Rotary Bankapi Presentation – Conservation vs. Efficiency

          Client: Rotary Bankapi Bangkok
          Date: May 7th 2013

          Bangkok, May 7th, 2013                                                                                                

          The Rotary Club of Bangkapi had the pleasure of welcoming Mr. Daniel Koeppel, Managing Director of Daniel Koeppel & Associates Co., Ltd. with the topic

          “Money Isn’t All You Saving”

          Money isn's all you save.

          Money isn’s all you saving.

          Yesterday we learned that energy conservation refers to reducing energy through using less of an energy service, and that energy conservation differs from efficient energy use, which refers to using less energy for a constant service. For example, driving less is an example of energy conservation. Driving the same distance with a higher mileage/liter vehicle is an example of energy efficiency. Energy conservation and efficiency are both energy reduction techniques. Which one is more important or should they be applied together?

          The presentation started with a short overview of current & recent challenges we face individually and in business, to bring conservation and efficiency in context with environmental sustainability:

           

          The Challenges

          • 400 ppm atmospheric CO2 level by May 2013
          • Raising temperatures: +1 Celsius = 10% less crop yield
          • 750’000 persons without safe drinking water access
          • + 81 million new humans per year
          •  Resource depletion
          • N2 boundary
          • Peak oil
          • 14’000 tons per day of chemicals released into Biosphere

          Daniel then went on to examine the expressions “conservation” and “efficiency” in detail:

           

          Conservation can be reached by asking oneself if a particular action or use is really required and or necessary. To go a step further one can make the statement that conservation goes hand in hand with the re-assessment of the value of aforementioned action or use. Do I really need it? Does it make me happy? (Reverence is the Gross Happiness Index of Buthan and the happiness of Amish people compared to regular US citizens) The interconnection between sufficiency and conservation was made since conservation is mostly a personal decision or an internal decision.

          Efficiency is reached by doing a repetitive action utilizing a different approach or different tools. Therefor technology increases the efficiency. Here the interconnection was laid out between technology and efficiency. Technology is an external consideration.

          A short detour into the “boomerang effect” or “positive feedback” pointed out that technology couldn’t always be looked at as the savior. (e.g. Energy consumption reducing LED bulbs and the Hong Kong Skyline).

          Sustainability was explained with a 3 circle-containing diagram representing ecology, economy and society. Sustainability is the area where all three rings overlap. The same three circles are then renamed with efficiency, sufficiency and consistency or expressed in verbs:

           

          Efficiency – less
          Sufficiency – better
          Consistency – different

           

          Without sufficiency – there is no sustainability!

           

          The Solutions

          The presentation then proposed a list of possible solutions to address sustainability in one’s personal, or business life.

          For one’s personal life three points in the intellectual sphere can bring change: These are learning, deciding and committing. Tactically it is recommended that one keeps a log of one’s energy, water and waste generation first. The analysis of this data will point out areas of improvement. The subsequent implementation of such improvements however requires a lifelong commitment.

          In business life the recommended strategic approach includes a SWOT analysis where sustainability or climate change is a major consideration, including the detailed measuring of the current system in aspects such as energy, water and waste, and the reduction in short-term employment contracts for top executives as well as the reduction of the so-called “90 day profit thinking” (quarterly profit earnings).

           

          All these points above can easily be merged into a company policy or vision.

           

          Subsequent tactical recommendations include an environmental action plan addressing measurement analysis and potentially an environmental sustainability certification of the company’s existing management system.

          It is crucial that the communication of the certification and the measurements is done in a tangible and transparent way.

           

          The presentation came to an end by listing a few different viewpoints on policy level such as:

          • Companies and individuals don’t pay the true cost for resources consumed (externalizing costs) —-> Polluter pays (OECD 1975)
          • “Cradle to Cradle” and why does everyone need a washing machine?
          • Decentralization of energy production (e.g. Denmark)
          • Can we tax resource use rather than profits?

          Daniel also recommends the following Literature:

          • Mark Lynas – the God Species (2011)
          • Die Tretmuehlen des Gluecks – Matthias Binswanger (2006)
          • Collapse – Jared Diamond (2005)
          • Green Philosophy – Roger Scruton (2013)

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