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    L ife Cycle M anagementa Business Guide to Sustainability

    Training Session 3 of 4 November 2006

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    Life Cycle ManagementTraining - Outline Introduction to LCM

    First session

    How LCM is used in Practice Second Session

    Communicating LCM Results This Session!

    LCM and StakeholderExpectations Fourth Session

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    Introduction to LCM

    First session

    Learning Objective: Understand the theoretical basis of life cyclemanagement & its history

    08.00-08.30 What is a life-cycle? Impacts & value createdalong the life cycle of a product or service

    DefinitionsHistoryUse

    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

    done

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    How LCM is used in Practice Previous Session

    Learning Objective: Understand the practical aspects ofLCM in policy development & business operations, throughdiscussions of how to integrate it into decision making &through case examples

    10.30-10.45 Life cycle managementDefinition & Benefits

    10.45-11.00 LCM involves Learning from a range of examples

    11.00-12.00 A process for implementing LCMPlan Do Check Adjust

    A focus on designFurther examples to illustrate

    12.00-12.30 Group exercise

    12.30-13.30 Break for lunch

    done

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    Communicating LCM Results This Session!

    Learning Objective: Provide a good understanding ofcommunication tools and strategies. Why and how they canbe valuable to business?

    08.00-08.15 Why communicating LCM? To whom?Definition and scope, drivers, targetgroups of communication

    08.15-09.00 Communication toolboxMain features and link with LCMExamples and diffusion of tools

    09.00-09.45 Case-studiesSector-specific driversCommunication strategiesCombination of tools

    09.45-10.00 Group exercise

    10.00-10.30 Break for coffee & refreshments

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    LCM and StakeholderExpectations Fourth Session

    Learning Objective: Understand how to identifystakeholders, as well as their priorities & concerns

    10.30-10.35 Why Engage Stakeholders?

    10.35-10.45 Identifying StakeholdersPotential Stakeholders

    Ask the right peopleRanking

    10.45-11.00 Importance of Including StakeholdersRisk AvoidanceOpportunity Creation

    11.00-11.45 Case example

    11.45-12.30 Group exercise

    12.30-13.30 Break for lunch

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    1. Definition and scope and section goals

    2. Overview of LCM Communication toolbox Main features andlink with LCM

    3. Which communication tools used in practice? Examples anddiffusion

    4. Case-studies

    Sector-specific requirements Leading companies with communication strategies

    5. What comes next? Recent trends and outlook

    Contents

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    Definition and Scope &Section Goals

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    Definition of Communication within the present training kit:

    Any manner of information sharing with stakeholders,generally through one-way, non-iterative processes , e.g.Corporate Sustainability Reporting or product eco-labeling

    Definition

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    Consumer demands Information request from business clients (e.g in the supply chain) External pressure from society stakeholders (e.g. NGOs) and civil

    society Increasing attention from financial stakeholders Green Public Procurement programs of public administrations Requirements from policy-makers (e.g. WEEE and RoHS European

    Directives)

    Drivers Why communicating LCM?

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    Competitive advantage in emerging or new green markets Final consumers Business clients Public administrations

    Better image Consumers and clients Financial stakeholders NGOs and civil society Legislators

    Influence regulations and pre-normative processes

    Opportunities / Target audiences

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    External stakeholders Final consumers Business clients Financial stakeholders Public administrators and policy makers

    Civil society and society stakeholders Suppliers

    Internal stakeholders

    Shareholders Employees and management

    Target groups of communication

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    Provide good understanding of:

    Communication tools and strategies

    Why and how can be they valuable to business?

    Section Goals

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    Which communication tools used in practice by industry andbusiness?

    Distinguish communication tools vs. target stakeholders What is used to communicate with whom?

    Why and how communication valuable to business? Relevance and diffusion of communication tools Case-studies of companies with comprehensive communication

    strategies

    Sector-specific drivers and communication needs

    Main questions/topics

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    Overview of LCM Communication ToolboxMain Features and Link with LCM

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    FIRM & ORGANIZATION LEVEL(F&O) Environmental reports EHS reports Social reports

    Sustainability reports CSR - Corporate Social

    Responsibility Company Codes Manuals of Conduct

    Audits Supplier evaluation systems

    PRODUCT-RELATED (P-R) Eco-labels Environmental claims Environmental product

    declarations

    Product EnvironmentalPerformance Indicators Product Profiles Eco-efficiency analysis Prod. Information Schemes

    GPP guidelines

    Advertising, Information brochures & campaigns, websites

    F&O P-R

    Communication Toolbox

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    External stakeholders Final consumers Business clients Public administrators and

    policy makers

    Financial stakeholders Other society stakeholders Suppliers

    Internal stakeholders Employees and management Shareholders

    F&OExt

    Int

    P-R

    Int

    Ext

    Which tool to communicate to whom?

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    F&O

    Reporting - From Environmental Reporting toCorporate Social Responsibility (CSR)Reporting - From Environmental Reporting toCorporate Social Responsibility (CSR)

    Global report output by type since 1992 .

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    Many different approaches

    Several guidelines (e.g GRI Global Reporting Initiative)

    Difficult classification, because

    Voluntary instruments Different and heterogeneous industry sectors

    Life Cycle Thinking (LCT) and Life Cycle Management (LCM) n o t

    always taken into account / reported

    F&O

    Reporting Contents & LCM

    C d f C d & S li S i

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    Set of requirements on Ethical Social Health & Safety Environmental aspects

    To be fulfilled internally in the company

    Often extended to suppliers

    Good tool to interact with SMEs

    Link with LCM intrinsic in Corporate Social Responsibility Extended Producer Responsibility Involvement of Suppliers

    F&O

    Codes of Conduct & Supplier Screening

    P d l d i i l

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    Wide range of Environmental Product InformationSchemes (EPIS)

    Main classification according to verification: First party verification Third party verification/certification

    Coded by ISO norms 1402x

    P-R

    Product-related communication tools

    E i l P d I f i S h

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    14020 ISO norms

    Environmentalclaims and

    declarations

    Type-IISO 14024(1999)

    Environmental labels(e.g. EU-Flower, Blue Engel,White Swan )

    Type-IIISO 14021(1999)

    Self-declared environmentalclaims

    Type-IIIISO 14025

    (2006)

    Environmental declarations(e.g. EPD , Eco-leaf )

    P-R

    Environmental Product Information Schemes(EPIS) - Reference norms

    ISO I l b l

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    Indicate the overall environmental preferability of a product within aparticular product category

    Qualitative, concise information Allows consumers to take quick purchasing decisions

    Main features/characteristics: Voluntary instrument Multiple criteria Life cycle approach Third-party independent verification (national bodies)

    LCT - Life Cycle Thinking (but not necessarily LCA) explicitlyused to set the criteria (multiple indicators)

    P-R

    ISO-type I ecolabels

    ISO t II i t l l i

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    Definition (ISO 14021): self-declared environmental claims made by manufacturers, importers,distributors, retailers, or anyone else likely to benefit from such a claimwithout independent third- party certification

    Several forms of communication:

    Statements, symbols or graphics on product or package labels, or inproduct literature, technical bulletins, advertising, publicity,telemarketing, internet

    Main advantage for firms: flexibility

    P-R

    ISO-type II environmental claims

    ISO t II i t l l i

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    Main features/characteristics: Voluntary instrument Generally single criteria First-party self-declaration

    Relationship with product life cycle and LCM is implicit,generally weak

    P-R

    ISO-type II environmental claims

    ISO t III i t l d l ti

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    Definition (ISO 14025): Quantified environmental data for a product, with pre-determinedparameters, based on the ISO 14040 series of standards, which may besupplemented by other qualitative and quantitative information

    Environmental Product Declarations (EPD)

    P-R

    ISO-type III environmental declarations

    ISO t III d l ti

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    Environmental Product Declarations (EPD) - Mainfeatures/characteristics: Voluntary instrument Multiple environmental impact indicators (from LCA) No threshold criteria / minimum levels to be met

    Allows comparability of products Third-party verified

    Product Category Rules (PCR) Defines all rules for LCA study and EPD format for the specific product

    category Open stakeholder consultation process

    Relationship with product life cycle is explicit,strictly based on underlying LCA study

    P-R

    ISO-type III declarations

    Communication Toolbox and LCM

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    Communication tool Link with LCM

    Reporting VariableLCT and LCM not always taken intoaccount / reported

    F&O

    Codes of Conduct and SupplierScreening Systems

    Intrinsic in:- Corporate Social Responsibility- Extended Producer Responsibility- Involvement of Suppliers

    ISO-type I ecolabels LCT (but not necessarily LCA)explicitly used to set the criteria(multiple indicators)

    ISO-type II environmental claims Relationship with product life cycleand LCM is implicit, generally weak

    ISO-type III environmentaldeclarations

    Explicit relationship with product lifecycle, strictly based on underlyingLCA study

    P-R

    Other assessment and certificationtools

    Variable

    Communication Toolbox and LCM

    Which communication tools are used by industry

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    Which communication tools are used by industryand business in practice?Examples and Diffusion

    Which tool to communicate to whom?

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    External stakeholders Final consumers Business clients Public administrators and

    policy makers

    Financial stakeholders Other society stakeholders Suppliers

    Internal stakeholders

    Employees and management Shareholders

    F&OExt

    Int

    P-R

    Int

    Ext

    Which tool to communicate to whom?

    Importance and impacts of communication

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    Very difficult to measure impacts of LCM communication Direct impacts (e.g. increase of market share) Indirect impacts (image, other factors, etc.)

    An indirect indicator for the importance of the differentcommunication tools is the degree of its diffusion , e.g. Number of labelled products Amount of sales

    Importance and impacts of communication

    Observed trends

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    ISO-type I labels are still the most widely used communication toolto final consumers

    However, important limitations of eco-labels other communication tools are increasing awareness and fosteringbetter use of products

    Simplification of complex life-cycle information into ISO-type IIclaims, however some credibility issues

    ISO-type III declarations for B2B increasing but still limiteddiffusion

    Combination of tools and reporting for various stakeholders

    Observed trends

    Examples and diffusion of communication tools

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    Communication to:

    I. Final consumersII. Business clientsIII. Public Administrations

    IV. Various stakeholdersV. SuppliersVI. Internal communication

    Examples and diffusion of communication toolsin function of target group

    I 1 Final consumers ISO type I labels

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    Diffusion of ISO-type I labels as of Oct. 2006

    Source: Frankl et al (2006)

    I.1 - Final consumers - ISO-type I labels

    Country (Status) Year ofestablishment

    Product groups Firms Products

    Japan (October 2006) 1989 47 2107 5152

    South Korea (June 2006) 1992 7 (groups) 103 (categories) 1001 4100

    Germany (State July 2006) 1978 89 529 3,650

    Nordic Countries (2006) 1989 61 680 n.a.

    EU (October 2005) 1992 24 309 n.a.

    The Netherlands (Milieukeur,

    October 2006) 1992 69 257 360

    Catalonia (DGQA) 1994 26 171 895

    Austria 1991 49 n.a. n.a.

    France 1992 19 n.a. n.a.

    Spain (AENOR) 1994 11 52 275

    Sweden (Falcon) (October 06) 1992 11 n.a. n.a.

    China (2005) 1993 56 n.a. n.a.

    India (October 2006) 1991 16 n.a n.a

    Brazil (ABNT Qualidade

    Ambiental) 1993 10 (under development) n.a. n.a.

    I 1 - Final consumers - ISO-type I labels

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    Example of diffusion: Evolution of sales of EU-Flower labelled products

    Source: http://ec.europa.eu/environment/ecolabel/marketing/statistics_en.htm

    I.1 - Final consumers - ISO-type I labels

    I 2 - Final consumers ISO -type I like labels

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    ISO -type I like labels and certifications, e.g.

    FSC Forest Stewardship Council 4945 Chain of Custody certificates in 73 countries

    as of Sep. 2006 854 Forest management/COC certificate in 74 countries

    www.fsc.org

    PEFC Pan European Forest Certification

    Blue Flag www.blueflag.org/blueflag

    Eco-Tex standard Thousands of awards www.oeko-tex.com

    I.2 - Final consumers ISO -type I like labels

    I 3 - Final consumers ISO-type II claims

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    Examples: UKCRA The United Kingdom

    Cartridge Recyclers Association (UK)

    NAPM The National Association of PaperMerchants (UK)

    Ecological Woodparticleboard (Italy)

    DIGODREAM- 100%recyclable textile floorcovering (Italy )

    I.3 - Final consumers ISO-type II claims

    I 3 - Final consumers ISO-type II claims

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    I.3 Final consumers ISO type II claims

    I 4 - Final consumers Advertising

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    Example: Fujitsu develops ISO-type III declarations and

    advertises it in newspapers

    Environmental Impact

    Extraction

    Design and manufacturingTransportation

    UseDisposal/Recycling

    Transportation

    Transportation

    Environmental impact data through product life cycle is captured quantitatively.

    Adver t i s ing of Fu j i t su Co . In newspape r s

    In June 2004, Fujitsu Co. took out a full- page advertising in major newspapers,including the Nikkei Shimbun, the most

    popular business newspaper in Japan. Inthe ad, an engineer points out that, thereare widely many environmentally conscious

    products in the market. But most of themare not proved with objective datacomprehensively. Even if a product is calledan energy-saving product during the usestage, it might consume numerous amountof energy during the production stage whileconsumers/purchasers are not informed.Such a product should not be claimed asenvironmental conscious product. In order

    I.4 Final consumers Advertising

    I 5 - Final consumers Information campaigns

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    Example: AISEWashright Campaignfosters better use ofdetergent products

    I.5 Final consumers Information campaigns

    II 1 - Business clients

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    National EPD Programmes: Sweden (107 declarations as Oct 2006, companies of

    several countries participating) Japan (210 decl as Oct 2006) South Korea (96 EDP as Oct 2006)

    Norway (96 declarations)

    Many sector-specific EPD programmes Particularly in the construction and building sector IT sector Automotive sector

    II.1 Business clientsISO-type III declarations

    II.1 - Business clients

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    Examples: Japanese Eco-leaf and German AUB EPD

    II.1 Business clientsISO-type III declarations

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    II.4 - Business clients

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    Example: BASFEco-efficiency analysiscombined with improved ISO -type II claim (3 rd party criticalreviewed)

    II.4 Business clientsEco-efficiency + ISO-type II

    II.5 - All clients

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    Qualitative Claim Visual Self-claim

    II.5 - All clients ddd

    Example: DOW BUILDING MATERIALS

    [Source: T.Smith 2005]

    II.5 All clients Advertising (ISO-type II)

    III.1 Public Administrations

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    Green purchasing guidelines in

    Denmark Currently for 50 product groups Guideline typically 4-pages doc Checklist for more insight

    GPP Guidelines

    III.2 Public Administrations

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    Combination of tools used by Japanese companies

    to provide life cycle information to public stakeholders for greenpublic procurement

    [Source: Resource: Japanese Ministry of Environment, 2003 Report of Green procurement]

    Local authorities Total Eco-Mark(ISO-I)

    Energy star FSC Eco-Leaf(ISO-III)

    56 55 52 7 4prefecture

    100% 98.2% 92.9% 12.5% 7.1%449 441 247 11 20municipality -ward & city

    100% 98.2% 55.0% 2.4% 4.5%

    917 846 161 5 39town & village in the prefecture

    100% 92.3% 17.6% 0.5% 4.3%

    1422 1342 460 23 63Total100% 94.4% 32.3% 1.6% 4.4%

    Combination of tools

    IV.1 Various stakeholders

    IV.1 Various stakeholders

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    [Source: J&J sustainability report 2003]

    Avoided life cycle costs atJohnson&Johnson

    Sustainability reportingSustainability reporting

    CO C OIV.1 Various stakeholders

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    ECOBIL NCIO I T L I

    Henkel : 1992 first corporate Environmental Report

    Since 2000 Sustainability Report

    Procter&Gamble : 1993 first corporate Environmental Report

    Since 1999 Sustainability Report

    Unilever : 2000 first corporate Environmental Report

    Since 2001 Environmental Report + Social Report

    Johnson&Johnson : Since 2000 Corporate Sustainability Report

    Sustainability reporting

    IV.1 Sustainability reports & Life Cycle

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    5050[Source: Menichetti, in Largo Consumo 1/2004]

    ASPECTS Reported instruments Henkel J&J P&G Unilever

    Quality ISO9000 N.a. N.a. N.a.

    Environment

    ISO14000 Since 2003 allbusiness unitsSince 2003 allbusiness units N.d.

    Since 2003 forall main sites

    EMAS - - - -

    LCA

    Social Responsibility

    SA8000 On-going N.a. N.a. N.a.

    OHSAS18011 7 plants N.a. N.a.

    Sustainability

    GRI Guidelines(in accordance) No

    DJSI (Eco-rating)

    Other Use of renewable energysources N.a.

    y p yInformation

    IV.1 - Reporting Diffusion per country

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    p g p y

    V.I - Suppliers Codes of Conduct

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    pp

    Example: LEGO

    Code of Conduct introduced in 1997 Ethical Social Environmental Health and Safety

    Internal requirements + extended to 200 suppliers

    Suppliers audited by independent auditors

    V.II - Suppliers Screening Systems

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    Example: INMINSUR, Peru

    ISO 14001 at the main mining site Antapite Extended application of EMS to suppliers (10) Extended application to cover healty & safety aspects Supplier assessment policy:

    Compliance with law Attention to H&S of employees and subcontractors Positive impacts on neighborhood Minimize pollution of water courses

    pp g y

    VI.1 Internal communication

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    LCM is a formal part of3M's new productintroduction processworldwide

    Cross-functional, newproduct introductionteams use a LCM matrixfor systematic and holisticassessment

    [Source: Lienne Pires 3M Brazil]

    LCM matrix at 3M Brazil

    LCM matrix analysis applied at 3M Brazil on an adhesive product

    As a consequence of LCM matrix analysis, opportunities wereidentified for process stage, use stage and disposal stage taking intoconsideration the changing from sticks shape to pellets shape

    VI.2 Internal Communication

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    STEP-model at Hartmann

    STEP-model (Systematic Tool for Environmental Progress) since

    1997

    Integrates environmental impacts with assessments of health, safetyand social relations over the product life cycle

    Department for Sustainable Development at Hartmann CorporateHeadquarter in Denmark is responsible for guiding the productionsites

    Simple tool for non-experts

    developed and implemented throughout the organization progressive integration in everyday decision-making

    [Source: A.A.Jensen 2006]

    VI.3 - Internal Communication

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    KEPIs at Nokia

    Key Environmental Performances Indicators (KEPIs)

    Based on LCA results of a KEPI project by Motorola, Nokia, Panasonicand Philips

    Method significantly reduces the reliance on the supply chain for dataon material flows

    Identifies components and materials that account for

    most of the environmental impacts over the life cycle

    Internal communication channels with employees: Intranet Two global events yearly Global in-house magazines, global environmental e-magazine, monthly

    newsletters and several other internal publications

    [Source: Nokia, Integrated Product Policy Pilot Project Stage 1 Final Report: Life Cycle Environmental Issues of Mobile Phones, Finland, April 2005]

    Summarising considerations

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    ISO-type I ecolabels Most suited for communication to consumers, allow for quick decisions,

    thousands of labelled products Pros: Credibility (criteria, stakeholder involvement, 3 rd party verification) Cons: Several limitations (top-down approach, limited number of

    product groups, format not always appropriate, bureaucracy)

    ISO-type I-like labels Well suited for communication to consumers, allow for quick decisions,

    thousands of labelled products Pros: Credibility (criteria, 3rd party verification) Cons: restricted to specific sectors (e.g. wood, textiles)

    ISO-type II-environmental claims Well suited for communication to consumers, thousands of claims Pros: Flexibility (bottom-up approach) Cons: limited credibility, usually not whole life cycle, just one

    environmental parameter

    Summarising considerations (cont.)

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    ISO-type III environmental declarations

    Most suited for B2B communication, complex for consumers, allow forcomparison, hundreds of declarations worldwide Pros: Credibility (PCR with stakeholder involvement, 3 rd party

    verification), large amount of detailed information, full life cycle Contra: Complex information without benchmark, high resources need

    (full LCA), complicated for SMEs (simplified systems needed, currentlybeing tested)

    Codes of conduct, supplier screening systems Well suited for communication with and gather info from suppliers Pros: Simplicity and flexibility, well suited to involve SMEs Contra: Limited to cradle-to-gate, not necessarily 3 rd party verified

    Sector-specific approaches &

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    Case-studies

    Key aspects of case-studies

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    Presence of a Communication Strategy

    Sector-specific drivers Combination of tools

    Firm-level reporting Product-oriented communication (combination of labels)

    ISO-type I eco-labels ISO -type I like labels and certification ISO-type II environmental claims ISO-type III environmental declarations Social labels

    Advertising & marketing Focus on Sustainability

    Two sectors:I. EnergyII. Electronics

    I. Energy

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    Pressure from regulation / EU Directive on electricity markets

    Fuel Mix disclosure Public information on environmental impacts, at least in terms of CO 2

    emissions and radioactive waste

    Information request from business clients

    Emerging markets for Green Electricity Green pricing / tariffs Green electricity labels

    Green Public Procurement programs of public administrations

    Social acceptance issues / Dialogue with stakeholders e.g. nuclear, but also renewables

    Sector-specific drivers

    I. Energy

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    Vattenfall (SE)

    Enel (IT)

    British Energy (UK)

    Electricit de France (FR)

    Examples of Life Cycle Communication

    Sector I. Energy

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    Longstanding experience in LCA

    Extensive reporting Environmental reports Life cycle assessment of Vattenfalls electricity supply in Sweden

    2005

    Several EPDs

    EPD Lule River 1999 first absolute EPD in the Swedish system

    ISO- type I ecolabel for certification of green energy

    Case-study 1: Vattenfall (Sweden)

    I.1 Vattenfall

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    Vattenfall can apply forlabelling for electricity ca 1TWh, Bra Miljval, GoodEnvironmental Choice

    95% of electricity production iscertified with an EnvironmentalProduct Declaration

    [Source: Bodlund 2005]

    Combination of EPIS for communication

    I.1 Vattenfall

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    Information system open for allproducts and services

    Based on ISO/DIS 14025

    Third-party verified and certified

    An EPD for electricity and districtheat contains Life Cycle Assessment (LCA) Study of impacts on biodiversity Environmental Risk Assessment

    (ERA) Radiology (nuclear power)

    [Source: Bodlund 2005]

    Added value of certified EPD - More than LCA

    I.1 Vattenfall

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    LCA towards common practice

    Credibility needed, ensured by third-party certification andProduct Category Rules (PCR) with stakeholder participation

    Focus on not just one environmental issue, but several ones

    EPD is one way, which Vattenfall Nordic countries havechosen for keeping track

    Key values: Openness and accountability

    [Source: Bodlund 2005]

    Strategy and key conclusions at Vattenfall

    Sector I. Energy

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    LCA activities

    Since 1999 at R&D level Just recently at corporate level (Environmental Direction)

    First two EPDs in 2004-05 within the LIFE-INTEND project

    EPDs on two renewable energy technologies Wind (first EPD of electricity systems in Italy) Geothermal (first EPD worldwide)

    EPDs used for communication with local authorities Social acceptance issues (wind) Provide holistic approach and new perspective on comparison of

    technologies

    Communication channels: website + sustainability report

    Green pricing: adoption of guarantee label 100% energia verde

    Case-study 2: Enel (Italy)

    I.2 Enell

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    Certified Environmental Product Declaration of Electricity

    from Enels wind pl ant

    in Sclafani Bagni (Palermo, Italy)

    EPDs at Enel

    I.2 Enel - Green electricity labelling forb i li d

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    business clients and consumers

    Green electricity label is also attached to theproducts of the business client buying renewableenergy from Enel (e.g. producer of mineral water)

    Important means of LC communication

    I.2 EnelLCM i S i bili i

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    LCM results (e.g. green electricity labelling) is communicated through

    Corporate Sustainability Report

    LCM in Sustainability reporting

    II. Electronic SectorS ifi d i

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    Environment embedded in management structure LCA/LCT and eco-design with clear targets Green Public Procurement programs of public administrations

    Japan, China, other countries and public administrations

    Pressure from regulation WEEE, RoHS, Directives on batteries and accumulators containingmercury, etc.

    Information request from business clients

    Diversification and competitiveness on the market

    Increasing attention from financial stakeholders

    Sector-specific drivers

    II. Electronic SectorE l f LC i i

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    Samsung Seiko Epson Canon Konica Minolta Matsushita Electric / Panasonic Ricoh

    Examples of LC communication

    Sector II. Electronic SectorC t d 1 S (S K )

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    Green management report since 1999

    Environment/Safety Management Committee, headed by CEO

    LCA first adopted in 1995, currently applied for design &development of products, in combination with DfX(design for recycle/service/disassembly/assembly)

    Internal tool EPS Eco-Product System 5 modules: LCA, ecodesign, environmental accounting, Green

    procurement, Customer Service

    Wide range of EPIS applied

    [Source: Menichetti 2005]

    Case-study 1: Samsung (S. Korea)

    II.1 SamsungC bi ti f li d EPIS

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    ISO TYPE I

    Kela (since 1995)

    More than 60 products, of which:

    7 models of printer 1 model of fax

    5 models of TV sets

    20 models of computers+monitors

    8 models of air purifiers

    19 models of other products (not specified)

    TCO 15 models of displays

    Blue Angel 1 model of printer

    ISO TYPE II

    Eco RoHS compliant label (for memories, PwBs, DVDs, digital cameras, etc.

    ISO TYPE III

    EMC (Korean EPD system)

    1 model of digital camera

    1 model of optical disk drive

    1 model of TFT-LCD plate glass

    1 model of CRT glass

    1 model of TFT-LCD monitor

    1 model of PDP TV

    1 model of air conditioner

    1 model of VCR

    1 model of household refrigerator

    1 model of laser printer

    [Source: Menichetti 2005]

    Combination of applied EPIS

    Different EPIS applied

    for different productsand different markets

    II.1 SamsungC bi ti f li d EPIS ( t )

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    Energy Labels

    EU Energy Star

    10 models of PC monitor

    US Energy Star

    15 models of PC monitor

    2 models of printer/fax 36 models of printer/fax

    16 models of printer 75 models of printer

    8 models of MFD 14 models of MFD

    3 models of fax machine 18 models of fax machine

    Hong Kong EnergyEfficiency labellingscheme

    3 models of printer Energy Saving Label South Korea

    Several products, including: TVs,notebooks, mobile phones, airconditioners

    [Source: Menichetti 2005]

    Combination of applied EPIS (cont.)

    Energy labels used inrelevant markets inaddition to env. labelsand declarations

    Sector II. Electronic SectorC t d 2 S ik E (J )

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    Self- definition: Visionary Company CEO: aim of the corporation is to be five or ten years ahead of other

    companies in implementing comprehensive eco-programs, thusexceeding the expectations of its stakeholders

    Environmental report since 1999, Sustainability and CSR reportsince 2003 Environmental target and progress

    LCA both at product and production plant level Strong emissions reductions achieved in new plant

    Groupwide LCT targets at each level: Design, procurement, manufacturing, sales, recovery/recycling

    Obtaining environmental label qualifications is an objective ofboth design and sales departments [Source: Menichetti 2005]

    Case-study 2: Seiko-Epson (Japan)

    II.2 Seiko-EpsonCombination of applied EPIS

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    ISO TYPE I

    Eco Mark Inkjet, laser, and SIDM printers +paper Blue Angel 2 models of printer

    Taiwan Green Mark 41 products, including laser printers, inkjet printers and cartridges

    ISO TYPE II

    50% of all products and 43% of total sales in all business qualify for the Epson Ecology label

    ISO TYPE III

    Ecoleaf

    1 model of notebook PC 15 models of printer

    1 model of desktop PC 20 models of data projector

    1 model of PC display 4 models of large format printer

    Energy Labels

    International Energy Star

    4 models of computer

    US Energy Star

    1 model of MFD

    6 models of printer 25 models of printer

    3 models of scanner 7 models of scanner

    Energy Saving LabelSouth Korea

    N.A. Energy Conservation ProductCertification China

    several models of printers (inkjet,laser, SIDM)

    [Source: Menichetti 2005]

    Combination of applied EPIS

    Different EPIS applied

    for different productsand different markets

    II.2 Seiko-EpsonCommunication Strategy

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    Existence of an overall communication strategy

    Each type of EPIS has its own target-audience and objectives

    ISO- type II label Epson Ecology demonstrates improvedenvironmental performance over conventional models (both ITand semiconductors) Customers can obtain specifications with Epson Ecology Profile

    Specific ISO-type II labels for sustainable procurement IT Eco Declaration format in Scandinavian countries

    PC green label in Japan (indicates promotion recycling society andmeeting industry-wide voluntary targets)

    [Source: Menichetti 2005]

    Communication Strategy

    II.2 Seiko-EpsonCommunication Strategy (cont )

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    High priority on ISO-type I ecolabels Japan, Taiwan and Germany

    In Taiwan increased sales Epson aims at certifying at least 80% ofentire product range

    Respond to growing number of green public procurement regulations

    (e.g. certified for Chinas energy conservation product certification)

    42 models hold Ecoleaf ISO-type III declaration

    Strong internal LCM communication

    Use of web-based communication tools[Source: Menichetti 2005]

    Communication Strategy (cont.)

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    Recent and near-future trends

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    Reporting: More Life Cycle Approaches

    Product-related communication: towards providing benchmarksand communicating progress

    Sustainability assessment (also product-related) integratingenvironmental, social and economic aspects

    One tool is not enough!Combination of EPIS along the product life-cycle

    Sustainability reporting

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    Oct 2006: Revision of GRI Guidelines (G3) Increasing attention to life cycle management

    Communicating progress (product-related)New ISO type II claims

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    Example: ISO-type II labels in Japan Panasonic: Factor X provides concise information about the

    improvement of new products with respect to old ones

    New ISO-type II claims

    GHG factor = (GHG efficiency of the new product) / (GHG efficiency of the old product),where

    GHG efficiency = (Product life x Product functions) / (GHG emissions over the entire life cycle)

    Future EPDs with benchmarking

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    Recent study (2006) on Consumer demands on Type III environmentaldeclarations

    Recommendation: Benchmark with graphical presentation Economic benchmark, reflecting quality/price ration Benchmark both within product category and average goods

    [Source: K.Christiansen et al 2006]

    Towards product-related sustainabilitycommunication

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    Socio -Eco- Efficiency Analysis (SEEbalance) at BASF

    [Source: A.A.Jensen 2006http://corporate.basf.com/de/sustainability/oekoeffizienz/vortraege.htm?id=V00-S64E69T3rbcp466]

    communication

    Used for internalpurposes (eco-design,product development)but also:

    Marketing, support toexternal customers andsocial acceptance ofproduct

    For communicationissues e.g. in corporate

    sustainability report

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    Life Cycle ManagementTraining - Outline Introduction to LCM First session

    How LCM is used in Practice Second session

    Communicating LCM Results Third session

    LCM and StakeholderExpectations Fourth Session