A framework for sustainability conversations—Part 1/3

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Table of content

1. Preamble
2. Introduction: the change we need
3. A framework for sustainability conversations, understand and define—Part 1/3
4. Endnote: a more sustainable economy requires heavy investment
5. Our world in data
6. Weekly highlights: your comments and testimonials, resources, insights, and visualization

This article is part of the “The Road to Sustainability?” weekly review on Linkedin. It is now followed by 15,800+ subscribers and counting, including Fortune Global 500 companies, from all industries and sectors, governmental and non-governmental agencies, VCs, fast-growing startups, and entrepreneurs from all around the globe.

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1. Preamble

This review is the first part of a three-part series dedicated to defining a framework for sustainability conversations. The series is intended to provide decision-makers, policymakers, investors with an understanding of how to catalyze technological transformation, adopt the necessary tools, and deploy policy solutions geared to the world's challenges.

• Sustainability and efficiency change can seem like major issues that are either too far down the road or too big to solve. But we know the primary sources of the majority of today’s challenges. A framework for sustainability conversations, understand and define—[This week's review, Part 1].
• A more sustainable economy requires heavy investment—A framework for sustainability conversations, investing in nature as our actual economic engine—[Part 2].
• Getting to net-zero emissions in the next thirty years may be the most challenging task humanity has ever attempted.—A framework for sustainability conversations, corporate action, private-sector solutions—[Part 3]

At Nevelab Technologies, we support cutting-edge research, development, and demonstration (RD&D), which is key to achieving accelerated innovation and helping the private sector support economic growth, drive down costs for key technologies, and promote corporate leadership assessment sustainability and efficiency.

I hope this effort answers the many questions I get about helping organizations embrace sustainability principles and become more future-proof. Please give me feedback ? Subscribe ? Ask me a question ? Become a partner.

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2. Introduction: the change we need

When it is obvious that the goals cannot be reached, don't adjust the goals, adjust the action steps.—Confucius

The more we all understand sustainability, efficiency, natural capital, and climate change, the better equipped we will be as people, communities, and nations to address them. However, because of the magnitude and complexity of the task, it can be challenging to determine whether solutions will genuinely make a difference.—[An animated introduction to sustainability-See resources at the bottom of this review /1]

Despite the sustainability revolution's unavoidability and the strength of the forces propelling it ahead, not every organization is heading in the right direction or supporting it to the same level. And, because of the growing environmental noise and the complexity of reclaimed data, it can be challenging to identify realistic ideas and concepts from the numerous excellent intentions.

Finally, from an investing standpoint, there is still significant uncertainty and countless unanswered concerns.

Here's a simplified framework in three parts for approaching any conversation about sustainability to help address some of the vital issues discussed during an investment presentation or chatting with a friend.

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3. A framework for sustainability conversations, understand and define—Part 1/3

3.1—Sustainability and efficiency—Why does it matter?

Executives today face a complex and unprecedented confluence of social, environmental, commercial, and technology forces. These need complex, long-term management. However, decision-makers remain reluctant to incorporate sustainability and efficiency goals into their yearly forecasts, mistakenly believing that the costs exceed the advantages.

To understand the impact of sustainability and efficiency solutions, we must first determine how much they will reduce yearly global greenhouse gas emissions (GHG). Then, to put the big numbers into perspective, consider analyzing the effects of policies or breakthrough technologies based on the percentage by which they would cut emissions at scale.

A framework to assess how much innovation is needed will contribute to climate change. However, because any model simplifies the complex reality, the primary goal of any sustainability modeling should be to allow for collaborative efforts, including the responsibilities of humans at a local level.

3.2—Energy demand is expected to increase 50 percent by 2050—How to get organized?

The environmental numbers shared by global organizations are alarming, often referring to as the ‘take-make-waste model, in which we make products we cannot sustain, take products we do not use, and waste goods that could still be used or recycled—learn more about "Thunder only happens when its raining climate change."

Every year, we harvest over 92 billion tonnes of natural resources and utilize them to feed our ever-expanding consumption model, resulting in a large quantity of damaging waste, including greenhouse gas emissions—learn more about "What if we don't invest in Natural Capital?."

Opportunities abound, ranging from electricity to transportation, as well as agriculture to building or industrial sectors. However, the difficulty of conducting large-scale trials and tests is a significant impediment to bio-based energy solutions.

Even the most active organizations do not always have the time or resources to address all of the technological, industrial, and regulatory hurdles associated with commercializing innovations. An organization that places a high emphasis on product development may contribute to sustainability by producing special goods for the lower-income segment of society.

A firm in the chemicals or food sectors may consider manufacturing goods with additional nutrition at a reduced cost to assist in the battle against hunger. This can be produced on top of the standard product line for a specific market, and it may also shape a new blended business model for the company with a new business case.

More examples may be found in various industries, such as providing microinsurance products to lower-income populations. Packaging also can be considered, for example, by delivering high-quality items in tiny unit containers to low-income countries. This lowers the cost of things and opens up new market prospects for enterprises.

3.3—Current global status inherited from the Second Industrial Revolution—What do we need to move on?

The moves towards a net-zero economy, a nature-positive economy, and ultimately, a bio-circular economy rely on the same polluting building blocks that drove the Second Industrial Revolution a century and a half ago.

Emerging economies are quickly climbing the production graph, with some of them having as much as a 50% share in the gross production of raw steel. China surpassed all goals and reached a staggering 808.4 million metric tons of crude steel in 2016. In the last year, five of the world's largest steelmakers have backed the Paris Agreement, pledging to achieve net-zero emissions by 2050. US President Joe Biden and Chinese President Xi Jinping are striving to cut greenhouse gas emissions. At the same time, the European Union aims to impose an import tax on construction materials manufactured in nations with weaker environmental standards, making local, low-emission steel more competitive.

Steel, which towards the end of the nineteenth century redefined everything from firearms and bridges to cities and ships, is fundamental to the wind turbines, solar panels, and power pylons required to supplant fossil fuels. On the other hand, steel is dependant on the combustion of billions of tons of coal, with the industry releasing more carbon dioxide than automobiles, buses, and motorcycles combined.

Weaning low-margin industries away from cheap coal and more expensive green steel technologies would need enormous government assistance and coordinated efforts by steelmakers. In 2015, the world produced and consumed close to 1,535 million metric tons of raw steel.—[See resources at the bottom of this review /2]

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4. Endnote: a more sustainable economy requires heavy investment

We have grown to rely on an economy built on fossil fuels during the previous century. As a result, our world has had to pay the price. With more than eight billion people on the earth today, our economic paradigm is no longer viable. As a result, we are converting natural resources into items that will be mainly idle or discarded without the possibility of recycling.

Rather than fossil fuels, nature will become the fundamental motor of our economy as we leverage it. The transition from laboratory to industrial scale experiments is no more an option. It is an urgent matter. 

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5. Our world in data

• The latest measurement of atmospheric CO2 (as of June 10, 2021): 419.14 ppm; May 2020: 416.00 ppm; 25 years ago: 360 ppm; 250 years ago, est: 250 ppm.
• Methane (CH4) is estimated to have a GWP of 28–36 over 100 years. CH4 emitted today lasts about a decade on average, which is much less time than CO2. But CH4 also absorbs much more energy than CO2. The net effect of the shorter lifetime and higher energy absorption is reflected in the GWP. The CH4 GWP also accounts for some indirect effects, such as the fact that CH4 is a precursor to ozone, and ozone is itself a GHG. More here.
• Humans make up just 0.01% of Earth’s life – what’s the rest? Our world in data.

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6. Weekly highlights: insights and resources

6.1—Your comments and testimonials

• Samuel Hodgins, R & D on the 5/29/2021 "Hi, I am like 80% of your readers. I know very little about these subjects I write about. The city of Albuquerque does recycling. However, I have no idea how well they are doing! My concern is things like plastic bags given out at Walmart-type stores. My limited understating is that they are packed up and sent overseas but are not recycled. In a true capitalist system (which we in the US are not), We would stop mining if the spot price soared high enough to command recycling. I know I have hardly touched any important part of your writing, but it is my comment."

Thank you, Samuel, for your comment. Many cities don't realize how their asset allocation strategies result in adverse effects. Thus such commentaries are essential to reminding retailers and large distribution chains that they are part of an entire ecosystem, including authorities, municipalities, universities. All must continuously contribute to environmental protection and bundling resources to build capabilities to provide values and healthy environments.

6.2—Resources

1. Learn more on Introduction to Sustainability by The Road to Sustainability?, an animated presentation on YouTube.
2. Top 10 largest Steel Producing Countries in the World

6.3—Visual of the week

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Information

?? The IEEE Global Artificial Intelligence Systems (AIS) Well-being Initiative is an IEEE program whose purpose is to ensure every technologist is educated, trained, and empowered to prioritize ethical considerations in the design and development of autonomous and intelligent systems. The Initiative is global, open, and inclusive, welcoming all individuals or representatives of organizations dedicated to advancing technology for humanity. Please reach out to me directly to learn how to join the Global Artificial Intelligence Systems (AIS) Well-being Initiative team.

?? The Road to Sustainability is a global network to build a more efficient, safe, and inclusive world. Sustainability is a fundamental part of every organization's culture, investment goals, and actions as a responsible business undergoing changes and being transferred between paradigm shifts.

?? Nevelab Technologies is a purpose-driven platform that leverages artificial intelligence to provide organizations with the tools to integrate sustainable imperatives while generating actionable insights.

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Disclaimer

The Road to Sustainability? is an initiative by Nevelab Technologies and is circulated for informational and educational purposes only.

Nevelab Technologies Research utilizes data and information from the public, private and internal sources, including data from actual Nevelab open data access. While we consider information from external sources reliable, we do not assume responsibility for its accuracy.

The views expressed herein are solely those of Nevelab Technologies as of this report's date and are subject to change without notice. Nevelab Technologies may have a significant financial interest in one or more of the positions and securities or derivatives discussed. Those responsible for preparing this report receive compensation based upon various factors, including, among other things, the quality of their work and firm revenues.