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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