1	Sustainable Development in the USA Andrew Mangan, Executive Director United States Business Council for Sustainable Development www.usbcsd.org
2	The Value Proposition
3	US BCSD Member Companies Air Products & Chemicals Baker Botts Baker Hughes Battelle Pacific NW National Laboratory Blasland, Bouck, & Lee Cemex Chicago Manufacturing Center ConocoPhillips Cook Composites and Polymers The Dow Chemical Company Holcim Hydrodec Lafarge Marathon Retec Group Shell Temple-Inland Thompson & Knight UOP URS Visteon
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5	By-Product Synergy: Precepts What if we were witnessing business opportunity and not just cost reduction? What if we began to speak in terms of 100% product instead of zero waste? What if our so-called “wastes” weren’t wastes at all, but were by-products or raw materials for other industries?
6	Chicago Waste to Profit Network Improve the financial and environmental health of our region by transforming outputs (wastes) to industrial inputs (profits)
7	The By-Product Synergy Process
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10	"Estimated Value to Dow from..." Estimated Value to Dow from Gulf Coast Phase I: Total wastes Reduction: 155 MM lbs/yr Total potential saving if all wastes converted to product: $20 million dollars/yr. The total energy saving potential if converted as products: 900 billion BTU/year (equivalent CO2 emission reduction would be 108 million pounds/year)
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12	United Kingdom Industrial Symbiosis: Where they are now 90+ practitioners 11 coordinated regions (soon to be 12) Funding from hypothecated ‘environmental’ landfill tax $17.5M Governance – leading academic, regulator, government, industry Approaching 4000 industry members in most sectors Increasing international contacts
13	Key Achievements (audited) Apr 2005-June 2006 1,483,646 tonnes diverted from LF (Hazardous 29%) 1,827,756 tonnes virgin materials saved 1,272,069 tonnes CO₂ savings 386,775,000 litres potable water savings 36,080,200 additional sales $50,542,129 cost savings 790 jobs $42,128,889 private capital investment
14	Current Chicago Waste to Profit Network Objectives for 2006/2007 Create Hybrid By-Product Synergy Model: One principal network of between 10 and 25 companies One community network of 25-50 companies Collaborate with UK National Industrial Symbiosis Program (NISP) -- share case studies to support our effort Deliverables: 5 working meetings in 2007 for principal network 1 working meeting for community network Metrics: 20,000 tons diverted from landfill (State of Illinois requirement) 30 jobs new or retained Cost savings for network companies
15	Project Funding Partners May 2006 – December 2007 City of Chicago $100,000 EPA Great Cities Program $84,900 State of Illinois Recycling Expansion Modernization Program $82,500 Anticipated Chicago Network fees $100,000 Manufacturing Extension Partnership $70,000
16	Challenges to Business Model Growth Funding for growth
17	Requirements for a sustainable business growth model for a regional network Attract more companies to participate 10-12 companies provides limited synergies based on EPA analysis of New Jersey by-product synergy effort Member companies report value from participating Reduce company fees to engage SMEs Pursue new public funding for FY08-09 Grow more aggressively than the current project requires – beat expectations Work closely with the state EPA around permitting issues
18	Proposed growth strategy in 2007 Add 4 additional network nodes by December 2007 Stretch goal to add 21 companies commit to Chicago network each quarter Requires continuous outreach to companies from Chicago Manufacturing Center Graduated implementation schedule Collaborate with USBCSD-led networks across the country
19	Proposed Milwaukee Collaboration in 2007 Align Chicago project with Milwaukee program Include Milwaukee companies in Chicago meetings Share case studies Coordinate City of Chicago and City of Milwaukee efforts Use United Kingdom By-product synergy case studies to assist in synergy identification
20	Proposed growth strategy/collaboration benefits Increases likelihood of success: Increases potential of implementing synergies Increases cumulative cost savings for network members 150% to 300% average ROI for each incremental $10,000 cost savings per company (based on UK results) 100 companies = $1,000,000 vs $200,000 for 20 companies Proposes a viable long-term business model for managing the network, while public funding investment is developed for the next phase
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