Ecopreneurship

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Ecopreneurship is a term coined to represent the process of principles of entrepreneurship being applied to create businesses that solve environmental problems or operate sustainably. The term began to be widely used in the 1990s, and it is otherwise referred to as "environmental entrepreneurship." In the book Merging Economic and Environmental Concerns Through Ecopreneurship, written by Gwyn Schuyler in 1998, ecopreneurs are defined as follows:

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"Ecopreneurs are entrepreneurs whose business efforts are not only driven by profit, but also by a concern for the environment. Ecopreneurship, also known as environmental entrepreneurship and eco-capitalism, is becoming more widespread as a new market-based approach to identifying opportunities for improving environmental quality and capitalizing upon them in the private sector for profit. " [1]

Although ecopreneurship initiatives can span a wide range of issues from ocean pollution to recycling to food waste, they tend to follow reoccurring environmental principles such as systems thinking, cradle to cradle product design, triple bottom line accounting, etc.

Systems thinking

Systems Thinking is a core principle to any business concerned with sustainability and the environment. It is an approach to problem solving that studies how something interacts with its environment as a whole, whether that be social, economic or natural. [2] This is in contrast to a linear thinking model, which would isolate a problem and study only its directly related processes to find solutions. It consists of the notion that in order to understand vertical problems (looking deeply at one particular issue), you must understand and evaluate the horizontal environment as a whole (the entire system and its interrelated functions). As it pertains to business is best illustrated in the book Entrepreneurship and Sustainability by Andrea Larsen,

"Systems thinking applied to new ventures reminds us that companies operate in complex sets of interlocking living and non-living, including markets and supply chains as well as non-living systems.... Taking a systems perspective reminds us that we are accustomed to thinking of business in terms of discrete units with clear boundaries between them. We forget that these boundaries exist primarily in our minds or as legal constructs." [3]

Product design

A lot of companies using ecopreneurship principles incorporate sustainable product design. Product design incorporating sustainability can happen at any stage of the business, including material extraction, logistics, the manufacturing process, disposal, etc. Sustainable product design can be achieved using innovative technology (or Eco-innovation), cradle to cradle design, bio-mimicry, etc. In a description by the government of Canada's department on Innovation, Science and Economic Development, sustainable product design is further explained:

"Product design offers the opportunity to incorporate green and socially responsible attributes into a product. Referred to as Design for Sustainability (D4S), it is a process that addresses environmental and social considerations in the earliest stages of the product development process to minimize negative environmental and social impacts throughout the product's life cycle and to comply with the principles of economic, social and ecological sustainability.

Sustainable product design can encompass the selection of materials, use of resources, production requirements and planning for the final disposition (recycling, reuse, remanufacturing, or disposal) of a product. It takes into account the socio-economic circumstances of the company and the opportunity for the firm to address social problems associated with poverty, safety, inequity, health and the working environment. It is not a stand-alone methodology but one that must be integrated with a company's existing product design so that environmental and social parameters can be integrated with traditional product attributes such as quality, cost, and functionality." [4]

Some examples of ways to implement sustainable product design include:

Innovative Technology

Many companies practicing ecopreneurship attempt to solve environmental issues either by developing new technology or innovating already existing technologies. The most widespread examples of this are the creation of solar panels and hybrid cars in order to decrease dependency on fossil fuels. Countless other examples from anaerobic digestion food waste systems to portable air purifiers exist. The competitive advantage or core competency for ecopreneurship companies is oftentimes related to a technology they have developed. More examples of companies using innovative technology are below in Business Examples.

Cradle to Cradle Design

Cradle-to-cradle design is popular environmental approach to product design that seeks to eliminate waste by designing products that can be continuously recirculated through our economy. This is contrasted against a "cradle to grave" design which typically includes single use products or products made of multiple different materials that cannot be separated in order to be recycled properly. [5] Cradle to Cradle design is mimicked after processes in the natural environment which do not create waste but instead every output is an input for another organism. Cradle to Cradle design is often achieved through using environmentally friendly resources (non-toxic) that can either be recycled into other products or composted. Another important component of cradle to cradle design is the ability to easily take products apart for better reuse as well as designing with durability in mind. This idea was popularized by the 2002 book Cradle to Cradle: Remaking the Way We Make Things written by William McDonough and Michael Braungart.

Bio-mimicry

Bio-mimicry (or Biomimetics) is a term created by American biophysicist Otto Schmitt that refers to recreating the solutions for problems found in nature. A definition provided by the Institute for Biomimicry (a non-profit organization) is as follows:

"Biomimicry is an approach to innovation that seeks sustainable solutions to human challenges by emulating nature's time tested patterns and strategies."

Some examples include studying the building of sand mounds by ants in order to create lower cost air circulation for buildings and trains with curved fronts mimicking the beaks of birds to increase speed. Other examples can be found in Janine Benyus' Ted Talk on biomimicry.

Triple bottom line accounting

Triple bottom line accounting is an accounting method that combines traditional accounting methods of measuring profit with those that measure social and environmental benefits as well. The phrase was created by John Elkington in 1994 at his company SustainAbility. Some criticisms have sprung up over what methods are to be used to measure environmental and social impacts.

Ecopreneurs may decide to develop their company under traditional business legal forms like a sole proprietorship or an LLC or they might choose some newer forms discussed below. These business forms are popular among the environmentally conscious community for their emphasis on social benefit.

Business examples

See also

Related Research Articles

<span class="mw-page-title-main">Recycling</span> Converting waste materials into new products

Recycling is the process of converting waste materials into new materials and objects. This concept often includes the recovery of energy from waste materials. The recyclability of a material depends on its ability to reacquire the properties it had in its original state. It is an alternative to "conventional" waste disposal that can save material and help lower greenhouse gas emissions. It can also prevent the waste of potentially useful materials and reduce the consumption of fresh raw materials, reducing energy use, air pollution and water pollution.

Industrial ecology (IE) is the study of material and energy flows through industrial systems. The global industrial economy can be modelled as a network of industrial processes that extract resources from the Earth and transform those resources into by-products, products and services which can be bought and sold to meet the needs of humanity. Industrial ecology seeks to quantify the material flows and document the industrial processes that make modern society function. Industrial ecologists are often concerned with the impacts that industrial activities have on the environment, with use of the planet's supply of natural resources, and with problems of waste disposal. Industrial ecology is a young but growing multidisciplinary field of research which combines aspects of engineering, economics, sociology, toxicology and the natural sciences.

<span class="mw-page-title-main">Zero waste</span> Philosophy that encourages the redesign of resource life cycles so that all products are reused

Zero waste, or waste minimization, is a set of principles focused on waste prevention that encourages redesigning resource life cycles so that all products are repurposed and/or reused. The goal of the movement is to avoid sending trash to landfills, incinerators, oceans, or any other part of the environment. Currently 9% of global plastic is recycled. In a zero waste system, all materials are reused until the optimum level of consumption is reached.

A sustainable business, or a green business, is an enterprise that has a minimal negative impact or potentially a positive effect on the global or local environment, community, society, or economy—a business that strives to meet the triple bottom line. They cluster under different groupings and the whole is sometimes referred to as "green capitalism." Often, sustainable businesses have progressive environmental and human rights policies. In general, a business is described as green if it matches the following four criteria:

  1. It incorporates principles of sustainability into each of its business decisions.
  2. It supplies environmentally friendly products or services that replace demand for nongreen products and/or services.
  3. It is greener than traditional competition.
  4. It has made an enduring commitment to environmental principles in its business operations.
<span class="mw-page-title-main">Reuse</span> Using again

Reuse is the action or practice of using an item, whether for its original purpose or to fulfill a different function. It should be distinguished from recycling, which is the breaking down of used items to make raw materials for the manufacture of new products. Reuse – by taking, but not reprocessing, previously used items – helps save time, money, energy and resources. In broader economic terms, it can make quality products available to people and organizations with limited means, while generating jobs and business activity that contribute to the economy.

<span class="mw-page-title-main">Waste minimisation</span> Process that involves reducing the amount of waste produced in society

Waste minimisation is a set of processes and practices intended to reduce the amount of waste produced. By reducing or eliminating the generation of harmful and persistent wastes, waste minimisation supports efforts to promote a more sustainable society. Waste minimisation involves redesigning products and processes and/or changing societal patterns of consumption and production.

<span class="mw-page-title-main">Cradle-to-cradle design</span> Biomimetic approach to the design of products

Cradle-to-cradle design is a biomimetic approach to the design of products and systems that models human industry on nature's processes, where materials are viewed as nutrients circulating in healthy, safe metabolisms. The term itself is a play on the popular corporate phrase "cradle to grave", implying that the C2C model is sustainable and considerate of life and future generations—from the birth, or "cradle", of one generation to the next generation, versus from birth to death, or "grave", within the same generation.

<span class="mw-page-title-main">Environmental enterprise</span>

An environmental enterprise is an environmentally friendly/compatible business. Specifically, an environmental enterprise is a business that produces value in the same manner which an ecosystem does, neither producing waste nor consuming unsustainable resources. In addition, an environmental enterprise rather finds alternative ways to produce one's products instead of taking advantage of animals for the sake of human profits. To be closer to the goal of being an environmentally friendly company, some environmental enterprises invest their money to develop or improve their technologies which are also environmentally friendly. In addition, environmental enterprises usually try to reduce global warming, so some companies use materials that are environmentally friendly to build their stores. They also set in place regulations that are environmentally friendly. All these efforts of the environmental enterprises can bring positive effects both for nature and people. The concept is rooted in the well-enumerated theories of natural capital, the eco-economy and cradle to cradle design. Examples of environmental enterprise would be Seventh Generation, Inc., and Whole Foods.

<span class="mw-page-title-main">Upcycling</span> Recycling waste into products of higher quality

Upcycling, also known as creative reuse, is the process of transforming by-products, waste materials, useless, or unwanted products into new materials or products perceived to be of greater quality, such as artistic value or environmental value.

<span class="mw-page-title-main">Sustainable fashion</span> Part of design philosophy and trend of sustainability in fashion

Sustainable fashion is a term describing efforts within the fashion industry to reduce its environmental impacts, protect workers producing garments, and uphold animal welfare. Sustainability in fashion encompasses a wide range of factors, including "cutting CO2 emissions, addressing overproduction, reducing pollution and waste, supporting biodiversity, and ensuring that garment workers are paid a fair wage and have safe working conditions".

<span class="mw-page-title-main">Ecological design</span> Design approach sensitive to environmental impacts

Ecological design or ecodesign is an approach to designing products and services that gives special consideration to the environmental impacts of a product over its entire lifecycle. Sim Van der Ryn and Stuart Cowan define it as "any form of design that minimizes environmentally destructive impacts by integrating itself with living processes." Ecological design can also be defined as the process of integrating environmental considerations into design and development with the aim of reducing environmental impacts of products through their life cycle.

<span class="mw-page-title-main">Sustainable packaging</span> Packaging which results in improved sustainability

Sustainable packaging is the development and use of packaging which results in improved sustainability. This involves increased use of life cycle inventory (LCI) and life cycle assessment (LCA) to help guide the use of packaging which reduces the environmental impact and ecological footprint. It includes a look at the whole of the supply chain: from basic function, to marketing, and then through to end of life (LCA) and rebirth. Additionally, an eco-cost to value ratio can be useful The goals are to improve the long term viability and quality of life for humans and the longevity of natural ecosystems. Sustainable packaging must meet the functional and economic needs of the present without compromising the ability of future generations to meet their own needs. Sustainability is not necessarily an end state but is a continuing process of improvement.

Environmentally sustainable design is the philosophy of designing physical objects, the built environment, and services to comply with the principles of ecological sustainability and also aimed at improving the health and comfort of occupants in a building. Sustainable design seeks to reduce negative impacts on the environment, the health and well-being of building occupants, thereby improving building performance. The basic objectives of sustainability are to reduce the consumption of non-renewable resources, minimize waste, and create healthy, productive environments.

A sustainability organization is (1) an organized group of people that aims to advance sustainability and/or (2) those actions of organizing something sustainably. Unlike many business organizations, sustainability organizations are not limited to implementing sustainability strategies which provide them with economic and cultural benefits attained through environmental responsibility. For sustainability organizations, sustainability can also be an end in itself without further justifications.

<span class="mw-page-title-main">Circular economy</span> Production model to minimise wastage and emissions

A circular economy is a model of resource production and consumption in any economy that involves sharing, leasing, reusing, repairing, refurbishing, and recycling existing materials and products for as long as possible. The concept aims to tackle global challenges such as climate change, biodiversity loss, waste, and pollution by emphasizing the design-based implementation of the three base principles of the model. The three principles required for the transformation to a circular economy are: designing out waste and pollution; keeping products and materials in use, and regenerating natural systems." CE is defined in contradistinction to the traditional linear economy. The idea and concepts of a circular economy have been studied extensively in academia, business, and government over the past ten years. It has been gaining popularity because it can help to minimize carbon emissions and the consumption of raw materials, open up new market prospects, and, principally, increase the sustainability of consumption.

Sustainable products are products who are either sustainability sourced, manufactured or processed that provide environmental, social and economic benefits while protecting public health and environment over their whole life cycle, from the extraction of raw materials until the final disposal.

Sustainable distribution refers to any means of transportation / hauling of goods between vendor and purchaser with lowest possible impact on the ecological and social environment, and includes the whole distribution process from storage, order processing and picking, packaging, improved vehicle loadings, delivery to the customer or purchaser and taking back packaging.

Resource recovery is using wastes as an input material to create valuable products as new outputs. The aim is to reduce the amount of waste generated, thereby reducing the need for landfill space, and optimising the values created from waste. Resource recovery delays the need to use raw materials in the manufacturing process. Materials found in municipal solid waste, construction and demolition waste, commercial waste and industrial wastes can be used to recover resources for the manufacturing of new materials and products. Plastic, paper, aluminium, glass and metal are examples of where value can be found in waste.

Life cycle thinking is an approach that emphasizes the assessment and minimization of environmental impacts at all stages of a product's life. This concept seeks to avoid shifting environmental burdens from one stage of the product's life to another. It also recognizes the importance of technological innovation in tackling environmental issues.

Sustainable Materials Management is a systemic approach to using and reusing materials more productively over their entire lifecycles. It represents a change in how a society thinks about the use of natural resources and environmental protection. By looking at a product's entire lifecycle new opportunities can be found to reduce environmental impacts, conserve resources, and reduce costs.

References

  1. Schuyler, Gwen (1998). Merging Economic and Environmental Concerns Through Ecopreneurship.
  2. Aronson, Dan. "Intro to Systems Thinking". Archived from the original on 2019-12-19. Retrieved 2016-04-18.
  3. Larson, Andrea (2000). Business Strategy and the Environment. pp. 304–317.
  4. "Product Design, Research and Development". Innovation, Science and Economic Development Canada. Government of Canada.
  5. McDonough, William (2002). Cradle to Cradle: Remaking the Way We Make Things . New York: North Point Press. pp.  27–30.