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Eco-design IV. Tools and Strategies for Sustainable Consumption and Production. Contents. Overall strategies and concepts Tools 2.1. Business perspective 2.2. A nalytical tools 2.3. P rocedural tools 2.4. C ommunication tools 2.5. Product sustainability toolbox
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Eco-design IV Tools and Strategies for Sustainable Consumption and Production
Contents • Overall strategies and concepts • Tools 2.1. Business perspective 2.2. Analytical tools 2.3. Procedural tools 2.4. Communication tools 2.5. Product sustainability toolbox 3. Policies and Instruments 4. What now?
1. Overall strategies and concepts of sustainable production and consumption
Goal: Sustainable Development- the three pillars Environment Economy Sustainability Social
Policy principles • Continuous improvement • Transparency • Eco-efficiency • Precaution • Life cycle thinking • Polluter pays • Common but differentiated responsibilities
Overall Strategies • Dematerialization • Life Cycle Management • Product Service Systems • The Triple Bottom Line Concept • Investment and insurance • Corporate responsibility • Reporting • Education and training
Dematerialization • Addressing needs and functionality rather than the product alone • Tracking throughput of materials and energy in industrial and consumption processes • Major increase in resource productivity
Life Cycle Management Life cycle thinking provides a holistic framework taking the entire system of a product, process or service into account, enabling us to make realistic choices for the longer term taking multiple factors into account. • Life cycle thinking needs tools to make it practical to regular activities and decisions.
Life Cycle Management (cont.) Life Cycle Management (LCM) is an integrated concept for managing the total life cycle of goods and services towards more sustainable production and consumption. • uses various procedural and analytical tools taken from the Product Sustainability Toolbox • different applications and integrates economic, social and environmental aspects into an institutional context.
Product Service Systems Product Service Systems (PSS): strategy to develop a marketable mix of products and services that are jointly capable of fulfilling a client's need - with less environmental impact. - a need rather than a product - win-win solutions - de-coupling economic growthand environmental degradation.
Product Service Systems: Definition “A Product-Service System can be defined as the result of an innovation strategy, shifting the business focus from designing and selling physical products only, to selling a system of products and services which are jointly capable of fulfilling specific client demands.” UNEP (2002)
Product Service Systems:Three main approaches • Services providing added value to the product life cycle • Services providing “final results” for customers • Services providing “enabling platforms” for customers
The Triple Bottom Line Concept Three Pillars of Sustainable Development Society Environment Sustainable Development Economy
Environment Society Economy The Triple Bottom Line Concept
The Wuppertal Prism Source: The Wuppertal Institute, http://www.foeeurope.org The Triple Bottom Line Concept
Guiding Vision • Stakeholder participation • Sustainability principles Sustainability Criteria Sustainability Assessment • Impacts & benefits • Achievement of goals Progress toward Sustainable Development The TBL Approach
TBL In Society • Accepted concept • Incorporated in law • TBL assessments widely used • Business reporting tool • Expands decision-making scope • Significant advancement over previous assessment tools
Problems with TBL • Does not address sustainability • Will not deliver sustainable development • Does not consider long-term futures • Does not consider cumulative impacts • Does not challenge existing paradigms • Does not provide “real world” justification for change • Expensive & time consuming
2. Tools for sustainable production and consumption 2.1. Business perspective 2.2. Analytical tools 2.3. Procedural tools 2.4. Communication tools 2.5. Toolbox
2.1. Business perspective in SCP
Business Goals Companies can act in two very different ways to Society´s demand for sustainable development: • Reactive: Fulfilling existing laws, directives and perhaps standards • Proactive: Go beyond existing regulation to become leader and use sustainability aspects as business opportunities
Companies’ Potential Areas of Improvement • Processes: Eco-efficiency, Total Quality Management, CPA, EnTA, environmental risk assessment. • Products/ Services: Dematerialization, LCA, PSS, Eco-design, Function Based Approach. • Consumer communication: Consumer opportunities, Advertising and Marketing, Eco-labels. • Systems: Life Cycle Management, Material Flow Accounting, Environmental Management Systems, Multi-stakeholder dialogues, supply chain management.
2.2. Analytical tools in SCP
Three types of analytical tools for eco-design: • A. Quantitative tools such as LCA • B. Matrices • C. Checklists
List of analytical tools • Life Cycle Assessment (LCA) • Material Input per Unit of Service (MIPS) • Environmental Risk Assessment (ERA) • Material Flow Accounting (MFA) • Cumulative Energy Requirements Analysis (CERA) • Environmental Input-Output Analysis (env, IOA) • Life Cycle Costing (LCC) • Total cost accounting (TCA) • Cost-Benefit Analysis (CBA) • Matrices • Checklists
Environmental Risk Assessment (ERA) HAZARD IDENTIFICATION EXPOSURE ASSESSMENT EFFECT ASSESSMENT Prediction of emission rate Dose-response tests Exposure prediction Extrapolation Environment Environment Human Health Acceptable DailyIntake Predicted Exposure Dose Predicted No-Effect Concentration Predicted ExposureConcentration - Risk Characterisation - Uncertainty Analysis
ERA steps • Hazard identification – relationship between different levels of exposure and effects • Effect assessment • Exposure assessment
Define scope Identify hazards Identify how hazards could be realized Estimate consequences if hazards were realized Estimate the probability that hazards will be realized Calculate risk Assess the significance of the risk no yes Choice of more exhaustive examination FIGURE 15.6 Steps in a risk assessment.
Life Cycle Assessment Life Cycle Assessment (LCA) is a tool for the systematic evaluation of the environmental aspects of a product or service system through all stages of its life cycle. • provides an adequate instrument for environmental decision support. • reliable LCA performance is crucial to achieve a life-cycle economy. • The International Organisation for Standardisation (ISO), has standardised this framework within the series ISO 14040 on LCA.
Life Cycle assessment From cradle to grave • Impacts on • Human health • Ecosystems • Resources
ISO 14040 Life Cycle Assessment, Principles and framework Life cycle assessment framework Goal and scope definition Direct applications: - Product development and improvement - Strategic planning - Public policy making - Marketing - Other Inter- pretation Inventory analysis Impact assessment
Application Life Cycle Assessment Structure According to ISO 14040:
Life Cycle Assessment:Inventory Analysis Acquisition ofraw material Production Use/ reuse/ maintenance Recycling/ Waste Management
Preparing for data collection Data collection Validation of data Relating data to unit process Relating data to functional unit Data aggregation Refining system boundaries Steps of the inventory phase
Example of a product system, production and use of steel sheet metal, for life cycle inventory analysis. 1. Mining of coal 2. Mining of iron ore 3. Mining of limestone 4. Crushing grinding Product system Environment 5. Transport System boundary 6. Sintering 7. Blast furnace 8. Steel furnace 15. Production of electricity 9. Steel moulding Elementary flows 10. Transport 11. Cutting, shaping 12. Use 13. Waste handling 14. Landfill
Elements of the life cycle impact assessment procedure. Mandatory elements Selection of impact categories, category indicators and models Assignment of LCI results to impact categories (Classification) Calculation of category indicators (Characterisation) Category indicator results (LCIA profile) Optional elements Calculating the magnitude of category indicators relative to reference value(s) (Normalisation) Grouping Weighting Data quality analysis
Goal and scope definition Identification of significant issues Evaluation by completeness check sensitivity check consistency check Inventory analysis Impact assessment Conclusions, Recommendations And reporting Elements of the interpretation phase of an LCA study.
LCA-result: Environmental impact / functional unit Example: Amount of nitrate inwater/ produced amount of meat
Types of environmental interventions in LCA • Extraction of abiotic resources • Extraction of biotic resources • Land use • Climate change • Stratospheric ozone depletion • Photo-oxidant creation • Human toxicity • Eco-toxicity • Acidification • Nutrification
Strengths of LCA • Comprehensive with respect to environmental impact connected to a function • Avoids problem shifting • Explicit distinction between science based information and value choices • International standardisation by ISO • Best practice identification envisaged in SETAC-UNEP programme
Weaknesses of LCA • Too complex • Too data intensive • Does not directly consider future changes in technology and demand • Does not consider societal effects • Only known and quantifyable environmental effects are considered • Requires expert knowledge
Life Cycle Costing (LCC) • Looks at the complete life-span of a product to calculate the entire life cycle costs, which include all internal costs plus external costs(=externalities) incurred through throughout the entire life cycle of a product, process or activity • Puts a monetary value on the emissions and resource use (unfortumately, no valuation method has been generally agreed)
Total Cost Accounting (TCA) • Describes the long-term, comprehensive analysis of the full range of internal costs and savings resulting from pollution prevention and other environmental projects undertaken by a firm • Comprehensive costs and savings inventory • Precise cost allocation • Use of long time horizons • Use of profitability indicators which account for the time value of money • Does not consider eco-efficiency
Cost-Benefit Analysis (CBA) • Determines whether or not the benefits of an investment or a policy outweigh its costs • Very broad scope • All costs and benefits are expressed in monetary values • Large uncertainty because of many valuations
Eco-costs/Value ratio retail distribution marketing assembly components
Eco-costs • The costs to prevent polluting emissions (to the air, water and ground), during the life cycle, at a sustainable level of earth’s carrying capacity • The eco-costs of materials, taking into account the ratio of recycling • The cost of energy at the price level of sustainable energy • The eco-costs related to the costs of labour • The depreciation of the eco-costs of production facilities
Cost-effectiveness Analysis (CEA) • Derivation of CBA • Determines the least cost option of attaining a predefined target • Benefits are not expressed in monetary terms
“Human needs should be met by products and services that are aimed at specific ‘functions’ such as food, shelter and mobility, and that are provided through optimized consumption and production systems that do not exceed the capacity of the ecosystem.” Life Cycle Initiative Brochure, UNEP / SETAC, ‘International Partnership’, 2003. Function-basedapproach (FBA)