comparison of “co efficiency” between company and...

InLCA/LCM 2003�Seattle, Washington Sep.25,2003

Comparison of Comparison of ““COCO22EfficiencyEfficiency”” between between

Company and IndustryCompany and Industry

Kiyotaka TAHARAKiyotaka TAHARAMasayuki SAGISAKAMasayuki SAGISAKAKazuo YAMAGUCHIKazuo YAMAGUCHI

Atsushi INABAAtsushi INABA

AIST


IntroductionIntroduction

An important tool to achieve sustainable development

Eco-EfficiencyEconomicEcological (Environment)

Eco-Efficiency = Product or Service valueEnvironmental influence

Quantity of goods or servicesproduced or provided to customersNet sales

Energy consumptionMaterials consumptionWater consumptionGreenhouse gas emissions (CO2…)Ozone depletion substance emissions……

WBSCD, 1992


Source :�TOYOTA Environmental Report 2002


Source:�Sony Environmental Report 2002


Eco-Efficiency = Product or Service valueEnvironmental influence

CO2 Efficiency = Economic indexCO2 emission

This study

I-O table dataLCI dataEnvironmental report of company

Price Gross value-addedGross incomeCost

Investor relation information


Industry A

Industry D

Industry C

Industry B

Product

Direct CO2 emissionIndirect CO2 emission

ProducerProducer’’s Prices PriceCostCost

Gross valueGross value--added added

Fig.1-1 Concept of CO2 efficiency

Total CO2 efficiency = Producer’s PriceTotal CO2 emissions

Direct CO2 efficiency = Gross value-addedDirect CO2 emissions

Indirect CO2 efficiency = CostIndirect CO2 emissions


CO2 emission

Producer’s Price

Cost

Price

Gross value-added


Average CO2 efficiency of upstream Industry

CO2 efficiency of Industry A

Total

Direct

Indirect

Producer’s PriceTotal CO2 emissions

Gross value-addedDirect CO2 emissions

CostIndirect CO2 emissions

Fig.1-2 Concept of CO2 efficiency


0

500

1,000

1,500

2,000

2,500

3,000

3,500

CO

2 Ef

ficie

ncy

[yen

/kg-

CO

2] Total CO2 Efficiency(Producer Price/Direct and Indirect CO2 emission)

Fig.2 The Total CO2 Efficiency (Producer Price / Direct and Indirect CO2 emission) for each Industrial Sector

Act

iviti

es n

ot e

lsew

here

cla

ssifi

edO

ffice

sup

plie

sP

erso

nal s

ervi

ceB

usin

ess

serv

ice

Oth

er p

ublic

ser

vice

Med

ical

ser

vice

, hea

lth a

nd s

ocia

l sec

urity

Edu

catio

n an

d re

sear

chP

ublic

adm

inis

tratio

nC

omm

unic

atio

n an

d br

oadc

astin

gTr

ansp

ort

Rea

l est

ate

Fina

nce

and

insu

ranc

eTr

ade

Wat

er s

uppl

y an

d w

aste

dis

posa

l ser

vice

sEl

ectri

c po

wer

, gas

sup

ply

and

stea

m a

nd h

ot w

ater

sup

ply

Con

stru

ctio

nM

isce

llane

ous

man

ufac

turin

g pr

oduc

tsP

reci

sion

mac

hine

ryTr

ansp

ort e

quip

men

tE

lect

rical

dev

ices

Gen

eral

mac

hine

ryM

etal

pro

duct

sN

on-fe

rrous

met

alIro

n an

d st

eel

Cer

amic

, sto

ne a

nd c

lay

prod

ucts

Pet

role

um re

finer

y an

d co

alC

hem

ical

pro

duct

sP

ulp,

pap

er a

nd w

oode

n pr

oduc

tsTe

xtile

sFo

odM

inin

gA

gric

ultu

re, f

ores

try a

nd fi

sher

ies

servicemanufacturing

CO2 emission

Producer’s Price

Cost

Price

Gross value-added





0

5,000

10,000

15,000

20,000

25,000

CO

2 Ef

ficie

ncy

[yen

/kg-

CO

2]

Direct CO2 Efficiency(Gross value-added/Direct CO2 emission)

Act

iviti

es n

ot e

lsew

here

cla

ssifi

edO

ffice

sup

plie

sP

erso

nal s

ervi

ceB

usin

ess

serv

ice

Oth

er p

ublic

ser

vice

Med

ical

ser

vice

, hea

lth a

nd s

ocia

l sec

urity

Edu

catio

n an

d re

sear

chP

ublic

adm

inis

tratio

nC

omm

unic

atio

n an

d br

oadc

astin

gTr

ansp

ort

Rea

l est

ate

Fina

nce

and

insu

ranc

eTr

ade

Wat

er s

uppl

y an

d w

aste

dis

posa

l ser

vice

sEl

ectri

c po

wer

, gas

sup

ply

and

stea

m a

nd h

ot w

ater

sup

ply

Con

stru

ctio

nM

isce

llane

ous

man

ufac

turin

g pr

oduc

tsP

reci

sion

mac

hine

ryTr

ansp

ort e

quip

men

tE

lect

rical

dev

ices

Gen

eral

mac

hine

ryM

etal

pro

duct

sN

on-fe

rrous

met

alIro

n an

d st

eel

Cer

amic

, sto

ne a

nd c

lay

prod

ucts

Pet

role

um re

finer

y an

d co

alC

hem

ical

pro

duct

sP

ulp,

pap

er a

nd w

oode

n pr

oduc

tsTe

xtile

sFo

odM

inin

gA

gric

ultu

re, f

ores

try a

nd fi

sher

ies

Fig.3 The direct CO2 Efficiency (Gross value-added / Direct CO2 emission) for each Industrial Sector

servicemanufacturing

CO2 emission

Producer’s Price

Cost

Price

Gross value-added





0

100

200

300

400

500

600

700

CO

2 Ef

ficie

ncy

[yen

/kg-

CO

2]

Indirect CO2 Efficiency(Cost/Indirect CO2 emission)

Fig.4 The indirect CO2 Efficiency (Cost / Indirect CO2 emission)for each Industrial Sector

Act

iviti

es n

ot e

lsew

here

cla

ssifi

edO

ffice

sup

plie

sP

erso

nal s

ervi

ceB

usin

ess

serv

ice

Oth

er p

ublic

ser

vice

Med

ical

ser

vice

, hea

lth a

nd s

ocia

l sec

urity

Edu

catio

n an

d re

sear

chP

ublic

adm

inis

tratio

nC

omm

unic

atio

n an

d br

oadc

astin

gTr

ansp

ort

Rea

l est

ate

Fina

nce

and

insu

ranc

eTr

ade

Wat

er s

uppl

y an

d w

aste

dis

posa

l ser

vice

sEl

ectri

c po

wer

, gas

sup

ply

and

stea

m a

nd h

ot w

ater

sup

ply

Con

stru

ctio

nM

isce

llane

ous

man

ufac

turin

g pr

oduc

tsP

reci

sion

mac

hine

ryTr

ansp

ort e

quip

men

tE

lect

rical

dev

ices

Gen

eral

mac

hine

ryM

etal

pro

duct

sN

on-fe

rrous

met

alIro

n an

d st

eel

Cer

amic

, sto

ne a

nd c

lay

prod

ucts

Pet

role

um re

finer

y an

d co

alC

hem

ical

pro

duct

sP

ulp,

pap

er a

nd w

oode

n pr

oduc

tsTe

xtile

sFo

odM

inin

gA

gric

ultu

re, f

ores

try a

nd fi

sher

ies

CO2 emission

Producer’s Price

Cost

Price

Gross value-added





Food

Direct CO2 Efficiency [yen/kg-CO2]

Indi

rect

CO

2 E

ffici

ency

[yen

/kg-

CO

2]

1

10

100

1,000

10,000

100,000

1 10 100 1,000 10,000 100,000

Finance and insurance

Real estate

Communication and broadcasting

Trade

Electrical devicesGeneral machinery

Mining

Iron and steel

Fig.5 CO2 efficiency pattern for each Industrial Sector

Agriculture, forestry and fisheries

Non-ferrous metals

Pulp,paper and wooden products

Water supply and waste disposal services

TransportChemical products

Other public service

PetroleumRefinery and coal

Electric power, gas supply and steam and hot water supply

Ceramic, stone and clay products

ConstructionMetal products

Direct CO2emission

Producer ’sPrice

Cost

Price

Gross value - added

Pattern A

Indirect CO2emission

Price

Cost

Price

Gross value - added

Total CO2 efficiency

Direct CO2 efficiency

Indirect CO2 efficiency

Pattern B

Pattern C

Direct IndirectCO2emission

Producer ’sPrice

Cost

Price

Gross value - added

CO2emission

’Price

Price

Gross value - added




Direct IndirectCO2emission

Producer ’sPrice

Cost

Price

Gross value - added



Indirect CO2 efficiencyCO2emission

’Price

Price

Gross value - added





0500

1,0001,5002,0002,5003,0003,5004,000

Sla

ught

erin

g an

d m

eat p

roce

ssin

gP

roce

ssed

mea

t pro

duct

sB

ottle

d or

can

ned

mea

t pro

duct

sA

nim

al o

il an

d fa

tsD

airy

farm

pro

duct

sFr

ozen

fish

and

she

llfis

hS

alte

d, d

ried

or s

mok

ed s

eafo

odB

ottle

d or

can

ned

seaf

ood

Fish

pas

teFi

sh o

il an

d m

eal

Oth

er p

roce

ssed

sea

food

sG

rain

milli

ngFl

our a

nd o

ther

gra

in m

illed

prod

ucts

Noo

dles

Bre

adC

onfe

ctio

nery

Can

ned

or b

ottle

d ve

geta

bles

and

frui

tsP

rese

rved

agr

icul

tura

l foo

dstu

ffsS

ugar

Sta

rch

Dex

trose

, syr

up a

nd is

omer

izes

sug

arV

eget

able

oils

and

mea

lC

ondi

men

ts a

nd s

easo

ning

sP

repa

red

froze

n fo

ods

Ret

ort f

oods

Dis

hes,

sus

hi, l

unch

box

esS

choo

l lun

ch (p

ublic

)S

choo

l lun

ch (p

rivat

e)O

ther

food

sR

efin

ed s

ake

Bee

rE

thyl

alc

ohol

for l

iquo

r man

ufac

turin

gW

hisk

ey a

nd b

rand

yO

ther

liqu

ors

Tea

and

roas

ted

coffe

eS

oft d

rinks

Man

ufac

ture

d ic

eFe

eds

Org

anic

ferti

lizer

s, n

.e.c

Toba

cco

Food

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.6 The direct CO2 Efficiency of Food Industrial Sector

9,100 32,500


0

50

100

150

200

250

300

350

400

Petroleumrefinery products

(inc. greases)

Coal products Paving materials Petroleumrefinery and coal

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.7 The direct CO2 Efficiency of Petroleum refinery and coal Industrial Sector


Fig. 8 Concept of Direct CO2 efficiency for companies

Factory Office, Institute, etc.

CO2 CO2X

Company X

Factory Office, Institute, etc.

CO2 CO2

Beer Company C

Gross IncomeMost of Direct CO2 emissions

Direct CO2 efficiency =

4%

oil\

Cost Net sale

Net sale – Cost = Gross Income

\Company X

.


0100200300400500600

Beer Industry sector (I-O based data)

0%20%40%60%80%

100%

Beer

DrinkReal estate

LiquorMedicines

Percentage of production in the total net sale

CompanyA

CompanyC

CompanyB

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.9 Direct CO2 Efficiency in the beer industry sector: 3 Companies’ data from environmental reports against I-O based data

CompanyA

CompanyC

CompanyB

Beer


0

10

20

30

40

CompanyA

CompanyC

CompanyB

Petroleum refinery products Industry(I-O based data)

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

Fig.10 Direct CO2 Efficiency in the petroleum industry sector:3 Companies’ data from environment reports against I-O based data


CompanyA

CompanyC

CompanyB

Petrochemistryconstruction work

Other

0%

20%

40%

60%

80%

100%

Petroleum

Petroleum


0

100

200

300

400 Tires and inner tubes Industry(I-O based data)

CompanyA

CompanyC

CompanyB

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

0

100

200

300

400 Tires and inner tubes Industry(I-O based data)

CompanyA

CompanyC

CompanyB

Dire

ct C

O2

effic

ienc

y [y

en/k

g-C

O2]

0%

20%

40%

60%

80%

100%

CompanyA

CompanyC

CompanyB

Tires

Others


0%

20%

40%

60%

80%

100%

CompanyA

CompanyC

CompanyB

Tires

Others


Fig.11 Direct CO2 Efficiency in the tire industry sector:3 Companies’ data from environment reports against I-O based data

Tire


0%

20%

40%

60%

80%

100%OtherReal estateNew materialsBuilding materialLime, AggregateCement

CompanyA

CompanyB

Percentage of production in the total net saleD

irect

CO

2 ef

ficie

ncy

[yen

/kg-

CO

2]

0

5

10

15

CompanyA

CompanyB

Cement Industry(I-O based data)

Fig.12 Direct CO2 Efficiency in the cement industry sector:2 Companies’ data from environment reports against I-O based data

Cement


CO2 emission

A IndustryB Industry

F Industry

E Industry

C Industry

D Industry

G Industry

Gross income/Gross value-added

Company A�A+B+C+D+E+F+G Industry

More efficient

Less efficient

Standard of Company A

Fig.13 Concept of company evaluation


ConclusionConclusion• CO2 efficiency index was developed from I-O table

data for the evaluation of industry sectors.

• The CO2 efficiency varies by industry sector.

• The conparison of companys’ CO2 efficiency against I-O based industry sector CO2 efficiency is possible.

• A clear difinition of system boundary will be necessary for better resolution of company’s CO2 efficiency.

• Further examination and comparison of company’s “eco-efficiency” and its detailed investigation in relation to economic value index should be explored.

comparison of “co efficiency” between company and...

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