Webinar: Definition of representative product In context of EF pilot phase of European Commission DG-ENV 27 June 2014

Pilot phase is a work in progress

• One of the pilot’s objectives is to set up and validate the process of the development of Product Environmental Footprint Category Rules – PEFCRs, including the development of performance benchmarks

• Lessons learned will be documented and taken into account for further improvement of the PEF guide

• This webinar aims to support you in applying the PEF guide and Guidance document v4.0 but is also a platform for discussing bottlenecks and lessons learned

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Development process of PEFCR

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Final PEFCR

Confirmation of benchmark(s) and determination of performance classes

PEFCR supporting studies

Draft PEFCR

PEF screening

Define product “model” based on representative product

Define PEF product category

Focus of this webinar is the definition of the representative product

Outline of webinar

• What is a representative product? • Why define a representative product? • What you need before you define a representative product? • Definition of representative product • Virtual versus real product • Market share of different product types • Schemes for defining the representative product

– Presentation of 3 options – Practical food/beverage examples

• Guidance for defining representative product(s)

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What is a representative product?

• The representative product represents all products covered by the PEFCR.

• The representative product may or may not be a real product that one can buy on the EU market.

• When the market is made up of different technologies, the “representative product” may be a virtual (non-existing) product with the average EU sales-weighted characteristics of all technologies around.

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Why define a Representative Product?

• The representative product is the basis of the PEF screening which provides insight into the relevant life cycle stages, processes and impact categories of the product category (including the identification of processes for which primary data are requested).

• The representative product will contribute to the definition of the environmental performance benchmark for the product category (meaning that products within the same product category that serve the same function shall be comparable to each other).

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What you need to know before you define the Representative Product ?

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Unit of analysis

Representative product

Benchmark

Product category

Unit of analysis is starting point of PEFCR development

Based on unit of analysis, the product category is being defined, including CPA code(s)

Representative product is defined based on EU market shares of various technologies in product category

Benchmark is developed starting from the environmental profile of the representative product (C- performance class) and then refined based on the results of the different consultations and the supporting studies

Definition of Representative Product

• Two options for defining the representative product:

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Virtual product

• Market is made up of different technologies Sufficient market and technical information available.

• Virtual (non-existing) product based on average EU sales-weighted characteristics of all existing technologies

Real product

• Market is made up of different technologies, but incomplete market and/or technical information

• Real product sold at EU market may be chosen as representative product

Alternative weighting sets

• In addition to the EU sales-weighted average, other weighting sets can be explored in the pilot phase for defining a “virtual” product, for example: – Weighted average based on mass (ton of material) – Weighted average based on product units (pieces)

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Differences in weighting sets and consequences for the final screening results and benchmark can be explored during the pilot phase.

Questions that need to be answered: • What technologies exist within the product category? • What is the market share (and trend) of each technology (sold in the EU

market)? – If products are mainly produced outside the EU, than the production technologies used in the

countries where the products are produced should be used.

• In what way do the technologies differ? – Materials used, or if more appropriate, ingredients – Different manufacturing processes? – Different applications? – Other relevant differences that should be taken into account in defining the

representative product?

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If there is not sufficient information available to answer these questions, a real product sold on the European market could be a better alternative.

Main challenges in defining the representative product

1. How to determine market shares of technologies?

2. How to deal with multiple applications?

3. How to determine the representative product in the case of intermediate products?

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Schemes for defining the representative product

Inherently, all products fulfill the same main function. 1. 2. 3.

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Single application and products/technologies

covered are very similar

1 representative product and screening 1 benchmark

Products used in different applications

and they cannot replace each other

Multiple representative products and

screenings

Multiple benchmarks

Considerably different technologies/materials

used for the same application

Multiple representative products and

screenings

Functional benchmark (and possibly

individual benchmarks)

Technology

Screening

Benchmark

Benchmark becomes part of the PEFCR

Option 1 Similar technologies and one application Used by 1st wave pilots:

- Liquid laundry detergents

Screening

Benchmark for bottled water

Option 1 – example Similar technologies and one application – Bottled water

1 liter of bottled water Unit of analysis

Representative product

Product category Mineral waters and aerated waters, not sweetened nor flavoured – CPA code 11.07.11

RP bottled water

Just for illustration: The pilot on packed water can deviate from this approach if appropriate.

Application A Application B Application C

Screening A Screening B Screening C

Benchmark A Benchmark B Benchmark C

All benchmarks become part of the PEFCR covering applications A, B, and C

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Option 2 Multiple applications Used by 1st wave pilots:

- Intermediate paper products - Batteries

RP for dairy cow feed

Screening for dairy cow feed

Benchmark for dairy cow feed

Option 2 – example Multiple applications – Feed for food producing animals

1 kg of feed for food producing animals to provide nutrition Unit of analysis

Representative product

Product category Prepared animal feeds – CPA code 10.91

RULE: If the products are not interchangeable, multiple benchmarks

should be defined!

Just for illustration: The pilot on feed for food producing animals deviate from this approach if appropriate.

RP for pig feed

Screening for pig feed

Benchmark for pig feed

RP for animal feed n

Screening for animal feed n

Benchmark for animal feed n

Technology A Technology B Technology C

Screening A Screening B Screening C

Benchmark A Benchmark B Benchmark C Both set of benchmarks become part of the PEFCR for application A

Functional Benchmark

Market share

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Option 3 Multiple technologies but single application

Used by 1st wave pilots: - Hot and cold water pipes - Paints

Apple juice Orange juice

Screening Apple juice Screening Orange juice

Benchmark Apple juice Benchmark Orange juice

Benchmark Fruit juice

Market share

Option 3 - examples Multiple technologies but single application – Fruit juices

1 liter of fruit juices to provide nutrition Unit of analysis

Representative product

Product category Fruit juices – CPA code 11.07.19

Juice n

Screening n

Benchmark n

Example used just for illustration

The individual benchmarks may or may

not be reported.

Definition of “representative product”

Representative Products should be established at a level where they enable a meaningful comparison

Different Representative Products might need to be established within a category at sub-category level, if applications are too different

Different Representative Products might need to be established within a category for different technologies used

Different Representative Products should be kept separate, incl. developed benchmarks (if appropriate)

If appropriate, an aggregation to a higher level can be conducted at a later stage If only highly aggregated information would be kept in a PEFCR this might

prevent the possibility to conduct meaningful comparisons and to develop meaningful benchmarks (if appropriate)

Guidance for defining Representative Product(s)

Definition of the ‘representative product’ model

• The “representative product” model report should include: 1. Bill of materials (BOM) or if more suitable, ingredients 2. A flow diagram (system boundaries) covering the entire life cycle 3. Assumptions related to transportation systems 4. Assumptions related to use scenario (if relevant) 5. Assumptions related to end of life (if relevant)

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Reminder

• The Technical Secretariat should document all the steps taken to define the “representative product” and report the information gathered taking the most appropriate measure to preserve the confidentiality of data.

• The choice of the “representative product” shall be discussed with the relevant stakeholders during the first physical consultation meeting.

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Contact details Marisa Vieira | vieira@pre-sustainability.com Annemarie Kerkhof | a.kerkhof@ecofys.com