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Eco-design VI

Eco-design VI. Linking supply and demand of environmental information. Framework for environmental decision-making. Core Charecteristics. Temporal and spatial characteristics. Decision object. Question types. Context characteristics. Level of improvement. Importance of subsystem.

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Eco-design VI

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  1. Eco-design VI Linking supply and demand of environmental information

  2. Framework for environmental decision-making Core Charecteristics Temporal and spatial characteristics Decision object Question types Context characteristics Level of improvement Importance of subsystem Complexity of system change Aspiration of decision-maker Level of chain control Decision types Decision steps Cultural context

  3. Framework for environmental decision-making Core Charecteristics Temporal and spatial characteristics Decision object Question types Context characteristics Level of improvement Importance of subsystem Complexity of system change Aspiration of decision-maker Level of chain control Decision types Decision steps Cultural context

  4. Temporal characteristics • Descriptive (retrospective) analysis describes background developments in the past and present, and trends: MFA, SFA, IOA • Change oriented (prospective) analysis assesses the changes which will be bought about by a given decision: LCA, MIP, ERA, SFA, CBA

  5. Spatial characteristics • Location-independent analysis: LCA, CERA, LCC • Location-dependent analysis: Application on certain country or region, or whole world: MFA (LCA?) • Location specific: Focus on specific location: ERA, CBA

  6. Level of detail General feeling: • Demand side: the simpler the better • Supply side: the more detailed the better 

  7. Level of integration Number of issues which can be dealt in the same time is 1 – 7 independent variables  requirements for integration or aggregation of results Levels of aggregation and integration: • Different emission sources  same effect • Different effect types  overall environmental assessment (weighting etc., LCA) • Integration of results into economic, social and environmental dimensions, expression of results in monetary terms (CBA)

  8. Framework for environmental decision-making Core Charecteristics Temporal and spatial characteristics Decision object Question types Context characteristics Level of improvement Importance of subsystem Complexity of system change Aspiration of decision-maker Level of chain control Decision types Decision steps Cultural context

  9. Strategic planning 1 - examples • Policy development • Strategies for the development of new technologies • Strategies for research and development on new product lines

  10. Strategic planning 2 – decision steps Strategic planning Strategy implementation Strategy identification &selection external analysis self analysis Strategic plans consider strategic questions evaluate strategic alternatives Road maps make road maps for implementation of strategy in organisation Implementation implement strategy into operational management Monitor & review Monitor & compare results with strategy report results Specify the mission develop vision and goals

  11. Strategic planning considering environment 3 - requirements • Making environmental management a business issue that complements the overall business strategy • Use of clear, accepted business terms and concepts • Creation and adoption of indicators to measure the real costs and business benefits of the environmental management programmes • Integration of environmental management into business operations such as design, development, communication and marketing • Job descriptions and compensation of environmental managers as doing business

  12. Strategic planning 4 – suitable tools Considering high uncertainty and limited data availability, the following tools prove useful: • Analysis of bulk material flows: MIPS, bulk-MFA • Energy aspects: CERA • In case of good data availability: LCC

  13. Capital investments 1 - description • Long-term decisions • Site-specific elements • Involve external consultants • Large number of indices

  14. Capital investments 2 - examples • Investments in new technologies or production lines • Permit decisions (accompanied with prevention measures) • Acquiring another company

  15. Capital investments 3 – suitable decision tools • More generic future aspects: MFA and MIPS • Consideration of costs: LCC, CBA and TCA • Large investments: MCA • Usual investment evaluation tool: discounted cash flow (DCF) analysis

  16. Design and development 1 – decision steps Design and development Product planning Policy formulation Strategic analysis Product ideas Evaluate & select Problem definition Environmental analysis & requirements Conceptual design Evaluation & selection of ideas Feasibility study Detail design Overall environmental evaluation Marketing Promotion in-house Developing promotion plan Preparation for production Evaluation & establishing follow-up activities Estimation of success of product

  17. Design and development 2 – basic features • To a large extent based on intuition • Requires environmental awareness of designers • Closely related to R&D • Requires detailed data sets • Should consider concerns of government and customers

  18. Design and development 3 - tools • If enough data – LCA • If fewer data – Eco-indicator, checklists etc, • If little toxicity – MIPS • If monetary terms required – CBA, TCA, LCC

  19. Design phase 1 - planning • SWOT analysis • Scenarios • Checklists • Matrices Policy and strategy Evaluation and selection

  20. Activities Product analysis (product system + life cycle) Priority setting Environmental and design objectives Criteria (terms of reference) Information supply Product life cycle matrices Product examples Reference products Checklists with environmental and design principles Benchmarking Aspect-based tools (ebergy, resource, emissions) Legal aspects Design phase 2 – problem definition

  21. Activities Generation of ideas Feasibility study (environmental, economical, technical) Evaluation & selection Information supply Idea generation methods Product examples Priority matrices Strategy wheel Checklists with eco-design options Environmental performance indicators Design phase 3 – conceptual design

  22. Design phase 4 – detail design • Elaboration: black lists, compatibility matrices / lists, material lists, components lists • Overall environmental evaluation: LCA, Eco-Indicator, Ecoscan

  23. Design phase 5 – marketing & preparatory work for production • Checklists for green marketing • Strategy wheel

  24. Design phase 6 - evaluation • Evaluation (product + process): checklists • Follow-up activities: guidelines

  25. Environmental marketing 1 - steps • Identify your target group. Are they consumers or buyers? What is the level of information they require? • Identify your message to target group. What are the needs of target group? What are the benefits of the product to this target audience? • Form your message. Are you offering a solution to your customers’ needs? Is the claim perfectly understandable to the target audience? Remember to speak the same language as your target audience. • Verify your claim. Which is the appropriate means of verification for this target audience: detailed life cycle information or eco-labels?

  26. Environmental marketing 2 – claim verification • Environmental labelling • Environmental performance evaluation (EPE) • Environmental reporting • Detailed life cycle information

  27. Environmental marketing 3 – main features • Not site-specific • Deals with environmental impacts and damages • Refers to global environmental effects (climate change, ozone depletion etc) • Software is important • Small set of indices

  28. Environmental marketing 4 - tools

  29. Environmental marketing 5 – five focal areas for general public • Energy consumption • Materials application • Packaging • Environmentally relevant hazardous substances • Durability, recycling, end-of-life

  30. Operational management 1 – main features • Concerns day-to-day decisions • Involves internal staff and managers • Involves external consultants • Site-specific • Small set of indices • Requires readily available software

  31. Operational management 2 – procedural and analytical tools

  32. Framework for environmental decision-making Core Charecteristics Temporal and spatial characteristics Decision object Question types Context characteristics Level of improvement Importance of subsystem Complexity of system change Aspiration of decision-maker Level of chain control Decision types Decision steps Cultural context

  33. Problems in incorporating environmental information in business decision-making • The complexity of the issue • The knowledge transfer within the company • The difficulty to incorporate the chain perspective in the business decision-making process – that is broader than traditional in-house vision • The limited control over stakeholders in the chain

  34. The value of integrated decision-making • Enhancement of product and service performance • Improvement of resource productivity • Cost savings/avoidance • Risk reduction • Revenue generation • Enhanced image • Sustainable enterprise

  35. Success factors • Commitment at the top • Motivation of all employees • The creation of proper knowledge management system • Tools have to be compatible to the culture and objectives of an organisation • Interaction between the different corporate activities and question types • Partnership with relevant stakeholders, coalitions with supply chain, co-design projects

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