Clean 15 Series
Author Thom Hartmann wrote, “When enough people change the way they view things, solutions become evident, often in ways we couldn’t even imagine”.
While I may not agree with everything that Hartmann has to say, this quote captures a shift that is starting in the business world. Many of the Global 1000 are refocusing their mission statements around an inescapable question that stalks the future of all large companies, as they anticipate a future with 9 billion people and 2 billion new middle class consumers (currently depending on who you ask there are 700 to 800 million middle class consumers today).
Can we achieve infinite economic growth with finite resources? The short term seduction of much higher profits based on the new expansion in the coming consumer market is very exciting, however “you can’t keep drinking the water until the well runs dry,” or for the purpose of this article “you can’t keep pumping oil until the well runs dry.” Our business paradigms are based on the premise of limitless resources; however this premise is flawed and we are becoming increasingly aware of it. According to the International Energy Agency’s chief economist, Dr. Fatih Birol:
“The public and many governments appeared to be oblivious to the fact that the oil on which modern civilization depends is running out far faster than previously predicted and that global production is likely to peak in about 10 years.”
This quote was made in 2008, however the IEA’s first detailed assessment of more than 800 top oil fields in the world (This represents about 75 per cent of global reserves) have found that the biggest fields have already peaked and the rate of decline is faster than previously thought. The late Matthew Simmons believed that production peaked in 2005 and he went on record to say that the world would need approximately four Saudi Arabias worth of oil to keep pace with the predicted demand. The exact moment that we experience this peak is obviously up for debate, however this is concerning because all of our economic and social systems are based on oil. From our consumer products to our food, to our transportation and our energy with its aging infrastructure and from our viewpoint many of the world’s giant companies are taking notice. We know that we extract more resources than we replenish and it appears we will need a very focused global effort to shift our relationship between resources and business. The future of “business as usual” may very well depend on the unusual business of sustainability, to create better models with new clean technology and sustainable practices. To paradoxically do more with less. “Sustainability is the new black,” that will keep larger companies out of the red.
The Canadian Business Journal has teamed up with Clean 15 to contribute to this focus, but how do we change global systems that support our economy and our day to day lives? It seems to be the equivalent of changing the wings of a plane, while it is flying, just before it refuels in mid air. It turns out that momentum shifts paradigms. According to the Diffusion of Innovation Theory, a theory of the how, why and at what rate new ideas and technology spread through cultures, it takes approximately a 15 per cent adoption of an innovation to reach critical mass and start a shift towards the total uptake of the new innovation or model. Innovation diffusion however is not just about technology. It is about technology placed in the right areas with the right opinion leaders.
It is also about behavior and attitudes toward business and resources. Recently the vice president of the WWF, Jason Clay talked about this very point. He asserted that “if we could convince just 100 key companies to embrace sustainability the markets would shift to protect our planet from the consumption that it has already outgrown.” Critical mass then is attainable and quite possible. Already there is a plethora of Global 1000, mid-sized and small companies that have embraced sustainability and clean technology adoption, however many do not have an idea of what a “common north toward critical mass” could be collectively.
Albert Einstein once said “We can’t solve problems by using the same kind of thinking we used when we created them.”
Perhaps a focus on the critical mass of a 15 per cent adoption of new clean technologies and sustainable practices in the right areas with the right opinion leaders could develop enough momentum to create the shift and new opportunities for future prosperity. Think of the effects of WalMart and P&G mentioned in previous Clean 15 Series articles and even though impressive, it is not enough. We will need more strategically placed organizations large, small and everything in between to become serious about the challenge of moving to the first clean 15 per cent. It is becoming very clear to large companies that this is not just a matter of competitive advantage, whereby they can acquire large amounts of market share from companies that are too slow to respond, it is also a matter survival for them as well because all of their inputs are based on oil and natural resources. With this in mind we introduce The Canadian Business Journal, Clean 15 clean technology competition winner for 2010.
CLEAN 15 2010 WINNER CBJ and Clean 15, along with its strategic partners Fogler, Rubinoff LLP, Yet2.com and OCETA are pleased to announce ATI-Composites as the 2010 Clean 15 clean technology competition winner. ATI-Composites is a company dedicated to the research, development, production and code approvals of unique building products, systems and (fire retardant) components. This company has developed a lightweight, insulating “Mineral Foam Concrete” using salt water, recycled water, desert sand without the use of Portland cement. Being able to use salt water as part of a process like this with a solid third party verification is a world’s first.
The emerging world is being built at a speed never before seen in human history. Thirty years ago 18 per cent of China’s 1.5 billion people lived in cities and towns. In 2010 that number is 50 per cent. The world is witnessing the development of its first mega regions. The Hong Kong-Shenzen-Guangzhou region in China is home to approximately 120 million people. The Rio de Janeiro-Sao Paulo region has just over 43 million people and there are areas in West Africa, India and Asia that are growing at even faster speeds. While massive urbanization has the potential to be a positive trend in neo-environmental speak, we will need to build all of this new development with less carbon intensive materials that use much less potable water and produce significantly less GHG emissions.
ATI-Composites’ technology is significant because it reduces the emissions of building materials, it uses waste materials such as rice hulls, straw, shells and husks as binders and can use salt and recycled water (Concrete requires a tremendous amount of fresh water). The first application of the technology involved the creation of structural panels, which offer lighter weight and greater flexibility than conventional precast concrete panels common in the market today. The fact that ATI-Composites’ binders offer compressive strength up to 9000 PSI means that incorporating lightweight fillers and foaming agents will not rob the finished panels of the compressive strength required to perform the function of the panel. The application can very cost-effectively replace autoclaved aerated concrete at a fraction of the capital cost of an ACC production facility. The mix can be designed to offer significant improvements in productivity at two to three times that of concrete. The company has run two third party fire resistance tests and succeeded on achieving a two hour fire rating and because of its thermal efficiency and light weight, it reduces the need for heating and cooling as well as a reduction in transportation. Better, Stronger, Faster and Cheaper. The potential impact of this technology placed in the right distribution channels is staggering. In the coming years ATI-Composites’ technology platform has the potential to change the way we build our urban world. The company is already being consulted on a major stealth development that will use its technology and is in talks with a $400 million dollar revenue international company.
Whether you believe in Global Warming or not, we know that we will have to deal with a changing climate and prepare for adaptation, whether your business can draw a direct line to oil or not, we know that we will have to tackle a decline in oil production and oil’s strategically vulnerable importance to our economy and livelihoods. Whether or not your business can identify its water footprint across the entire supply chain, the planet’s fresh water supply is being used faster than it is being replenished and we will have to transform the way we use water.
In 1907 former leader of the Republican party and US President Theodore Roosevelt said “We have become great because of the lavish use of our resources and we have just reason to be proud of our growth. But the time has come to inquire seriously what will happen when our forests are gone, when the coal, the iron, the oil, and the gas are exhausted, when the soils shall have still further impoverished and washed into the streams, polluting the rivers, denuding the fields, and obstructing navigation, the minerals do not renew themselves. Therefore in dealing with the coal, the oil, the iron, metals generally, all that we can do is try to see that they wisely used.”
