1Dr. Kicherer

Eco-Efficiency

Validated Validated Eco-EfficiencyEco-Efficiency

AnalysisAnalysisMethodMethod

Eco-Efficiency Analysis- A Sustainability Decision Tool for BASF A. Kicherer (Ludwigshafen, Germany)

Eco-Efficiency Analysis- A Sustainability Decision Tool for BASF A. Kicherer (Ludwigshafen, Germany)

2Dr. Kicherer

Eco-Efficiency

The Ludwigshafen siteThe Ludwigshafen site

BASF’s largest production site worldwide

8,000 sales products

2,000 buildings

70 miles of roads 150 miles of rail track

35,000 people (83,000 worldwide)

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Eco-Efficiency

SEEbalance®-Analysis*

* * being developedbeing developed

Eco-Efficiency-Analysis

Sustainable Development is based on three Pillars Sustainable Development is based on three Pillars

Society

Ecology

Economy

Sustainable DevelopmentSustainable DevelopmentSustainable DevelopmentSustainable Development

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Eco-Efficiency

What is Eco-Efficiency Analysis?What is Eco-Efficiency Analysis?

Method for the comprehensive assessment of products and processes.

Ecological and economic aspects are given equal weight in assessments.

The products are analyzed from the angle of the end customer.

(Future) scenarios and effects of various action options are presented.

Eco-efficiency analysis is a standard tool in the BASF Group; more than 240 analyses have been carried out.

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Eco-Efficiency

Project Furniture Clear CoatProject Furniture Clear Coat

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Eco-Efficiency

Alternative Systems for Furniture Clear CoatAlternative Systems for Furniture Clear Coat

Define comparableDefine comparableproductsproducts

Determine demand-Determine demand-specific benefitspecific benefit

Coating of 1 m² furniture surface

PUR-lacquer (market leader)

UV-powder (new technology)

UV-water (new technology)

NC-lacquer (established technology)

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Eco-Efficiency

Further Development of UV-Water Technology Improves the Eco-EfficiencyFurther Development of UV-Water Technology Improves the Eco-Efficiency

User spezific benefit:

Coating of 1 m² furniture surface

Circle size:Market share in Europe

Total costsTotal costs (normalized)(normalized)

En

viro

n.

Imp

act

En

viro

n.

Imp

act

(nor

mal

ized

)(n

orm

aliz

ed)

0,3

1,0

1,7

0,31,01,7

PUR-lacquer

UV-powder

UV-water

NC-lacquer

Further development

Low eco-efficiencyLow eco-efficiencyLow eco-efficiencyLow eco-efficiency

High eco-efficiencyHigh eco-efficiencyHigh eco-efficiencyHigh eco-efficiency

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Eco-Efficiency

CommunicationCommunication

BASF-Coatings develops new, environmentaly friendly lacquers,

even if they are innitially somewhat more expensive.

Together with customers improvements can be initiated which

reduces the costs.

The eco-efficiency analysis can easily communicate these future

trends and improvements.

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Eco-Efficiency

Energy consumption

Raw materialconsumption

Area requirement

20%20%

20%20%

10%10%

20%20%

10%10%

20%20% Emissionen

Toxicity potential

Risk potential

Emissions

Assessment Factors of the societyAssessment Factors of the society

Emissions Wateremissions

35%

Wastes15%

Air emission50% 50%50%

20%20%

20%20%

10%10%

Airemissions

50%

Greenhousewarming potential

Ozone depletionpotential

Photochemicalozone creation

potential

Acidification potential

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Eco-Efficiency

Acceptance of the Method by Stakeholders, NGOs and Science ...Acceptance of the Method by Stakeholders, NGOs and Science ...

Dr. Reinhard LoskeMitglied des Deutschen BundestagesUmweltpolitischer Sprecher Bündnis 90/DIE GRÜNEN

Öko-Institut e.V.;Bereiche Chemie und Umweltrecht

...Basically, the large number of indicators used in eco-efficiency analysis make relatively reliable statements possible ...

......Politically, it is worth considering how this tool can find wider application.......

....The sensitivity considerations carried out in the eco-efficiency analysis make sense and provide good orientation as regards further ecological and economic optimizations....

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Eco-Efficiency

... and the whole World.... and the whole World.

Pilot project with UNEP/UNIDO to improve the eco-efficiency of Moroccan dyehouses

Assessed since 2002 as one of the world’s most sustainable chemical companies, partly as the result of the development of eco-efficient products

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Eco-Efficiency

What does BASF use Eco-Efficiency Analysis for?What does BASF use Eco-Efficiency Analysis for?

InternalInternal

ExternalExternal

Politics

• Discussion with opinion makers in political decisions

Strategy

• Decisions on investments

Marketing

• External customers optimize their products and processes with eco-efficiency analyses

Research/product development

• Prioritization of research projects

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Eco-Efficiency

Consequences of Eco-Efficiency AnalysesConsequences of Eco-Efficiency Analyses

costscosts (normalized)(normalized)

Environmental Impact Environmental Impact (normalized)(normalized)

1,01,0

1,01,0highhigh lowlowhighhigh

lowlow

Depending on the position of the analysed product, different strategic recommen-dations are given.

bring to market!bring to market!

reduce reduce environmental environmental impact!impact!

develop develop alternatives!alternatives!

reduce reduce costs!costs!

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Eco-Efficiency

Examples for More Profit Created Through Eco-Efficiency AnalysisExamples for More Profit Created Through Eco-Efficiency Analysis

The ROI is therefore much smaller than 1 year The ROI is therefore much smaller than 1 year

An eco-efficiency project with a coatings customer resulted in a additional business of about 400.000 € per year.

An annual saving of 100.000 € could be obtained by an eco-efficiency analysis for transportation of chemicals.

The eco-efficiency analysis with an American customer in the aggregate sector increased the annual sales of 2.200.000 US$ by about 10%

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Eco-Efficiency

Why is Eco-Efficiency Successful?Why is Eco-Efficiency Successful?

Quantitative results with a clear assessment

Simple and impressive illustration of the results

Scenario- and sensitivity analysis

Short timeframe (2 - 6 month)

Low costs for the analysis

Combination of LCA with LCC

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Eco-Efficiency

Our Homepage: Our Homepage: http://www.oekoeffizienzanalyse.dehttp://www.oekoeffizienzanalyse.de

The Eco-Efficiency Team:The Eco-Efficiency Team:

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Eco-Efficiency

Back-up slidesBack-up slides

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Eco-Efficiency

The detailed Results can be read off in the Ecological FingerprintThe detailed Results can be read off in the Ecological Fingerprint

Energy consumptionEnergy consumption

ToxicityToxicitypotentialpotential

RiskRiskpotentialpotential

EmissionsEmissions

MaterialMaterialconsumptionconsumption

Powder Powder from plantsfrom plants

0,00,0

0,50,5

1,01,0

Granules,Granules,biotechno-biotechno-logicallylogically

Granules, Granules, syntheticallysynthetically

Solution, Solution, 40%40%

Solution, Solution, electro-electro-chemicallychemically

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Eco-Efficiency

Raw material costs are normally small compared to total costsRaw material costs are normally small compared to total costs

0

20

40

60

80

100

120

140

160

DM

/m²

the

rma

l in

su

lati

on

sys

tem

Neopor Styropor Mineralfiber

House Insulation Systems

Disposal

Transports

Adhesive and plaster

Aluminium edges

handscrafts

Insulation material

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Eco-Efficiency

Are you interested?Are you interested?

How can you proceed?

Get in touch with us. (http://www.oekoeffizienzanalyse.de)

We will provide you with a tailor-made proposal. Your own efforts to determine the input data are relatively low.

The total costs are between € 20,000 and 30,000 (depending on the complexity).

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Eco-Efficiency

Opportunities for Marketing and SalesOpportunities for Marketing and Sales

Direct comparison with your competitor

Show your customer the superiority of your product

Label, broschures, publications

Direct comparison with your competitor

Show your customer the superiority of your product

Label, broschures, publicationsComparison of your customers competitors

Demonstrate your customer the superiority of his product.

Common communication, label

Help your customer to optimize his processes

Added value increases customer relation

Comparison of your customers competitors

Demonstrate your customer the superiority of his product.

Common communication, label

Help your customer to optimize his processes

Added value increases customer relation

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Eco-Efficiency

Development of environmental protection in companiesDevelopment of environmental protection in companies

80‘s 90‘s 00‘s

End-of-pipe technology

e.g. Waste water treatment plants,

Production inte-grated environ-

mental protection

e.g.: Residual materials of a procedure are raw materials of another

Product integrated environmental

protection

e.g.: Green Engineering

Sustainable Development

Social, economical and ecological aspects of products

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Eco-Efficiency

Production-related waste and emissionsPer metric ton of BASF Aktiengesellschaft productsProduction-related waste and emissionsPer metric ton of BASF Aktiengesellschaft products

1991 2001

AirWater

Landfill

3.6 kg

1.8 kg

22.8 kg

Total: 28.2 kg

1.0 kg1.8 kg

3.9 kg

Total: 6.7 kg

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Eco-Efficiency

Jeans Dyeing Project

Jeans Dyeing Project

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Eco-Efficiency

Determine demand-Determine demand-specific benefitspecific benefit

Dyeing of blue

denim for the

production of

1000 jeans

Define comparableDefine comparableproductsproducts

Select BASFSelect BASFproductproduct

synthetic

indigo

granules

Indigo powder from plants

Alternative Systems for Indigo dyingAlternative Systems for Indigo dying

biotechnological Indigo granules

synthetical indigo solution,40%,

synthetical lndigo solution, 40%, electro-chemical dyeing process

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Eco-Efficiency

In the Eco-Efficiency Portfolio, the Environ-mental Impact is plotted against the CostsIn the Eco-Efficiency Portfolio, the Environ-mental Impact is plotted against the Costs

Benefit: 1.000 jeans dyed with indigo

Environ. Impact Environ. Impact (normalized)(normalized)

Total costsTotal costs (normalized)(normalized)

Low eco-efficiencyLow eco-efficiencyLow eco-efficiencyLow eco-efficiency

High eco-efficiencyHigh eco-efficiencyHigh eco-efficiencyHigh eco-efficiency

1,01,0

1,61,6

1,61,6 1,01,0 0,40,4

0,40,4

Plants

Granules

Biotechnological

Solution

Electrochemical

The portfolio is based onto a principle idea of Schaltegger and Sturm 1992

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Eco-Efficiency

Consequences of the AnalysisConsequences of the Analysis

Construction of a plant for the production of 40% indigo solution

(beginning production at the end of 1999)

Increased R&D expenditure for the electrochemical process

(construction of a pilot plant)

Communication with customers and professional circles

Success of the measures: Increase of the market share from 2% (1999) to approximately 40% (2002)