1

Life Cycle Managementa Business Guide to Sustainability

Training Session 3 of 4November 2006

22

Life Cycle Management Training - Outline

• Introduction to LCM– First session

• How LCM is used in Practice– Second Session

• Communicating LCM Results– This Session!

• LCM and Stakeholder Expectations– Fourth Session

33

• Introduction to LCM– First session

Learning Objective: Understand the theoretical basis of life cycle management & its history

08.00-08.30 What is a life-cycle? Impacts & value created along the life cycle of a product or service

Definitions

History

Use

08.30-08.40 Why LCM is needed in business and in government?

Drivers

08.40-09.15 What does LCM encompass?What are the unique aspects of LCM?

09.15-10.00 Group exercise

10.00-10.30 Break for coffee & refreshments

done

44

• How LCM is used in Practice– Previous Session

Learning Objective: Understand the practical aspects of LCM in policy development & business operations, through discussions of how to integrate it into decision making & through case examples

10.30-10.45 Life cycle managementDefinition & Benefits

10.45-11.00 LCM involves…Learning from a range of examples

11.00-12.00 A process for implementing LCMPlan – Do – Check – Adjust

A focus on design

Further examples to illustrate

12.00-12.30 Group exercise

12.30-13.30 Break for lunch

done

55

• Communicating LCM Results– This Session!

Learning Objective: Provide a good understanding of communication tools and strategies. Why and how they can be valuable to business?

08.00-08.15 Why communicating LCM? To whom? Definition and scope, drivers, target groups of communication

08.15-09.00 Communication toolboxMain features and link with LCMExamples and diffusion of tools

09.00-09.45 Case-studiesSector-specific driversCommunication strategiesCombination of tools

09.45-10.00 Group exercise

10.00-10.30 Break for coffee & refreshments

66

• LCM and Stakeholder Expectations– Fourth Session

Learning Objective: Understand how to identify stakeholders, as well as their priorities & concerns

10.30-10.35 Why Engage Stakeholders?

10.35-10.45 Identifying StakeholdersPotential Stakeholders

Ask the right people

Ranking

10.45-11.00 Importance of Including StakeholdersRisk Avoidance

Opportunity Creation

11.00-11.45 Case example

11.45-12.30 Group exercise

12.30-13.30 Break for lunch

77

1. Definition and scope and section goals

2. Overview of LCM Communication toolbox – Main features and link with LCM

3. Which communication tools used in practice? Examples and diffusion

4. Case-studies– Sector-specific requirements

– Leading companies with communication strategies

5. What comes next? Recent trends and outlook

Contents

88

Definition and Scope &Section Goals

99

• Definition of “Communication” within the present training kit:

Any manner of information sharing with stakeholders, generally through one-way, non-iterative processes, e.g. Corporate Sustainability Reporting or product eco-labeling

Definition

1010

• Consumer demands• Information request from business clients (e.g in the supply chain) • External pressure from society stakeholders (e.g. NGOs) and civil

society• Increasing attention from financial stakeholders• Green Public Procurement programs of public administrations• Requirements from policy-makers (e.g. WEEE and RoHS

European Directives)

Drivers – Why communicating LCM?

1111

• Competitive advantage in emerging or new green markets– Final consumers– Business clients– Public administrations

• Better image– Consumers and clients– Financial stakeholders– NGOs and civil society– Legislators

• Influence regulations and pre-normative processes

Opportunities / Target audiences

1212

• External stakeholders• Final consumers

• Business clients

• Financial stakeholders

• Public administrators and policy makers

• Civil society and society stakeholders

• Suppliers

• Internal stakeholders• Shareholders

• Employees and management

Target groups of communication

1313

• Provide good understanding of:

– Communication tools and strategies

– Why and how can be they valuable to business?

Section Goals

1414

• Which communication tools used in practice by industry and business?

• Distinguish communication tools vs. target stakeholders– What is used to communicate with whom?

• Why and how communication valuable to business?– Relevance and diffusion of communication tools– Case-studies of companies with comprehensive communication

strategies– Sector-specific drivers and communication needs

Main questions/topics

1515

Overview of LCM Communication ToolboxMain Features and Link with LCM

1616

FIRM & ORGANIZATION LEVEL (F&O)

• Environmental reports• EHS reports• Social reports• Sustainability reports• CSR - Corporate Social

Responsibility• Company Codes• Manuals of Conduct• Audits• Supplier evaluation systems

PRODUCT-RELATED (P-R)• Eco-labels• Environmental claims• Environmental product

declarations• Product Environmental

Performance Indicators• Product Profiles• Eco-efficiency analysis• Prod. Information Schemes• GPP guidelines

Advertising, Information brochures & campaigns, websites

F&O P-R

Communication Toolbox

1717

• External stakeholders• Final consumers• Business clients• Public administrators and

policy makers • Financial stakeholders• Other society stakeholders• Suppliers

• Internal stakeholders• Employees and management • Shareholders

F&OExt

Int

P-R

Int

Ext

Which tool to communicate to whom?

1818

F&O

Reporting - From Environmental Reporting to Corporate Social Responsibility (CSR)Reporting - From Environmental Reporting to Corporate Social Responsibility (CSR)

Global report output by « type » since 1992.

1919

• Many different approaches

• Several guidelines (e.g GRI – Global Reporting Initiative)

• Difficult classification, because

– Voluntary instruments

– Different and heterogeneous industry sectors

• Life Cycle Thinking (LCT) and Life Cycle Management (LCM) not

always taken into account / reported

F&O

Reporting – Contents & LCM

2020

• Set of requirements on – Ethical– Social– Health & Safety– Environmental aspects

• To be fulfilled internally in the company

• Often extended to suppliers

• Good tool to interact with SMEs

• Link with LCM intrinsic in – Corporate Social Responsibility– Extended Producer Responsibility– Involvement of Suppliers

F&O

Codes of Conduct & Supplier Screening

2121

• Wide range of Environmental Product Information Schemes (EPIS)

• Main classification according to verification:– First party verification– Third party verification/certification

• Coded by ISO norms 1402x

P-R

Product-related communication tools

2222

14020 ISO norms

Environmental claims and declarations

Type-I

ISO 14024

(1999)

Environmental labels

(e.g. EU-Flower, Blue Engel, White Swan)

Type-II

ISO 14021

(1999)

Self-declared environmental claims

Type-III

ISO 14025

(2006)

Environmental declarations

(e.g. EPD®, Eco-leaf)

P-R

Environmental Product Information Schemes (EPIS) - Reference norms

2323

• Indicate the overall environmental preferability of a product within a particular product category

• Qualitative, concise information– Allows consumers to take quick purchasing decisions

• Main features/characteristics:– Voluntary instrument– Multiple criteria– Life cycle approach– Third-party independent verification (national bodies)

• LCT - Life Cycle Thinking (but not necessarily LCA) explicitly used to set the criteria (multiple indicators)

P-R

ISO-type I ecolabels

2424

• Definition (ISO 14021): “self-declared environmental claims made by manufacturers, importers, distributors, retailers, or anyone else likely to benefit from such a claim without independent third-party certification”

• Several forms of communication: – Statements, symbols or graphics on product or package labels, or in

product literature, technical bulletins, advertising, publicity, telemarketing, internet

– Main advantage for firms: flexibility

P-R

ISO-type II environmental claims

2525

• Main features/characteristics:– Voluntary instrument

– Generally single criteria

– First-party self-declaration

• Relationship with product life cycle and LCM is implicit, generally weak

P-R

ISO-type II environmental claims

2626

• Definition (ISO 14025): “Quantified environmental data for a product, with pre-determined parameters, based on the ISO 14040 series of standards, which may be supplemented by other qualitative and quantitative information”

• Environmental Product Declarations (EPD)

P-R

ISO-type III environmental declarations

2727

• Environmental Product Declarations (EPD) - Main features/characteristics:– Voluntary instrument– Multiple environmental impact indicators (from LCA)– No threshold criteria / minimum levels to be met– Allows comparability of products– Third-party verified

• Product Category Rules (PCR)– Defines all rules for LCA study and EPD format for the specific product

category– Open stakeholder consultation process

• Relationship with product life cycle is explicit, strictly based on underlying LCA study

P-R

ISO-type III declarations

2828

Communication tool Link with LCM

Reporting Variable LCT and LCM not always taken into account / reported

F&O

Codes of Conduct and Supplier Screening Systems

Intrinsic in: - Corporate Social Responsibility - Extended Producer Responsibility - Involvement of Suppliers

ISO-type I ecolabels LCT (but not necessarily LCA) explicitly used to set the criteria (multiple indicators)

ISO-type II environmental claims Relationship with product life cycle and LCM is implicit, generally weak

ISO-type III environmental declarations

Explicit relationship with product life cycle, strictly based on underlying LCA study

P-R

Other assessment and certification tools

Variable

Communication Toolbox and LCM

2929

Which communication tools are used by industry and business in practice?Examples and Diffusion

3030

• External stakeholders• Final consumers• Business clients• Public administrators and

policy makers • Financial stakeholders• Other society stakeholders• Suppliers

• Internal stakeholders• Employees and management • Shareholders

F&OExt

Int

P-R

Int

Ext

Which tool to communicate to whom?

3131

• Very difficult to measure impacts of LCM communication– Direct impacts (e.g. increase of market share)

– Indirect impacts (image, other factors, etc.)

• An indirect indicator for the importance of the different communication tools is the degree of its diffusion, e.g.– Number of labelled products

– Amount of sales

Importance and impacts of communication

3232

• ISO-type I labels are still the most widely used communication tool to final consumers

• However, important limitations of eco-labels other communication tools are increasing awareness and fostering

better use of products

• Simplification of complex life-cycle information into ISO-type II claims, however some credibility issues

• ISO-type III declarations for B2B – increasing but still limited diffusion

• Combination of tools and reporting for various stakeholders

Observed trends

3333

Communication to:

I. Final consumers

II. Business clients

III. Public Administrations

IV. Various stakeholders

V. Suppliers

VI. Internal communication

Examples and diffusion of communication tools in function of target group

3434

• Diffusion of ISO-type I labels as of Oct. 2006

Source: Frankl et al (2006)

I.1 - Final consumers - ISO-type I labels

Country (Status) Year of

establishment

Product groups Firms Products

Japan (October 2006) 1989 47 2107 5152

South Korea (June 2006) 1992 7 (groups) 103 (categories) 1001 4100

Germany (State July 2006) 1978 89 529 3,650

Nordic Countries (2006) 1989 61 680 n.a.

EU (October 2005) 1992 24 309 n.a.

The Netherlands (Milieukeur,

October 2006)

1992 69 257 360

Catalonia (DGQA) 1994 26 171 895

Austria 1991 49 n.a. n.a.

France 1992 19 n.a. n.a.

Spain (AENOR) 1994 11 52 275

Sweden (Falcon) (October 06) 1992 11 n.a. n.a.

China (2005) 1993 56 n.a. n.a.

India (October 2006) 1991 16 n.a n.a

Brazil (ABNT – Qualidade

Ambiental)

1993 10 (under development) n.a. n.a.

3535

• Example of diffusion: Evolution of sales of EU-Flower labelled products

Source: http://ec.europa.eu/environment/ecolabel/marketing/statistics_en.htm

I.1 - Final consumers - ISO-type I labels

3636

• “ISO-type I like” labels and certifications, e.g.

• FSC – Forest Stewardship Council– 4945 Chain of Custody certificates in 73 countries

as of Sep. 2006– 854 Forest management/COC certificate in 74 countries– www.fsc.org

• PEFC – Pan European Forest Certification

• Blue Flag– www.blueflag.org/blueflag

• Eco-Tex standard – Thousands of awards– www.oeko-tex.com

I.2 - Final consumers – “ISO-type I like” labels

3737

Examples: • UKCRA The United Kingdom

Cartridge Recyclers Association (UK)

• NAPM The National Association of Paper Merchants (UK)

• Ecological Woodparticle board (Italy)

• DIGODREAM- 100% recyclable textile floor covering (Italy)

I.3 - Final consumers – ISO-type II claims

3838

I.3 - Final consumers – ISO-type II claims

3939

• Example: Fujitsu develops ISO-type III declarations and advertises it in newspapers

Environmental Impact

Extraction

Design and manufacturing Transportation

Use

Disposal/Recycling

Transportation

Transportation

Environmental impact data through product life cycle is captured quantitatively.

Advertising of Fujitsu Co. In newspapers

In June 2004, Fujitsu Co. took out a full-page advertising in major newspapers, including the Nikkei Shimbun, the most popular business newspaper in Japan. In the ad, an engineer points out that, “there are widely many environmentally conscious products in the market. But most of them are not proved with objective data comprehensively. Even if a product is called an energy-saving product during the use stage, it might consume numerous amount of energy during the production stage while consumers/purchasers are not informed. Such a product should not be claimed as environmental conscious product. In order to fulfill high ideals that real environmental friendly products are selected by consumers, environmental impact information through product life cycle stages, resource extraction, production, use, and recycling/disposal, including transportation should be reported”.

I.4 - Final consumers – Advertising

4040

• Example: AISE Washright Campaign fosters better use of detergent products

[detergent industry initiative] - [home] - [short reminder panel]

If you want more information on this campaign, please contact the local industry

association (click here for contact details).

I.5 - Final consumers – Information campaigns

4141

• National EPD Programmes:– Sweden (107 declarations as Oct 2006, companies of

several countries participating)

– Japan (210 decl as Oct 2006)

– South Korea (96 EDP as Oct 2006)

– Norway (96 declarations)

• Many sector-specific EPD programmes– Particularly in the construction and building sector

– IT sector

– Automotive sector

II.1 - Business clientsISO-type III declarations

4242

• Examples: Japanese Eco-leaf and German AUB EPD

II.1 - Business clientsISO-type III declarations

4343

• Example of marketing of Eco-leaf at the example of CO2 emissions at Fujitsu

Source: FUJITSU GROUP 2004 Sustainability Report

II.2 - Business clientsMarketing and Sustainability reports

4444

• Example: BASFEco-efficiency analysis combined with “improved” ISO-type II claim (3rd party critical reviewed)

II.4 - Business clients Eco-efficiency + ISO-type II

4545

• Qualitative Claim

• Visual

• Self-claim

II.5 - All clients –ddd

• Example: DOW BUILDING MATERIALS

[Source: T.Smith 2005]

II.5 - All clients Advertising (ISO-type II)

4646

• Green purchasing guidelines in Denmark

• Currently for 50 product groups• Guideline typically 4-pages doc• Checklist for more insight

III.1 Public Administrations GPP Guidelines

4747

• Combination of tools used by Japanese companies to provide life cycle information to public stakeholders for green public procurement

[Source: Resource: Japanese Ministry of Environment, 2003 Report of Green procurement]

Local authorities Total Eco-Mark (ISO-I)

Energy star FSC Eco-Leaf (ISO-III)

56 55 52 7 4 prefecture

100% 98.2% 92.9% 12.5% 7.1%

449 441 247 11 20 municipality -ward & city

100% 98.2% 55.0% 2.4% 4.5%

917 846 161 5 39 town & village in the prefecture

100% 92.3% 17.6% 0.5% 4.3%

1422 1342 460 23 63 Total

100% 94.4% 32.3% 1.6% 4.4%

III.2 Public Administrations Combination of tools

4848

[Source: J&J sustainability report 2003]

• Avoided life cycle costs at Johnson&Johnson

IV.1 Various stakeholders Sustainability reporting IV.1 Various stakeholdersSustainability reporting

4949

ECOBILANCIO ITALIA

• Henkel: 1992 first corporate Environmental Report

Since 2000 Sustainability Report

• Procter&Gamble: 1993 first corporate Environmental Report

Since 1999 Sustainability Report

• Unilever: 2000 first corporate Environmental Report

Since 2001 Environmental Report + Social Report

• Johnson&Johnson: Since 2000 Corporate Sustainability Report

IV.1 Various stakeholdersSustainability reporting

5050[Source: Menichetti, in Largo Consumo 1/2004]

ASPECTS Reported instruments Henkel J&J P&G Unilever

Quality ISO9000 N.a. N.a. N.a.

Environment

ISO14000Since 2003 all business units

Since 2003 all business units

N.d.Since 2003 for all main sites

EMAS - - - -

LCA

Social Responsibility

SA8000 On-going N.a. N.a. N.a.

OHSAS18011 7 plants N.a. N.a.

Sustainability

GRI Guidelines (in accordance)

No

DJSI (Eco-rating)

OtherUse of renewable energy sources

N.a.

IV.1 Sustainability reports & Life Cycle Information

5151

IV.1 - Reporting – Diffusion per country

5252

V.I - Suppliers – Codes of Conduct

• Example: LEGO

• Code of Conduct introduced in 1997– Ethical– Social– Environmental– Health and Safety

• Internal requirements + extended to 200 suppliers

• Suppliers audited by independent auditors

5353

• Example: INMINSUR, Peru

• ISO 14001 at the main mining site Antapite• Extended application of EMS to suppliers (10)• Extended application to cover healty & safety aspects• “Supplier assessment policy”:

– Compliance with law– Attention to H&S of employees and subcontractors– Positive impacts on neighborhood– Minimize pollution of water courses

V.II - Suppliers – Screening Systems

5454

• LCM is a formal part of 3M's new product introduction process worldwide

• Cross-functional, new product introduction teams use a LCM matrix for systematic and holistic assessment

[Source: Lienne Pires – 3M Brazil]

VI.1 – Internal communication LCM matrix at 3M Brazil

• LCM matrix analysis applied at 3M Brazil on an adhesive product• As a consequence of LCM matrix analysis, opportunities were

identified for process stage, use stage and disposal stage taking into consideration the changing from sticks shape to pellets shape

5555

VI.2 – Internal CommunicationSTEP®-model at Hartmann

• STEP®-model (Systematic Tool for Environmental Progress) since 1997

• Integrates environmental impacts with assessments of health, safety

and social relations over the product life cycle

• Department for Sustainable Development at Hartmann Corporate Headquarter in Denmark is responsible for guiding the production sites

• Simple tool for non-experts – developed and implemented throughout the organization

progressive integration in everyday decision-making

[Source: A.A.Jensen 2006]

5656

VI.3 - Internal CommunicationKEPIs at Nokia

• Key Environmental Performances Indicators (KEPIs)– Based on LCA results of a KEPI project by Motorola, Nokia, Panasonic

and Philips

– Method significantly reduces the reliance on the supply chain for data on material flows

– Identifies components and materials that account for

most of the environmental impacts over the life cycle

• Internal communication channels with employees:– Intranet

– Two global events yearly

– Global in-house magazines, global environmental e-magazine, monthly newsletters and several other internal publications

[Source: Nokia, Integrated Product Policy Pilot Project – Stage 1 Final Report: Life Cycle Environmental Issues of Mobile Phones, Finland, April 2005]

5757

• ISO-type I ecolabels – Most suited for communication to consumers, allow for quick decisions,

thousands of labelled products– Pros: Credibility (criteria, stakeholder involvement, 3rd party verification)– Cons: Several limitations (top-down approach, limited number of

product groups, format not always appropriate, bureaucracy)

• ISO-type I-like labels– Well suited for communication to consumers, allow for quick decisions,

thousands of labelled products– Pros: Credibility (criteria, 3rd party verification)– Cons: restricted to specific sectors (e.g. wood, textiles)

• ISO-type II-environmental claims– Well suited for communication to consumers, thousands of claims– Pros: Flexibility (bottom-up approach)– Cons: limited credibility, usually not whole life cycle, just one

environmental parameter

Summarising considerations

5858

• ISO-type III environmental declarations – Most suited for B2B communication, complex for consumers, allow for

comparison, hundreds of declarations worldwide

– Pros: Credibility (PCR with stakeholder involvement, 3rd party verification), large amount of detailed information, full life cycle

– Contra: Complex information without benchmark, high resources need (full LCA), complicated for SMEs (simplified systems needed, currently being tested)

• Codes of conduct, supplier screening systems– Well suited for communication with and gather info from suppliers

– Pros: Simplicity and flexibility, well suited to involve SMEs

– Contra: Limited to cradle-to-gate, not necessarily 3rd party verified

Summarising considerations – (cont.)

5959

Sector-specific approaches &Case-studies

6060

• Presence of a Communication Strategy• Sector-specific drivers • Combination of tools

– Firm-level reporting– Product-oriented communication (combination of labels)

• ISO-type I eco-labels• “ISO-type I like” labels and certification• ISO-type II environmental claims• ISO-type III environmental declarations• Social labels

– Advertising & marketing

• Focus on Sustainability• Two sectors:

I. EnergyII. Electronics

Key aspects of case-studies

6161

• Pressure from regulation / EU Directive on electricity markets – Fuel Mix disclosure

– Public information on environmental impacts, at least in terms of CO2 emissions and radioactive waste

• Information request from business clients

• Emerging markets for “Green Electricity” – Green pricing / tariffs– Green electricity labels

• Green Public Procurement programs of public administrations

• Social acceptance issues / Dialogue with stakeholders– e.g. nuclear, but also renewables

I. EnergySector-specific drivers

6262

• Vattenfall (SE)

• Enel (IT)

• British Energy (UK)

• Electricité de France (FR)

I. EnergyExamples of Life Cycle Communication

6363

• Longstanding experience in LCA

• Extensive reporting– Environmental reports– Life cycle assessment of Vattenfall’s electricity supply in Sweden

2005– Several EPDs

• EPD Lule River 1999 first absolute EPD® in the Swedish system

• ISO-type I ecolabel for certification of “green energy”

Sector I. EnergyCase-study 1: Vattenfall (Sweden)

6464

Vattenfall can apply for labelling for electricity ca 1 TWh, Bra Miljöval, ”Good Environmental Choice”

95% of electricity production is certified with an Environmental Product Declaration

[Source: Bodlund 2005]

I.1 VattenfallCombination of EPIS for communication

6565

• Information system open for all products and services

• Based on ISO/DIS 14025

• Third-party verified and certified

• An EPD® for electricity and district heat contains– Life Cycle Assessment (LCA)– Study of impacts on biodiversity– Environmental Risk Assessment

(ERA)– Radiology (nuclear power)

[Source: Bodlund 2005]

I.1 VattenfallAdded value of certified EPD® - More than LCA

6666

• LCA towards common practice

• Credibility needed, ensured by third-party certification and Product Category Rules (PCR) with stakeholder participation

• Focus on not just one environmental issue, but several ones

• EPD® is one way, which Vattenfall Nordic countries have chosen for keeping track

• Key values: “Openness and accountability”

[Source: Bodlund 2005]

I.1 VattenfallStrategy and key conclusions at Vattenfall

6767

• LCA activities– Since 1999 at R&D level– Just recently at corporate level (Environmental Direction)

• First two EPDs in 2004-05 within the LIFE-INTEND project

• EPDs on two renewable energy technologies– Wind (first EPD of electricity systems in Italy)– Geothermal (first EPD worldwide)

• EPDs used for communication with local authorities– Social acceptance issues (wind)– Provide holistic approach and new perspective on comparison of

technologies

• Communication channels: website + sustainability report

• Green pricing: adoption of guarantee label “100% energia verde”

Sector I. EnergyCase-study 2: Enel (Italy)

6868

Certified Environmental Product Declaration of Electricity

from Enel’s wind plant

in Sclafani Bagni (Palermo, Italy)

I.2 EnelEPDs at Enel

6969

I.2 Enel - Green electricity labelling for business clients and consumers

Green electricity label is also attached to the products of the business client buying renewable energy from Enel (e.g. producer of mineral water)

Important means of LC communication

7070

LCM results (e.g. green electricity labelling) is communicated through Corporate Sustainability Report

I.2 Enel LCM in Sustainability reporting

7171

• Environment embedded in management structure• LCA/LCT and eco-design with clear targets • Green Public Procurement programs of public administrations

– Japan, China, other countries and public administrations

• Pressure from regulation– WEEE, RoHS, Directives on batteries and accumulators containing

mercury, etc.

• Information request from business clients

• Diversification and competitiveness on the market

• Increasing attention from financial stakeholders

II. Electronic SectorSector-specific drivers

7272

• Samsung

• Seiko Epson

• Canon

• Konica Minolta

• Matsushita Electric / Panasonic

• Ricoh

II. Electronic SectorExamples of LC communication

7373

• Green management report since 1999

• Environment/Safety Management Committee, headed by CEO

• LCA first adopted in 1995, currently applied for design & development of products, in combination with DfX (design for recycle/service/disassembly/assembly)

• Internal tool EPS – Eco-Product System– 5 modules: LCA, ecodesign, environmental accounting, Green

procurement, Customer Service

• Wide range of EPIS applied

[Source: Menichetti 2005]

Sector II. Electronic SectorCase-study 1: Samsung (S. Korea)

7474

ISO TYPE I

Kela (since 1995)

More than 60 products, of which:

7 models of printer

1 model of fax

5 models of TV sets

20 models of computers+monitors

8 models of air purifiers

19 models of other products (not specified)

TCO 15 models of displays

Blue Angel 1 model of printer

ISO TYPE II

Eco – RoHS compliant label (for memories, PwBs, DVDs, digital cameras, etc.

ISO TYPE III

EMC (Korean EPD system)

1 model of digital camera

1 model of optical disk drive

1 model of TFT-LCD plate glass

1 model of CRT glass

1 model of TFT-LCD monitor

1 model of PDP TV

1 model of air conditioner

1 model of VCR

1 model of household refrigerator

1 model of laser printer

[Source: Menichetti 2005]

II.1 SamsungCombination of applied EPIS

Different EPIS applied for different products and different markets

7575

Energy Labels

EU Energy Star

10 models of PC monitor

US Energy Star

15 models of PC monitor

2 models of printer/fax 36 models of printer/fax

16 models of printer 75 models of printer

8 models of MFD 14 models of MFD

3 models of fax machine 18 models of fax machine

Hong Kong Energy Efficiency labelling scheme

3 models of printer Energy Saving LabelSouth Korea

Several products, including: TVs, notebooks, mobile phones, air conditioners

[Source: Menichetti 2005]

II.1 SamsungCombination of applied EPIS – (cont.)

Energy labels used in relevant markets in addition to env. labels and declarations

7676

• Self-definition: “Visionary Company”– CEO: “aim of the corporation is to be five or ten years ahead of other

companies in implementing comprehensive eco-programs, thus exceeding the expectations of its stakeholders”

• Environmental report since 1999, Sustainability and CSR report since 2003– Environmental target and progress

• LCA both at product and production plant level– Strong emissions reductions achieved in new plant

• Groupwide LCT targets at each level: – Design, procurement, manufacturing, sales, recovery/recycling

• Obtaining environmental label qualifications is an objective of both design and sales departments [Source: Menichetti 2005]

Sector II. Electronic SectorCase-study 2: Seiko-Epson (Japan)

7777

ISO TYPE I

Eco Mark Inkjet, laser, and SIDM printers + paper

Blue Angel 2 models of printer

Taiwan Green Mark41 products, including laser printers, inkjet printers and cartridges

ISO TYPE II

50% of all products and 43% of total sales in all business qualify for the Epson Ecology label

ISO TYPE III

Ecoleaf

1 model of notebook PC 15 models of printer

1 model of desktop PC 20 models of data projector

1 model of PC display4 models of large format printer

Energy Labels

International Energy Star

4 models of computer

US Energy Star

1 model of MFD

6 models of printer 25 models of printer

3 models of scanner 7 models of scanner

Energy Saving Label South Korea

N.A. Energy Conservation Product CertificationChina

several models of printers (inkjet, laser, SIDM)

[Source: Menichetti 2005]

II.2 Seiko-EpsonCombination of applied EPIS

Different EPIS applied for different products and different markets

7878

• Existence of an overall communication strategy

• Each type of EPIS has its own target-audience and objectives

• ISO-type II label “Epson Ecology” demonstrates improved environmental performance over conventional models (both IT and semiconductors)– Customers can obtain specifications with Epson Ecology Profile

• Specific ISO-type II labels for sustainable procurement

– IT Eco Declaration format in Scandinavian countries

– PC green label in Japan (indicates promotion “recycling society” and meeting industry-wide voluntary targets)

[Source: Menichetti 2005]

II.2 Seiko-EpsonCommunication Strategy

7979

• High priority on ISO-type I ecolabels– Japan, Taiwan and Germany

– In Taiwan increased sales Epson aims at certifying at least 80% of entire product range

– Respond to growing number of green public procurement regulations (e.g. certified for China’s energy conservation product certification)

• 42 models hold Ecoleaf ISO-type III declaration

• Strong internal LCM communication

• Use of web-based communication tools[Source: Menichetti 2005]

II.2 Seiko-EpsonCommunication Strategy – (cont.)

8080

What comes next?Outlook

8181

• Reporting: More Life Cycle Approaches

• Product-related communication: towards providing benchmarks and communicating progress

• Sustainability assessment (also product-related) integrating environmental, social and economic aspects

• One tool is not enough! Combination of EPIS along the product life-cycle

Recent and near-future trends

8282

• Oct 2006: Revision of GRI Guidelines (G3)

• Increasing attention to life cycle management

Sustainability reporting

8383

• Example: ISO-type II labels in Japan• Panasonic: Factor X provides concise information about the

improvement of new products with respect to old ones

Communicating progress (product-related)New ISO-type II claims

GHG factor = (GHG efficiency of the new product) / (GHG efficiency of the old product), where

GHG efficiency = (Product life x Product functions) / (GHG emissions over the entire life cycle)

8484

• Recent study (2006) on Consumer demands on Type III environmental declarations • Recommendation: Benchmark with graphical presentation

– Economic benchmark, reflecting quality/price ration– Benchmark both within product category and average goods

[Source: K.Christiansen et al 2006]

Future EPDs with benchmarking

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• “Socio-Eco-Efficiency Analysis” (SEEbalance®) at BASF

[Source: A.A.Jensen 2006http://corporate.basf.com/de/sustainability/oekoeffizienz/vortraege.htm?id=V00-S64E69T3rbcp466]

Towards product-related sustainability communication

• Used for internal purposes (eco-design, product development) but also:

• Marketing, support to external customers and social acceptance of product

• For communication issues e.g. in corporate sustainability report

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Life Cycle Management Training - Outline

• Introduction to LCM– First session

• How LCM is used in Practice– Second session

• Communicating LCM Results– Third session

• LCM and Stakeholder Expectations– Fourth Session