Fields of Action: Product Design
- Impact factors on biological diversity
- Drivers of Business Cases
- Areas of Operation
- Tools
- Management Cycle Stages
Depending on product or service design, the final product will have a greater or lesser impact on biodiversity. Negative impacts can be reduced in a number of ways, including changing the service design or by substituting, reducing and recycling materials used in the production. Positive effects can also be created by using raw materials in products that contribute to the conservation of biological diversity, such as the use of older types of grain or juices from traditional mixed-crop orchards. This creates the possibility for innovation and product differentiation in market competition.
Product design can also be more than eco-design, especially when it is a part of “cause-related marketing,” a method that enables the manufacturer to combine products sales with donations for specific projects. Consumer protection aspects can also be combined with biodiversity protection.
Impact factors on biological diversity
Biodiversity includes the diversity of ecosystems and species as well as the genetic variation within the species. Biological diversity is the basis for a number of different services for people and the economy.
Habitat transformation
Area and volume requirements of the project
Climate change
Power demand and product CO2 emissions
Ozone-depleting substances in products
Invasive species (Neobiota)
Product design may lead to spreading of invasive species
Overexploitation
Product-specific use properties (for example, tractor tyres) can impact ecosystems
Pollution
Product usage may cause emissions (for example, waste water, noise, air pollutants)
Product as waste
Drivers of Business Cases
More permanent measures are those that simultaneously make a direct contribution to a company’s success while contributing to the conservation of biological diversity. In such cases a “business case for sustainability” or, more specifically, a “business case for biodiversity” is referred to.
A business case for biodiversity can be achieved through targeted, voluntary biodiversity conservation measures that go beyond the legal requirements, and work to strengthen a company’s competitive advantage. This is often aided by intelligently and efficiently complying with existing government regulations, such as wastewater treatment, which has positive effects on biodiversity.
The success of a corporate biodiversity management is linked to changes in one or more success-related variables called business case drivers.
Costs
Reduced product cost by altering product design
Sales and Price
Increasing turnover by improving differentiation (new product lines with value added biodiversity protection)
Risk mitigation
Risk of company-damaging NGO campaigns against the product
Reputation and Brand Value
The ecological performance of the product may cause a gain in reputation
Innovation
Development of new innovative products
Business models
New product-service combinations as basis for new business model
Best Practice Examples: TUI – Environmentally conscientious travellers participate in volunteer vacations
The emotional character of biodiversity offers a great opportunity for businesses. For example, in the i-to-i trips offered by TUI, guests wanting to combine travel with a commitment to the environment or social issues can participate in volunteer trips and become actively involved in wildlife conservation projects protecting turtles or elephants.
Areas of Operation
Areas of operation in corporate structures organise the various fields of action in corporate biodiversity management. As is made clear through the cross-sectional nature of corporate biodiversity management systems, it is often possible and practical for departments to cooperate together.
Procurement
Approaches:
Effect of design on procurement decisions
Goals:
Increase in the number of possible suppliers through the substitution of scarce resources
Production
Approaches:
Product as result of production Development of services
Goals:
Gain in reputation through cooperation with company-external stakeholders
Marketing
Approaches:
Product as result of production Development of services
Goals:
Reach new target groups by marketing ecological products
Sales and Distribution
Approaches:
Delivery of products
Goals:
Simplification of logistics through sustainable design
Research and Development (R&D)
Approaches:
Product optimization through research
Goals:
Development of raw material / product lifecycle to reduce procurement costs
Human Resources
Approaches:
Employee identification with product
Goals:
Greater employee motivation through employee identification with production
Tools
Corporate biodiversity management not only requires scientific and planned approaches, but also environmental management business methods.
For instance, the biological diversity of an area can be modelled with the help of regional surveys and field mapping. These evaluations can then become part a business’ decision-making and management processes.
Specific methods for corporate environmental management have not been readily available in the past. Furthermore, these tools can only be roughly assigned to phases of the management cycle, because some of them can be used in more than one of the phases. For example, “indicators and key ratios” are both an important part of determining the current state of biodiversity (for screening and success measurement) but are also the basis for planning future programmes.
The selection and usability of a tool depends on the function of the departments involved, the business case driver and the intended effect on the impact factors that, in turn, affect biodiversity.
In the following section the way a variety of tools can be applied to biodiversity will be specified.
Product chain-of-custody certification
In the following fields of action this tool can be used:
Additional information about Product chain-of-custody certification
Biodiversity SWOT
In the following fields of action this tool can be used:
Checklists
In the following fields of action this tool can be used:
Indicators and key ratios
In the following fields of action this tool can be used:
Management Cycle Stages
Using a systematic management “plan-do-check-act” cycle to implement a corporate biodiversity management process allows for proper business orientation, for example, as is used when part of the Eco-Management and Audit Scheme (EMAS) or ISO 14000.
Finding the business-specific relationship between company and biodiversity is, however, made more difficult by the complexity and extent of biodiversity (ecosystem, species, and genetic pool). The criteria “rareness” and “endangerment” of species and habitats act as a point of orientation. Aids in determining such threats to biodiversity such as the “Red List”, the European Union’s Habitats Directive along with the EU’s Birds Directive and the Convention on International Trade in Endangered Species of Wild Fauna and Flora (CITES).
Scientific expertise is often required in cases where specific plans are made. This is an area where local environment and nature conservation groups can provide businesses with technical know-how, representing an opportunity to deepen the cooperation with regional NGOs.
Screen - S
The following tools are available during this phase:
Do - D
The following tools are available during this phase:
Act - A
The following tools are available during this phase:
Plan - P
The following tools are available during this phase:
Check - C
The following tools are available during this phase:
