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Life Cycle Management a Business Guide to Sustainability Introduction, Case Studies and Resources Trainer November 2006
Life Cycle Management
a Business Guide to Sustainability
Introduction, Case Studies and Resources
Trainer
November 2006
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Table of Contents
Context & Introduction to Training .................................................................................... 3
Training Materials List ................................................................................................... 4 Agenda & Suggested Time Line......................................................................................... 5 Background Reading for This Training .............................................................................. 6
History......................................................................................................................... 6 Concepts...................................................................................................................... 7 Business Case.............................................................................................................. 8 Implementation ........................................................................................................... 9
Life Cycle Management Case Studies .............................................................................. 11 Case Studies and their link to LCM.......................................................................... 11 ESAB: The Triple Bottom Line................................................................................ 12 SONY: Green Management...................................................................................... 13 Utz Kapeh: Responsible Production ......................................................................... 14 Phillips: Bright Ideas Yield Green Flagships............................................................ 15 LCA Center: Using the Lessons Learned ................................................................. 16 DaimlerChrysler: Environmental Certificate............................................................ 17 LEGO: First with a Code of Conduct ....................................................................... 18 3M - a pioneer in LCM ............................................................................................. 19 Arthur D. Little Sustainability-Driven Innovation.................................................... 21 Nokia: Innovation, Legislation, and Industry-Government Cooperation ................. 22 UTC: Teamwork to Flag Valuable Improvements ................................................... 23 Nicaraguan Bottling Company: Cleaner Production ................................................ 24 Procter & Gamble: Product Sustainability Assessment Tool ................................... 25 INMINSUR: Involving the supply chain in Peruvian Mining Activities ................. 26 Wal-Mart: Reaching 176 Million People Each Week .............................................. 27 Mittal Steel South Africa: Project/Asset/Product life cycle interaction ................... 28 CIBA Chemicals: EHS Audits in the Supply Chain................................................. 29 Hartmann: Moving from LCA to implementing LCM............................................. 30 Sayman &Danks: The Role of Customers in Life Cycle Management .................... 31 Johnson & Johnson: Environmental and Sustainability Reports .............................. 32
Other Resources on Life Cycle Management ................................................................... 33 A Hypothetical LCA Application: Chair Manufacturing ......................................... 33 The Material Cycle, Energy Use, and Toxic Emissions (MET) Matrix ................... 36 UN Global Compact ................................................................................................. 38 Global Sullivan Principles for Corporate Social Responsibility............................... 39
Acknowledgements........................................................................................................... 40
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Context & Introduction to Training This Introduction, Case Studies and Resources booklet is companion to a set of training slides, and supporting booklets for both trainers and delegates and is intended to support Trainers in conducting a training session on Life Cycle Management (LCM). (A list of these materials can be seen on the next page.) Life Cycle Management is a unique framework of concepts, techniques and procedures with the goal of creating sustainable development. Rather than focusing specifically on environmental, social or economic impacts and/or benefits, LCM combines a variety of tools and approaches to look at all of these factors, how they are interconnected and how to best address these issues throughout the product or material’s life cycle. How these factors are weighted and balanced will depend on what is important to the organisation responsible for the management and what is deemed the most important issues throughout the product’s or material’s life cycle. This training kit presents the central messages of Life Cycle Management in a format accessible to a broad audience. The training kit will present LCM in four topics:
• Introduction to LCM • How LCM is Used in Practice • Communicating LCM Results • LCM & Stakeholder Expectations
LCM practices relevant to less developed countries will be emphasised within each of the four topics. In many instances trainers will find there is material which may not be relevant to their audience or is too detailed given time constraints and it is expected that they will leverage and add to the existing materials as need be.
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Training Materials List The Life Cycle Management a Business Guide to Sustainability Training materials are comprised of the following resources for Trainers and for Delegates: For the Trainer
Trainer’s Manual: Introduction, Case Studies & Resources This document
Trainer’s Manual for Session I: Introduction to Life Cycle Management
Slides for Session I: Introduction to Life Cycle Management
Trainer’s Manual for Session II: How LCM is used in Practice
Slides for Session II: How LCM is used in Practice
Trainer’s Manual for Session III: Communicating LCM Results
Slides for Session III: Communicating LCM Results
Trainer’s Manual for Session IV: LCM and Stakeholder Expectations
Slides for Session IV: LCM and Stakeholder Expectations
For the Delegate
Delegate’s Manual: Introduction, Case Studies & Resources
Delegate’s Manual for Session I: Introduction to Life Cycle Management
Delegate’s Manual for Session II: How LCM is used in Practice
Delegate’s Manual for Session III: Communicating LCM Results
Delegate’s Manual for Session IV: LCM and Stakeholder Expectations
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Agenda & Suggested Time Line The set of training slides are designed to be delivered over two-days, as per the suggested timing below. Of course, as a Trainer you will likely to adapt and adjust the four sessions to your audience’s training needs, expertise, interests and time availability. Day One Session One
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
Day One Session Two
10.30-10.45 Life cycle management Definition & Benefits
10.45-11.00 LCM involves… Learning from a range of examples
11.00-12.00 A process for implementing LCM Plan – Do – Check – Adjust A focus on design and Further examples to illustrate
12.00-12.30 Group exercise
12.30-13.30 Break for lunch
Day Two Session Three
08.00-08.15
Why communicating LCM? To whom? Definition and scope, drivers, target groups of communication
08.15-09.00
Communication toolbox Main features and link with LCM Examples and diffusion of tools
09.00-09.45
Case-studies Sector-specific drivers, Communication strategies, and Combination of tools
09.45-10.00 10.00-10.30
Group exercise Break for coffee & refreshments
Day Two Session Four
10.30-10.45 Opening engaging Discussion
10.45-11.00 Stakeholder Expectations Today Value of Engaging your Stakeholders
11.00-11.15 A Process for Stakeholder Engagement
11.15-11.45 Case examples
11.45-12.30 Closing group Discussion
12.30-13.30 Break for lunch
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Background Reading for This Training Note to Trainer: This background reading is included in the delegate’s Introduction, Case Studies and Resources Booklet and they should be encouraged to review it prior to the training session to provide them with a basic understanding of the history, concepts and business case for Life Cycle Management.
Life Cycle Management (LCM) is a unique framework of concepts, techniques, and procedures with the goal of creating sustainable development. Rather than focusing specifically on environmental, social or economic impacts and/or benefits, LCM combines a variety of tools and approaches to look at all of these factors, how they are interconnected and how to best address these issues throughout the product or material’s life cycle. How these factors are weighted and balanced will depend on what is important to the organization responsible for the management and what is deemed the most important issues throughout the product’s or material’s life cycle. This background briefing provides a quick overview of Life Cycle Management, its history, some of the concepts used in its application, the benefits of its use, and finally some of the elements required in its implementation. Its has been adopted by business both because of a history of incidents that have shaken the public’s trust of corporations and increasing demand for them to improve their economic, social and environmental performance. It applies or brings together the concepts of sustainable development, triple bottom line, and life cycle thinking. Many companies that have adopted this into their decision making have seen improvements in their: cost savings, liability management, strategic decision making, product design, identification of new business opportunities, market share, and public relations. Implementing Life Cycle Management is a process that requires commitment and support to facilitate its integration into the decision making process. The process is demonstrated by a case study of ABB a power and automation technology company.
History Driven by a number of incidents including the Bhopal disaster, the Exon Valdez spill, and Shell’s experience in Nigeria, as well as, legislative actions such as Kyoto and Sarbanes-Oxley both the public’s and industry’s awareness of sustainability issues have continued to develop. As this awareness has increased so has the depth of understanding and sophistication of both regulatory requirements and responses. 1960s – 1980s: Organizations are just starting to become aware of the impacts they are having on the environment and its limited ability to absorb industrial outputs. This period is also when initial attempts are made to address these concerns. 1980s and 1990s: Organizations start to incorporate environmental criteria into their decision making, but this is done mostly on the basis of risk avoidance. There are also improvements in decision and support tools for organizations trying to improve their
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environmental performance. Included in these were the concepts of eco-efficiency and Life Cycle Assessment. 2000s: The business case for improved sustainable performance has become better understood and has started to shift from purely risk avoidance to capturing economic benefits. Further, the focus has shifted from looking at environmental concerns almost exclusively to incorporating social criteria as well. As regulatory requirements, consumer demands, and global communication systems have become more sophisticated so has industry’s response which now takes a holistic view of these issues in particular with the adoption of Life Cycle Management. Future: With events such as the 2004 Tsunami and Hurricane Katrina as well as pressures caused by climate change and population growth there is no reason to expect a lessening of drivers for improved sustainability performance. The trends in regulations indicate continued increases in demands being placed on industry and potential ‘catch-up’ costs for lagging companies. Further, consumer demand, in part from greater global awareness, also is expected to continue to be influenced by companies’ sustainability performance. These trends indicate that companies will have to pursue continual improvements in their performance in these areas including expanding their definitions of the scope of their responsibility.
Concepts There are a few fundamental concepts that form the basis of Life Cycle Management including Sustainable Development, Triple Bottom Line, The Life Cycle, Life Cycle Thinking, Life Cycle Assessment, and finally Life Cycle Management itself. We will consider these individually below. Sustainable Development: In 1987 the Brundtland Commission defined Sustainable Development as “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs. It contains within it two key concepts: the concept of "needs", in particular the essential needs of the world's poor, to which overriding priority should be given; and the idea of limitations imposed by the state of technology and social organization on the environment's ability to meet present and the future needs.” Triple Bottom Line: This refers to integrating the three objectives of economic, environmental and social performance. Historically companies have focused on economic performance, but are increasingly improving their environmental and social performance. Life Cycle Thinking: Is an approach where analysis is done while considering the impacts of a product or process from its genesis through to its disposal. This provides a means of ensuring that improvements in one phase are not creating a greater cumulative
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impact by simply shifting the burden to another phase. (This is also periodically referred to as Cradle to Grave thinking.) Life Cycle Assessment: Life Cycle Assessment or LCA is an ISO-standardized decision making tool that identifies environmental burdens and evaluates the environmental consequences of a product, process or service over its life cycle from cradle to grave. It is supported by highly developed databases for material impacts. Life Cycle Management: A flexible integrated framework of concepts, techniques and procedures to address environmental, economic, and social aspects of products and organizations to achieve continuous improvement from a Life Cycle perspective.
Business Case1 Life Cycle Management provides decision makers with better information and subsequently contributes to the development of various competitive advantages as outlined below. The business case for Life Cycle Management will also be discussed in more detail in section 2 of this Training Module. Lower Costs: Cost savings can result from design process changes that reduce material and energy consumption, emissions and wastes. Lower quantities and reduced toxicity of wastes and emissions also mean less risk of fines and penalties for non-compliance with health and environmental regulations. Improved Liability Management: The risk of future liabilities may also be diminished, because Life Cycle Management can help minimize environmental, health and safety problems associated with the production, use, servicing and disposal of the product. Improved Strategic Decision Making By providing a clearer picture of product-related inputs and outputs, Life Cycle Management can create a basis for a more complete financial assessment of investment options. The implications of capital investments, operating expenses and future liabilities can be assessed together. Better Product Design and Value: A fresh and comprehensive perspective on product characteristics and production requirements can result in improved product and process design. In particular, Life Cycle management can trigger product improvements that add value for the user. Designing a product that consumes less energy, water or material resources during its use is one obvious example. 1 Adapted from “Environmental Life Cycle Management – A guide for better business decisions” Environment Canada. 1997.
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Identification of New Business Opportunities: Because Life Cycle Management encourages consideration of the product function, or the service provided by the product, as well as the associated life cycle environmental burdens, it opens doors to new ideas for providing the same service with reduced environmental burdens through new products or services. In addition, development of services, techniques or technology related to decreasing or eliminating environmental burdens associated with products may translate into new business lines or new markets. Increased Market Share: Most of the advantages noted above contribute to the competitive position and appeal of a company and its products. This should translate in increased market share. Products designed with life cycle considerations in mind are also more likely to appeal to the substantial and growing “green consumer” market. Improved Public Relations and Communication: A commitment to Life Cycle Management demonstrates a proactive approach to environmental management. A company that applies Life Cycle Management is more likely to be a top environmental performer, and to be perceived as a good corporate citizen. Life Cycle Management can also lead to better communication amongst different units within a company, and with other companies along the life cycle.
Implementation A thorough description of how to successfully implement Life Cycle Management in an organization is described in detail in section 2 of this training module. The key steps include:2
1. Adopting a Corporate Policy Statement 2. Raising Awareness and Building Commitment 3. Training Employees 4. Providing Infrastructure 5. Measuring Success and Providing Feedback
An example of an organization which has been successful in implementing Life Cycle Management is described below.
ABB is a global leader in power and automation technologies that enable utility and industry customers to improve their performance while lowering environmental impact.
2 Adapted from “Environmental Life Cycle Management – A guide for better business decisions” Environment Canada. 1997.
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ABB has about 100.000 employees in more than 100 countries and had revenue of 22.4 billion $ in 2005. Sustainability is integrated into all daily business decisions, and ABB aims to contribute to economic growth, environmental stewardship and societal development through its businesses; ABB follows the Global Reporting Initiative’s triple bottom line guidelines. Environmental management systems are well established at all manufacturing sites, as well as in many non-manufacturing sites. The global sustainability network covers 48 countries and regions and a web-based reporting system gives full control over waste, emissions and the flow of material throughout the company. As part of its corporate objective, ABB is currently focused on phasing out the use of hazardous substances in their manufacturing. A lifecycle perspective that covers the whole industrial process – from design and material selection to waste management – is required in all product development. Sustainability is also fully integrated into ABB’s product development. Environmental guidelines and tailored software tools for Life Cycle Assessment (LCA) and Life Cycle Costing (LCC) are readily available on the intranet. Over the years, more than 100 LCA studies have been made and many have formed the basis for Environmental Product Declarations (EPD) that inform customers about a product’s environmental performance. The dialogue between the LCA experts at the environmental department and the product developers in other parts of the organization has raised the general knowledge of life cycle thinking through participation in LCA studies and the production of EPDs. ABB requires social performance criteria from its suppliers and to determine if suppliers to the company can fulfill defined minimum standards, a Supplier Qualification Process (SQP) was developed. The SQP is now implemented in national as well as in group purchasing contracts and its main suppliers are encouraged to follow the principles laid out in the company’s environmental, social, and health and safety policies.
Life Cycle Management Case StudiesCase Studies and their link to LCM
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ESAB SONY Utz Kapeh Phillips LCA Center
Daimler Chrysler
LEGO 3M ADL Nokia UTC Nicaraguan Bottling Co.
P&G INMINSUR
Wal-Mart
Mittal Steel
CIBA
Hartmann
Sayman & Danks
Johnson & Johnson
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ESAB: The Triple Bottom Line At the world leading manufacturer and supplier of welding consumables and equipment - ESAB - the triple bottom line has high priority from top management. The table shows the focus areas of the company within the life cycle stages of their products.3
3 Source: www.esab.com
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SONY: Green Management The electronics giant SONY has developed a comprehensive system to integrate environmental responsibility into its business strategy and product design. A Group Environmental Vision sets out the company’s long-term aspirations, and the “Green Management 2005” group environmental action plan defines the mid-term targets required of each business division. SONY uses “Eco-Efficiency” as a numerical indicator used to gauge its impact on the environment relative to the scale of its business activities. The Eco-Efficiency equation on the right includes greenhouse gas emissions and resource input/output impacts. Divisions must establish and implement annual businessenvironmental considerations. Explicit targets have beenweight and the number of parts used and to increase the within the products. Mercury and lead solders are bannedused. Reduction of the environmental impacts of products requassessment from manufacture of parts and products to trareduced power consumption) and final disposal. SONY hthe environmental impact of products throughout their lirelating to product information, parts configurations, proother factors. Product design divisions are required to esenergy and resource consumption at each stage of the lifThis enables SONY to identify products and stages withclarify improvement priorities and prepare targets. A procollection system gathers this data and allows SONY to impact of all its products. SONY supports Corporate Social Responsibility (CSR) and sound business practice. A supplier code of conduct is established concerning issues such as compliance, prohibition of child labor and forced labor, health and safety, environmental, management systems and ethics. SONY believes that it is critical that customers are able to factor environmental considerations into purchase decisions; therefore, customers are informed abperformance of products by the “Eco Info” mark4
4 Sources: Arthur D Little and: http://www.sony.net
Eco-Efficiency = Sales
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ires thorough life cycle nsport, use by customers (e.g. as developed a system to clarify
fe cycles. This draws on data duct transport conditions and timate CO2 emissions and e cycle as well as the total figure. high environmental impacts, duct environmental data monitor the environmental
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Utz Kapeh: Responsible Production The foundation “Utz Kapeh”, meaning “good coffee” ithe Mayan language, was formed by three Gucoffee producers and the Dutch coffee roaster compaAhold in 1997. It is an independent, worldwide, not-for-profit organization with the aim of developing a program to guarantee responsibly grown mainstream coffee as a means of recognizing and differentiatinprogressive growers. An office was opened in Guatemala in 1999, and it’s headquarter in The Netherlands was established in 2002.
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Utz Kapeh’s worldwide certification program sets and implements the global standard for socially and environmentally responsible coffee production and sourcing. It is the fastest growing coffee certification program in the world. Utz Kapeh assures the social and environmental quality in coffee production that coffee drinkers expect. The Utz Kapeh certification provides the answer to the two key questions: where does coffee come from and how was it produced. A web-based “Track and Trace System” follows the certified coffee though the chain from grower to roaster. This gives buyers insight into where their coffee really comes from. Utz Kapeh’s “Chain of Custody” criteria assure that certified coffee is not mixed with non-certified coffee. The certification program is based on a 32 pages long “Code of Conduct” with a set of social and environmental criteria for responsible coffee growing practices and efficient farm management. It includes elements such as standards for recordkeeping, minimized and documented use of agrochemicals for crop protection, water management, food safety, protection of labour rights and access to health care and education for employees and their families. Independent certifiers conduct annual inspections to ensure producers comply with the requirements. In September 2005 Utz Kapeh worked with more than 100 producers and producer groups throughout Latin America, Asia and Africa. In addition 57 roaster companies and 146 registered buyers.5
5 Source: www.utzkapeh.org
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Phillips: Bright Ideas Yield Green Flagships The EcoDesign procedures at Phillips deal with all phases of product development. To support the EcoDesign process, Phillips has their own EcoVision program which requires improvements in the following six Green Focal Areas:
To be considered a Phillips Green Flagship product, it must first go through divisional EcoDesign procedures. Next, the product or product family is investigated in at least three of their Green Focal Areas. Based on this analysis, the product or product family must be proven to offer better environmental performance in at least two Green Focal Areas – or in one Green Focal Area plus a 10% improvement in the overall Life Cycle Score, calculated with their EcoScan tool. During this investigation, a product or product family is compared with its predecessor or closest commercial competitors. When compared with more than one competitor, the results are expressed as an improvement compared to the average of the competitors’ performance in the investigated focal areas. So while a product may be ‘green’, only Phillips’ top EcoDesigned products achieve Green Flagship status. An example of one of Phillips’ more than 160 Green Flagship products is shown in the picture below. Philips’ CosmoPolis street lighting systems are twice as efficient to run as older mercury vapor lamps. CosmoPolis systems provide a significantly better quality of light and contain industry leading low levels of mercury.6
6 Source: www.philips.com/sustainability/report
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LCA Center: Using the Lessons Learned Implementing Life Cycle Management in a company does not need to be complicated. For example when prioritizing the environmental impact using a life cycle perspective the results of a Life Cycle Assessment (LCA) on a similar product can be very valuable. It typically provides you with information on which stages of the product’s life cycle are most important. Hence, you are able to prioritize the work so that focus is put on the relevant life cycle stages. For the wind turbine manufacturer VESTAS, LCA has been used to identify that the main burdens of a wind turbine result from the consumption of materials during the construction phase. As a result of that the main focus in the product development at VESTAS has been to reduce their turbine’s material consumption per kWh of wind energy produced. At Bang & Olufsen LCA experiences have been built into their product development guideline. For many B&O products the product developers environmental focus is put on reducing the energy consumption in the use stage (use and stand-by), as this is typically the most important aspect of an energy using product. Furthermore, reduction of the energy in use also directly reduces resource consumption as the cooling plates of the electronic equipment can be downscaled due to less excess heat generated.7
7 Source: www.lca-center.dk
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DaimlerChrysler: Environmental Certificate DaimlerChrysler is committed to environmentally compatible and sustained mobility. Thus, the S-Class models of Mercedes-Benz are the World’s first automobiles with an environmental certificate (of 44 pages) confirming the environment-oriented product development of this car, during which significant progress was made in numerous ecologically important areas. For example, the exhaust emissions of the new S 350 are 85% below the current EU limit for nitrogen oxides and 75% below the EU limit for hydrocarbons. In addition, fuel consumption is reduced by 9%, and driving noise is reduced by 2 decibel (dB(A)). Use of water-based paints and water-borne fillers sharply reduces solvent emissions. Nanotechnology is used for the coating to give the surface more resistance to scratching. Further, Mercedes Benz offers “Eco Driver Training,”which can reduce fuel consumption by an average of 15%. The diesel models can be operated with SunDiesel fuel. The development process for the S-Class (“Design for the Environment”) met all criteria described in the international standard ISO 14062 for the inclusion of environmental aspects in product development. The environmental balance took into account the entire life cycle of the new S-Class, from the production of materials and components to a service life of 300.000 km, and disposal. In order to establish this environmental balance the Mercedes specialists took over 40.000 individual processes into consideration. The overall results included a total of more than 200 input parameters (resources) and around 300 output parameters (emissions). LCA was initiated according to ISO14040-43 and with the Gabi 4.0 software. The materials for the new S-Class have been selected to meet both the recycling rate of 85% valid in EU from 2006 but will also comply with the 95% overall recycling rate applicable from 2015. More raw materials than before are made from natural or recycled resources.8
8 Sources: Matthias Finkbeiner et al. IJLCA 2006;11:240-246 and: http://www.daimlerchrysler.com
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LEGO: First with a Code of Conduct The Danish-based company LEGO is the sixth-largest manufacturer of toys with production in several countries. It has an annual revenue of about 1 billion € and more than 5000 employees worldwide. In 2003 LEGO joined as the first play material manufacturer signatory to the UN Global Compact Initiative and its principles. As early as 1997 LEGO introduced a set of guidelines – a Code of Conduct – outlining what ethical, social and environment, health and safety requirements it expected of itself and of its about 200 supplier companies at that time. This code covers:
• Child labour • Coercion and disciplinary practices • Compensation and working hours • Discrimination • Forced and compulsory labour • Freedom of association • Health and safety • Environment
The suppliers are audited by independent auditors.9
9 Source: http://www.lego.com/eng/info/default.asp?page=conduct
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3M - a pioneer in LCM In the 1990s, when the concept of sustainable development was taking root, 3M President and CEO, L. D. DeSimone, believed sustainable development was a core element of business success. It was under his leadership (1991-2001) that 3M first launched its Life Cycle Management program to manage all aspects of a product, from the idea phase through customer use and disposal. According to DeSimone, “[Life Cycle Management was] a commitment we must embrace to maintain our environmental leadership and to strengthen our competitive position.”
3M's Life Cycle Management (LCM) Policy is intended to ensure that environmental, health and safety considerations will be integrated into the design, manufacture, use and disposal of their products. 3M introduces about 500 new products each year, and Life Cycle Management (LCM) is a formal part of 3M's new product introduction process worldwide. Cross-functional, new product introduction teams use a LCM matrix to systematically and holistically address the environmental, health and safety (EHS) opportunities and issues from each stage of their product's life. 3M's LCM process focuses on the broader impact of products and processes over their entire life cycle: From development and manufacturing through distribution and customer use and to disposal (see matrix).
Life Cycle Management Process Life Cycle Stage Customer Needs
Impact Material
AcquisitionR&D
OperationsManufacturing
Operations Use Disposal
Environment
Energy/Resources
Health
Safety
LCM at 3M is supported by: • 3M corporate staff groups, including the Medical Department and Environmental,
Health, and Safety Operations Department, help business units in the commercialization of safer and more environmentally responsible products.
• 3M Technology Centers that help improve product technologies to reduce and manage EHS impacts.
• Technology study reports and success stories promoting the sharing of new EHS ideas and results within the 3M technical community.
Inherent in 3M’s Life Cycle Management Process is the characterization and management both of product risk and opportunity. Risk reflects the potential for exposure and the hazards of the materials associated with the product over its life cycle, as well as the degree of uncertainty and feasibility of controlling exposure. Opportunity addresses finding solutions to these issues. This proactive approach by 3M to product risk characterization and management complements the American Chemistry Council’s (ACC) Global Chemical Management Policy and the Responsible Care initiative. The chemical operation of 3M is a member of the ACC.
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Factors that may be considered when reviewing a product include exposure, hazard, uncertainty, and market opportunity. Exposure considerations may include the following: duration, concentration, distribution, frequency, pattern of product use, location, demographics, impurities and byproducts, competency of user, and potential for abuse or misuse. Consideration of potential marketing opportunities from a product’s reduced impact on the environment, health, or safety may include increased energy efficiency, reduced toxicity, reduced global warming potential, reduced energy use, recycle-ability, and reduced worker health and/or safety concerns. Hazard considerations may include the following: type of outcome, severity and adversity of outcome, uniqueness of hazards, permanence of effect, and treat-ability. Uncertainty considerations may include the following: completeness of information, knowledge of product, product history and analogy to similar products, knowledge of customer, and knowledge of ultimate end-user.10
10 Source: http://www.mmm.com
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Arthur D. Little Sustainability-Driven Innovation In 2005 the consultancy company Arthur D. Little conducted a study of how 40 leading international companies are using Sustainability-Driven Innovation, which means the creation of new market space, products and services or processes driven by social, environmental or sustainability issues. The survey showed that 95% of the companies believe that Sustainability-Driven Innovation has the potential to bring business value and almost a quarter believe it will definitely deliver business value. A small minority of companies have integrated sustainability into both their business strategy and product/process design, and a few leading companies are already exploring exciting breakthrough opportunities in Sustainability-Driven Innovation.11
11 Source: http://www.adlittle.com/insights/prism/pdf/Prism_2005_s1_1__The_Innovation_High_Ground.pdf
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Nokia: Innovation, Legislation, and Industry-Government Cooperation Nokia has been involved with LCAs and developing them since mid 1990s. This firm uses LCAs as a strategic tool to assess the environmental impacts of its products and conducts periodic LCAs whenever there is a major technology shift like from 2G mobile phones to 3G mobile phones. This organization also has an IPP (Integrated Product Policy) approach to “reduce the environment impacts from products through their life-cycle, harnessing, where possible, a market-driven approach, within which competitiveness concerns are integrated.” The company is working on developing suitable methods for environmental assessments of electronic products, an example of this being the Key Environmental Performance Indicators (KEPIs). KEPI consists of a small number of product environmental performance indicators validated as representative of the most important environmental impacts of an electronic product life cycle, and may provide a good and simple assessment tool for use in the electronics industry. Nokia also applied other tools such as the Ecological Footprint Analysis (EFA) and MIPS (Material Input per Service Unit). Nokia does not consider that EFA and MIPS deliver useful measures for the mobile phone industry; therefore, this firm is trying to develop MIPS into a new method called ImPACT that is more relevant to product development cycles of mobile phones.12
12 Source: Nokia, Integrated Product Policy Pilot Project – Stage 1 Final Report: Life Cycle Environmental Issues of Mobile Phones, Finland, April 2005.
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UTC: Teamwork to Flag Valuable Improvements One of United Technology Corporation’s sites eliminated almost 40,000 gallons per year of waste water and saved over US$50,000 per year with a fundamental change in the way its manages its test cells, underground storage tank and waste streams. To achieve this, the site now only uses its underground tank for emergency purposes – and not for regular waste or water, as it was doing. It also collects waste fluids (fuels and oils) separately for re-use, recycling or reclamation. Given these changes, the site anticipates it will eliminate an additional 75,000 gallons of waste per year and save US$150,000 per year. These eco-efficiency improvements were identified during one of UTC’s Kaizen events. UTC conducts EH&S Kaizen events across its sites to drive continuous improvement in its environmental, health and safety performance. The event focuses attention on specific processes and the Kaizen team consists of all parties interested in that process, from management to operators. The team conducts a structured, focused evaluation of a manufacturing or service process, integrating Kaizen techniques and flexible manufacturing problem solving techniques with EH&S risk assessment. The purpose of the event is to identify and eliminate or reduce environmental, health and safety hazards.13
13 Source: WBCSD and Five Winds International, 2005, eco-efficiency LEARNING MODULE. ISBN: 2-940240-84-1.
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Nicaraguan Bottling Company: Cleaner Production Vienna, Austria, 15 January 2001 The losses of a Nicaraguan national beverage company, which produces Pepsi cola drinks using the PEPSICO's concentrates, were in some sections as high as 80 per cent due to mechanical reasons and 20 per cent due to incorrect housekeeping measures. These were the main conclusions of a cleaner production assessment on the company's performance prepared by a team of national and international experts of the Cleaner Production Centre (CPC) in Nicaragua. The study was prepared in close cooperation with the company's 260 employees. The CPC experts suggested introducing a number of cleaner production (CP) measures. The project resulted in a reduction in product losses and a gain in savings of 0.41 per cent in annual production, equivalent to US$ 50,000. The CP assessment on water conservation indicated that the company used some 11 liters of water for one liter of finished product, in comparison with similar European companies that use only 2 - 3 liters of water. After introducing CP solutions, the use of water will be cut by half. The CPC team recommended the implementation of CP options in the use of the principal source of process energy. The savings for the use of electricity for refrigeration will amount to 12 per cent and for air conditioning to 40 per cent. Overall, the cost for fuel will be cut by 30 per cent. In addition, a number of training courses for the employees enabled the company to reduce costs for broken bottles by 30 per cent, equal to a saving of US$26,000 annually. As a result the enterprise staff is able to maintain the introduced changes and continuously improve the environmental performance of the production process. This saves not only money, it also improves the company's ability to recognize and address future environmental risks. The success of the project has encouraged many companies in Nicaragua and Central America to implement CP measures in good housekeeping methods, administrative changes and upgrading of capabilities of the company.14
14 Source: http://www.unido.org/doc/4533 and the UNIDO/UNEP, Cleaner Production Program
24
Procter & Gamble: Product Sustainability Assessment Tool The multinational Procter & Gamble Company (P&G) is committed to sustainability. From 2001 to 2006, Procter & Gamble was ranked first in the consumer, non-cyclical market sector of the Dow Jones Sustainability Group Index, and P&G is also an original charter supporter of the Global Sullivan Principles of Corporate Social Responsibility. P&G, as one of the business pioneers in Life Cycle Assessment (LCA), is introducing a Product Sustainability Assessment Tool (PSAT) for assessing sustainability profile of new products. It looks holistically at systems, considers the whole life cycle and addresses science-based data and perceptions. It may guide design choices, help communicate data and look for opportunities and potential issues. PSAT contains three main assessment categories, each with several subcategories with scores:
1. Social responsibility. a. Risks and benefits for consumer/society. b. Human safety. c. Social responsibilities along the supply chain.
2. Environmental profile. a. Environmental safety. b. Solid waste management. c. Resource efficiency. d. Risk reduction efforts.
3. Economical development. a. Company economic aspects b. Consumer/society economic aspects
The outcome is illustrated graphically, as in the example of the sweeper product, Swiffer® used to pick up dust, dirt and hair from hard floor surfaces.15
15 Source: http://www.pgbeautyscience.com/en_UK/sustainability/sustainabledevelopment_en.html
25
INMINSUR: Involving the supply chain in Peruvian Mining Activities Inversiones Mineras del Sur S.A. (INMINSUR) is a subsidiary of Compañia de Minas Buenaventura S.A.A., a Peruvian mining company that ranks among the top 10 gold producers worldwide. INMINSUR extracts gold from its mine called Antapite, located in the southern Andes of Peru, in the Department of Huancavelica, the poorest department in Peru with 95.4% of its population under the “poverty line.”16 Antapite provides work to more than 1,200 people, 85.2% of which are employed by 10 supplier companies. Antapite has a certified environmental management system accredited to the ISO 14001 standard, which since 2005 has expanded to cover Antapite’s suppliers. Suppliers provide pre-extraction phase and general maintenance services (see Figure 1).
Figure 1: Activities of Antapite and its supply chain
Civil works Exploration DrillingTransportation Blasting Extraction ConcentrationDisposal of
wastes
Tailings
Perforation
Suppliers INMINSUR
Civil works Exploration DrillingTransportation Blasting Extraction ConcentrationDisposal of
wastes
Tailings
Perforation
Suppliers INMINSUR
Source: Buenaventura Antapite has supported the implementation of EMSs by its 10 suppliers aiming at the achievement of the certification of their operations. Antapite also has a “supplier assessment policy”, which requires compliance with at least the following criteria: Compliance with the law, attention to health and security aspects of employees or sub-contractors, positive impacts on the neighborhood, and minimum pollution of water courses. These efforts have resulted in:
- less utilization and consumption of: explosives, water, and fuel - less construction waste - elimination of toxics used in the exploration phase. - controlled disposal of sludge from exploration processes - Fewer accidents at the mine site (from 17 in 2004 to 15 in 2005)17
Lessons learned regarding key aspects for the success of the process include:
- Effective and efficient communication channels are crucial to articulate a common understanding of the environmental, health and security policy.
- Antapite’s support with training and educational programs to suppliers was decisive to achieve success of the extended EMS.
- Acknowledgement of accomplishments was important to maintain engagement. - Suppliers’ EMS systems were simplified by using an environmental policy
aligned to the one of Antapite (INMINSUR) plus 3 to 5 significant aspects for their operations.
- Periodic reviews facilitated continuous improvement.18 16 Defined by population who can not afford the minimum consumption basket. Figures from 1993 Census. 17 Source: Ministry of Mining and Energy of Peru (www.minem.gob.pe) 18 Source: Richard Azabache, Compañía de Minas Buenaventura S.A.A. – Peru; Sonia Valdivia, 12United Nations Environment Program – Paris; Alicia Polo y La Borda, 3University of Dundee - Scotland
26
Wal-Mart: Reaching 176 Million People Each Week Wal-Mart has recently undertaken a campaign to improve the environmental performance of their products and support their clients in making environmentally preferable choices. Examples of this include promoting the use of Compact Fluorescent Light bulbs (CFL) and using organic cotton for their clothing lines. By changing one conventional light bulb to a CFL it is estimated that:
● It will use 80% less energy, ● Save the average user $30-$80 (USD) o
power bills n
● 225kg (500 lbs) of coal or 1 barrel of oil will be prevented from being burned to generate electricity (as the majority of US electricity comes from coal fired plants)
● 1 Tonne of CO2 is kept out of the atmosphere
● 8-12 light bulbs are kept from the landfill (CFLs last 8-12 times longer).
Given Wal-Mart’s scale, with 176 million people shopping in their stores each week, they estimate that if each customer switched just one light bulb that:
● $3 Billion USD would be saved on power bills, ● 50 billion pounds of coal would be prevented from being burned for electricity, ● the equivalent of 2 million cars worth of greenhouse gas emissions will be kept
out of the air, and ● 1 billion incandescent bulbs will be kept out of landfills.
The accrued benefits from Wal-Mart’s scale can also apply to their products such as the use of organic cotton in their summer 2006 clothing line. This initiative alone is expected to:
● Prevent the use of 15,880,00 kg of chemicals ● Eliminate the need for 7,571,000,000 litres of water ● Offer additional value for customers19
As this is a relatively new initiative it will be interesting to continue to watch Wal-Mart’s progress and influence in the area of improved environmental performance especially given that it has 60,000 suppliers.20
19 Source: http://walmartstores.com/GlobalWMStoresWeb/navigate.do?catg=670 20 CNNMoney.com, Marc Gunther, Fortune Magazine, 31 July 2006
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Mittal Steel South Africa: Project/Asset/Product life cycle interaction The Saldanha Steel Project (SSP) was a joint venture between the then Iron and Steel Industrial Corporation (ISCOR) and the Industrial Development Corporation (IDC), now Mittal Steel South Africa (www.iscor.co.za). SSP announced their plans to build a steel plant to the public in December 1994. The 6.8 billion Rands Saldanha Steel development, situated on the Cape west coast roughly 10 km away from Langebaan Lagoon's ecologically sensitive wetlands, has been designed to produce 1.25 mio. tonnes of hot-rolled carbon steel coil per year for the international market. The mill was finally commissioned, after much controversy, in 1998. Many different environmental (and social) impact assessments were undertaken (www.lib.uct.ac.za/govpubs/EIAs.htm), the validity of which are still debated, and many associated project-specific compliance criteria had to be addressed and/or demonstrated. These included, but are not limited to: • The life cycle of the physical plant asset: Plans had to be in place to manage and
minimise the effects of construction; the normal operations must have no detrimental effects on the surrounding communities and the natural environment, e.g. the operating plant has to be aesthetically pleasing and management plans must be in place for large maintenance cycles; and current operations must allocate resources to develop local communities and provide for the adequate management of the plant’s end-of-life through rehabilitation and socio-economic activities.
• The life cycle of the plant product: infrastructure had to be developed, with minimal detrimental effects on the natural environment and society in general, to supply the plant with the necessary resources, e.g. the 861 km railway line from Sishen for the ore was upgraded, and Eskom power lines from the Mpumalanga Province were constructed approximately 1500 km inland from Saldanha; and after-gate management of the coil product must be sustainable, e.g. the Saldanha Bay Port’s cargo quay was upgraded, and a good transport management practices of the shipping routes must be in place.
Compliances to such project-specific criteria are ongoing more than half a decade after the project was successfully implemented and normal operations were reached. This example illustrates that the environmental and social implications of the life cycles of physical assets and the related products often extend beyond the life cycles of the responsible projects, and must be considered as part of the earlier phases of project management models and practices where project changes, with minimum cost and risk implications, are possible.21
21 Source: Alan Brent, University of Pretoria, http://www.afg.up.ac.za/lifecycle_engineering.php
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CIBA Chemicals: EHS Audits in the Supply Chain Ciba Specialty Chemicals produces more and more in the “Third World”, where many competitors do not apply their high “Environment, Health and Safety” (EHS) standards. Ciba applies the same standards globally. In order to avoid potential negative impacts on company’s reputation, Ciba considers EHS performance as a key element in selecting suppliers, distributors and contractors. In the Ciba supplier assessment a minimum standard is compliance with the following list of “NO-NO’s”:
• Non-respect of Human Rights • Forced labor or child labor • Bribery • Willful disregard of the law • Disregard for the health of employees or contractors • Unacceptable existing impact on neighborhood • Significant and willful contamination of water courses or air • Potentially catastrophic impact on neighborhood.
If not the consequence is cancellation of the supplier agreement. Additional aspects covered by the supplier assessment include:
• EHS management • Technical standard of installations • Material handling and storage • Potential exposure and personnel protective equipment • Employee training and education • Operational and process safety • Emergency planning and response • Etc.
These do not result in restrictive consequences but recommendations are given and support offered.22
22 Source: G. Fritz, Ciba, lecture at PROSA Workshop at IMD in Lausanne, July 2005. http://www.prosa.org/index.php?id=35
29
Hartmann: Moving from LCA to implementing LCM The Hartmann Group produces packaging to egg, fruit and industrial products mainly based on recycled paper. Hartmann has around 2,600 employees in 21 countries worldwide and have an annual turnover of about 1½ billion €. Hartmann has also a long tradition for preventive environmental initiatives, and in 2000 Hartmann received the European Commission’s Management Award for Sustainable Development. Hartmann is a member of World Business Council for Sustainable Development (WBCSD) and has joined the United Nations Global Compact. Nine production sites are certified according to ISO 14001 for environmental management systems, and five production sites are certified according to OHSAS 18001 for occupational health and safety management. Hartmann has been a front-runner of Life Cycle Management (LCM) since 1997, where the STEP®-model (Systematic Tool for Environmental Progress) was introduced. The LCM approach at Hartmann integrates environmental impacts with assessments of health, safety and social relations into the product life cycle (product profile). By implementation of LCM and carrying out of life cycle assessment (LCA) for major products, Hartmann has achieved a sufficient overview of environmental aspects of its major products, processes, operations, and other activities throughout the life cycle. This information is used to support all relevant business decisions - from strategic planning, product development, purchase and production to distribution and sales. The responsibility for progress towards sustainability is placed at the specific production sites but the Department for Sustainable Development at Hartmann Corporate Headquarter in Denmark is responsible for guiding the production sites. This Department is continuously using STEP in order to maintain an overview of company performance and potential for improvement. Simple tools for non-experts in regards to sustainable development have been developed and implemented throughout the organization; thus environmental and social considerations are gradually being integrated into the everyday decision-making. In 2006, Hartmann will introduce a new internet-based supplier assessment concept, which includes the social dimension of sustainability.23
23 Source: www.hartmann.dk/
30
Sayman &Danks: The Role of Customers in Life Cycle Management Industry in South Africa is beginning to get into the wagon of environmental transformation. South African industry faces many challenges following the country’s reintegration to the global economy after the fall of the apartheid regime. The change is slow but it can be observed that some industries are beginning to aim for more integrated forms of environmental management to their operations. Sayman & Danks, a metal finishing company in Durban, illustrates the changes of some medium, small and micro enterprises in South Africa in their way of using the life cycle management approach. Sayman & Danks is a medium sized company in the city of Durban, South Africa that exemplifies the environmental improvements led by pressure from customers and government environmental legislation. The metal finishing sector has been traditionally a highly pollutant and problematic industry in Durban. eThekwini Municipality, the local authority in charge of the city, tightened its regulations to the metal finishing companies while offering them an alternative to achieve the new standards through one of the first waste minimization clubs in the country. Many metal finishers realized that pollution prevention makes business sense through this exercise. Sayman & Danks have gradually changed their operations due to stricter government regulations as well as pressure from customers. The company is a supplier to the automotive industry who has put direct pressure on them to improve their operations; reduce waste, recycle and reuse and phase out toxic substances. The change was not easy for the company due to lack of capital to invest, human resources and lack of previous experience in managing their environmental performance. The pressure brought a new learning curve to the company as they had been working using the same technique for 15 years and initially did not see any reason to change. The company has achieved numerous benefits thanks to their new approach to their operations; they have reduced their use of chemicals while producing three times the volume, achieved a 50 % water reduction and have phased out toxic substances such as Chrome 6. The company is in the process of gaining ISO 9000 certification, has a robust occupational health and safety system, an uncommon feature among the industry and complies with government regulations quite comfortably. Additional to these benefits Sayman & Danks is now building effluent plants thanks to the experience won with their waste minimization and cleaner production activities. Saymand & Danks is one of the advocates of pollution prevention among the sector and its example has influenced the metal finishing industry positively. The company has gained a competitive advantage over competitors and now sees improved environmental performance as a window of opportunity rather than a burden.
31
Johnson & Johnson: Environmental and Sustainability Reports Life cycle product information is increasingly being included in environmental and sustainability reports. These are communication documents meant for private and public stakeholders. An example is by Johnson & Johnson, which reports on the life cycle approach taken to evaluate environmental issues associated with their products. In the 2003 Sustainability report, the company shows a strong business case, by indicating the life cycle costs avoided taking into account the savings associated with avoided purchasing, transporting, storing, treating and disposing of materials (see box). For 2003, total cost savings from avoidance and cost reduction projects exceeded $155 million.24
Johnsothe lifeas a reimplemmeet tGoals.costs ipurchastoringdispostrackinreductsavingJohnsobuilt a case fogoals a[Sourc
24 Source: Johnson & Johnson 2003 Sustaina
Life cycle costs avoided at Johnson &Johnson n & Johnson tracks
cycle costs avoided sult of projects ented by facilities to
he Next Generation Total life cycle nclude the costs of sing, transporting, , treating and ing of materials. By g both annual cost ions and cumulative s from prior years, n & Johnson has strong business r its environmental nd programs.
e: J&J sustainability report 2003]
bility Report
32
Other Resources on Life Cycle ManagementA Hypothetical LCA Application: Chair Manufacturing
Note: below is a hypothetical example of a full Life Cycle Assessment which can be used to demonstrate the process and output of a typical assessment.
Let us consider an example of the calculation of environmental load assigned to a chair according to the proposed methodology.
W1 Solid waste
IE1 Electricity
IP4 Iron
IP3 Fabric
IP2 Foam
IP1 Wood
CHAIR MANUFACTURING
P1 Chair
Fig 1. Environmental Load balance in the manufacturing of a chair Material and energy inputs and outputs associated to the manufacturing of the chair (1 Functional Unit, FU), are characterized as follows:
Flow Variable Units Value Wood IP1 kg 4.852 Foam (Polyurethane) IP2 kg 0.124 Fabric (Polyamide) IP3 kg 0.117 Iron IP4 kg 0.010 Electricity IE1 kW.h 4.0 Solid waste W1 kg 0.485 Chair P1 FU 1
To simplify the application example, it is selected a condensed ecovector containing a limited number of environmental loads. We assume the following ecovectors,
33
Stream IP1 IP2 IP3 IP4 IE1 W1 Vector vm, IP1 vm, IP2 vm, IP3 vm, IP4 ve, IE1 vm, W1
Environmental Wood Foam Polyamide Iron Electricity Solid w.Load Units EL/kg EL/kg EL/kg EL/kg EL/kW.h EL/kg
Coal kg 7,93E-02 3,89E-01 7,46E-01 6,87E-01 1,39E-01 0 Natural Gas kg 3,27E-02 8,32E-01 1,41E+00 9,10E-02 4,07E-02 0 Crude Oil kg 5,10E-02 7,38E-01 8,12E-01 5,50E-02 2,88E-02 0 CO2 kg 1,05E+00 4,06E+00 7,00E+00 2,05E+00 5,27E-01 0 NOx kg 1,80E-03 1,78E-02 2,60E-02 3,60E-03 9,50E-04 0 SOx kg 2,01E-03 1,91E-02 2,90E-02 4,50E-03 2,57E-03 0 BOD5 kg 9,26E-07 4,64E-04 3,60E-03 1,70E-04 1,34E-07 0 COD kg 1,45E-05 2,78E-03 1,50E-02 4,63E-04 1,99E-06 0 NO3- kg 5,00E-06 6,30E-03 3,00E-02 6,90E-06 7,70E-07 0 Solid Waste kg 1,50E-01 5,95E-01 3,05E-01 7,60E-01 8,04E-02 -1
Table 1. Ecovectors of input and output streams of the chair manufacture system. Each element of the ecovector, is presented in units of Environmental Load, EL per unit of mass or energy depending if we are dealing with a mass or energy stream. W1 is a waste stream, representing the wood wastes generated by the chair manufacture. Provided this stream is a pure waste its elements are -1 or 0 depending if the corresponding environmental load of the ecovector is present or not. To close the environmental balance assigning the values of the waste ecovectors, vm, W1 to the product P of the system, the non zero elements of vm, W1 must be negatives (-1). By the application of the Environmental Load Balance, the value of the ecovector vm, P corresponding to the environmental load associated to the chair can be obtained.
Value IP1*vmIP1 IP2*vmIP2 IP3*vmIP3 IP4*vmIP4 IE1*veIE1 W1*vmW1 vmP
Env. Load Units kg kg kg kg kg kg kg/FU Coal kg 3,85E-01 4,82E-02 8,72E-02 6,87E-03 5,58E-01 0 1,08E+00 Natural Gas kg 1,59E-01 1,03E-01 1,65E-01 9,10E-04 1,63E-01 0 5,90E-01 Crude Oil kg 2,47E-01 9,15E-02 9,50E-02 5,50E-04 1,15E-01 0 5,50E-01 CO2 kg 5,09E+00 5,04E-01 8,19E-01 2,05E-02 2,11E+00 0 8,55E+00 NOx kg 8,71E-03 2,20E-03 3,04E-03 3,60E-05 3,80E-03 0 1,78E-02 SOx kg 9,75E-03 2,37E-03 3,39E-03 4,50E-05 1,03E-02 0 2,58E-02 BOD5 kg 4,49E-06 5,75E-05 4,21E-04 1,70E-06 5,35E-07 0 4,85E-04 COD kg 7,04E-05 3,44E-04 1,76E-03 4,63E-06 7,96E-06 0 2,18E-03 NO3- kg 2,43E-05 7,81E-04 3,51E-03 6,90E-08 3,08E-06 0 4,32E-03 Solid Waste kg 7,28E-01 7,38E-02 3,57E-02 7,60E-03 3,22E-01 -4,85E-01 1,65E+00
Table 2. Calculation of the environmental load associated to the chair as a function of EL of inputs and outputs streams. These results show the procedure to calculate the environmental load assigned to a product as a function of the environmental data of the different process inputs and the loads generated by the process itself. From Table 2 is possible to work out the relative contribution of each input to the total value of the corresponding environmental loads:
34
Env. Load Stream Wood Foam Fabric Iron Electricity Manufacture Chair
Coal kg 35,5 4,4 8,0 0,6 51,5 0,0 100,0 Natural Gas kg 26,9 17,5 27,8 0,2 27,6 0,0 100,0 Crude Oil kg 45,0 16,6 17,3 0,1 21,0 0,0 100,0 CO2 kg 59,6 5,9 9,6 0,2 24,7 0,0 100,0 NOx kg 48,9 12,4 17,1 0,2 21,4 0,0 100,0 SOx kg 37,8 9,2 13,1 0,2 39,7 0,0 100,0 BOD5 kg 0,9 11,9 86,7 0,4 0,1 0,0 100,0 COD kg 3,2 15,8 80,4 0,2 0,4 0,0 100,0 NO3- kg 0,6 18,1 81,2 0,0 0,1 0,0 100,0 Solid Waste kg 44,0 4,5 2,2 0,5 19,5 29,3 100,0
Table 3. Relative percentage contribution of input and output streams in the total environmental load assigned to the chair.25
25 Provided courtesy of: Francesc Castells, [email protected], 2 October 2006
35
The Material Cycle, Energy Use, and Toxic Emissions (MET) Matrix
Note: This is an example of a tool that can help an organization to identify risks and opportunities associated with their product or service.
The MET Matrix is a means of organizing information about a product’s environmental impacts for analysis. To establish the environmental profile for a product, it is essential to take into account all types of environmental problems that a product system produces throughout its life cycle. The MET Matrix is a means of organizing such an analysis. MET stands for the Material cycle, Energy use and potentially Toxic emissions (MET). The MET Matrix is a qualitative tool used to conduct a functional analysis of a product's environmental profile.
Material Cycle Input/Output
Energy Use Input/Output
Toxic Emissions Output
Production and Supply of all Materials and Components
In-house production Distribution Use Operation Servicing End-of-life system
Recovery
Disposal
Information on the main stages of the product life cycle and environmental effects associated with each life-cycle stage are recorded in the MET matrix. The product life cycle stages can be broken down to a level of detail that suits the product. Simply, there are three life cycle stages: Production, Use and End-of-Life. In slightly more detail, life cycle stages include: Production and supply of materials and components; In-house production; Distribution – represents all distribution stages in the product life; Use, including operation and servicing; End-of-life system, including recovery and disposal. The MET Matrix typically has three columns – material cycle, energy use and toxic emissions. The matrix can be adapted in several ways to suit the needs of the product design team and the particular product under analysis. The Material Cycle column is for information on environmental problems concerning the input/output of materials. It should include data about:
• Non-renewable materials. • Materials that create emissions during production, e.g., copper, lead and zinc. • Incompatible materials. • Inefficient use or lack of re-use of materials/components in all five stages of the
product life cycle.
36
The column on Energy Use is for information regarding energy consumption. The team should:
• List inputs of materials with an extremely high-energy content in the first cell. • Include energy consumption for the door panel itself as well as for transportation,
operating, maintenance and recovery. • Include exhaust gases produced as a result of energy use.
The Toxic Emissions column identifies emissions that are potentially toxic to land, water and air. To avoid excluding any environmental impacts, design teams could also use a Design for Environment (DfE) Checklist. To use the MET matrix, it is recommended that the project team split the analysis into three separate activities:
1. Define the system boundaries for the product – define what exactly will be included in the product system and what will not. This should also focus on auxiliary products and consumables associated with the total life span of the product.
2. Perform a needs analysis – This involves two central questions:
a. How does the product fulfill the needs it is meant to satisfy? And b. Can a system be developed to fulfill the same needs in a radically more
effective and efficient way?
This is not to imply that you will aim to radically change the whole premise of your business each and every time you consider a product design BUT questions like this get the product design team thinking beyond the usual – outside the box – more often.
3. Next, the MET Matrix worksheet is used to perform a functional analysis of the
product, focusing on the physical product and its separate components.
Output: The MET Matrix identifies “hot spots” of environmental concern that require further analysis. It will also identify opportunities for product improvement. Motorola Motorola acknowledges that the MET matrix is only qualitative in nature, however they use it internally as a tool to identify “DfE” opportunities. Over time, Motorola has observed that designers have started to recognize and consider all aspects of the life cycle throughout the design process. Motorola is developing a more quantitative LCA matrix for use in their detailed design phase. 26
26 Provided courtesy of Five Winds International www.fivewinds.com
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UN Global Compact
Note: This is an example of an initiative that can provide organizations with a basic set of principles to aspire or commit to.
The UN Global Compact was launched in 2000. It is a purely voluntary initiative for the business community to help promote sustainable development through the power of collective action. The Global Compact seeks to promote responsible corporate citizenship so that business can be part of the solution to the challenges of globalization. Today, many hundreds of companies from all regions of the world, and international labour and civil society organizations are engaged in the Global Compact, working to advance ten universal principles in the areas of human rights, labour standards, the environment and anti-corruption. The ten principles of Global Compact are: Human Rights Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and Principle 2: make sure that they are not complicit in human rights abuses. Labour Standards Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining; Principle 4: the elimination of all forms of forced and compulsory labour; Principle 5: the effective abolition of child labour; and Principle 6: the elimination of discrimination in respect of employment and occupation. Environment Principle 7: Businesses should support a precautionary approach to environmental challenges; Principle 8: undertake initiatives to promote greater environmental responsibility; and Principle 9: encourage the development and diffusion of environmentally friendly technologies Anti-Corruption Principle 10: Businesses should work against all forms of corruption, including extortion and bribery.27
27 Source: www.unglobalcompact.org
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Global Sullivan Principles for Corporate Social Responsibility
Note: below is the statement of support for the Global Sullivan Principles and is an example of an initiative which can guide an organizations Corporate Social Responsibility policy.
As a company which endorses the Global Sullivan Principles we will respect the law, and as a responsible member of society we will apply these Principles with integrity consistent with the legitimate role of business. We will develop and implement company policies, procedures, training and internal reporting structures to ensure commitment to these Principles throughout our organization. We believe the application of these Principles will achieve greater tolerance and better understanding among peoples, and advance the culture of peace. Accordingly, we will:
● Express our support for universal human rights and, particularly, those of our employees, the communities within which we operate, and parties with whom we do business.
● Promote equal opportunity for our employees at all levels of the company with respect to issues such as color, race, gender, age, ethnicity or religious beliefs, and operate without unacceptable worker treatment such as the exploitation of children, physical punishment, female abuse, involuntary servitude, or other forms of abuse.
● Respect our employees' voluntary freedom of association. ● Compensate our employees to enable them to meet at least their basic needs and
provide the opportunity to improve their skill and capability in order to raise their social and economic opportunities.
● Provide a safe and healthy workplace; protect human health and the environment; and promote sustainable development.
● Promote fair competition including respect for intellectual and other property rights, and not offer, pay or accept bribes.
● Work with governments and communities in which we do business to improve the quality of life in those communities-- their educational, cultural, economic and social well being--and seek to provide training and opportunities for workers from disadvantaged backgrounds.
● Promote the application of these Principles by those with whom we do business. We will be transparent in our implementation of these Principles and provide information which demonstrates publicly our commitment to them.28
28 Source: http://globalsullivanprinciples.org/principles.htm
39
Acknowledgements Very many people donated their time and expertise to review these training materials, and provide examples that illustrate Life Cycle Management practices. Special thanks to the following key contributors: Gil Anderi da Silva, Universidade de São Paulo
Sarah Basden, Rio Tinto
Francesc Castells, Universitat Rovira i Virgili
Viviana Carrillo, FEBE EcoLogic
Olivia la O’Castillo, APRSCP
Kishore Chenna
Arturo González, ARGOS Consultants
Norihiro Itsubo, National Institute of Advanced Industrial Science and Technology
Lienne Carla Pires, 3M do Brasil Ltda
Dariush Rafinejad, Stanford University
Elena Rosa Dominguez, Universidad Central de las Villas
Andrea Russell, Rio Tinto Minerals
Reginald B.H. Tan, National University of Singapore
Mohammed Tawfic, SCU Faculty of Agriculture
Alexander Voronov, JSC Legal service
The primary authors – Jennifer Cooper, Josh Hendry, Chris Peterson and James Fava of Five Winds International, Greg Schiefer of SETAC North America, Sonia Valdivia & Guido Sonnemann of UNEP, Allan Astrup Jensen of FORCE Technology, Paolo Frankl of Ecobilancio, – are grateful to all who contributed. These training materials also incorporate ideas and examples from Life Cycle Management: a Business Guide to Sustainability prepared by Allan Astrup Jensen of FORCE Technology, Jeppe Frydendal of Danish Standards and Arne Remmen of Aalborg University (2006, DTI/0889/PA, ISBN: 978-92-807-2772-2).
About us
The UNEP SETAC Life Cycle Initiative
UNEP DTIE, SETAC & the Life Cycle Initiative
UNEP and SETAC have established a global life cycle assessment initiative. Among other things, the Life Cycle Initiative builds upon and provides support to the ongoing work of UNEP on sustainable consumption and production, such as Industry Outreach, Industrial Pollution Management, Sustainable Consumption, Cleaner and Safer Production, Global Reporting Initiative (GRI), Global Compact, UN Consumer Guidelines, Tourism, Advertising, Eco-design and Product Service Systems. The Initiative’s efforts are complemented by SETAC’s international infrastructure and its publishing efforts in support of the LCA community. The Life Cycle Initiative is a response to the call from governments for a life cycle
economy in the Malmö Declaration (2000). It contributes to the 10-year framework of programmes to promote sustainable consumption and production patterns, as requested at the World Summit on Sustainable Development (WSSD) in Johannesburg (2002). Our mission is to develop and disseminate practical tools for evaluating the opportunities, risks, and trade-offs associated with products and services over their entire life cycle to achieve sustainable development. The programmes aim at putting life cycle thinking into practice and at improving the supporting tools through better data and indicators by hosting and facilitating expert groups whose work results in webbased information systems.
1. The Life Cycle Management (LCM) programme creates awareness and improves skills of decision-makers by producing information materials, establishing forums for sharing best practice, and carrying out training programmes in all parts of the world. 2. The Life Cycle Impact Assessment (LCIA) programme increases the quality and global reach of life cycle indicators by promoting the exchange of views among experts whose work results in a set of widely accepted recommendations. 3. The Life Cycle Inventory (LCI) programme improves global access to transparent, highquality life cycle data. Learn more at: http://www.uneptie.org/pc/sustain/lcinitiative.
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UNEP SETAC Life Cycle Initiative
