Akzo Nobel and Sustainability

1. Akzo Nobel and Sustainability AIChE conference Atlanta, April 14, 2005 Klas Hallberg Sustainable Development group Akzo Nobel (Sweden)

2. Agenda • Akzo Nobel company profile • Practical use of eco-efficiency tools today • Life Cycle Assessment from salt to cardboard • Environmental Risk Assessment of an asphalt additive • Eco-efficiency evaluation of colorants • The DANTES project - an example of openness in communication between companies and the society

3. Akzo Nobel profile • A Dutch multi-national company created in 1969. Roots trace back to 1777 • Serving customers with healthcare products, coatings and chemicals • 17 billion $ in net sales (2003) • More than 60 000 employees • Operates in about 80 countries

4. Agenda • Akzo Nobel company profile • Practical use of eco-efficiency tools today • Life Cycle Assessment from salt to cardboard • Environmental Risk Assessment of an asphalt additive • Eco-efficiency evaluation of colorants • The DANTES project - an example of openness in communication between companies and the society

5. Life Cycle Assessment(LCA)

6. LCA from salt extraction to Stora Enso cardboard Electrolysis Environmental hotspots in the production of NaOH? NaOH NaCl Pulp & Paper Salt extraction Environmental profile of salt improved from 1998 to 2000? Have paper chemicals a significant influence on the environmental profile of cardboard? Stora Enso cardboard

7. Business value of the LCA example • Salt extraction: • CO2 decrease => good economy e.g. energy savings, CO2 emission trading • Electrolysis: • Relevant information to meet NGO´s specific concerns e.g. SO2 and NOX • Focus on the transport instead of emissions from the site => avoid sub optimization • Pulp & Paper: • Sales support • New business or more important; we don’t loose existing business!

8. Agenda • Akzo Nobel company profile • Practical use of eco-efficiency tools today • Life Cycle Assessment from salt to cardboard • Environmental Risk Assessment of an asphalt additive • Eco-efficiency evaluation of colorants • The DANTES project - an example of openness in communication between companies and the society

9. Environmental Risk Assessment (ERA) Data evaluation Exposure assessment Effect assessment PEC = Predicted Environmental Concentration PNEC = Predicted No-Effect Concentration RCR < 1 No risk! ERA life cycle Risk Characterisation Ratio RCR = PEC / PNEC

10. Environmental Risk Assessment (ERA) for an asphalt additive (Wetfix) • Promotes the adhesion between bitumen and aggregate (hot mix) in order to extend the life time of an asphalt pavement • Is used in low concentrations (0,2-0,4% weight of bitumen) The asphalt additive (Wetfix):

11. Extraction of Resource A (eg. natural gas) Extraction of Resource B Refining of Resource B Production of Raw Material 1 Production of Raw Material 2 Transport of Raw Material 1 Transport of Raw Material 2 Simplified life cycleof the asphalt additive (Wetfix) LCA Production of an asphalt additive ERA Use of product Waste handling of Product

12. Comparison between LCA & Environmental Risk Assessment (ERA) ERA : Not including resource consumption etc. LCA : Difficult to include inherent properties Thorough Environmental Assessment

13. ERA Basis for decision Decision SEA LCA The potential role of Life Cycle Assessment in regulation of chemicals in the European Union according to the European Chemicals Bureau • ERA = Environmental Risk Assessment • SEA = Socio-economic analysis • LCA = Life Cycle Assessment

14. Comparison between Lime, Cement & Wetfix (asphalt additive) from a life cycle perspective of a road CO2 emissions [kg] / km highway Hot mix Lime Cement Wetfix

15. Business value of the ERA and the ERA/LCA example • ERA: • Avoid unwanted surprises • Are more toxicity tests and/or exposure measurements useful and necessary => reduced costs • Comply with REACH ! (the new EU chemicals legislation) • ERA/LCA combination: • More complete picture of complex issues => increased credibility • Provides a wider perspective on possible consequences of banning a substance from a market • Is used for marketing today

16. Agenda • Akzo Nobel company profile • Practical use of eco-efficiency tools today • Life Cycle Assessment from salt to cardboard • Environmental Risk Assessment of an asphalt additive • Eco-efficiency evaluation of colorants • The DANTES project - an example of openness in communication between companies and the society

17. Eco-efficiency evaluation of an old and a new colorant used in water based paint Applying the BASF eco-efficiency method on a study made by Akzo Nobel

18. Environmental and economic impact • LCA-based environmental impact • Consumption of energy • Consumption of resources • Land use • Emissions • LCA-based environmental impact • Consumption of energy • Consumption of resources • Land use • Emissions • Toxic potential • Risk potential • Weighting method • According to “EPS” • Weighting method • According to BASF • Economic impact • Environmental costs • Economic impact • Price

19. Eco-efficiency results 0,0 Old Colorant Environmental impact (normalized) 1,0 New Colorant 2,0 1,2 1,0 0,8 Cost (normalized)

20. Other conclusions from an eco-efficiency study • Environmental costs were found to be a relatively large part of the total costs of the studied products • For the surfactants (used in the colorants) 4,5% – 6,5% of the sales price • The environmental costs are higher than normally (~1%) reported to authorities and statistics

21. Agenda • Akzo Nobel company profile • Practical use of eco-efficiency tools today • Life Cycle Assessment from salt to cardboard • Environmental Risk Assessment of an asphalt additive • Eco-efficiency evaluation of colorants • The DANTES project - an example of openness in communication between companies and the society

22. DANTES A demonstration project for sustainable development www.dantes.info

23. Project information • Supported by the EU LIFE - Environment Programme • Period:2002 – 2005 (August 31) • Partners:Akzo Nobel Surface ChemistryABB Stora EnsoChalmers University of Technology

24. DANTES goals • Demonstrate and evaluate environmental assessment and communication tools: • Life Cycle Assessment (LCA) • Life Cycle Costing (LCC) • Environmental Risk Assessment (ERA) • Environmental Product Declarations (EPD) • Environmental Performance Indicators (EPI) • Display strategies of how to use these tools in different functions within a company.

25. Strategies • provide examples on how you can address different environmental sustainability issues within different parts of a company: • Research & development • Marketing • Supply chain • Production • Environmental support

26. is a smorgasbord! Environment Economy Life Cycle Cost Environmental Management Systems Eco-efficiency evaluation Environmental Risk Assessment CO2 emission trading Exposure scenarios LCA Supplier evaluation Key Performance Indicators Environmental Product Declarations Transportation and environment Sustainability information on the WEB Sustainability issues in R&D Energy efficiency Environmental education Engineering Communication

27. www.dantes.info – the DANTES project website Between 3000 and 4000 visits per month!