Eco-Efficiency Analysis- A Sustainability Decision Tool for BASF A. Kicherer (Ludwigshafen, Germany)

1
Eco-Efficiency Analysis- A Sustainability
Decision Tool for BASF A. Kicherer
(Ludwigshafen, Germany)
2
The Ludwigshafen site

• BASFs largest production site worldwide
• 8,000 sales products
• 2,000 buildings
• 70 miles of roads 150 miles of rail track
• 35,000 people (83,000 worldwide)

3
Sustainable Development is based on three Pillars
Sustainable Development
Ecology
Society
Economy
4
What is Eco-Efficiency Analysis?

• Method for the comprehensive assessment of
  products and processes.
• Ecological and economic aspects are given equal
  weight in assessments.
• The products are analyzed from the angle of the
  end customer.
• (Future) scenarios and effects of various action
  options are presented.
• Eco-efficiency analysis is a standard tool in
  the BASF Group more than 240 analyses have been
  carried out.

5
Project Furniture Clear Coat
6
Alternative Systems for Furniture Clear Coat
Define comparable products
Determine demand- specific benefit
Coating of 1 m² furniture surface
7
Further Development of UV-Water Technology
Improves the Eco-Efficiency
0,3
High eco-efficiency
Environ. Impact (normalized)
1,0
Circle size Market share in Europe
Low eco-efficiency
1,7
0,3
1,0
1,7
Total costs (normalized)
8
Communication

• BASF-Coatings develops new, environmentaly
  friendly lacquers, even if they are innitially
  somewhat more expensive.
• Together with customers improvements can be
  initiated which reduces the costs.
• The eco-efficiency analysis can easily
  communicate these future trends and improvements.

9
Assessment Factors of the society
Energy consumption
20
Raw material consumption
20
Area requirement
10
20
Toxicity potential
20
10
Risk potential
10
Acceptance of the Method by Stakeholders, NGOs
and Science ...
11
... and the whole World.
Pilot project with UNEP/UNIDO to improve the
eco-efficiency of Moroccan dyehouses
Assessed since 2002 as one of the worlds most
sustainable chemical companies, partly as the
result of the development of eco-efficient
products
12
What does BASF use Eco-Efficiency Analysis for?
Internal
External
13
Consequences of Eco-Efficiency Analyses
Environmental Impact (normalized)
low
bring to market!
Depending on the position of the analysed
product, different strategic recommen- dations
are given.
1,0
high
1,0
high
low
costs (normalized)
14
Examples for More Profit Created Through
Eco-Efficiency Analysis

• An eco-efficiency project with a coatings
  customer resulted in a additional business of
  about 400.000 per year.
• An annual saving of 100.000 could be obtained
  by an eco-efficiency analysis for transportation
  of chemicals.
• The eco-efficiency analysis with an American
  customer in the aggregate sector increased the
  annual sales of 2.200.000 US by about 10

• The ROI is therefore much smaller than 1 year

15
Why is Eco-Efficiency Successful?

• Quantitative results with a clear assessment
• Simple and impressive illustration of the results
• Scenario- and sensitivity analysis
• Short timeframe (2 - 6 month)
• Low costs for the analysis
• Combination of LCA with LCC

16
The Eco-Efficiency Team
Our Homepage http//www.oekoeffizienzanalyse.de
17
Back-up slides
18
The detailed Results can be read off in the
Ecological Fingerprint
Energy consumption
1,0
Material consumption
0,5
Emissions
0,0
Toxicitypotential
Riskpotential
19
Raw material costs are normally small compared to
total costs
House Insulation Systems
160
140
120
Disposal
100
Transports
DM/m² thermal insulation system
80
Adhesive and plaster
60
Aluminium edges
40
handscrafts
Insulation material
20
0
Neopor
Styropor
Mineralfiber
20
Are you interested?

• How can you proceed?
• Get in touch with us. (http//www.oekoeffizienzana
  lyse.de)
• We will provide you with a tailor-made proposal.
• Your own efforts to determine the input data are
  relatively low.
• The total costs are between 20,000 and 30,000
  (depending on the complexity).

21
Opportunities for Marketing and Sales

• Direct comparison with your competitor
• Show your customer the superiority of your
  product
• Label, broschures, publications

• Comparison of your customers competitors
• Demonstrate your customer the superiority of his
  product.
• Common communication, label
• Help your customer to optimize his processes
• Added value increases customer relation

22
Development of environmental protection in
companies
Production inte-grated environ-mental protection
Product integrated environmental protection
End-of-pipe technology
Sustainable Development
80s
90s
00s
e.g. Waste water treatment plants,
e.g. Residual materials of a procedure are raw
materials of another
e.g. Green Engineering
Social, economical and ecological aspects of
products
23
Production-related waste and emissionsPer metric
ton of BASF Aktiengesellschaft products
24
Jeans Dyeing Project
25
Alternative Systems for Indigo dying
Define comparable products
26
In the Eco-Efficiency Portfolio, the
Environ-mental Impact is plotted against the Costs
Environ. Impact (normalized)
0,4
High eco-efficiency
1,0
Low eco-efficiency
1,6
The portfolio is based onto a principle idea of
Schaltegger and Sturm 1992
1,6
1,0
0,4
Total costs (normalized)
27
Consequences of the Analysis

• Construction of a plant for the production of 40
  indigo solution (beginning production at the end
  of 1999)
• Increased RD expenditure for the electrochemical
  process (construction of a pilot plant)
• Communication with customers and professional
  circles

• Success of the measures Increase of the market
  share from 2 (1999) to approximately 40 (2002)