Introduction to the Case Studies
Abstract
This chapter provides an introduction and summary of the seven Case Studies in Part III. The reason behind their inclusion is explained here and their relevance to the CapSEM Model highlighted. The emphasis is on continuous and ever evolving research in this area, including a Case Study (Chap. 18) which is deliberately longitudinal in nature. Transition towards sustainability is at the core of these studies, demonstrating that while the starting point may be the need for a remedial solution, the path to resolving such issues differs, is not linear and involves the application of different CapSEM Model Levels. Such problems are of global, not only local, interest. The Case Studies therefore provide a variety of roadmaps, rather than definitive or prescriptive guidance, which should prove of interest to industry and those examining how the CapSEM Model is put into practice.
Annik Magerholm Fet

Open Access

Chapter 14. From Waste to Value: A Story About Life Cycle Management in the Furniture Industry
Abstract
This case focuses on the use of the CapSEM Model by the Norwegian furniture industry, beginning with efforts that raised sustainability awareness through a series of case studies over a period of more than 10 years. It started with a Cleaner Production (CP) programme for a group of furniture companies in a small community. The goal for another case study running in parallel with the CP-project, was to define a common set of Environmental Performance Indicators (EPIs) for reporting purposes for both the companies and the municipality to reduce waste and improve its treatment according to circular principles. While CP is at Level 1, EPIs and reporting is on level 3 and 4 in the CapSEM Model. In the furniture sector, the CP-programme led to capacity building by integrating Level 2 methods such as Life Cycle Assessment (LCA) into their daily work processes. LCA was used for product improvements based on hot spots detected through the analyses, and also to generate Environmental Performance Declarations (EPDs) for products. The implementation of these new procedures was integrated into the organisation’s strategic work through certified Environmental Management System (EMS). In addition to a demonstration of a gradual shift from Levels 1, 2 and 3, the case also describes the benefits of building cooperative communities (Level 4) that include sectoral, regional, and academic participants. The Level 4 activities were originally initiated by a Norwegian Local Agenda 21 programme.
Ottar Michelsen, Christofer Skaar, Annik Magerholm Fet

Open Access

Chapter 15. The Role of Public Sector Buyers: Influencing Systemic Change in the Construction Sector
Abstract
Construction machinery is essential to all construction projects and is also a significant contributor to both air pollution and greenhouse gas (GHG) emissions. The Non-Road Mobile Machinery Market (NRMM), otherwise known as the construction machinery market, largely operates using diesel fuel nowadays which has significant negative environmental impacts. It is critical that governmental leaders push suppliers to innovate and implement sustainable solutions in the construction sector. Green Public Procurement (GPP) and Innovation Orientated Public Procurement (IOPP) have emerged as potentially powerful instruments to drive green innovation by providing ‘lead markets’ for new technologies. City municipalities, regions, nations, and supranational government structures such as the European Union (EU) are starting to use public purchasing to achieve cleaner construction and Zero Emission Construction Sites (ZEMCONs). Early Market Dialogues (EMD) prior to the release of procurement documents can be an effective tool for achieving innovative solutions and for creating positive buyer and supplier collaboration. This case illustrates how the CapSEM Model and toolbox can operate from a top-down approach, initiating collaborative approaches amongst multiple actors, across multiple CapSEM Levels.
Shannon Truloff, Luitzen de Boer, Xinlu Qiu, Annik Magerholm Fet

Open Access

Chapter 16. CapSEM Applied to the Construction Sector
Abstract
The construction sector and built environment have the potential to impact on a variety of systemic dimensions, ranging from specific processes in the production of construction materials to pan-national regulations affecting regional areas and cities. This case study uses the CapSEM Model in order to identify the potential enabling and constraining impact of different methods, schemes and regulations for reducing environmental impact in the construction sector. The use of a systemic perspective highlights that all methodologies are working recursively in actor-networks, thereby affecting society and the market differently, depending on the systemic level.
Magnus Sparrevik, Luitzen de Boer, Ottar Michelsen, Christofer Skaar

Open Access

Chapter 17. Application of Material Flow Analysis: Mapping Plastics Within the Fishing Sector in Norway
Abstract
Plastic in our marine environment is now ubiquitous. Abandoned lost or otherwise discarded fishing gear (ALDFG) is of particular concern due to its ability to continue to function as a trap for marine organisms. In order for decision makers to act on this grave issue, we require data on the flow of ALDFG into the marine environment. One key tool for revealing the flow of material within a specific system is Material Flow Analysis (MFA). MFA takes a life cycle approach (cradle to grave) to assess energy or material flows in a system within space and time boundaries. It can be applied at multiple levels from the industrial process level to the national level. This chapter presents a case study of an MFA conducted on fishing gear in Norway. The MFA methodology was used in this case study to assess the flow of plastic fishing gear from production through to recycling, final disposal or loss to the marine environment. Data was collected for the MFA through stakeholder interviews, literature reviews and analysis of government data sets. The MFA revealed that around 4000 tons of plastic fishing gear enters the system in Norway and around 400 tons enter the marine environment each year. An analysis of the implications of the MFA for the key actors within the life cycle chain of fishing gear is presented and a short description of the links between MFA and the circular economy and sustainable development is provided. Furthermore, the relevance and implications of using MFA tool for policy making at national and regional level is discussed and elaborated while associated challenges are presented here.
Paritosh C. Deshpande, Arron W. Tippett

Open Access

Chapter 18. Environmental Management at Fiskerstrand Verft AS: A 30 Year Journey
Abstract
Fiskerstrand Verft is a multipurpose shipyard with extensive expertise and activities in shipbuilding, maintenance, repair and conversion/modification of ships. The yard is exposed to a range of different environmental challenges related to its business which trigged the yard to develop and implement health and safety, and environmental management systems. This chapter gives an overview of environmental management at Fiskerstrand Verft over a 30-year period, written from the perspective of the first author as CEO. The activities from 1991–94 mainly considered Level 1 in the CapSEM Model with annual accounting of materials and wastes, emissions to air and discharges to ocean. The yard participated in various R & D environmental projects and during the period 1994–99 these were extended with activities corresponding to life cycle thinking according to Levels 2 and 3. In 1999, Fiskerstrand Verft was the first Norwegian shipyard that prepared and published an environmental report. The yard was certified as an environmental lighthouse company in 2000, the first in Norway. During the period 2004–2008, the yard further developed their systems and began to transition to Level 4. The life cycle perspective for ships and technology has been at the center of the development of green technologies for ships. This journey continues today, passing the 30 year mark, and has contributed invaluable knowledge about the CapSEM toolbox and how it can be applied to shipyard operations.
Rolf Fiskerstrand, Annik Magerholm Fet

Open Access

Chapter 19. A Transportation Planning Decision Support System
Abstract
In this chapter, the CapSEM toolbox is explored, applied, and evaluated in the context of transportation planning and policy-making. Transportation system elements are analyzed across all four CapSEM levels to identify relevant tools to utilize in decision support systems to address sustainability in the sector. The toolbox is applied to a strategic transportation planning case study. The application demonstrates how the framework may be used to structure and stack models across system and performance levels to handle transportation modeling and stakeholder complexity.
Dina Margrethe Aspen

Open Access

Chapter 20. First Steps Towards Sustainable Waste Management
Abstract
Waste management started off as a public health issue. Today, the waste business is an important force in developing sustainable development and circular economy. New policies and regulations represent an opportunity for circularity, but there is still a long way to go in achieving a truly circular economy. The Circularity Gap Report 2020 indicated that the global economy is only 8,6 % circular. Industrial ecology and material flow analysis are important tools, not only for developing local and regional waste solutions, but also in the development of new global circular business models. In the Ålesund region, new sorting measures have increased recycling, from 32 % in 2017 to 45 % in 2019. New measures will be needed to reach national targets set for 2025. As the current global use of resources is unsustainable, and as current waste business models are insufficient to achieve circular economy, the next decade is likely to experience a rapid innovation of new business models challenging traditional waste management companies. This chapter presents data collected during a case study conducted in 2020.
Øystein Peder Solevåg

The Road Ahead

Frontmatter

Open Access

Chapter 21. Transition to Sustainability
Abstract
Companies are increasingly faced with the challenge of how to implement sustainability strategies in their business performances. This chapter discusses transition processes, presents mechanisms, and clarifies how tools and methodologies from Part II of this book can help companies in the transition process towards more sustainable practices. It further elaborates on how the CapSEM Model contributes to bottom-up approaches to sustainability transition processes as well as the importance of stakeholder collaboration and involvement.
Annik Magerholm Fet, Martina Keitsch

Open Access

Chapter 22. Helping Business Contribute to a Sustainability Transition: Archetypes of Business Models for Sustainability
Abstract
This chapter discusses business models for sustainability (BMfS). The objective for BMfS is to increase positive or decrease negative impacts of business performance on the environment and society, simultaneously providing long-term well-being of the organization and its stakeholders. The chapter looks at BMfS from a systems perspective and analyses how sustainable values are integrated into organizations’ performances. Furthermore, benefits and challenges of BMfS related to capacity building, stakeholder inclusion and the scope of innovations inherent in the models are discussed. Conclusively, the chapter appraises the potential of BMfS to contribute to macro level transition to sustainability.
Haley Knudson, Martina Keitsch

Open Access

Chapter 23. Building Decision Support Systems for Sustainable Transitions
Abstract
Developing decision support systems for sustainable transitions at the societal level is a complex undertaking due to the high number of stakeholders involved, the urgency of problems that needs to be addressed, and the uncertainty of information linked to decisions. A mismatch between the technological tools offered for decision support and the real needs of practitioners and society at large has been observed. In order to address these challenges, several approaches are explored under the theoretical framework of post-normal science, including co-creative developmental design, soft systems thinking and models for technology integration.
Dina Margrethe Aspen, Christina Carrozzo Hellevik

Open Access

Chapter 24. The Way Forward
Abstract
This chapter points to the way ahead by introducing five recommendations to meet the requirements set forward by the Stockholm+50 agenda. The requirements identify co-working as vital to addressing the planetary crisis of climate change, biodiversity loss and pollution, better collaboration and cooperation across all sectors, reinventing to a circular economy meaning decouple economic development from its destructive footprint, accessibility of data, and raising a common awareness for our planet. In response to this potential need, they present five transition options that might facilitate realising the requirements above and recognise a need for: (1) system change, (2) radical interdisciplinarity and trans-disciplinarity, (3) net positive leadership, (4) digitalization for sustainability, and (5) fair and inclusive transitions. Business leaders, their stakeholders and other groups should consider meeting these needs through their work in partnership with other actors.
Annik Magerholm Fet, Martina Keitsch
Metadata
Title
Business Transitions: A Path to Sustainability
Editor
Annik Magerholm Fet
Copyright Year
2023
Electronic ISBN
978-3-031-22245-0
Print ISBN
978-3-031-22244-3
DOI
https://doi.org/10.1007/978-3-031-22245-0