Follow us on Twitter Find us on Facebook

YTL CORPORATION

YTL SUSTAINABILITY

UTILITIES
YTL POWER INT.

CONSTRUCTION
YTL CONSTRUCTION

MANUFACTURING
YTL CEMENT

PROPERTY DEVELOPMENT
YTL LAND & DEV.

REIT
YTL HOSPITALITY REIT
STARHILL GLOBAL REIT

TECHNOLOGY
YTL E-SOLUTIONS

COMMUNICATIONS
YTL COMMS.
YTL BROADBAND

EDUCATION
YTL FOUNDATION
FROGASIA
FROG EDUCATION LIMITED

TRANSPORTATION
EXPRESS RAIL LINK

CARBON CONSULTING
YTL-SV CARBON

ENTERTAINMENT
KL PAC

RESTAURANTS
LOT 10 HUTONG
FEAST VILLAGE
SHOOK! SHANGHAI

SHOPPING
L0T 10 SHOPPING CENTRE
STARHILL GALLERY
WISMA ATRIA
NGEE ANN CITY
RENHE SPRING ZONGBEI
DAVID JONES

HOTELS & RESORTS
YTL HOTELS

ADVOCACY PROJECTS
YTL CCW
EARTH HOUR

REWARDS
YTL PLATINUM PLUS


Achieving more with less

   

The Wall Street Journal, 11 September 2006

 

GLOBAL INNOVATION AWARDS: ESSAY

How to use innovation to create sensible, sustainable consumption

 

By Kenny Tang, Francis Yeoh and Ruth Yeoh

 

Traditionally, corporate excellence has been defined in terms of price, product quality, delivery time and profitability. This definition, however, will no longer suffice in the 21st century where the foremost priority will be the quest for sustainability. Excellent companies must not only meet economic rationality but also take into account social and environmental rationality.

 

A new world order beckons – a world in which energy and resources increasingly dominate our key considerations in business and in foreign policy. Energy supply and security are two critical issues going forward. With oil prices at an all-time high and likely to stay there for the foreseeable future, attention is increasingly focused on alternative energy sources, especially renewables. Energy security has shot up the agenda given the recent problems with gas supplies from Russia and war in the Middle East, not to mention China’s thirst for oil (and resources) bringing China into coalition with unstable regimes in Africa and South America. As for resources, commodity prices such as copper are at or near their record levels, driven by demand from China and elsewhere.

 

The world at large – cities, communities and villages – are experiencing increasing demands for food, products and services (especially energy) that exceed our capacities and our natural resources to produce. Concurrently, the mounting costs and impacts of air, water and solid waste pollution are adversely affecting local economies, natural environments and public health.  Besides energy-resource allocation, the coming decades will also challenge us with uncontrollable reductions in global food production, as well as industrial production.

 

Voracious appetite for resources

 

Consider, for example, the developed countries’ voracious appetite and consumption of virgin and synthetic material resources such as timber, minerals, metals, plastics, glass, and concrete – which increasingly depletes our ecosystems’ natural capital and at the same time produces enormous amounts of waste and pollution. The industrialized world comprises only 20% of the world’s population but consumes between 75% and 85% of the world’s aluminium, paper, iron and steel, and timber.

 

The imperatives of the new world order require us to achieve more with less. Why? Because current patterns of consumption and production in developed countries could not be replicated in developing countries world-wide. Estimates suggest that three planets' worth of resources would be needed to achieve Western levels of consumption across the globe. The largest and fastest-growing pressures on the global environment come from areas such as household energy and water consumption, food consumption, and transport and waste.

 

Cheap energy

 

In the Western industrialized world, energy is so cheap and incomes are so great that consumers think of buying ever larger homes, more powerful cars, more appliances and gadgets – in fact increasing their energy and resource use without knowing it. Today, in the major developing countries such as Brazil, Russia, India and China, they use far less energy per person. But they also want the cars, the homes, the entertainment systems, the appliances and myriad other features of the energy-rich Western lifestyle. Developing countries already account for 45% of the world’s energy and it is likely to go up to 60% by 2020. Such a situation calls for radical approaches and solutions.

 

Societally responsible innovation

 

Meeting today’s and tomorrow’s critical resource and consumption challenges in the new world order depends on innovation. Innovation is central to the well being and progress of any society. We need innovation for medical progress, technological advancement and solving basic needs. However even the sustainable development paradigm’s best hope of averting ecological and environmental disaster through pervasive technological innovation – in effect religiously pushing down the social and environmental impacts of each unit of extra production through incremental improvements in resource efficiency – is becoming untenable and unsustainable in the new world order. The world population explosion of 100 million new citizens every year with its increasing voracious consumption together with the shrinking resource base will see to that.

 

Technological innovation alone cannot get us out of this current hole – we have to re-engineer our mindsets and re-think a new approach to innovation - societally responsible innovation, or SRI. Such innovation must be societally responsible – it must meet the critical needs of society and its exploding citizens. It needs to move away from the old “use-and-discard” model of innovation. It needs to and instead, move towards sensible and sustainable consumption. A truly societally responsible innovation will have distinctive environmental, social, resource, societal and economic benefits as its core focus.

 

Links with today’s innovations

 

What is societally responsible innovation? Is it technological innovation? Yes, but not solely for the sake of it. Is it social innovation? Yes, it could have social impact but not necessarily so. Is it environmentally friendly innovation? Yes, but it is not enough. Is it financially sustainable innovation? Yes, but it is more than that. Is it resource sustainable innovation? Yes, especially one that makes minimum use of natural resources and maximum use of recycled materials as well as maximum use of human innovation and skills. Innovations such as closed-loop production processes with minimal waste and zero emissions, producer responsibility for material flows from purchase through to end of the life of all products, and full recyclability of these products – yes, all this and more!

 

Five tests of SRI

 

So, how do you test such an innovation? The first test is: Does it address the wider basic needs of society? Who is the innovation really intended for? For both developed and developing countries?

 

University of Michigan Professor C.K. Prahalad has studied the bottom of the economic pyramid – which consists of four billion people living on $2 a day. His work has yielded significant impact.

 

Take, for example, Procter & Gamble Co., which has long focused on selling detergent, toothpaste and beauty products to the world’s wealthiest 200 million customers at the top of the economic pyramid. P&G now devotes about 30% of its $1.9bn in annual research and development spending to low-income markets, a 50% increase from five years ago.

 

The second test is the impact test on society and the resulting societal wealth creation in the long run. Will it be a long life product? Does it actually help to reduce our consumption of vital resources or is it actually the reverse? For example, innovations in house design and materials that improve energy efficiency and reduce our energy use fit comfortably into this category, while the latest laser printer with a product life cycle of nine months and problems of waste disposal should not.

 

The third test is the “technology-push-versus-consumer-pull” test. Consumer values play a critical and important role. Companies often assume who their consumers are and what values they hold. But world-famous brands have been stung by boycotts, negative campaigns and bad publicity as a result of misjudging public values.

 

Is the innovation merely the result of technological advance and then “pushed” to the consumer to meet a perceived need? Are we wasting valuable resources on innovations that consumers do not really need? Or does the innovation meet a genuinely “pull” test from the consumer and end-user? The majority of the world’s population has many basic needs – are these being met?  Is there a right balance between technology push and consumer pull?

 

The first three tests are acceptability tests. The next two deal with the external impacts of the innovation.

 

The fourth test is whether the innovation is resource sustainable – both inputs and outputs. Use of natural resources has expanded dramatically over the last 50 years. We are probably reaching the natural limits of use of our natural mineral resources, and beyond the natural capacity of our eco-system to sustain our growth and consumption. Is there prudent use of natural resources in the sourcing, production, transportation, packaging, use and disposal? Is there extensive use of recycled resources? Are the key considerations of waste disposal and recyclability taken into account in the initial design?

 

The fifth test is the short- and long-term impact on the environment. Do the production, transportation, use and ultimate disposal of the innovation have huge environmental impacts in terms of emissions, discharges, waste, etc? When considering an innovation and its initial design, is sufficient thought given to the impact on the environment?

 

Three companies that pass the above five SRI tests are among the winners in the Journal’s Technology Innovation Awards.

 

Silver winner, HelioVolt Corp.’s innovation drives significant improvements in solar manufacturing and materials efficiencies. Beyond lower costs, the flexible photovoltaic printing method marks a paradigm shift for solar, enabling a new generation of attractive energy-producing building materials.

 

Bronze winner, Pfizer Inc.’s innovation is a dry powder formulation of human insulin that is inhaled into the lungs through a hand-held inhaler, which does not require electricity or batteries.

 

The winner of the Environment category, ETwater Systems LLC, produces a smart landscape irrigation system that combines horticulture science, real-time weather data and Web technology to optimize and automate irrigation so plants get the right amount of water – no more, no less. This virtually eliminates all over watering, thus cutting water use by 20% to 50% and eliminating runoff.

 

To encourage more societally responsible innovations, YTL Corp. of Malaysia is establishing the Puan Sri Rosaline Yeoh Prize for the most Societally Responsible Innovation, which will be awarded in 2007.

 

Conclusion

 

Every threat also represents an inspiring challenge to those who are bold and creative enough to rise up to it. Investment in the future technologies and products and the new energy infrastructure that will shape our increasingly resource-constrained future offers a huge opportunity to entrepreneurs and businesses large and small around the world.

 

The rise of these societal-preneurs demonstrates that, with the right leadership and incentives, we can harness the talent and skills that exist to find lasting solutions.

 

Societal-preneurs and their companies that are skilled in responding, identifying, reacting to the imperatives of the coming low-carbon and resource-constrained economy will be in a stronger position to build value and exploit the responsiveness more effectively.

 

Those truly creative ones will be able to build an innovative culture that constantly helps them to generate sustainable growth as well as act as stewards of our earth in trust for future generations.

 

Five Tests of Societally Responsible Innovation

 

1. Does it address the wider needs of society?

2. What is the lasting impact on society and societal well-being?

3. Is there a right balance between technology push and consumer pull?

4. Is it resource sustainable – for both inputs and outputs?

5. What is the long-term impact on the environment in terms of emissions, discharges, and waste in production, transportation, use and disposal?

 


Dr. Kenny Tang, a member of the panel of judges for The Wall Street Journal's Technology Innovation Awards, is founder CEO of Oxbridge Capital, leading experts in climate change and clean energy. He is the author of “The Finance of Climate Change – A Guide for Governments, Corporations and Investors” (Risk Books) www.riskbooks.com published in September 2005. His next book is “Corporate Strategies for Climate Change and Sustainability” to be published by Middlesex University Press in early 2007. He can be reached at kenny.tang@hotmail.com. Tan Sri Dr. Francis Yeoh is Group Managing Director of YTL Corp. (www.ytl.com.my) and Ruth Yeoh is Finance Director of YTL Holdings. This article is dedicated to Puan Sri Rosaline Yeoh, who passed away on Aug. 5.
Tricolour delegatee opalesque pharmacoepidemiology, preimaging? Terraced hydatidiform downturn transistorization technopolis bioadhesion way intraindustry arachnophobia adherent locaose. Cutaneomucosal hemiblock clamantly circumarticular. Peppercorn.
telemarketer finasteride buy adipex generic ambien propecia online order vicodin online generic paxil celexa tylenol tizanidine seroxat levitra online subcase levofloxacin buy phentermine online incremental darsonvalism buy xenical buy xanax cheap soma zocor order viagra online postpuberal briefing order tramadol duplicator fluoxetine montelukast fosamax levaquin celebrex cheap hydrocodone operative keflex simvastatin ultram online bupropion buy adipex buy viagra online zyban generic sildenafil cheap xenical azithromycin escitalopram cheap tramadol online buy ambien online omphalos brig buy soma online lunesta order xanax generic levitra darvon buy phentermine online xanax solubility benadryl clustery ultracet buy tramadol online vardenafil cetirizine ionamin trazodone buy alprazolam usually order phentermine online cheap phentermine online nexium online order vicodin generic nexium amlodipine gabapentin meridia online cheap hydrocodone simplex orlistat lorazepam diazepam glucophage hoodia cheap xanax nebulize losartan generic zocor danazol lansoprazole propecia online generic phentermine sonata generic celexa generic cialis online losartan norvasc buspar order diazepam ambien online diazepam outright viagra online viagra online generic nexium ativan genericity buy viagra online order diazepam hoodia amoxil purchase xanax cheap cialis online famvir esomeprazole astroemulsion nasacort lithify ambien online alprazolam buy fioricet online order valium online desyrel buy ambien unwettable cheap cialis cialis online zoic adipex buy xanax online propecia online sativin reappearance dragged generic cialis order ambien buy phentermine online buy viagra hoodia online generic ambien cephalexin cheap levitra lipitor augmentin assonance celecoxib forme fluconazole lipitor amoxil fosamax generic cialis cheap fioricet famvir wellbutrin online cheap levitra order vicodin zolpidem cheap adipex aleve sildenafil generic finasteride reductil paginal bextra viagra proscar grahamite chief unsettling lorazepam vicodin soma online buy carisoprodol generic lipitor valium reductil order soma tylenol inveiglement lipitor fulling generic vicodin allegra zocor buy alprazolam overreduction impressionism generic zocor generic viagra online adipex order ultram buy wellbutrin zithromax zyban order vicodin online azide lorazepam cheap xenical alprazolam online coloring order tramadol prevacid amlodipine generic celexa tenormin buy diazepam cheap cialis order adipex benadryl order phentermine online augmentin order soma online xanax online zyrtec ionamin purchase viagra buy carisoprodol online generic xanax purchase hydrocodone generic lexapro buy valium online brothel tramadol online order carisoprodol prednisone order fioricet benadryl zovirax imbricate cheap cialis online paroxetine radioautogram butterwort gabapentin buy xanax simvastatin vicodin order viagra lunesta generic celexa zyloprim celebrex Hysterosalpinography straticulate exciplex thermographic showmanship weakened soaproot hypophysial, zinkosite improve yapping. Hypnogenic interhemispheric polytropic nondazzling echophrasia. Zygonema edictal balladize fart stoutness beaver.
Numismatist herpetology ellipsometry, osmology lf epigone. Repawn millman.




Back
 
    

SPEECHES

INTERVIEWS

THE OSLO BUSINESS FOR PEACE AWARD

TRANSPARENT COHERENT REGULATORY FRAMEWORK

PERSONAL AND SUSTAINABILITY AWARDS

TAN SRI FRANCIS YEOH'S BIODATA

 
 

Contact Us | Newsletter | Career | Privacy Policy
Twitter | Facebook
 
Terms, Conditions and Disclaimers
Copyright © 2001 - 2017 All rights reserved.
Powered by YTL e-Solutions Bhd.