Business for a sustainable New...

33
2014 opportunities Business for a sustainable New Zealand

Transcript of Business for a sustainable New...

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2014

opportunities Business

for a sustainable New Zealand

ForewordMany of the systems we rely on ndash food water transport energy and social systems ndash are increasingly not meeting our needs We need to find a way to make them more resilient more equitable and able to continue into the future and we need practical means of doing this

Business has a crucial role to play in transforming these systems Yet years of experience have taught us that these issues are too complex for individual organisations to make an impactful contribution on their own Itrsquos through collaboration that we can start to make a difference and this has been at the heart of our work during 2014

Albert Einstein said that ldquoIn the middle of difficulty lies opportunityrdquo and I believe that in the midst of the challenges we are facing with our food transport energy and social systems there lie opportunities for the many pioneering entrepreneurial organisations we are so fortunate to have in New Zealand

This report identifies more than 60 opportunities that have the potential to shift New Zealand markets onto a more sustainable path It represents the collective output of some truly bold and innovative individuals and organisations that I have had the pleasure of working with this year Our next steps will be to work with them ndash and many more businesses around the country ndash to unlock the potential of these opportunities and make some of them a reality

I am tremendously grateful to the organisations that have stepped up to partner with us in our four new work streams In particular Irsquod like to thank our Founding Partners Gull Hubbards Auckland Council INZIDE Commercial and Philips Together with our Support Partners ndash Opus AECOM Auckland Transport Fulton Hogan Chorus Apex Nelmac and WasteMinz ndash they are leading the path to a more sustainable future for us all

SustainableBusinessNetwork

Business opportunities for a sustainable New Zealand

2

Wersquod love you to join us and our Partners in progressing our work on smart transport social value the circular economy and restorative food Wersquore continuing to build new collaborative projects in areas such as procurement sustainable investment and electric vehicles and there are opportunities to take part whether your interest lies in partnering with us or simply keeping up to date with our progress I welcome you

Rachel BrownCEOSustainable Business NetworkNovember 2014

ContentsIntroduction

Accelerating Smart Transport in New Zealand

Embedding Social Value into Business Models

Accelerating the Circular Economy in New Zealand

Restoring New Zealandrsquos Food System

Next steps

3

4

8

14

19

25

31

Introduction BackgroundIn 2014 the Sustainable Business Network embarked on a new course of work in collaboration with hundreds of diverse organisations large and small to help bring about a better business future for New Zealand This report summarises the business opportunities identified in four work streams smart transport social value the circular economy and restorative food

The Sustainable Business Network (SBN) has embarked on a bold strategy to transform New Zealand to a model sustainable nation by leading positive change in four transformation areas Renewables Mega efficiency Community and Restorative

Within each of these transformation areas we have identified one work stream which is an area of critical importance to New Zealand in which we want to use the strength and diversity of our Network to help shift systems onto a more sustainable path Our work during 2014 has focused on identifying business opportunities in each of these work streams

RenewablesAccelerating Smart

Transport in NZ

CommunityEmbedding Social Value into Business

Models

Mega efficiencyAccelerating the

Circular Economy in NZ

RestorativeRestoring NZrsquos Food

System

4

Million MetresStreams The Big ShiftFor the Restorative transformation area we have also launched a separate project to focus on improving the health of New Zealandrsquos waterways The Million Metres Streams project is the first of its kind in New Zealand and is a crowdfunding website aimed at scaling and speeding up the planting of waterways around New Zealand

The issue is urgent and needs our support We encourage all businesses and individuals to make a donation today

millionmetresorgnz

SBN has partnered with UK-based Forum for the Future one of the worldrsquos leading sustainability organisations to apply their Big Shift approach to each of our four work streams

The Big Shift (theBIGshift) is a simple and effective method to identify practical ways of bringing about change It is a new approach to business innovation which is already used by global brands such as Nike Unilever Marks amp Spencer and Ecover and on sectors such as energy shipping dairy and others The Big Shift uses simple practical steps to map problems identify solutions and embed change

The Big Shift is based around the concept of System Innovation which is a set of actions that shift a system ndash a city a sector an economy ndash onto a more sustainable path At the heart of System Innovation is the understanding that this is too big for any organisation to solve on its own and we need to collaborate in order to bring about positive change

The Big Shift is based on a step-by-step guide to system innovation SBN has adapted Forum for the Futurersquos framework to suit the New Zealand business environment and over a three year time period we will be putting it into action in each of our four work streams Our own Big Shift includes the following steps (the first six of which were completed in 2014)

The process

5

SBNrsquos Big Shift Problem Identification

StakeholderAnalysis

Big Think

National Conference

National Awards

Opportunities Report

Identifying the problem Initial research

Stakeholder analysisResearch and discussions with other organisations to identify key stakeholders

The Big ThinkA series of surveys and events held around New Zealand in August 2014 to bring stakeholders and interested parties together to identify between four and six focus areas (or Leverage Points) for each work stream

National Conference Held in Auckland in September 2014 with Stephanie Draper Deputy CEO of Forum of the Future and architect of The Big Shift officially launching The Big Shift in New Zealand Attendees participated in workshops on opportunities within each focus area

National AwardsThe NZI National Sustainable Business Network Awards showcase and celebrate existing pioneering practices that are helping create a more sustainable New Zealand

Opportunities ReportLaunch of this report at events around the country in NovemberDecember 2014 to introduce the potential pioneering business concepts that have the ability to shift markets onto a more sustainable path

1

2

3

4

5

6

6

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 2: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

ForewordMany of the systems we rely on ndash food water transport energy and social systems ndash are increasingly not meeting our needs We need to find a way to make them more resilient more equitable and able to continue into the future and we need practical means of doing this

Business has a crucial role to play in transforming these systems Yet years of experience have taught us that these issues are too complex for individual organisations to make an impactful contribution on their own Itrsquos through collaboration that we can start to make a difference and this has been at the heart of our work during 2014

Albert Einstein said that ldquoIn the middle of difficulty lies opportunityrdquo and I believe that in the midst of the challenges we are facing with our food transport energy and social systems there lie opportunities for the many pioneering entrepreneurial organisations we are so fortunate to have in New Zealand

This report identifies more than 60 opportunities that have the potential to shift New Zealand markets onto a more sustainable path It represents the collective output of some truly bold and innovative individuals and organisations that I have had the pleasure of working with this year Our next steps will be to work with them ndash and many more businesses around the country ndash to unlock the potential of these opportunities and make some of them a reality

I am tremendously grateful to the organisations that have stepped up to partner with us in our four new work streams In particular Irsquod like to thank our Founding Partners Gull Hubbards Auckland Council INZIDE Commercial and Philips Together with our Support Partners ndash Opus AECOM Auckland Transport Fulton Hogan Chorus Apex Nelmac and WasteMinz ndash they are leading the path to a more sustainable future for us all

SustainableBusinessNetwork

Business opportunities for a sustainable New Zealand

2

Wersquod love you to join us and our Partners in progressing our work on smart transport social value the circular economy and restorative food Wersquore continuing to build new collaborative projects in areas such as procurement sustainable investment and electric vehicles and there are opportunities to take part whether your interest lies in partnering with us or simply keeping up to date with our progress I welcome you

Rachel BrownCEOSustainable Business NetworkNovember 2014

ContentsIntroduction

Accelerating Smart Transport in New Zealand

Embedding Social Value into Business Models

Accelerating the Circular Economy in New Zealand

Restoring New Zealandrsquos Food System

Next steps

3

4

8

14

19

25

31

Introduction BackgroundIn 2014 the Sustainable Business Network embarked on a new course of work in collaboration with hundreds of diverse organisations large and small to help bring about a better business future for New Zealand This report summarises the business opportunities identified in four work streams smart transport social value the circular economy and restorative food

The Sustainable Business Network (SBN) has embarked on a bold strategy to transform New Zealand to a model sustainable nation by leading positive change in four transformation areas Renewables Mega efficiency Community and Restorative

Within each of these transformation areas we have identified one work stream which is an area of critical importance to New Zealand in which we want to use the strength and diversity of our Network to help shift systems onto a more sustainable path Our work during 2014 has focused on identifying business opportunities in each of these work streams

RenewablesAccelerating Smart

Transport in NZ

CommunityEmbedding Social Value into Business

Models

Mega efficiencyAccelerating the

Circular Economy in NZ

RestorativeRestoring NZrsquos Food

System

4

Million MetresStreams The Big ShiftFor the Restorative transformation area we have also launched a separate project to focus on improving the health of New Zealandrsquos waterways The Million Metres Streams project is the first of its kind in New Zealand and is a crowdfunding website aimed at scaling and speeding up the planting of waterways around New Zealand

The issue is urgent and needs our support We encourage all businesses and individuals to make a donation today

millionmetresorgnz

SBN has partnered with UK-based Forum for the Future one of the worldrsquos leading sustainability organisations to apply their Big Shift approach to each of our four work streams

The Big Shift (theBIGshift) is a simple and effective method to identify practical ways of bringing about change It is a new approach to business innovation which is already used by global brands such as Nike Unilever Marks amp Spencer and Ecover and on sectors such as energy shipping dairy and others The Big Shift uses simple practical steps to map problems identify solutions and embed change

The Big Shift is based around the concept of System Innovation which is a set of actions that shift a system ndash a city a sector an economy ndash onto a more sustainable path At the heart of System Innovation is the understanding that this is too big for any organisation to solve on its own and we need to collaborate in order to bring about positive change

The Big Shift is based on a step-by-step guide to system innovation SBN has adapted Forum for the Futurersquos framework to suit the New Zealand business environment and over a three year time period we will be putting it into action in each of our four work streams Our own Big Shift includes the following steps (the first six of which were completed in 2014)

The process

5

SBNrsquos Big Shift Problem Identification

StakeholderAnalysis

Big Think

National Conference

National Awards

Opportunities Report

Identifying the problem Initial research

Stakeholder analysisResearch and discussions with other organisations to identify key stakeholders

The Big ThinkA series of surveys and events held around New Zealand in August 2014 to bring stakeholders and interested parties together to identify between four and six focus areas (or Leverage Points) for each work stream

National Conference Held in Auckland in September 2014 with Stephanie Draper Deputy CEO of Forum of the Future and architect of The Big Shift officially launching The Big Shift in New Zealand Attendees participated in workshops on opportunities within each focus area

National AwardsThe NZI National Sustainable Business Network Awards showcase and celebrate existing pioneering practices that are helping create a more sustainable New Zealand

Opportunities ReportLaunch of this report at events around the country in NovemberDecember 2014 to introduce the potential pioneering business concepts that have the ability to shift markets onto a more sustainable path

1

2

3

4

5

6

6

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 3: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Wersquod love you to join us and our Partners in progressing our work on smart transport social value the circular economy and restorative food Wersquore continuing to build new collaborative projects in areas such as procurement sustainable investment and electric vehicles and there are opportunities to take part whether your interest lies in partnering with us or simply keeping up to date with our progress I welcome you

Rachel BrownCEOSustainable Business NetworkNovember 2014

ContentsIntroduction

Accelerating Smart Transport in New Zealand

Embedding Social Value into Business Models

Accelerating the Circular Economy in New Zealand

Restoring New Zealandrsquos Food System

Next steps

3

4

8

14

19

25

31

Introduction BackgroundIn 2014 the Sustainable Business Network embarked on a new course of work in collaboration with hundreds of diverse organisations large and small to help bring about a better business future for New Zealand This report summarises the business opportunities identified in four work streams smart transport social value the circular economy and restorative food

The Sustainable Business Network (SBN) has embarked on a bold strategy to transform New Zealand to a model sustainable nation by leading positive change in four transformation areas Renewables Mega efficiency Community and Restorative

Within each of these transformation areas we have identified one work stream which is an area of critical importance to New Zealand in which we want to use the strength and diversity of our Network to help shift systems onto a more sustainable path Our work during 2014 has focused on identifying business opportunities in each of these work streams

RenewablesAccelerating Smart

Transport in NZ

CommunityEmbedding Social Value into Business

Models

Mega efficiencyAccelerating the

Circular Economy in NZ

RestorativeRestoring NZrsquos Food

System

4

Million MetresStreams The Big ShiftFor the Restorative transformation area we have also launched a separate project to focus on improving the health of New Zealandrsquos waterways The Million Metres Streams project is the first of its kind in New Zealand and is a crowdfunding website aimed at scaling and speeding up the planting of waterways around New Zealand

The issue is urgent and needs our support We encourage all businesses and individuals to make a donation today

millionmetresorgnz

SBN has partnered with UK-based Forum for the Future one of the worldrsquos leading sustainability organisations to apply their Big Shift approach to each of our four work streams

The Big Shift (theBIGshift) is a simple and effective method to identify practical ways of bringing about change It is a new approach to business innovation which is already used by global brands such as Nike Unilever Marks amp Spencer and Ecover and on sectors such as energy shipping dairy and others The Big Shift uses simple practical steps to map problems identify solutions and embed change

The Big Shift is based around the concept of System Innovation which is a set of actions that shift a system ndash a city a sector an economy ndash onto a more sustainable path At the heart of System Innovation is the understanding that this is too big for any organisation to solve on its own and we need to collaborate in order to bring about positive change

The Big Shift is based on a step-by-step guide to system innovation SBN has adapted Forum for the Futurersquos framework to suit the New Zealand business environment and over a three year time period we will be putting it into action in each of our four work streams Our own Big Shift includes the following steps (the first six of which were completed in 2014)

The process

5

SBNrsquos Big Shift Problem Identification

StakeholderAnalysis

Big Think

National Conference

National Awards

Opportunities Report

Identifying the problem Initial research

Stakeholder analysisResearch and discussions with other organisations to identify key stakeholders

The Big ThinkA series of surveys and events held around New Zealand in August 2014 to bring stakeholders and interested parties together to identify between four and six focus areas (or Leverage Points) for each work stream

National Conference Held in Auckland in September 2014 with Stephanie Draper Deputy CEO of Forum of the Future and architect of The Big Shift officially launching The Big Shift in New Zealand Attendees participated in workshops on opportunities within each focus area

National AwardsThe NZI National Sustainable Business Network Awards showcase and celebrate existing pioneering practices that are helping create a more sustainable New Zealand

Opportunities ReportLaunch of this report at events around the country in NovemberDecember 2014 to introduce the potential pioneering business concepts that have the ability to shift markets onto a more sustainable path

1

2

3

4

5

6

6

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 4: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Introduction BackgroundIn 2014 the Sustainable Business Network embarked on a new course of work in collaboration with hundreds of diverse organisations large and small to help bring about a better business future for New Zealand This report summarises the business opportunities identified in four work streams smart transport social value the circular economy and restorative food

The Sustainable Business Network (SBN) has embarked on a bold strategy to transform New Zealand to a model sustainable nation by leading positive change in four transformation areas Renewables Mega efficiency Community and Restorative

Within each of these transformation areas we have identified one work stream which is an area of critical importance to New Zealand in which we want to use the strength and diversity of our Network to help shift systems onto a more sustainable path Our work during 2014 has focused on identifying business opportunities in each of these work streams

RenewablesAccelerating Smart

Transport in NZ

CommunityEmbedding Social Value into Business

Models

Mega efficiencyAccelerating the

Circular Economy in NZ

RestorativeRestoring NZrsquos Food

System

4

Million MetresStreams The Big ShiftFor the Restorative transformation area we have also launched a separate project to focus on improving the health of New Zealandrsquos waterways The Million Metres Streams project is the first of its kind in New Zealand and is a crowdfunding website aimed at scaling and speeding up the planting of waterways around New Zealand

The issue is urgent and needs our support We encourage all businesses and individuals to make a donation today

millionmetresorgnz

SBN has partnered with UK-based Forum for the Future one of the worldrsquos leading sustainability organisations to apply their Big Shift approach to each of our four work streams

The Big Shift (theBIGshift) is a simple and effective method to identify practical ways of bringing about change It is a new approach to business innovation which is already used by global brands such as Nike Unilever Marks amp Spencer and Ecover and on sectors such as energy shipping dairy and others The Big Shift uses simple practical steps to map problems identify solutions and embed change

The Big Shift is based around the concept of System Innovation which is a set of actions that shift a system ndash a city a sector an economy ndash onto a more sustainable path At the heart of System Innovation is the understanding that this is too big for any organisation to solve on its own and we need to collaborate in order to bring about positive change

The Big Shift is based on a step-by-step guide to system innovation SBN has adapted Forum for the Futurersquos framework to suit the New Zealand business environment and over a three year time period we will be putting it into action in each of our four work streams Our own Big Shift includes the following steps (the first six of which were completed in 2014)

The process

5

SBNrsquos Big Shift Problem Identification

StakeholderAnalysis

Big Think

National Conference

National Awards

Opportunities Report

Identifying the problem Initial research

Stakeholder analysisResearch and discussions with other organisations to identify key stakeholders

The Big ThinkA series of surveys and events held around New Zealand in August 2014 to bring stakeholders and interested parties together to identify between four and six focus areas (or Leverage Points) for each work stream

National Conference Held in Auckland in September 2014 with Stephanie Draper Deputy CEO of Forum of the Future and architect of The Big Shift officially launching The Big Shift in New Zealand Attendees participated in workshops on opportunities within each focus area

National AwardsThe NZI National Sustainable Business Network Awards showcase and celebrate existing pioneering practices that are helping create a more sustainable New Zealand

Opportunities ReportLaunch of this report at events around the country in NovemberDecember 2014 to introduce the potential pioneering business concepts that have the ability to shift markets onto a more sustainable path

1

2

3

4

5

6

6

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 5: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Million MetresStreams The Big ShiftFor the Restorative transformation area we have also launched a separate project to focus on improving the health of New Zealandrsquos waterways The Million Metres Streams project is the first of its kind in New Zealand and is a crowdfunding website aimed at scaling and speeding up the planting of waterways around New Zealand

The issue is urgent and needs our support We encourage all businesses and individuals to make a donation today

millionmetresorgnz

SBN has partnered with UK-based Forum for the Future one of the worldrsquos leading sustainability organisations to apply their Big Shift approach to each of our four work streams

The Big Shift (theBIGshift) is a simple and effective method to identify practical ways of bringing about change It is a new approach to business innovation which is already used by global brands such as Nike Unilever Marks amp Spencer and Ecover and on sectors such as energy shipping dairy and others The Big Shift uses simple practical steps to map problems identify solutions and embed change

The Big Shift is based around the concept of System Innovation which is a set of actions that shift a system ndash a city a sector an economy ndash onto a more sustainable path At the heart of System Innovation is the understanding that this is too big for any organisation to solve on its own and we need to collaborate in order to bring about positive change

The Big Shift is based on a step-by-step guide to system innovation SBN has adapted Forum for the Futurersquos framework to suit the New Zealand business environment and over a three year time period we will be putting it into action in each of our four work streams Our own Big Shift includes the following steps (the first six of which were completed in 2014)

The process

5

SBNrsquos Big Shift Problem Identification

StakeholderAnalysis

Big Think

National Conference

National Awards

Opportunities Report

Identifying the problem Initial research

Stakeholder analysisResearch and discussions with other organisations to identify key stakeholders

The Big ThinkA series of surveys and events held around New Zealand in August 2014 to bring stakeholders and interested parties together to identify between four and six focus areas (or Leverage Points) for each work stream

National Conference Held in Auckland in September 2014 with Stephanie Draper Deputy CEO of Forum of the Future and architect of The Big Shift officially launching The Big Shift in New Zealand Attendees participated in workshops on opportunities within each focus area

National AwardsThe NZI National Sustainable Business Network Awards showcase and celebrate existing pioneering practices that are helping create a more sustainable New Zealand

Opportunities ReportLaunch of this report at events around the country in NovemberDecember 2014 to introduce the potential pioneering business concepts that have the ability to shift markets onto a more sustainable path

1

2

3

4

5

6

6

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 6: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

SBNrsquos Big Shift Problem Identification

StakeholderAnalysis

Big Think

National Conference

National Awards

Opportunities Report

Identifying the problem Initial research

Stakeholder analysisResearch and discussions with other organisations to identify key stakeholders

The Big ThinkA series of surveys and events held around New Zealand in August 2014 to bring stakeholders and interested parties together to identify between four and six focus areas (or Leverage Points) for each work stream

National Conference Held in Auckland in September 2014 with Stephanie Draper Deputy CEO of Forum of the Future and architect of The Big Shift officially launching The Big Shift in New Zealand Attendees participated in workshops on opportunities within each focus area

National AwardsThe NZI National Sustainable Business Network Awards showcase and celebrate existing pioneering practices that are helping create a more sustainable New Zealand

Opportunities ReportLaunch of this report at events around the country in NovemberDecember 2014 to introduce the potential pioneering business concepts that have the ability to shift markets onto a more sustainable path

1

2

3

4

5

6

6

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 7: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Whatrsquos next

7

8

9

10

During 2015 and 2016 we will carry out the following steps

Projects We have already started working with our members and project partners on system innovation projects includingbull Electric vehiclesbull Biodieselbull Cyclingbull Local food governancebull Sustainable investmentbull Sustainable procurementbull Community footprintingbull Circular Economy Model Officebull Waterway restoration (via the Million Metres Streams project)

Innovation CanvasWorking with our members utilising a new tool called an Innovation Canvas to help them understand how to realise opportunities for their own businesses

Activity Supporting other projects and pioneering practices that can play a role in shifting NZ onto a more sustainable path via profiling opportunities and connecting in other relevant organisations

2015 Conference Project NZUpdate on progress involving more organisations

This report is the culmination of SBNrsquos work on system innovation to date It identifies pioneering business opportunities that have the potential to shift markets onto a more sustainable path The report represents the collective work of hundreds of individuals and organisations who have participated with us in events workshops and surveys The next step will be to unlock the potential of these opportunities through engagement and collaboration with businesses individuals and other organisations

We invite you to engage with us ndash whether your interest lies in transport food social value the circular economy or a combination wersquod love you to join us

Individual contacts for each work stream can be found on page 32 or you can contact our office to find out more on +64 (0)9 826 0394 officesustainableorgnz

ReportOpportunities

7

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 8: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

New Zealand currently holds one of the leading positions globally in renewable energy sources for electricity use However in the efforts to move towards sourcing all our energy from renewable sources one of our biggest challenges is transport Almost all the energy sourced to power our national fleet is non-renewable The current situation has us exposed not only to the environmental risks associated with greenhouse gases and climate change but also the security of our energy supply and dependency as a nation on the global energy markets

IssuesThe shift to Smart Transport alternatives is already underway Nationally a range of pioneering transport options exist which may have the potential for scale replication and mass promotion Growing business opportunities exist in capitalising on emerging technology integration with home energy systems and better utilisation of the national fleet

Early in 2014 SBN interviewed transport industry experts across New Zealand Six themes emerged as focus areas for transport solutions

Potential solutionsbeyond fossil fuels We explored these themes further in a series of Big Think events around the country where we developed a deeper understanding of the associated challenges and innovations The following outlines these themes with a series of commercial opportunities for each

8

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 9: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 1

Adopting electric vehicles amp biofuelss The dominant expectation is that electric vehicles and biofuels will be the technology that will best leverage our natural resources and provide the most feasible options to power the New Zealand fleet in the near future There has been a lot of activity recently in both these areas For example the $30000 drop in price of the Nissan Leaf has

put electric vehicles within the range of consideration of fleet managers around the country Similarly public moves by Z Energy in its commitment to biofuel production has put it on the radar with Gull for those companies interested in the huge emission reductions possible with these fuel types

Station electric

vehicle fleetsUsing a platform for easy

payment create an electric vehicle fleet that people can take home or use to travel

to meetings from train stations

Model smart home

Build a demonstration home with the

technology of the future showing how

electric vehicles integrate with

the home

Open power gridCreate a website

platform and a set-up pack to enable consumers to offer their driveways for electric vehicle charging stations and be paid a

flat fee for use

Opportunities include

Corporate fleet models

In collaboration with a set of companies create models of electric vehicle or biofuel integrated

corporate fleets

9

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 10: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 2

Smart phones homes amp neighbourhoods fu-With more than two million Kiwis currently owning a smart phone it is assumed that these devices will play much more of a central role in transport in the future Apps like Uber in Auckland and Wellington show the potential of the phone in transport Users can call a ride with

the simple touch of a button Homes and neighbourhoods are also being explored for their potential role in transport solutions from the home as a charging point for electric vehicles to models of sharing workspace in neighbourhoods to reduce the amount of trips we do

Model smart home

Create a demonstration home with the

technology of the future showing how it can connect people to

work from home

Local social network

Create or strengthen local web-based

social networks to connect locals around

commuting school trips and grocery

trips

Local hub

Create or retrofit office space as hubs

for local business people to use instead

of making the commute into

town

Trip planning

Develop or promote smartphone apps that use public transport data to help people

plan their trips

Opportunities include

Opportunities include

10

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 11: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 3

Using public transportThere are a growing number of model cities around the world providing inspiration for the challenge of how to increase the use of public transport solutions long held as an integral part of New Zealandrsquos transportation future New York Portland and Melbourne are a few that hold valuable lessons for consideration across New Zealand Creative collaborations and council experiments are the theme here

Station bike fleets

Using a platform like the Auckland Transport

HOP Card for easy payment create a fleet of bikes people can use

from bus stops and stations

Opportunities include

Public transport rewards

Create a rewards structure with

partners like Flybuys to incentivise the

increased use of public transport

Innovation class

Use LinkedIn as a platform to create

connections between business mentors and

those needing mentoring using a train carriage

as a meeting place

Free ride challenge

Provide free access to public transport services for a day with a challenge to

incentivise people to experience it

11

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 12: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 4 Sharing vehicles

One of the big opportunity areas for emissions reduction across the country is the better use of the vehicles we already have on the road There are a number of ventures working in this area including YourDrive a ride share service and findatruckloadconz which will help identify trucks travelling around New Zealand with empty loads available for use

Find atruck

Extend lsquoFindatruckloadrsquo to include smaller vehicles like vans

and integrate it with companies like New

Zealand Post

Opportunities include

Use shipping

containersDevelop a set of services to utilise unused shipping

containers for slow freight or product

returns

Friend car sharing

Using a social network platform create

challenges for friends and colleagues to

share cars between themselves

Share parked cars

Create an online app to enable people to share their cars when they are parked at work

the airport or around town

12

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 13: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 5

Reducing vehicles on the road While investment in infrastructure has a current emphasis on roading there is significant interest around the country in the development of other transport modes A balanced mix of transport infrastructure is needed for mature transport systems so it is important that those with interests in active transport modes (such as walking and cycling) make the most of the current resources available It seems that most of the conversations regarding active transport around the country are currently focused on bikes and cycling infrastructure and there are a range of creative ventures already taking place

Bike poolsDevelop a series of

shared pools of bikes across cities where

people donate their old bikes to be fixed and

used

Bike game Develop apps that motivate people to start and continue

biking

Bike sharesystems

Combine the learning from around New Zealand on how

to build good bike sharing services

Opportunities include

Public bikes

Integrate bikes into the current transport

modes that public transport payment cards give people

access to

13

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 14: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

The social problems that New Zealand is facing ndash poverty homelessness health issues slow income growth and low productivity rates ndash seem to be compounding compared to other countries in the OECD As this is happening many businesses are trying to understand what impact they can have on these critical issues and make it part of the fundamental way in which they operate They want to understand their communities better so they can service community needs through their business operations

Many companies find it hard to understand how they can create social value while still maintaining their mandate to operate a profitable business All key stakeholders need to be involved and there is no lsquoone

Issues

The first step for any organisation wanting to create positive social impact at the same time as creating business value is to figure out a strategy One of the critical issues for many businesses SBN spoke to was the time investment involved in considering strategies understanding and engaging stakeholders and finding where the critical alignment lies However if a business doesnrsquot have social value as part of its core strategy and value proposition then

it will struggle for relevance in a world that is becoming increasingly educated about the impact of purchasing If businesses take the time to understand this properly then they will create much greater impact a better work culture stronger relationships with partners both in the community and in the supply chain and better products and services for a complex world

Through research and discussions with organisations in our Network we have identified the most common challenges that organisations and individuals face when trying to create social value each of which presents a key opportunity

Our research looked into the different elements of an organisation that can be re-imagined to create social value and identified areas where there are some exciting opportunities

size fits allrsquo solution The process of understanding what their target social group needs can be time consuming and challenging without an established framework

Potentialsolutions

14

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 15: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 1 Peoplefuels

Increasingly a businessrsquo competitive advantage is as much driven by its people as it is by the superior products and services it provides Therefore we need to value and engage our employees as they are our biggest asset Ensuring that your organisation has a culture that is focused around its purpose and employees that are motivated and excited about that purpose is critical to the success of any strategy

Gamifyingemployee engagement

programmes A great way to establish

programmes that excite people and will empower them to take your purpose further into their

own lives by turning challenges into virtual lsquogamesrsquo

This is a key challenge The reasons behind this include incentive structures of organisations values alignment and time to maintain momentum The opportunities to empower employees are massive ensuring that you attract and retain the best talent since according to Colmar Brunton 70 of New Zealanders say they want to work for a sustainable company

Opportunities include

Co-operative organisational

structures A key way to create the most social

impact through organisational structures and employee

programmes This may be through a co-operative business model

where employees or stakeholders actually part-own the company (eg Enspiral or Foodstuffs) or through collaborative decision making and

organisational structure

Recruit for values alignment

not just skills The Handley Foundation launched an

innovative recruitment campaign this year the Shoulder Tap which attracted more than 1000 applicants What were they

looking for Personal values and passion that would work on critical and complex social and environmental challenges This is a great example of ensuring that culture

is part of the fundamentals of an organisation

15

Leadership development

Leadership doesnrsquot need to relate to organisational hierarchies

but rather can include change makers and employees that are empowered to develop

individually and for the company Many organisations such as Nicky Benson Consulting

can provide this support

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 16: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 2

Products amp services The social impact of products and services is critical as this is your key output as an organisation For organisations that establish themselves with a social or environmental purpose in mind the social value created by these products and services might be instinctively understood but how do you quantify and communicate this

Capacity building for social

enterprisesThe infrastructure for social enterprise

in New Zealand is currently limited but is starting to grow through the

work of Ākina Foundation government agencies and local councils There is a

real opportunity to increase the training for businesses about the relevance

of social enterprise business models for their own

organisations

Social impact product rating

A critical challenge is being able to quantify the social impact of

products or services which is often a requirement to justify ongoing

investment into them Some examples of how to do this exist such as the

social return on investment assessment social impact dashboards that are currently being developed for NZ

and B Corporations which provide a framework

to measure social impact

Business model innovation

lsquoBetterrsquo products can often cost both the user and producer more and therefore they can fail due to lack of market viability

Businesses that want to compete for social capital can achieve great success by creating innovative business models that attract customers based on their novelty There are many ways of doing this from

a Buy One Give One model to differential pricing for those who are able to pay more to providing rewards for lsquogoodrsquo behaviour An example of the latter is the Z Energy

EcoDriving tool which promotes reduced consumption of Zrsquos

primary product fuel

Increase capital for start-ups solving

complex social amp environmental issues

There are a few examples in New Zealand including Signify an IT

company that has established a fund and incubates tech ventures that have social and environmental outcomes

There is huge potential for more venture capital funds to

actively promote products and services that create

social value

Opportunities include

16

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 17: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 3 Procurementfuels

An organisationrsquos purchasing choices have a real and immediate impact on the community around them Most procurement policies are focused on maximising economic value for the company which struggles to quantify the social or environmental value it is creating or degrading

Opportunities include

Training for procurement managersTo educate them about the value they can add to an organisationrsquos

overall purpose through their decision making This includes

training about sustainability and understanding the world theyrsquore working in and providing tools that will allow them to do their

job more easily

A directory of social enterprises

and businessesTo make accessing suppliers

much easier SBN has resources to upskill our members (who are listed on the Sustainable

Business Directory) in how they can articulate the social and

environmental benefit they offer to purchasers

through these choices Criteria like locally made whole of life costs of a product and relevance to the organisationrsquos purpose require additional consideration They are a huge opportunity particularly for local government authorities and locally based businesses

Social procurement policies

These give weighting to local and social suppliers for triple

bottom line impacts This allows businesses who are operating in a social enterprise framework to outscore competitors who arenrsquot creating the same social value There is a real opportunity here

for local councils and New South Wales provides a great

example of how to do this successfully

17

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 18: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 4 Place amp partnershipsfu-

While not all businesses specifically serve the community where they are based they all have certain impacts on their local communities by virtue of the location of their operations These two focus areas (Place and Partnerships) have been combined as there is significant cross-over between the opportunities in these two areas

Sharing knowledge

skills amp resources Develop mechanisms for

sharing within communities (ie timebanks mentoring groups or the complimentary use of office

space for local communities and other organisations either NGOs or start-ups) This helps businesses understand their

customers and stakeholders

better Education

Sme organisations like Fuji-Xerox and Chorus are already

developing programmes to support skills and leadership development in our youth

There is a huge opportunity to develop multiple programmes with the education sector to help our young people find career pathways that are

attractive to themselves and help NZrsquos future

Opportunities include

Pool capital to invest in start-up social enterprisesMany businesses want to

maximise their impact but individually they donrsquot have enough clout to develop a

strategic relationship with social enterprises or NGOs However there could be potential for a collective of organisations to pool their available capital

18

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 19: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

IssuesTo achieve SBNrsquos vision for the Mega Efficiency Transformation Area of being a world leader in the optimal use of all precious resources we need a fundamental change in the way we use them

The Circular Economy is one of the few viable and scalable growth models that can achieve such a transformation and in the process drive greater innovation and job creation

Essentially a circular economy is one where companies manage all resources as valuable assets The lifecycle of products is maximised utilisation is optimised and at the end of life of a product all materials are fully reutilised This is achieved by

designing and optimising products for multiple cycles of disassembly and reuse and eliminating waste throughout various life cycles and uses of products and their components A circular economy aims to move away from a traditional linear lsquotake-make-wastersquo model

Growth is therefore decoupled from the use of scarce resources by organisations adopting business models based on such things as longevity renewability reuse repair sharing and dematerialisation

The Circular Economy shifts the emphasis from driving more volume to rethinking products and services through all elements of the customer value proposition to prepare for the

inevitable and increasing resource constraints At a macro level in New Zealand the Circular Economy is very much in its infancy The system is partly connected by material flows however in many cases it is uncoordinated with decisions made in relative isolation having unintended detrimental consequences further down the chain

On a more micro level there is plenty of evidence of circular economy thinking such as product stewardship schemes lsquoclosed looprsquo practices and the emergence of collaborative consumption models The challenge is to build on these pioneering practices so these models become the norm as opposed to the exception in New Zealand 19

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 20: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 1

DesignIt is fundamental that product design incorporates lsquocircularrsquo thinking and avoids locking-in linear pathways from the outset This means that products need to be designed for longevity incorporating the ability to repair upgrade reuse and disassemble so at the end of life precious materials can be harvested and reutilised Materials

index app Enable product designers to make more informed decisions on material

selection in relation to key circular economy indices eg durability recyclability

and toxicity

Material challenge

Online challenge platform where organisations list

waste resources and lsquochallengersquo people to

design new and innovative uses

for them

Opportunities include

Potential solutionsTo accelerate the Circular Economy in New Zealand we have identified via The Big Shift process six key focus areas and associated potential pioneering business concepts that could hold the key to moving us from merely managing waste to truly optimising our resource use

20

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 21: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 2 Demand

Demand for circular solutions is not currently at a sufficient level to be a driver for many organisations to change their existing linear offerings Yet waiting for consumer lsquopull throughrsquo will not get us where we need to be fast enough Pioneering organisations have the opportunity to grab early mover advantage and shape the market to make longevity

Longest lasting awards

Campaign to share and promote how long products have lasted with awards giv-en to both users and brand

owners of products that provide the greatest

length of service

upgrading repair and reuse desirable They can provide more innovative ways of addressing customer needs without relying on selling them more stuff From a business-to-business perspective lsquoend of lifersquo solutions and a focus on lsquowhole of lifersquo costs as opposed to initial cost need to be core parts of procurement policies

Sell back platform

A simple and accessible platform for owners to sell back products to

manufacturers

Custom Products

Enable the customisation of a currently mass-produced product to become lsquoproduced to orderrsquo increasing the value of the item plus eliminating

unnecessary production volumes

Opportunities include

Circular feedback

loop Creation of an app to allow instant feedback to brand

owners from customers on all circular aspects for example

ldquoI did didnrsquot buy your product becausehelliphelliprdquo

Deposit scheme

Incorporate a deposit element into the price charged for a

product which is repaid to the customer when the product is

returned at the end of its life This enables a lower net price to be charged based on the fact that

value can be extracted from the product at the end of

its life 21

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 22: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 3 Infrastructure

Even if a product is modularly designed for disassembly in a country with a geographically dispersed and small population the infrastructure necessary to complete the circle on the product may not exist or be accessible or currently viable We need to be smarter on how we use what wersquove currently got and achieve scale to make new solutions viable

Fix itOnline platform providing repair

manuals and selling tools and spare parts to allow customers to repair their

own products

Return to prison

An initiative where prisons and inmates are used as repairrefurbish hubs for

products at the end at end of life

Slow mail logistics

Create a non-time sensitive delivery mechanism and service to get end of life products back to a place

where they can be utilised at an affordable rate

Mapping

lsquogoldrsquoOnline map of where

current waste resources can be found in a city

Opportunities include

22

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 23: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 4 Ownership

An illustrative example of why rethinking ownership is fundamental to a more Circular Economy is the drill If you consider the number of households in New Zealand that own a drill the average use of a drill over its lifetime which is only 20 minutes and the fact that itrsquos not the drill that is needed but the actual hole it creates this illustrates the current

lsquoSharingrsquo schools

Use schools as community hubs for borrowing everyday items such as lawnmowers

with the revenue split between the school and owner of the product

Product as a service

A programme to remodel a business to enable a transition from selling products to selling a

service

underutilisation and unnecessary duplication of resources that ownership of assets can produce

Increasing examples of businesses based on new models ndash such as the sharing economy or collaborative consumption and lsquoproduct as a servicersquo ndash are encouraging customers to rethink ownership

Library extensionUtilise library

infrastructure and systems to extend

their product offerings beyond books and

DVDs to other items such as drills

Sharing Map

Display what and where items can be borrowed

around the city - a sharing version of

Trade Me

Opportunities include

23

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 24: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 5

Emerging technologyEmerging technology is opening up new opportunities to facilitate more circularity Wersquove seen the internet being an enabler for the sharing economy and now the fast emergence of 3D printing is facilitating local production to order as opposed to mass production for prospective orders In addition 3D printing has the ability to prolong life cycles of products by being able to print out spare parts A better understanding of how organisations can incorporate such technology into their businesses is key to gaining the scale required to realise the benefits

3D printing challenge

A public challenge to create the most useful item

from 3D printing technology to promote awareness of

potential solutions the technology can offer

Opportunities include

The final leverage point is Legislation and although we are not focusing on this area it does have a significant role to play There is progress on Government intervention in electronic

Focus area 6

Legislationwaste in New Zealand and in the UK a recent cross party report recommends lowering VAT (Value Added Tax or GST) on recycled goods which would be a game changer

24

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 25: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Issues PotentialThe food system is complex and affects everyone in society Food is cultural seasonal and the foundations for what we live upon For many it is a way to earn a living whether that is growing produce farming animals packing boxes boning meat or selling items in a supermarket or food in a cafeacute

The food system is also global complex and interconnected across countries economies and cultures For a lot of people it now means an expectation of access to goods all year round despite being a sensitive climatic geographic and seasonal industry The food system is fraught with paradoxes excess food leads to waste yet 20 of New Zealanders are food insecure supermarkets seem to be everywhere yet we

have lsquofood desertsrsquo where people cannot affordably access healthy and nutritious food the latter seemingly being more expensive

The food system in New Zealand stems from a grass roots to a global level and cuts across central and local government district health boards businesses exporters and rural and urban areas More than 60 of the countryrsquos income is from the rural sector yet nearly 90 of our population lives in urban areas Each region in Aotearoa is different culturally economically geographically and climatically The New Zealand food system is comprised of these sub-systems all of which are unique and have strengths weaknesses and challenges

Speaking to and learning from actors across the NZ food system illustrates that there is room for improvement but also an array of diverse and innovative approaches solving the issues in the food system Each region or city-region food system can learn from these examples from across the country highlighting opportunities to provide inspiration and ideas for those in the food industry

solutions

25

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 26: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 1 Producing

The current economic model means that New Zealand growers compete with growers abroad on price potentially losing out in a local market Goods with cultural identity regional pride environmental benefits and a story of the people behind them are not valued highly by the current food system Negative externalities like water or soil pollution associated with many food production methods are not included in the price of food In contrast food made with more restorative production practices such as organics tend to be more expensive

Moreover the cheapest food is not usually the healthiest or most nutritious option

It is not easy for farmers to make a living out of growing produce or supplying meat Tough pricing and competition at the supermarkets means itrsquos difficult for vegetable fruit and nut growers For growers every dollar spent is calculated should it be invested in fertiliser drench or marketing Yet a diverse array of growers and food makers enables a more resilient food system Solutions are therefore needed that facilitate family farming and farming at a smaller scale while enhancing the health of our soil and waterways and helping growers and farmers to sell their produce

All Good Organics Commonsense Organics and local restaurants and cafes like La Boca Loca Ti Kouka Kokako and Peoples Coffee are actively working with growers to create a fair price and market for tasty local produce

Opportunities include

Better use of city backyards

Rent space to gardeners and scale up city gardens

(inside glass houses rooftops yards) to sell

nearby ICT and apps

Leading the way are initiatives like Ooooby and

Bucky Box supplying fresh local produce to households and restaurants direct with a

fair price to growers and savvy ICT systems

Online map

Include local growers and gate produce sales link-

ing consumers directly to farms

Agri-tourismTo increase visits to

farmers and strengthen the connection between

urban consumers and our rural growers

and farmers 26

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 27: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 2 Manufacturing

Manufacturing is all about scale Larger food companies can produce more and do so efficiently and more cheaply Simultaneously unhealthy commodities are highly profitable because of their low production cost long shelf-life and high retail value For smaller businesses starting out trying to make healthy and nutritious food issues of scale and price affect how they can manufacture and produce food

Resource pooling

There is an emerging trend of resource pooling (eg cooking freezing cooling spaces) and

creating local food lsquohubsrsquo which bring together suppliers and

consumers to learn more about food Examples include

Massey Community House and the Food Bowl

in Auckland

Finding a commercial kitchen to ensure compliance with health and safety standards can be a challenge Churches community centres and after hours in cafes are current solutions employed by start-up foodies but to get them ahead they need access to better facilities How can we assist individuals and small businesses in the food sector to make their products in a safe and affordable way

Helping food businesses

get a boostSmall businesses starting out

with good food products need a boost (training mentorship finan-

cial) and also established busi-nesses representing good food need to get a stronger market

presence

Using facilities after

hours Utilise facilities such as car

parks and cooking schools to teach people how to cook make products for local needs produce

community dinners or to rent hub space for business

activities

Opportunities include

27

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 28: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 3 Waste

A shocking average of 60kg of wasted food per person goes to landfill in New Zealand each year Poor planning busy lifestyles and over consumption in restaurants and supermarket trolleys means that the average Kiwi eats too much and throws out too much after itrsquos been left in the fridge and passed its use by date Inefficiencies across the food system mean that not all food is utilised

In Aotearoa like many developed countries these inefficiencies occur mainly in the final stages of the food system from markets through to end consumers Yet for a number of reasons out of their control produce is also often wasted by our growers How can we clean up inefficiencies in the food system to have zero waste and a closed system

Compost collection and

food waste reduction Initiatives are also increasing eg Kai to Compost (Wellington City Council) Zing Bokashi Wanaka Wastebusters Hungry Bin Re-

claim and We Compost to name a few

Opportunities include

Food rescue

Consumable surplus food being picked up by food rescue agencies such as Fair Food in

Auckland and Kaibosh in Welling-ton is bridging the gap between excess production and hungry tummies redistributing surplus

food to community food agencies who deliver it

to those in need

Rethinking

waste For some supermarkets such

as Foodstuffs grocers reducing food waste is an issue that is being addressed while wholesalers mar-kets and other suppliers also have

excess yet edible produce that can be utilised by food makers

Markets and con-nect buyers

28

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 29: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 4

Traceability amp distributionFood has a story There are people and places behind it which need to be shared and celebrated Thatrsquos the beauty of the farmersrsquo market where you can meet the business owner face to face and ask those questions you canrsquot at the supermarket There is room for growth in town markets and a need to engage consumers in the value of those markets

In contrast the current supermarket and restaurant model does not include information to educate consumers about the traceability of products Traceability is important because if we understand the story of food and have a connection to it as consumers we are in a better position to make informed purchasing choices The current supply chain of mainstream food means that not all food is traceable and understanding distribution is a key part of traceability

In another way inadequate distribution sometimes fails the poorest in society lsquoFood desertsrsquo occur in New Zealand where there is no access to healthy nutritious safe and affordable food because grocery stores are too far away Cheap fast food outlets and nutritionally poor food often dominates these areas and therefore leads to pressures on consumers to opt for meals that contribute to health problems linked to diabetes and obesity

Rethinking food distributionReduce the number of

links in the supply chain to strengthen the city-region

or regional food system like Ooooby does with its fruit

and vegetable delivery service 29

Opportunities include

Improve

transparency across the supply chain This is being addressed by Yellow

Brick Road through its fish supply All Good Organics works closely with the suppliers and people in Boma village in Sierra Leone where the cola nut used

in Karma Cola comes from and sends profits from sales back to

community projects there

ICT solutions amp apps

To trace from gate to plate ICT can also be used to con-

nect the players and consumers in the food chain (eg Conscious

Consumers and FoodSwitch apps) putting consumers and suppliers in contact so they know what is

available and desired along with health and environ-

mental consider-ations

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 30: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Focus area 5

Food policy alliances 20 of New Zealanders are classified as food insecure which means they are lacking access to safe affordable nutritional and culturally appropriate food Social and community based projects led by not for profits and local councils calling for better access to affordable food for low income or no income families are growing There is a need for better policy and guidance on food systems and a nationwide network of city-region food alliances In 2014 strong food policy in local and central government is absent in Aotearoa

Food policy

City-region and regional food policy that encourages

collaborative efforts across the full food chain will result new and creative solutions and a stronger voice on food

Christchurch City Council and the Edible Canterbury project Auckland Councilrsquos

Kai Auckland project Dunedin City Council and the Our Food Network

and district health board Toi te Ora are examples of local food

policy initiatives

Food champions

A growing movement of food champions in the

community local government and district health sectors are aiming to bring actors

together to address issues facing their

food regions

Opportunities include

30

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 31: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Next Steps Innovation Canvas

SBNrsquos role in creating solutionsWe know that there are more opportunities identified than we can possibly hope to be involved in but we are actively working with our members and project partners on some of these opportunities

You can keep up to date with our progress on projects on our website

bull Sustainable procurement bull Sustainable investment bull Culture change and employee

engagement bull Community footprinting bull Electric vehicles bull Biodiesel bull Reducing food wastebull Strengthening local food

systemsbull Supporting businesses with

good food solutionsbull Circular Economy Model Officebull Water restoration (via the

Million Metres Streams project)

31

Commencing in 2015 SBN will facilitate taking the opportunities identified in this report to scale

To help you start to navigate some of the focus areas and opportunities wersquove uncovered we have produced a simple tool called an Innovation Canvas Available to SBN members the Innovation Canvas provides a focus around emerging opportunities and how they may be relevant to your organisation It encourages you to start to take practical action and innovate for practical success SBN staff can assist you with using the tool which is available on our website

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

wwwsustainableorgnzofficesustainableorgnz +64 9 826 0394

For the latest news on sustainable business follow us on Twitter Facebook and LinkedIn

32

Page 32: Business for a sustainable New Zealandsustainable.org.nz/wp-content/uploads/2014/11/Business-Opportuniti… · New Zealand’s waterways. The Million Metres Streams project is the

Contactus

AboutSBN

We would love to hear from you if you would like to be involved in any or all of our work streams There are opportunities to be a Partner Support Partner project participant or simply to follow our progress Together we can shift New Zealand onto a more sustainable path Please join us

Contact the authorsproject managers

Accelerating Smart Transport in NZRachel Brown rachelsustainableorgnz 021 686 158

Embedding Social Value into Business Models Julia Jackson juliasustainableorgnz 021 686 673

Accelerating the Circular Economy in NZ James Griffin jamessustainableorgnz 021 686 155

Restoring NZrsquos Food Systems Emily Dowding-Smith emilysustainableorgnz 027 813 0000

The Sustainable Business Network (SBN) provides advice and support to help business succeed through becoming more sustainable As the largest organisation of businesses dedicated to sustainability in New Zealand the SBN actively helps our network of progressive companies to get started with sustainability promote success and accelerate progress

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