WhydidSapienswin?
4
Source:DieerstenMenschen,WeltbildVerlag,2000.ISBN3-8289-0741-5
HomoerectusSource:Westfälisches
Landesmuseum,Herne,Germany
TheNeanderthalswerestronger Sapiencewonbecauseofconnectivity
30,000yearslater:wedominatetheplanet
5
Stilltwoforces:connectivity+innovation Nosystemthinking
Source:geographical
Businessasusual,wewillneedthreeplanets
6
Source:GlobalFootprintNetwork
Overconsumption Climatechange
Brandshaveleverage…
7
FilmedJuly2010atTEDGlobal2010JasonClay:Howbigbrandscanhelpsavebiodiversity
JasonClay,WWFatTED2010
Hundredsofcompaniescontrol70%ofcommodities
Thebottleneckbetweenacomplexsupplychainandacomplexdistributionsystem
Supplychain
Distributionsystem
“Thereisoneandonlyonesocialresponsibilityofbusiness-touseitsresourcesandengageinac7vi7esdesignedtoincreaseprofits.”
Source:universityofcolorado
10
Financialvs.Sustainability
“..ourlast,ouronlychancetoreachades7na7onthatassuresthepreserva.onoftheearth.”
Source:Kristenbaumlier
Notgrowingasanoption
Patagonia’s2011,NewYorkTimesad:“135litersofwater..warehousegeneratednearly20poundsofcarbondioxide..two-thirdsitsweightinwaste” Ledto15%growtheversince
12
Sustainabilityreports:everybodyisbecominggreener(excepttheenvironment)
0
500
1000
1500
2000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
PubliccompaniesdisclosingtotheCarbonDisclosureProject
13
Lackofdatastandards,confidentialityandvalidation Littlesystem-levelinformation(~96%oftheproblem)
14
Modifiedbasedon:triplepundit
NocorrelationfoundbetweenCorporateSocialResponsiblyandfinancialperformance
Profitability
CorporateSocialResponsibilityscore
17
Kme
ResourceproductivityEconomicgrowth
Kme
InflecKonpoint
Resourceuse
Kme2016?
ResourceProductivity= 𝑬𝒄𝒐𝒏𝒐𝒎𝒊𝒄 𝑮𝒓𝒐𝒘𝒕𝒉 ($)/𝑹𝒆𝒔𝒐𝒖𝒓𝒄𝒆 𝒖𝒔𝒆
Famousdecouplingexamples
18
Source:IBM
Largesttaxicompanyownsnotaxis(Uber) Largestaccommodationproviderownsnorealestate(Airbnb)
Avoidvaluedestruction
20
Volkswagenlost$33billioninvaluationinlessthan2weeks
Recallcost$16-$18billion
Productinnovation
21
Valuecreation
Valuedestruction
Compliance ProductInnovation
Resourceproductivity
Loweremission
Tesla’ssystemthinking
0 0.05 0.1 0.15 0.2 0.25
TeslaS(solar)
LexusES300
TeslaS(USgrid)
Teslavs.Lexus(kgCO2/mile)
22
Chargedfromthegrid,TeslaandLexusareequivalent Chargedwithsolar,Teslaisanorderofmagnitudebetter
ConnecKvity
23
Valuecreation
Valuedestruction
Compliance ProductInnovation
DataandConnectivity
Resourceproductivity
Lowemission
Efficientroaduse
24
SystemInefficiency:TrafficSolution:“Outsmartingtraffictogether”
Startedas"FreeMapIsrael”communityprojectin2006 $1.1billionacquisitionbyGooglein2013
BusinessModelInnovaKon
25
Valuecreation
Valuedestruction
Compliance ProductInnovation
DataandConnectivity
Resourceproductivity
Lowemission
Efficientroaduse
Businessmodelinnovation
Carsofftheroad
26
Systeminefficiency:driverswithcarsandtimeSolution:Uber…
FoundedinCaliforniain2009with$200,000seed 2015valuation~$62.5billion
SystemInnovation
27
Valuecreation
Valuedestruction
Compliance ProductInnovation
DataandConnectivity
Resourceproductivity
Lowemission
Efficientroaduse
Businessmodelinnovation
Carsofftheroad
Systeminnovation
Shared+electric+selfdrivingcar
Whowillreinventthesystem?
28
Valuecreation
Valuedestruction
Compliance ProductInnovation
DataandConnectivity
Resourceproductivity
Lowemission
Efficientroaduse
Businessmodelinnovation
Carsofftheroad
Systeminnovation
Shared+electric+selfdrivingcar
?
Thedata:highpain/highgain
30
1985 2006 20091996
NavteqtoWaze~20years NokiaacquiredNavteqfor$8.1billionin2007
Etak'sNavigator1985
Identifyingsysteminefficiencies
Sustainabiltycanbeservedimplicitly
Primarydataleadstovalue,overtime
31
33
Valuecreation
Valuedestruction
ComplianceResourceproductivityProduct
Innovation
Sourceforalternativeproteins:LuxResearch,“WhooPea:PlantSourcesAreChangingtheProteinLandscape”
ProductinnovaKon
ThedistribuKonsystem
34
Valuecreation
Valuedestruction
ComplianceResourceproductivityProduct
InnovationDataand
ConnectivitySysteminnovation
Businessmodelinnovation
Thesupplysystem
35
Valuecreation
Valuedestruction
ComplianceResourceproductivityProduct
InnovationDataand
ConnectivitySysteminnovation
Businessmodelinnovation
Water
Energy
Land
Nutrients
36
Valuecreation
Valuedestruction
ComplianceResourceproductivityProduct
InnovationDataand
Connectivity
ITCompanies:IntegratedHardware,SoWware,DataandAnalyKcsonthefarmlevel
37
Valuecreation
Valuedestruction
ComplianceResourceproductivityProduct
InnovationDataand
Connectivity
Chemicalcompanies:rethinkbusinessmodels
Businessmodelinnovation
Blockchainwillenablethe‘NaveteqofAg’
38
Food,pesticides,herbicides,water,energy,etc.thatflowsthroughasupplychainwillhaveapermanent,unalterablerecording
TheamountsineachSKUwouldhavea“stamp”goingbacktothesource
Thiswillallowaccurateverificationofresourceusebyproductandcompany
Water EnergyLandNitrogenPhosphorousetc.
‘BeefParity’Proteinbenchmarkingusingconventionalbeef
40
AverageUSindustrialscale,beefincludingherd-calf,stocker,andconcentratedfeedlotstagesforfinishingandprocessing
Calculatedper1,000kgofunpackagedmealandnormalizebyproteincontentandthePDCAAS(ProteinDigestibilityCorrectedAminoAcidScore)
Herd-Calfphase
Corngrowth
1,000kgbeefmeat
finished
cattle
41
0.00
0.50
1.00
1.50
2.00
baseline
Beef-conventional
0.00
0.50
1.00
1.50
2.00
baseline
Beef-grassfed
0.00
0.50
1.00
1.50
2.00
baseline
Swine
0.00
0.50
1.00
1.50
2.00
baseline
Poultry
0.00
0.50
1.00
1.50
2.00
baseline
Salmon-netpen
0.00
0.50
1.00
1.50
2.00
baseline
Salmon-marinebag
0.00
0.50
1.00
1.50
2.00
baseline
Tuna
0.00
0.50
1.00
1.50
2.00
baseline
Dairy
0.00
0.50
1.00
1.50
2.00
baseline
Eggs
0.00
0.50
1.00
1.50
2.00
baseline
Soybeanmeal
0.00
0.50
1.00
1.50
2.00
baseline
Canolameal
0.00
0.50
1.00
1.50
2.00
baseline
Peameal
0.00
0.50
1.00
1.50
2.00
baseline
Algae
0.00
0.50
1.00
1.50
2.00
baseline
Cricketmeal
*NormalizedbyproteincontentandPDCAAS
Protein‘BeefParity’resourceproducKvitydashboard
42
9% 5%
GHGs$
Fossil$Fuels$
Labor$
Land$
Nitrogen$runoff$
Wate
r$
56% Primarydatafromcricketfarms
Saveabout90%oftheGHGemissionandhalftheenergy
Focusonthermalsolutions
ResourceproductivityofcricketsAspercentageofbeefperunitofdigestibleprotein
Concentrate
feed
Corngrowthforfeed
Analyzethesupplychain
Identifyhotspots
Improve
SupplychainopKmizaKon–eggproteinexampleHowtoreducethedependenceonwater?
43
AlternaKvesuppliersAlternaKvefeed
Beaerwatermanagement
44
Hedidnothavetothinkaboutthesystem
Wedo!
Identifysysteminefficiencies
Thisiswheremoneywillbemade!
Andsustainabilitywillbeserved
LuxResearchInc.100FranklinStreet,8thFloorBoston,MA02110USAPhone:+16175025300Fax:+16175025301www.luxresearchinc.com
Thankyou
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