Glossary sovereign value cycles

  • The global community adopted the 2030 Agenda in 2015, with the key objective of ensuring a dignified life for every human being worldwide. This includes economic, environmental and social development aspects. The 2030 Agenda comprises 17 Sustainable Development Goals (SDGs) and 169 targets. 

     

    Source
    Presse- und Informationsamt der Bundesregierung (2020): Globale Nachhaltigkeitsstrategie: Nachhaltigkeitsziele verständlich erläutert. 

  • The total value generated minus the costs incurred at the production/service stage over a period (gross value creation).

     

    Source
    Weizsäcker, F. von; Horvath, M. (2018): Wertschöpfung. Springer Gabler.

  • A business model is an outline that describes how an organization creates, delivers and captures economic, social and other forms of value. A business model typically includes the following components: value propositions, decisions on customer segmentation, products and services, strategic partners, key production resources, distribution channels and the underlying cost structures and revenue streams that ensure the financial viability of the company.

     

    Source
    Ketels, C.; Prostiv, S. (2017): Priority Sector Report: Circular Economy.

  • A manufacturing system is considered biointelligent if it comprises at least one biological component and one technical component, if these are networked via information technology (biology/technology interface) and if the system behavior satisfies the generally accepted criteria for intelligence. Additionally, biointelligent manufacturing systems do not have any negative effects on humans or the environment, i.e., biological resources are used rationally and the system is designed in alignment with the natural metabolism.

     

    Source
    Miehe, R. et al. (2020). The biological transformation of industrial manufacturing – Technologies, status and scenarios for a sustainable future of the German manufacturing industry. Journal of Manufacturing Systems, 54, 50-61.

  • An incidental product that is derived from a manufacturing process in addition to the primary product or service being produced. 

     

    Source
    Umweltbundesamt (2019): Abfallrecht.

  • The total amount of greenhouse gases generated by a product, person, event, etc. It is expressed as the amount of CO2 emitted or CO2 equivalents of other greenhouse gases. 

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • A principle of the circular economy that prioritizes processes for reusing and recycling products and raw materials in order to retain as much of their utility value as possible whilst also enabling the implementation of other circular measures (i.e., energy recovery is the last resort once all other options have been exhausted). 

     

    Source
    Eräjää, Sini (2015): Cascading use of biomass: opportunities and obstacles in EU policies, Hg: BirdLife and European Environmental Bureau.

  • In a circular economy, the materials used remain within a material cycle that extends beyond the life cycle of goods. The aim is to reduce waste, emissions and dissipative losses as much as possible, thereby minimizing the extraction of raw materials from the environment. Key elements for implementing a circular economy include reusing and recycling goods, recycling materials and substances, and designing goods in such a way that they can be recirculated without any loss of quality or accumulation of pollutants. As such, goods should be useable for as long as possible and then returned to the cycle as quickly as possible at the end of their useful life. One secondary constraint that has a significant impact on the quality of a circular economy is its energy demand; a high-quality circular economy requires the least energy possible — ideally from renewable sources — to maintain the cycle. Substances that cannot be recycled should be recovered as energy. Where dissipative losses are unavoidable, such materials should be degradable. The concept of the circular economy can be applied equally to regions, industries, companies and even individual goods. 

     

    Source
    Hiebel, M.; Nühlen, J. (2017): Stahlschrott als Teil einer zirkulären Wirtschaft. In: Müll und Abfall, 2017(3), S. 118–123.

  • Macro level: A value-preserving closed-loop cycle in which material flows are kept in an economy or economic region for as long as possible while maintaining the highest possible quality.

    Micro level: A value-preserving closed-loop cycle in which, at the end of a use cycle, products and resources are reused as many times as possible in new or refurbished products at their highest possible utility.

  • Macro level: Quality characteristic and measured variable of circular value creation systems that indicates the extent to which a cycle of material flows is closed. Circularity describes, for example, the relationship between material flows in a cycle and all material flows processed in an economy or economic region. 

    Micro level: Quality characteristic and measured variable of a product system that indicates the average number of times a product or resource is used in a product system. Circularity is calculated over several cycles.

  • The criticality of a raw material is defined as [...] a measure of the (economic) risk arising from its utilization (incl. production, use and end of life) for a specific consumer over a certain period. A consumer can be anything from a single company or technology to a national or multinational economy.

     

    Source
    Frenzel, M., Kullik, J., Reuter, M. A., & Gutzmer, J. (2017): Raw material ‘criticality’ – sense or nonsense? In: Journal of Physics D: Applied Physics, 50(12), 123002.

  • According to the definition given by the European Commission, non-energy raw materials are classified as critical if they fulfil two parameters: economic importance and supply risk. Raw materials are economically important, e.g. if they are indispensable for future technologies, usually have to be imported or are difficult to substitute. There is a supply risk when a large portion of global production is concentrated in a few countries — 90% of the global supply of critical raw materials comes from non-EU countries.

     

    Source
    Fels, Mirko (2014): DIHK: Kritische Rohstoffe.

  • The process of converting secondary raw materials/by-products into new materials, components or products that are generally of lower quality, functionality and/or value than the original item.

     

    Source
    BSI (2017): Framework for implementing the principles of the circular economy in organizations – guide. Frankfurt am Main: BSI (BSI standards publication BS, 8001).

  • A measure of the natural resources (earth, water, etc.) required to sustain a population, activity or product (over the entire life cycle).

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • The Eco-Management and Audit Scheme, also known as the EU Eco Audit or Eco Audit, is an environmental management instrument developed by the European Union that is used to certify companies, service providers and organizations.

     

    Source
    Umweltbundesamt (2020): EMAS - Umweltmanagement-Gütesiegel der Europäischen Union.

  • The stage in the life cycle of a product where it reaches the end of its useful life.

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • Energy efficiency is a measure of the energy required to achieve a certain benefit. The lower the energy loss incurred in achieving this benefit, the greater the energy efficiency.

     

    Source
    BMU (2013): Kurzinfo: Was bedeutet »Energieeffizienz«?

  • Fair trade is a concept based on supporting small-scale producers and workers, primarily in developing countries, by paying them a fair wage and improving social standards. 

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • The German National Program on Sustainable Consumption is part of the implementation of Germany’s Sustainable Development Strategy. It addresses how to strengthen sustainable consumption in private households.

     

    Source
    BMU (2019): Nationales Programm für Nachhaltigen Konsum: Gesellschaftlicher Wandel durch einen nachhaltigen Lebensstil.

  • Germany’s Sustainable Development Strategy, as adopted by the federal government, lays out what sustainable development means and defines specific goals and measures relating to it. It was first developed in 2002. An update in 2016/17 incorporated the goals of the 2030 Agenda, thereby implementing them in national law.

     

    Source
    Bundesregierung (2016): Deutsche Nachhaltigkeitsstrategie.

  • A network-based multi-stakeholder initiative that has established global standards for sustainability reporting. 

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • Greenwashing describes the act of misleading consumers whereby a company spends more time and money on advertising a product as “green” than on actually minimizing its environmental impact. 

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • The collection and evaluation of the inputs and outputs and potential environmental impacts of a product system throughout its life cycle.

     

    Source
    DIN (2006): Umweltmanagement – Ökobilanz – Grundsätze und  Rahmenbedingungen (ISO 14040:2006), (ISO 14040:2006).

  • The difference between the environmental impacts of a product’s initial manufacturing and its environmental credits after recycling at the end of its life cycle.

     

    Source
    Dieterle, M.; Schäfer, P.; Viere, T. (2018): Life Cycle Gaps: Interpreting LCA Results with a Circular Economy Mindset. In: Procedia CIRP 69 (2018), S. 764-768.

  • A production chain comprises all processing stages, from product development and preconstruction of suppliers and further processing to the end product.

     

    Source
    Business Case Studies (2019): Chain of production.

  • Recycling [...] is any recovery operation by which waste materials are processed into products, materials or substances for either the original or alternative purposes [...].

     

    Source
    BMJV (2017): Gesetz zur Förderung der Kreislaufwirtschaft und Sicherung der umweltverträglichen Bewirtschaftung von Abfällen: KrWG.

  • The process of converting waste materials into useful materials or energy resources.

     

    Source
    Potting, J. et al. (2017): Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union.

  • The process of increasing efficiency in the manufacture or use of products by using fewer natural resources and materials. 

     

    Source
    Potting, J. et al. (2017): Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union.

  • This is when a product is returned to a functional condition through the replacement or repair of any main components that are faulty or are about to break down. Cosmetic improvements are also made to upgrade a product’s appearance.

     

    Source
    EMF (2013): Towards the Circular Economy: Economic and business rationale for an accelerated transition.

  • The process of returning a used product to at least its original level of functionality, with a warranty that is equivalent to or better than that of the newly manufactured product.

     

    Source
    BSI (2017): Framework for implementing the principles of the circular economy in organizations - guide. Frankfurt am Main: BSI (BSI standards publication BS, 8001).

  • The process of returning a defective product to working condition so that it can fulfil its original function.

     

    Source
    Potting, J. et al. (2017): Input to the European Commission from European EPAs about monitoring progress of the transition towards a circular economy in the European Union.

  • The use of a product, its components or materials for a function other than the originally intended one.

     

    Source
    BSI (2017): Framework for implementing the principles of the circular economy in organizations - guide. Frankfurt am Main: BSI (BSI standards publication BS, 8001).

  • Broadly speaking, resilience describes the ability of a system to absorb or withstand disturbances and other stressors without undergoing a “regime change,” i.e., maintaining its fundamental structure and functions.

     

    Source
    Bröckling, U. (2017): Soziopolis - Resilienz.

  • Using and processing natural resources in a sustainable manner in production processes while reducing their environmental impacts across the entire value chain. 

     

    Source
    United Nations Environment (2010): ABC of SCP: Clarifying Concepts on Sustainable Consumption and Production.

  • Using a product again for the same purpose in its original form without significantly altering or enhancing it.

     

    Source
    EMF (2014): Towards the Circular Economy: Accelerating the scale-up across supply chains.

  • A method to assess the social impacts of products and services along their entire life cycle.

     

    Source
    United Nations Environment Programme UNEP (2020): Guidelines for Social Life Cycle Assessment of Products and Organizations 2020.

  • Investing in a manner that factors in not only financial aspects but also social and/or environmental criteria.

     

    Source
    Remer, Sven (2020): Gabler Wirtschaftslexikon: Socially Responsible Investment.

  • A concept whereby individuals and companies must act in accordance with socially accepted limits.

     

    Source
    Onpulson.de GbR (2020): Soziale Verantwortung.

  • Corporate and consumer sovereignty is defined by self-determination and assertiveness toward other stakeholders in the chain or cycle.

  • Sovereign value creation means sovereignty vis-à-vis other stakeholders in a value chain during the process of optimizing a certain value/criterion, which can be represented by one or more environmental, social or economic criteria. Sovereignty vis-à-vis other stakeholders is required where such stakeholders are relevant to this value/criterion.

  • Sovereign value creation cycles are designed to be sustainable and provide transparency to producers so that they can withstand negative global developments. A key characteristic is that they grant decision-making authority to producers and consumers based on systemic knowledge. All resources are retained in the cycle for as long as they can be without compromising quality.

  • The entire multi-stage chain of companies involved in creating a product or service, from the initial value creation stage to the end product or service. 

     

    Source
    Dr. Georg Kraus Unternehmensberatung e.K (o.J.): Lieferkette- Definition.

  • Supply chain management (SCM) is a management approach for developing, optimizing and managing complete logistics chains. Material and information flows in these chains range from raw material extraction to production and refinement through to delivery to end customers. They cover all of the value creation processes of the companies that form part of the supply chain. The aim is to record and optimize the processes of all of the companies along the value chain.

     

    Source
    REFA (Hrsg.) (2009): REFA-Lexikon. Supply Chain Management.

  • Sustainability, or sustainable development, is development that meets the needs of the present without running the risk of compromising the ability of future generations to meet their own needs. Sustainability is based on three pillars: environmental, economic and social. These dimensions form the triple bottom line of sustainability.

     

    Source
    Suchanek, Andreas et al (2018): Gabler Wirtschaftslexikon: Verantwortung.

  • Sustainable consumption incorporates environmental and social aspects into the purchase, use and disposal of products and resources. It forms part of a consumer’s lifestyle and behavior and is based on the concept of meeting present consumption needs without endangering the ability of future generations to meet their own needs.

     

    Source
    BMU (2020): Nachhaltiger Konsum

  • Sustainable production links economic performance to producers’ responsibility to people and nature. 

     

    Source
    Blum, Florian (2020): Produktion.de, Nachhaltige Produktion: Was  bedeutet das eigentlich?

  • Sustainable production and consumption means producing and consuming products and services in a manner that meets the legitimate needs of present and future generations while respecting the earth’s ecological limits and universal human rights.

     

    Source
    UBA, BMU (o.J.): Sustainable Development Goals.

  • The Sustainable Development Goals (SDGs) address global challenges where there is a particular need for action. Each of the 17 goals deals with a key issue.

     

    Source
    United Nations (2020): Ziele für nachhaltige Entwicklung.

  • Sustainable value creation means that the benefit exceeds the sum of all the internal and external costs. The benefits and costs in all three dimensions of sustainable development are taken into account when calculating this. 

     

    Source
    Figge, Frank, Hahn, Tobias (2004): Sustainable Value Added—measuring corporate contributions to sustainability beyond eco-efficiency, Ecological Economics, Volume 48, Issue 2, 2004, Pages 173-187.

  • The world’s largest and most important corporate sustainability initiative. The UN Global Compact is based on ten universal principles and the SDGs..

     

    Source
    Geschäftsstelle Deutsches Global Compact Netzwerk (DGCN) (o.J.): Uni- Quellenverzeichnis ted Nations Global Compact.

  • The series of consecutive steps involved in creating a product or performing a service that increase or decrease its value; representation of the business activities related to the operational process for the production of goods. 

     

    Source
    Gabler Wirtschaftslexikon (2018): Wertschöpfungskette.

  • One or more interlinked circular processes, comprising steps that increase or decrease the value of a product or service, whereby raw materials, materials and goods are used in a responsible way.

    Value cycles include all stages of raw material extraction, material production, energy supply, product manufacture, distribution, product use, refurbishment, repair and the conversion of products or their components into new value creation.

  • Values include monetary values achieved through value creation and environmental, cultural, religious, ethical and social guiding principles. Responsible production and responsible consumption require values and guiding principles to be considered in the context of sustainable development.