life cycle assessment - greenco · more results later in lca presentation . lca reveals the...
TRANSCRIPT
Life Cycle Assessment - Business Value and Applications from
Company Innovation to Policy Support -
GreenCo 2017, Pune, India
Dr. Martin Baitz Dr. Rajesh Singh Ritesh Agrawal
thinkstep AG thinkstep Sustainability Solutions Pvt Ltd
Germany India
22.06.2017 2
Very briefly about thinkstep
3
thinkstep enables
to succeed sustainably.
22.06.2017 4
Sustainability approaches have many names
Environ-
mental
labelling
Foot
printingSustain-
able
engine-
ering
Design-
for-
environ-
ment
Green
procure-
ment
Cradle-
to-“X”
Circular
eco-
nomy
CSR /
HS+E
virtually all approaches today are based on “Life-Cycle-Thinking”
many important puzzle pieces needed for sustainability
structured LC approach will provide full picture
pressure grows
CO2
1960 2014
320
400
ppmv
CO2
Carbon Disclosure Leadership Index
Fortune Global 500
1305 07 09 11
Total
return
US%
0
80
-40
40LCA PLATFORM SAVES HP OVER
$1 MILLION AND HUNDREDS OF
HOURS OF TIME.
Why implement LC sustainability in businesses ?
Sustainability business value increases
4 fundamentals of applied sustainability….
22.06.2017 6
Applied
Sustainability
Methods
Standards
Compliance schemes
Knowhow Team
Network Support
Business Cases
Software
Data(bases)
Foreground Data
40%
Life-Cycle-Approaches over the years
• Life Cycle Thinking (LCT) borne in the 1980s.
• Scientific bodies like SETAC driver pre-standard (code of practise)
• Life Cycle Assessment (LCA) international standard under ISO in 1997 (ISO 14040:
1997)
• Increased consistent use in OEMs, Associations and industry due to ISO
• Differing interpretation of the systems due to different goal and scope possible
• ISO ensures understandable and transparent interpretations
• Labelling and EPDs got involved in standardized LCA early 2000s
• Users (B2B) and Consumers(B2C) got involved in LC Approaches
• Politics (regulations, legislation, frame work programs) hopped on LC Approaches
(EU commission ILCD, PEF) around 2008.
• Pilots are running, implementation until 2020.
• LC information will be basis of Circular Economy Initiative of the EU Commission
22.06.2017 7
Industry
Associations
22.06.2017 8
What companies do today
• “Quantify“ transparently and robustly assess environmental aspects
• “Lower risks“ of compliance issues, foreseeable customer demand, upcoming
regulations or single supply issues
• “Improve and innovate” (performance up, consumption down) at site or in
supply chain or at user (quantify to benefit)
• “Integrate“ sustainability with least effort possible into company processes
• “Connect” to meet the information requirements of multiple issues with a single
common approach
What policy does: e.g. EU PEF, UNEP SDG,...
• PEF Modelling principles
• Quality LC Data is core requirement
• Quality LC Data is basis of further Policy actions
22.06.2017 9
• Thinkstep and its
industry partners are
main data provider into
EC PEF
14 data tender, 8 by thinkstep
thinkstep andindustry
Circular Economy and bio cycles
The key risks and opportunities relate to recovery and material choices 10
Circular Economy and technical cycles
The key risks and opportunities relate to recovery and material choices 11
22.06.2017 12
Specific topic: LC aspects of bio materials
bio
residue
compost
-able
bio-
grad-
able
bio
resource
organic
farming
scattered single aspects, that appear in different life-cycle phases
different relevance according to use case and market region
Bio-based is not per se environmentally preferable
Strength and weaknesses of bio-based solutions need same rigorous LCAs than
non-bio-based solutions
application according to ISO 14044
22.06.2017 13
Tendencies in impact of bio vs. non-bio products
Global Warming tendency to be CO2-neutral
Energy demand fossil correlation with GWP (often more total energy needed)
Photosmog tendency to save fossil conversions save HC
emissions
Acidifiction tendency disadvantage, fertiliser use
Eutrophication tendency disadvantage, fertiliser use
Eco toxicity less convertional sustances used and dispersed in
processing vs. substance use in biomass production
(agro chemicals), very product specific, very biomass
specific
Human toxicity tendency advantage, less fossil energy supply and
less combustion processes (e.g. coal,…)
Water agricultural products tend to use much water
More results later in LCA presentation
LCA reveals the environmental potential
of a Circular Economy
Scenario 1 Scenario 2
modular
componentfixed component
selling the product selling a service
open-loop
recycling
closed-loop
recycling
EU regulation
WEEE
US (CA)
regulation EWRA
• Philosophy
• Aims to integrate business
value in sustainaiblity
• Proposes several measures
to close loops
• Principle driven• e.g., Optimize resource yields
• Assessment tool
• Quantifies environmental sustainability through
a scientific and standardized methodology
• Simulates the complex reality
• Data driven• e.g., GWP of a scenario + how to optimize resource
yield from an environmental perspective
LCA evaluates alternative CE scenarios and identifies the optimal improvements (hot-spots)
required for the environmental sound CE solution
Circular design
New business models
Reverse cycles
Enablers and favourable
system conditions
Materials Manufacturing Transport Use End of Life
GW
P [kg C
O2
-eq.]
Global Warming Potential (GWP 100 years) [kg CO2-Equiv.]
scenario 1 scenario 2
Building blocks for a
Circular EconomyExample of a alternative scenarios
Circular Economy (CE) Life Cycle Assessment (LCA)
15
Example: LCA supports the evaluation of Circular Economy
Circular design
New business models
Reverse cycles
Enables/favourable
conditions
LCA OUTCOME – environmental impacts of different scenarios for various
European glass recycling systems based on the following aspects:
22.06.2017 16
People / organizations
Data foundation
LCA Tools Standards Regulations
use and apply
data
Connect
Multi use
Company data
Supplier data
Background data
EPD
programs
GRI and CDP
programs
Circular Economy
Own supply
chain programsCompliance
schemes
Eco
Labeling
programs
Connect to networks, go for multi use
Examples of main applications
17
Support of own in-house experts
Labels and EPDs
Product optimisation and
supply chain management
Examples of main applications
18
in-house
and
commercial tools
Verification
Governmental Databases
ELCD and ILCD network
MY, BR, IN,..
Association databases
+ plus 50 other associations
19
Private sector as core
driver of sustainability
by business value
Our software, data and services enable organisations worldwide to
succeed sustainably by driving their
22.06.2017 20
What’s the value for your business?
Product
innovation
Operational
excellence
Brand
value
Regulatory
compliance
Take home Messages
6/22/2017 21
1. Innovation impossible ignoring sustainability aspects; innovate sustainably
2. Sustainability and circular economy impossible without LCA
3. Prepared for policies/regulations impacting businesses (e.g. green procurement)
4. Base on ISO (eases alignment with suppliers, OEMs, politics considerably)
5. Start at existing sustainability approaches in your company and build on these
6. Professional LCA software and managed databases save time and money
7. Consider make or buy: In-house team or trusted support from extern; customized tools
8. Harvest synergies: Innovation, Regulation, Compliance, Marketing, Communication,…
9. Profit from sustainability learning curve and harvest “unexpected / low hanging fruits”
10. Use ISO / guides, formats, tools, databases to avoid oversimplification + overcomplicate
11. Identify your business cases (revenue up, cost down, brand value, risk reduction)
22.06.2017 22
Hauptstraße 111-113
70771 Leinfelden-Echterdingen
Germany
Phone: +49 711 341817-0
Fax: +49 711 341817-25
www.pe-international.com
23
Hauptstraße 111-113
70771 Leinfelden-Echterdingen
Germany
Phone: +49 711 341817-0
Fax: +49 711 341817-25
www.thinkstep.com
Dr. Martin Baitz
Director Content
Phone: +49 711 341817-24
Mobile: +49 174-317 23 54