Emerging Risks

A Strategic Management Guide

Anne Barr, Catherine Antoinette Raimbault

• Publisher: Routledge
• Year: 2016
• eBook ISBN: 9781317144755
• Topic: Commerce
• Subtopic: Commerce Général

For boards and executives, high-quality and transparent information is critical to allow effective decision-making. Emerging risks are increasingly challenging issues, both in terms of threats and growth opportunities; not least since the science pertaining to these risks tends to be contested. Emerging Risks: A Strategic Management Guide restores the constructive dialogue between the business professional and the expert/scientist community, essential if companies are to anticipate, plan ahead and exploit leading-edge ideas. It provides insights into some of the major emerging risks of the 21st century and then guides organizations on how to approach and manage those risks proactively in the wake of new regulation, governance and enterprise-wide risk management. The topics covered include: nanotechnologies, covering the industrial revolution of the 21st Century; new information and communication technologies (NICT), discussing the infrastructure of the future; electromagnetic fields (EMF) and their debated health impact; chemical substances/REACH, a regulation with major economic and environmental stakes and an example of emerging risk management; biological risk and its on-going need for international surveillance; supply chain, a top management priority; and country risk, for which security and corporate social responsibility (CSR) are growing issues. The authors assess and propose a process for managing emerging risks and the strategies that need to be put in place, drawing on examples of best practice.

PART I
Major Risks and Issues

1
Nanotechnologies

Alain Lombard

Nanotechnology is a field of research and development involving the manufacture of structures, devices and systems from process allowing structuring materials at scales smaller than one micrometre at the atomic, molecular or supra-molecular levels. At this size, material can reach new physico-chemical properties and behave differently from the same material at the micrometre scale, which make them particularly interesting.

Nanotechnology has been defined as ‘engineering at a very small scale’ by the Institute of Nanotechnology in 2007.

Research and industrial production of nanomaterials has been exponentially increasing over the past ten years. Estimated worldwide public funding for nanotechnology research could amount to a total of nearly US$1.1 billion by the end of 2011.

It opens up undreamt-of possibilities for industrial and medical applications. The projected market size of products incorporating nanotechnology could reach US$27 billion by the year 2015.

Thus, we can consider that the advent of nanotechnology is a major shift in the technological and industrial development of the twenty-first century.

However, a large degree of uncertainty has yet to be clarified, with regards to the safety of nanomaterials on health and the environment and the social impact of the development of nanotechnology for society at large.

What is the Nano-world?

The nano-world is the continent of the infinitely small. It is at molecular level, where the laws of physics change and evolve towards quantum mechanics.

The unit of measurement is the nanometre. The prefix ‘nano’ comes from Greek and means ‘very small’.

It expresses the billionth of a metre, or 0.000,000,001 metre (10 -9), a million times smaller than a millimetre.

Comparably, a nanometre is 500,000 times thinner than a ballpoint pen trace, 50,000 thinner than the thickness of a hair.

Definitions of ‘nanomaterials’ refer to materials with at least one dimension of nanometre size, less than 0.1 micron or 100 nanometres (100 nm) or nanomaterials larger than 100 nm that acquire a specific physico-chemical property, compared to the bulk material, related to the decrease of their size. The chemical composition of these nanomaterials is mineral or organic. They can be from natural sources (sand, dust, smoke from forest fire and volcanos eruptions) or from industrial sources. The multitude of definitions related to nanosciences and nanotechnology is currently under review at international level to establish widely shared and recognized terminology and definitions.

According to the International Organization for Standardization (ISO), nanomaterials are divided into nano-objects and nanostructured materials.

DEFINITIONS OF THE NANO-OBJECTS

Nano-objects are materials with at least one dimension in the nanoscale, less than 0.1 micron or 100 nanometres (100 nm):

• nanoparticles (including spherical fullerenes), also named ultrafine particles;

• nanowires (nanotubes and nanofibers); and

• nanoplates (ultrathin coatings).

A fullerene is a molecule composed of carbon that can take the form of a sphere, an ellipsoid, a tube (called a nanotube) or a ring. Fullerenes are similar to graphite, composed of sheets of hexagonal rings linked, but containing pentagonal rings and sometimes heptagonal, which prevents the sheet being flat. The diameter of a sphere formed by 60 atoms of carbon is less than one nanometre. Nanotubes are formed by one or several concentric tubes. They are formed of carbon atoms arranged in hexagonal array and two half-molecules of fullerene at each end. Fullerenes tend to form aggregates of varying sizes (25–500 nm) in solvents (water, ethanol and acetone).

The nanowires are nano-objects with elongated dimensions ranging from a nanometre to several tens of nanometres for the section and from 500 to 10,000 nanometres in length. The nanotubes can have a length of more than five microns (5µm) and a diameter of 0.7 to 1.5 nm (single-walled nanotubes) or 2 to 50 nm (multi-walled nanotubes). It is now possible to manufacture very long nanotubes. Nanotubes can be formed by other chemical elements than carbon: nanotubes in polystyrene and in PTFE (polytetrafluoroethylene) may also exist (ANSES/AFSSET 2006).

Nanoplates or nanomaterials from scale 2 are materials for surface coating that can be created from one to multi nanolayers to provide the surface with mechanical properties (hardness), or related to water properties (hydrophobic, hydrophilic, non-stick), or thermal properties (heat resistance, insulation), or chemical properties (anticorosivity), or biological properties, or electronic properties, or magnetic properties and or optical properties. These coatings are produced by physical or chemical deposition on a surface. Multilayers can be developed to provide some physico-chemical properties specific to electronics and to integrated circuits or, in the field of surfaces, hardness for tribological applications (ANSES/AFSSET 2006).

DEFINITION OF THE NANOSTRUCTURED MATERIALS

Nanomaterials with a size larger than 100 nm may also acquire nano-specific physico-chemical properties, compared to the nanoscaled bulk material.

This category includes several sub-categories:

• nanostructured powders (nanostructured aggregates and agglomerates);

• nanostructured core-shell particles (polymeric nanocomposites and nanoalloys);

• nanostructured composites (nanostructured onions, nanostructured capsules, and nanostructured plates);

• nanodispersions (nanosuspensions, nanoemulsions and nanofoams);

• nanoporous materials.

Another example is the bio-nano-objects which are an association between organic or mineral nano-objects and biological molecules.

An Exponential Growth

In recent years, the scientific, industrial and military world has embarked on the research and production of nanostructures and nano-objects. Many research programmes are underway in Europe, the United States and Asia to develop applications that will give them a technological edge over other countries. Several hundred million euros are spent annually on research and development.

The United States is the global leader in investment in this area as well as in scientific production and research & development (R&D). R&D expenditures amounted to 1.2 billion euros in 2006, and research for military applications can be estimated at around 500 million euros. The United States was the first to develop a coordination structure called the ‘National Nanotechnology Initiative’ (NNI) in 1996, with an effective launch of their administration in 2001. Its budget amounted to 1.26 billion euros (1.64 billion dollars) in 2010.

American and European public research budget in nanotechnology are comparable. The public effort in R&D in nanotechnology is substantial in Europe, including France. The financial effort of France in the field of nanotechnology places the country second in Europe behind Germany. Between 2001 and 2005, over one billion euros of public money has been invested to develop research in the field of nanoscience and nanotechnology. In 2007, public spending was around 280 million euros.

The UK, like many other countries, has invested heavily in nanotechnology. The UK has not articulated an overarching national strategy on nanotechnology that can rank alongside those from the likes of the US and Germany. The UK public funding for the period 2009/2010 amounted to 83.20 million pounds (130 million euros) (The Nanotechnology Mini-Innovation and Growth Team (Mini-ITG) report, 2010).

France and Europe generally appear well placed in the field of scientific production in nanotechnology. The number of academic publications in Europe is almost identical to that of the United States, but the difficulty lies in the ability to convert this work into products and value (conversion of knowledge into patents and creation of innovative companies). The United States is the country that publishes most (18 per cent of publications are American, 11.4 per cent Japanese, 8 per cent and 5 per cent German and French). France ranks fifth in the world in terms of number of publications on nanosciences. Two-thirds of patents in this sector are held by Asia (China, Japan and South Korea), significantly outpacing the United States and Europe. Germany accounts for two-thirds of European patents followed by France and the United Kingdom. Applicants are primarily industrial at 70 per cent, mainly multinational corporations (Le Cedef, 2009).

The market forecast for nanotechnology was exaggeratedly estimated in the year 2007 to trillion dollars. According to Nanowerk:

The report ‘Nanotechnology: A Realistic Market Assessment’ released by Bcc Research Market Forecasting in 2010 estimates the worldwide sales revenues for nanotechnology to be 26 billion dollars in 2015. Yes, that’s illion with a b, not a tr – in 2015. According to this report, the largest nanotechnology segments in 2009 were nanomaterials, with sales reaching 9 billion dollars in 2009. This is expected to grow to more than $19 billion in 2015. Sales of nanotools, meanwhile, will experience high growth. From a total market revenue of 2.6 billion dollars in 2009, the nanotools segment will increase at a 3.3% Compound annual growth rate (CAGR) to reach a value of 6,812.5 million dollars in 2015. Sales of nanodevices, on the other hand, will experience moderate growth. This market segment was worth 31 million dollars in 2009 and will increase at a 45.9 percent CAGR to reach a value of 233.7 million dollars in 2015. 26 billion dollars in 2015 is in a different universe than the previous record forecast of 2.95 trillion dollars. It won’t make for eye-catching quotes in business plans, grant applications and political speeches, but it feels a lot more honest’. (Nanowerk News, 2010).

The development of nanotechnology could generate direct employment to over 2 million people.

According to the French AFSSET in 2006 (now called ANSES), 1,400 types of nanoparticles were commercialized in significant quantities in the world.

The annual world production of nanomaterials is about seven to ten million tons of carbon black (the main constituent of tyres). For titanium dioxide: 4.4 million tons of small particles and 3,800 tons of nanoparticles (used primarily in paints, and cosmetics, and buildings). About 300,000 tons of silica are used as a constituent of ‘green’ tyres. Several tens of tons of carbon nanotubes are used in the automotive industry and reinforced composites.

According to the Woodrow Wilson Institute (WWI) ‘Consumer Products Inventory of Nanotechnology Products’ 2011, 1,317 finished products are listed in the consumers market. This represents an increase of 400 per cent since 2005. The WWI collects names of products that claim to use nanotechnology.

A recent survey made by the Dutch institute RIVM (National Insitute for Public Health and the Environment) in 2011, on 22 products, to analyze the content of nanomaterials in consumer products, concluded: ‘Nanomaterials were not found in a number of products with a nano claim, or products contained another than the claimed nanomaterial. In addition, nanomaterials were found in some products without a claim.’

TYPE OF NANOMATERIALS AND APPLICATIONS

Nano-objects

• Metal nanoparticles:

– nanoclays for structural composites;

– ZnO and TiO2 UV absorbers in cosmetics, plastics, and coatings;

– CeO, silica and alumina or Chemical–Mechanical Polishing slurries (CMP) CeO for fuel catalysts;

– TiO2 for photocatalytic coatings, glasses, filters and also in solar cells;

– silica and alumina nanoparticles for coatings in paint;

– Li compounds for batteries;

– nanosilver for antimicrobial activities in fabrics and composites;

– Pt, Pd, Ni, Co, Rh particles, in chemical catalysis;

– Cu, Ag; sensors in conductive layers in displays; printed electronics, especially with Surface-Enhanced Raman Scattering (SERS) or plasmonics-based sensors;

– aluminium nanoparticles for ‘energetics’.

The global market in 2010 was estimated at 1.8 billion euros.

• Carbon nanotubes:

– Multi-Wall Carbon Nanotubes (MWCNT) most important volume for conductive and structural composites;

– Single-Wall Carbon Nanotubes (SWCNT) in composites and in memory, sensors, thermal management, conductive display layers, (Electro Magnetic Interference/Electro Static Discharge) EMI/ESD coatings.

The estimated market in 2010 was worth 200 million euros.

• Fullerenes:

– in composites, mainly for sporting goods;

– as antioxidant additives for cosmetics;

– in organic solar cell components;

– in fuel cells;

– uses as lubricants

– novel therapeutics drug carrier.

The market in 2010 was estimated at 50 million euros.

• Nanowires:

– for conductive layers for displays;

– in sensors;

– in solar cells;

– in logic devices.

A small market in 2010 estimated at 13 million euros.

• Dendrimers:

– for drug delivery, therapeutics, and diagnostics;

– applications in personal care, coatings, composites, inks, and adhesives.

Estimated market in 2010: 33 million euros.

• Quantum dots:

– biolabels and in vitro diagnostics devices;

– optoelectronic applications like LEDs, displays, solar cells;

– inks and paints for identification or brand protection.

The market in 2010 is estimated at 30 million euros.

Nanostructured materials

• Nanoporous materials:

– primarily silica in aerogel materials for insulation, as well as in optics, electronics, catalysis; polymers for separation media; polymers;

– silicon, or carbon for drug delivery systems;

– carbon, polymer, hydroxyapatite, in medical device coatings.

Estimated market in 2010: 540 million euros.

• Nanostructured metals:

– in hard coatings or structural components in aerospace, automotive, pipelines, sporting goods;

– as chromium-free anti-corrosive coatings.

Estimated market in 2010: 150 million euros.

• Polymer nanoparticles:

– engineered nanoscale particles of latexes, urethanes, acrylics, and so on used or studied for coating and composite formulations.

• Drug nanoparticles and nanoscale reformulations:

– coated nanoparticles of actives or encapsulation in liposomes, micelles, emulsion, and so on, widely applied to food and personal care and in drugs delivery.

• Nanoscale films:

– sub 100 nm layers of polymers, metals, ceramics which are self-assembled or deposited on surfaces from SC wafers to glass to fabrics.

Hazards and Risks

Human exposure to nanoparticles has always existed in the natural environment (pollen, dust or fumes of any kind including volcanic dusts). Thus, minute quantities of Fullerenes in C60, C70, C76 and C84 (molecules in the form of a sphere of 60, or 70 or 76 or 84 assembled carbon atoms) are produced naturally in the soot during organic matter combustion and in the heat lightning through the atmosphere.

Ambient air contains large quantities of nanoparticles having a diameter of or greater than 10 nm either of natural origin (sand, smoke, pollen and so on) or emitted by human activity (car traffic, combustion, barbecues and so on). There are over 10 000/cm3 nanoparticles in a quiet room without any activity and more than 500 000/cm3 nanoparticles in the streets with high traffic activity.

Correlations were made between urban particulate pollution, including a large number of very fine particles and nanoparticles, and modification of various parameters of lung function and cardiovascular systems of the inhabitants of these areas.

In the working world, exposure to nanomaterials has also been evident for decades: that is, fumes emitted by metallurgical furnaces, welding fumes, thermal decomposition, also the manufacture and use of carbon black, and amorphous silica, and so on.

The nature of the risks associated with exposure to nanomaterials of staff involved in research and industr...

Table of contents

• Cover Page
• Title Page
• Copyright Page
• Contents
• List of Figures
• List of Tables
• Acronyms
• Acknowledgement
• List of Contributors
• Foreword
• Preface
• Introduction
• PART I MAJOR RISKS AND ISSUES
• PART II STRATEGIC MANAGEMENT
• Conclusion
• Appendix 1
• Appendix 2
• Index