Eco-design V

Business response

Threat or Opportunity?

Business Responses Ignore Watch and Wait Strategise and Experiment Build Competitive Advantage

Areas of Activity

Eco-Innovation Profiting from Pollution Prevention Eco-Efficiency by Design Innovation

Managing Change Systems, Stakeholders and Reporting

Financial Sector

Engineering Design Elements

Motors Bearings

Materials Fasteners/Joiners

Mechanical Systems Electrical Systems

Fluid Power Electronic Syst.

Interconnects Motion Control

CAD/CAM Other Misc.

What Can Designers Do?

D f XDesign for…X where X is Environment Re-Use Re-Manufacture or Disassembly Energy Efficiency Extended Product Life (>>MTBF) Combination(s) of the above

Business Case Studies

Scancem Energy & Recovery

Wessex Water

BT

Interface

Scancem Energy & Recovery http://www.scancem.com/

Subsidiary of SCANCEM international marketer/mfgr of mineral based building materials

>$2B in revenues, >11,000 employees

reduced use of fossil fuels by 70,000 tons/yr Progress: 6% of all energy from rdf in 1996 14% acheived by 1998 70% reduction by 2002

Wessex Water http://www.wessexwater.co.uk/

reduced over 10% of its energy requirements from its own renewable sources [18.9 Million - kWh] biogas from sewage sludge small scale hydropower

committed to outperform UK gov’t Kyoto targets by achieving 20% by 2005 and 50% by 2020

http://www.wessexwater.co.uk/

Rain harvesting http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=7293

River biodiversity project http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6423

Biogas increase http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=7914

Treatment of rural wastewater (connection) http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6455

Sand filter experiment http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6457

British Telecomm http://www.bt.com/

Cellular Phone - Product Take Back

BT Will Take Back ANY Manufacturer’s worn out cellular phone at any BT Shop

For either; disassembly, re-use, plastic recycling, precious metal recover, or granulation and smelting

http://www.interfaceglobal.com/

One of World’s Leading Carpet Makers

Offers an innovative floor covering lease where customers do not own carpeting but rather lease it. Interface provides clean, maintained and new looking floor covering for a fixed annual lease. They recycle the fibres from worn out stock and keep the customer happy with a great looking floor.

http://www.interfaceglobal.com/Company.aspx

Dow-Jones Sustainability Index http://www.sustainability-index.com/

to quantify the sustainability performance of an enterprise by focusing on a company's pursuit of sustainability opportunities meeting market demand for sustainable products and services the reduction, ideally avoidance, of sustainability risks and costs

This assessment is in line with the five corporate sustainability principles - innovative technology corporate governance shareholder relations industrial leadership social well being

that are focused on the integration of economic, ecological and social factors into business strategies.

Framework for environmental decision-making

Core Charecteristics

Context characteristics

Decision object Temporal and spatial characteristics

Question types

Decision steps

Decision types

Level of chain control

Level of improvement

Importance of subsystem

Complexity of system change

Aspiration of decision-maker

Cultural context

Strategic planning 1 - examples

Policy development

Strategies for the development of new technologies

Strategies for research and development on new product lines

Strategy implementation

Strategic planning

Strategic planning 2 – decision steps

Implementation

implement strategy into operational management

Road maps

make road maps for implementation of strategy in organisation

Strategic plans

consider strategic questions evaluate strategic alternatives

Strategy identification & selection

external analysis self analysis

Monitor & review

Monitor & compare results with strategy report results

Specify the mission

develop vision and goals

Strategic planning considering environment 3 - requirements

Making environmental management a business issue that complements the overall business strategyUse of clear, accepted business terms and conceptsCreation and adoption of indicators to measure the real costs and business benefits of the environmental management programmes Integration of environmental management into business operations such as design, development, communication and marketingJob descriptions and compensation of environmental managers as doing business

Strategic planning 4 – suitable tools

Considering high uncertainty and limited data availability, the following tools prove useful:

Analysis of bulk material flows: MIPS, bulk-MFA

Energy aspects: CERA

In case of good data availability: LCC

Capital investments 1 - description

Long-term decisions

Site-specific elements

Involve external consultants

Large number of indices

Capital investments 2 - examples

Investments in new technologies or production lines

Permit decisions (accompanied with prevention measures)

Acquiring another company

Capital investments 3 – suitable decision tools

More generic future aspects: MFA and MIPS

Consideration of costs: LCC, CBA and TCA

Large investments: MCA

Usual investment evaluation tool: discounted cash flow (DCF) analysis

Design and development 1 – decision steps

Design and development

Marketing

Promotion in-house

Developing promotion plan

Preparation for production

Detail design

Overall environmental evaluation

Conceptual design

Evaluation & selection of ideas

Feasibility study

Problem definition

Environmental analysis & requirements

Evaluation & establishing follow-up activities

Estimation of success of product

Product planning

Policy formulation

Strategic analysis

Product ideas

Evaluate & select

Design and development 2 – basic features

To a large extent based on intuition

Requires environmental awareness of designers

Closely related to R&D

Requires detailed data sets

Should consider concerns of government and customers

Design and development 3 - tools

If enough data – LCA

If fewer data – Eco-indicator, checklists etc,

If little toxicity – MIPS

If monetary terms required – CBA, TCA, LCC

Design phase 1 - planning

SWOT analysis

Scenarios

Checklists

Matrices

Policy and strategy

Evaluation and selection

Design phase 2 – problem definition

ActivitiesProduct analysis (product system + life cycle)Priority settingEnvironmental and design objectivesCriteria (terms of reference)

Information supplyProduct life cycle matricesProduct examplesReference productsChecklists with environmental and design principlesBenchmarkingAspect-based tools (ebergy, resource, emissions)Legal aspects

Design phase 3 – conceptual design

Activities

Generation of ideas

Feasibility study (environmental, economical, technical)

Evaluation & selection

Information supply

Idea generation methods

Product examples

Priority matrices

Strategy wheel

Checklists with eco-design options

Environmental performance indicators

Design phase 4 – detail design

Elaboration: black lists, compatibility matrices / lists, material lists, components lists

Overall environmental evaluation: LCA, Eco-Indicator, Ecoscan

Design phase 5 – marketing & preparatory work for production

Checklists for green marketing

Strategy wheel

Design phase 6 - evaluation

Evaluation (product + process): checklists

Follow-up activities: guidelines

Environmental marketing 1 - steps

1. Identify your target group. Are they consumers or buyers? What is the level of information they require?

2. Identify your message to target group. What are the needs of target group? What are the benefits of the product to this target audience?

3. Form your message. Are you offering a solution to your customers’ needs? Is the claim perfectly understandable to the target audience? Remember to speak the same language as your target audience.

4. Verify your claim. Which is the appropriate means of verification for this target audience: detailed life cycle information or eco-labels?

Environmental marketing 2 – claim verification

Environmental labelling

Environmental performance evaluation (EPE)

Environmental reporting

Detailed life cycle information

Environmental marketing 3 – main features

Not site-specific

Deals with environmental impacts and damages

Refers to global environmental effects (climate change, ozone depletion etc)

Software is important

Small set of indices

Environmental marketing 4 - tools

Audience Question Procedural tools Analytical tools

General public Environmental performance of product or company

Environmental labelling, Environmental Performance Indicators

LCA, MIPS, MFA, ERA, CERA

Stockholders Company-related liability questions

Environmental reporting, Environmental Performance Indicators

TCA, LCC, MIPS, MFA, CBA

Government Environmental performance of company or product

Environmental reporting LCA, MIPS, MFA, ERA, CERA

Supply chain Environmental performance of product

Product declarations, Environmental Performance Indicators

LCA, check-lists, MIPS, ERA, CERA

Academia Environmental performance of product or company

- all

Environmental marketing 5 – five focal areas for general public

Energy consumption

Materials application

Packaging

Environmentally relevant hazardous substances

Durability, recycling, end-of-life

Operational management 1 – main features

Concerns day-to-day decisions

Involves internal staff and managers

Involves external consultants

Site-specific

Small set of indices

Requires readily available software

Operational management 2 – procedural and analytical tools

Operational decision Procedural tools Analytical tools

Compliance with regulation

Environmental Performance Indicators, Environmental reporting, Voluntary agreements

ERA, LCA, MIPS

Environmental management

Environmental Management System (ISO 14001)

Environmental Audit (ISO 14010)

Environmental Performance Indicators (ISO 14030)

ERA, LCA, MIPS, MFA, checklists

Supplier choice, green purchasing

Green Procurement LCA

Benchmarking - LCA, MIPS

Product stewardship - LCA, ERA, checklists

Problems in incorporating environmental information in business decision-making

The complexity of the issueThe knowledge transfer within the companyThe difficulty to incorporate the chain perspective in the business decision-making process – that is broader than traditional in-house visionThe limited control over stakeholders in the chain

The value of integrated decision-making

Enhancement of product and service performanceImprovement of resource productivityCost savings/avoidanceRisk reductionRevenue generationEnhanced imageSustainable enterprise

Success factors

Commitment at the topMotivation of all employeesThe creation of proper knowledge management systemTools have to be compatible to the culture and objectives of an organisationInteraction between the different corporate activities and question typesPartnership with relevant stakeholders, coalitions with supply chain, co-design projects