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Eco-design IV

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Title: Eco-design IV


1
Eco-design IV
  • Tools and Strategies for Sustainable Consumption
    and Production

2
Contents
  • Overall strategies and concepts
  • Tools
  • 2.1. Business perspective
  • 2.2. Analytical tools
  • 2.3. Procedural tools
  • 2.4. Communication tools
  • 2.5. Product sustainability toolbox
  • 3. Policies and Instruments
  • 4. What now?

3
1. Overall strategies and concepts
  • of sustainable production and consumption

4
Goal Sustainable Development- the three pillars
Environment
Economy
Sustainability
Social
5
Sustainable Consumption and Production10-year
Framework of Programmes
  • Identify activities, tools, policies, monitoring
    and assessment mechanisms, including, where
    appropriate scientific methods such as life-cycle
    analysis
  • Develop production and consumption policies to
    improve the products and services
  • Develop awareness-raising programs
  • Develop and adopt, on a voluntary basis, ,
    consumer information tools ... UN guidelines on
    consumer protection...

6
Policy principles
  • Continuous improvement
  • Transparency
  • Eco-efficiency
  • Precaution
  • Life cycle thinking
  • Polluter pays
  • Common but differentiated responsibilities

7
Overall Strategies
  • Dematerialization
  • Life Cycle Management
  • Product Service Systems
  • The Triple Bottom Line Concept
  • Investment and insurance
  • Corporate responsibility
  • Reporting
  • Education and training

8
Dematerialization
  • Addressing needs and functionality rather than
    the product alone
  • Tracking throughput of materials and energy in
    industrial and consumption processes
  • Major increase in resource productivity

9
Life Cycle Management
  • Life cycle thinking provides a holistic
    framework taking the entire system of a product,
    process or service into account, enabling us to
    make realistic choices for the longer term taking
    multiple factors into account.
  • Life cycle thinking needs tools to make it
    practical to regular activities and decisions.

10
Life Cycle Management (cont.)
  • Life Cycle Management (LCM) is an integrated
    concept for managing the total life cycle of
    goods and services towards more sustainable
    production and consumption.
  • uses various procedural and analytical tools
    taken from the Product Sustainability Toolbox
  • different applications and integrates economic,
    social and environmental aspects into an
    institutional context.

11
Product Service Systems
  • Product Service Systems (PSS) strategy to
    develop a marketable mix of products and services
    that are jointly capable of fulfilling a client's
    need - with less environmental impact.
  • - a need rather than a product
  • - win-win solutions
  • - de-coupling economic growth and environmental
    degradation.

12
Product Service Systems Definition
  • A Product-Service System can be defined as
    the result of an innovation strategy, shifting
    the business focus from designing and selling
    physical products only, to selling a system of
    products and services which are jointly capable
    of fulfilling specific client demands.
  • UNEP (2002)

13
Product Service SystemsThree main approaches
  • Services providing added value to the product
    life cycle
  • Services providing final results for customers
  • Services providing enabling platforms for
    customers

14
The Triple Bottom Line Concept
Three Pillars of Sustainable Development
Environment
Society
Sustainable Development
Economy
15
The Triple Bottom Line Concept
16
The Triple Bottom Line Concept
17
The TBL Approach
18
TBL In Society
  • Accepted concept
  • Incorporated in law
  • TBL assessments widely used
  • Business reporting tool
  • Expands decision-making scope
  • Significant advancement over previous
    assessment tools

19
Problems with TBL
  • Does not address sustainability
  • Will not deliver sustainable development
  • Does not consider long-term futures
  • Does not consider cumulative impacts
  • Does not challenge existing paradigms
  • Does not provide real world justification
    for change
  • Expensive time consuming

20
2. Tools for sustainable production and
consumption
  • 2.1. Business perspective
  • 2.2. Analytical tools
  • 2.3. Procedural tools
  • 2.4. Communication tools
  • 2.5. Toolbox

21
2.1. Business perspective
  • in SCP

22
Business Goals
  • Companies can act in two very different ways to
    Societys demand for sustainable development
  • Reactive Fulfilling existing laws, directives
    and perhaps standards
  • Proactive Go beyond existing regulation to
    become leader and use sustainability aspects as
    business opportunities

23
Companies Potential Areas of Improvement
  • Processes Eco-efficiency, Total Quality
    Management, CPA, EnTA, environmental risk
    assessment.
  • Products/ Services Dematerialization, LCA, PSS,
    Eco-design, Function Based Approach.
  • Consumer communication Consumer opportunities,
    Advertising and Marketing, Eco-labels.
  • Systems Life Cycle Management, Material Flow
    Accounting, Environmental Management Systems,
    Multi-stakeholder dialogues, supply chain
    management.

24
2.2. Analytical tools
  • in SCP

25
Three types of analytical tools for eco-design
  • A. Quantitative tools such as LCA
  • B. Matrices
  • C. Checklists

26
List of analytical tools
  • Life Cycle Assessment (LCA)
  • Material Input per Unit of Service (MIPS)
  • Environmental Risk Assessment (ERA)
  • Material Flow Accounting (MFA)
  • Cumulative Energy Requirements Analysis (CERA)
  • Environmental Input-Output Analysis (env, IOA)
  • Life Cycle Costing (LCC)
  • Total cost accounting (TCA)
  • Cost-Benefit Analysis (CBA)
  • Matrices
  • Checklists

27
Environmental Risk Assessment (ERA)
HAZARD IDENTIFICATION
EXPOSURE ASSESSMENT
EFFECT ASSESSMENT
Prediction of emission rate
Dose-response tests
Exposure prediction
Extrapolation
Environment
Environment
Human Health
Acceptable DailyIntake
Predicted No-Effect Concentration
Predicted Exposure Dose
Predicted ExposureConcentration
- Risk Characterisation - Uncertainty Analysis
28
ERA steps
  1. Hazard identification relationship between
    different levels of exposure and effects
  2. Effect assessment
  3. Exposure assessment

29
Choice of more exhaustive examination
FIGURE 15.6 Steps in a risk assessment.
30
Life Cycle Assessment
  • Life Cycle Assessment (LCA) is a tool for the
    systematic evaluation of the environmental
    aspects of a product or service system through
    all stages of its life cycle.
  • provides an adequate instrument for environmental
    decision support.
  • reliable LCA performance is crucial to achieve a
    life-cycle economy.
  • The International Organisation for
    Standardisation (ISO), has standardised this
    framework within the series ISO 14040 on LCA.

31
Life Cycle assessment
From cradle to grave
  • Impacts on
  • Human health
  • Ecosystems
  • Resources

32
ISO 14040 Life Cycle Assessment, Principles and
framework
Life cycle assessment framework
Goal and scope definition
Direct applications - Product development and
improvement - Strategic planning - Public policy
making - Marketing - Other
Inter- pretation
Inventory analysis
Impact assessment
33
Life Cycle Assessment Structure
According to ISO 14040
34
Life Cycle AssessmentInventory Analysis
Acquisition ofraw material
Production
Use/ reuse/ maintenance
Recycling/ Waste Management
35
Steps of the inventory phase
36
Example of a product system, production and use
of steel sheet metal, for life cycle inventory
analysis.
2. Mining of iron ore
1. Mining of coal
3. Mining of limestone
4. Crushing grinding
Product system
Environment
5. Transport
System boundary
6. Sintering
7. Blast furnace
8. Steel furnace
15. Production of electricity
9. Steel moulding
Elementary flows
10. Transport
11. Cutting, shaping
12. Use
13. Waste handling
14. Landfill
37
Life Cycle AssessmentImpact Assessment
38
Elements of the life cycle impact assessment
procedure.
39
Elements of the interpretation phase of an LCA
study.
40
LCA-result
Environmental impact / functional unit
Example
Amount of nitrate in water/ produced amount of
meat
41
Types of environmental interventions in LCA
  1. Extraction of abiotic resources
  2. Extraction of biotic resources
  3. Land use
  4. Climate change
  5. Stratospheric ozone depletion
  6. Photo-oxidant creation
  7. Human toxicity
  8. Eco-toxicity
  9. Acidification
  10. Nutrification

42
Strengths of LCA
  • Comprehensive with respect to environmental
    impact connected to a function
  • Avoids problem shifting
  • Explicit distinction between science based
    information and value choices
  • International standardisation by ISO
  • Best practice identification envisaged in
    SETAC-UNEP programme

43
Weaknesses of LCA
  • Too complex
  • Too data intensive
  • Does not directly consider future changes in
    technology and demand
  • Does not consider societal effects
  • Only known and quantifyable environmental effects
    are considered
  • Requires expert knowledge

44
Life Cycle Costing (LCC)
  • Looks at the complete life-span of a product to
    calculate the entire life cycle costs, which
    include all internal costs plus external costs
    (externalities) incurred through throughout the
    entire life cycle of a product, process or
    activity
  • Puts a monetary value on the emissions and
    resource use (unfortumately, no valuation method
    has been generally agreed)

45
Total Cost Accounting (TCA)
  • Describes the long-term, comprehensive analysis
    of the full range of internal costs and savings
    resulting from pollution prevention and other
    environmental projects undertaken by a firm
  • Comprehensive costs and savings inventory
  • Precise cost allocation
  • Use of long time horizons
  • Use of profitability indicators which account for
    the time value of money
  • Does not consider eco-efficiency

46
Cost-Benefit Analysis (CBA)
  • Determines whether or not the benefits of an
    investment or a policy outweigh its costs
  • Very broad scope
  • All costs and benefits are expressed in monetary
    values
  • Large uncertainty because of many valuations

47
CBA in energy and transport sectors
Steps in the analysis Tools, data
Step1. Emissions. Environmental burdens Technology characterisation Life Cycle Inventory
Step 2. Impacts. Dispersion. Exposure. Impacts. Dispersion models local, national, regional, global Exposure response functions public health, man-made environment (agriculture, materials), natural environment Critical loads Reseptor at risk data
Step 3. Damages Market prices Willingness to Pay - studies
48
Eco-costs/Value ratio
retail
distribution
marketing
assembly
components
49
Eco-costs
  • The costs to prevent polluting emissions (to the
    air, water and ground), during the life cycle, at
    a sustainable level of earths carrying capacity
  • The eco-costs of materials, taking into account
    the ratio of recycling
  • The cost of energy at the price level of
    sustainable energy
  • The eco-costs related to the costs of labour
  • The depreciation of the eco-costs of production
    facilities

50
Cost-effectiveness Analysis (CEA)
  • Derivation of CBA
  • Determines the least cost option of attaining a
    predefined target
  • Benefits are not expressed in monetary terms

51
Function-based approach (FBA)
  • Human needs should be met by products and
    services that are aimed at specific functions
    such as food, shelter and mobility, and that are
    provided through optimized consumption and
    production systems that do not exceed the
    capacity of the ecosystem.
  • Life Cycle Initiative Brochure,
  • UNEP / SETAC, International
  • Partnership, 2003.

52
Function Based Approach Example
  • Direct and indirect energy use per person
  • 39
  • 18
  • 18
  • 9
  • 8
  • 6
  • 2
  • 100
  • Need area or function
  • Shelter
  • Food
  • Mobility
  • Personal care
  • Leisure
  • Clothing
  • Education
  • Total

Average for Groningen/ the Netherlands as
reported by Tukker (2003)
53
Material Flow Accounting
  • Material Flow Accounting (MFA) refers to
    accounting in physical units (usually in tons)
    the life cycle of materials in a given location
    (i.e., substances, raw materials, products,
    wastes).
  • Examples of flow accountings are
  • Eco-toxic substances that may cause environmental
    problems
  • Nutrients such as nitrogen and phosphates due to
    their critical influence over eutrophication
  • Aluminium, the economic use, recycling and reuse
    of which are to be improved

54
Ecological Rucksack and MIPS
  • Ecological Rucksack The total weight of
    material flow carried by an item if consumption
    in the course of its life cycle.
  • MIPS (Materials Intensity per service unit) An
    indicator based on the material flow and the
    number of services provided.
  • Reducing MIPS is equivalent to increasing
    resource productivity

55
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56
Ecological Rucksack Diagram
57
Some other ecological rucksacks
58
Plastic or Cotton Bag?
59
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60
Factor 4 and Factor 10
  • Factor 4 the idea that resource productivity
    should be quadrupled so that wealth is doubled
    and resource use is cut in half. Doing more with
    less. Result substantial macroeconomic gains.
  • Factor 10 per capita materials flows in OECD
    countries should be cut by a factor of ten.
    Requirement to be able to live sustainably in the
    next 25-50 years.
  • Note technology for Factor 4 already exists!!
  • Facto x Going beyond Factor 4 and Factor 10

61
Material Flow Accounting (MFA) - approaches
  • Specifies pathways of materials in, out and
    through the economy of a nation, a region, a
    community, business sector, company or household
  • Two approaches
  • The flow of bulk materials industrial
    metabolism (b-MFA bulk Material Flow Analysis
  • The flows of a single substance or a group of
    substances (SFA Substance Flow Analysis

62
MFA main characteristics
  • Limited by a given region or a given period in
    time
  • Cradle-to-grave approach
  • Works well for a number of policy questions

63
MFA - applications
  • The bookkeeping of bulk materials and substance
    flows monitoring, accounting, inventories
  • Modelling of bulk material flows and stocks to
    assess the origins of pollution, the fate of
    certain inflows, future trends in flows and stocks

64
Cumulative Energy Requirements Analysis (CERA)
  • CERA states the entire demand valued as primary
    energy which arises in connection with the
    production, use and disposal of an economic good
    (product or service)
  • Limited formal recognition documentation only
    in Germany

65
Model of CERA
  • CERA CERAp CERAu CERAd
  • CERA cumulative energy requirements of the
    economical good
  • CERAp - cumulative energy requirements for the
    production
  • CERAu - cumulative energy requirements for the
    use
  • CERAd - cumulative energy requirements for the
    disposal

66
Issues in CERA
  • Related materials expenditures
  • Selection of materials and process technology
    with respect to energy criteria
  • Relevance of the treatment of used goods through
    energetic exploitation and disposal, recycling of
    parts, components and materials under energy
    aspects
  • The influence of the service life of energy
    consuming or energy converting economic goods
    under energy aspects
  • The emissions related to energy conversions
    during production, use and disposal

67
Environmental Input-Output Analysis (env. IOA)
  • IOA Wassily Leontief 1930s, focusing on
    industrial trades
  • Env. IOA extension of IOA to consider pollution
    generation and abatement activities
  • Requires very detailed data

68
Categories of env. IOA
  • Generalised Input-Output Models technical
    coefficients matrix reflecting also pollution
    generation and abatement activities
  • Economic-Ecological Models extension of the
    inter-industry framework to include ecosystem
    sectors
  • Commodity-by-Industry Models environmental
    factors are expressed as commodities tarbed in
    a commodity-by-industry input-output table

69
2.3. Procedural tools
  • Environmental Management Systems
  • Environmental Audit
  • Eco-design
  • Supply chain management
  • Environmental Audit
  • Environmental Performance Review (E P R)
  • Environmental Impact Assessment (EIA)
  • Total Quality Environmental Management (TQEM)

70
Environmental Management Systems
  • An environmental management system (EMS) is a
    means of ensuring effective implementation of an
    EM plan or procedures in compliance with
    environmental policy objectives.
  • A key feature on any effective EMS is the
    preparation of documented system procedures and
    to ensure effective communication and continuity
    of implementation.
  • There are certification systems for EMS as the
    ISO 14001 and EC EMAS scheme.
  • Ongoing development towards product-orientated
    management systems (POEMS).

71
Environmental Management System principles
  • How can an organisation formulate an
    environmental policy and objectives, considering
    legislative requirements and information about
    significant environmental impacts?
  • Continual environmental improvement of the
    organisation
  • ISO 14001

72
Environmental Management System steps
Environmental policy
Management review
Planning
Checking and corrective actions
Implementation and operation
73
Eco-design ( Life Cycle Design)
  • Integration of environemtal aspects into the
    familiar product development process
  • Step-by.step plan that goes through all stages (7
    steps) in product development
  • Win-win situation benefits for both business and
    the environment
  • Promoted by UNEP, 1997

74
Eco-design
  • Looks at the relation between a product and the
    environment. Some common propositions about
    eco-design or Design for Environment (DfE)
    include
  • captures the environmental impacts of the whole
    production-consumption chain
  • 60 to 80 of life-cycle impacts from products
    are determined at the design stage
  • DfE is to develop generic, company and product
    independent standards (under ISO TC207)
  • way to engage business interest and action
    because it focuses on the products' market
    vulnerability.

75
Eco-design Key message
To introduce the environmental parameterinto
the design of products, processes and/or
activitiesin an effective manner
The environmental parameter becomes a business
opportunity!
76
Eco-design Changes in the product development
procedure
  1. Adjustment of the requirements (specifications)
    of the product, process or activity
  2. Realisation of corresponding LCA or other
    analysis tools to identify weak points
  3. Development of Eco-design guidebook

77
Eco-design Prioritisation Matrix

Category 3 Environmental benefits Technical and
economic problems
Category 1 Environmental benefits Technical and
economic feasibility
EnvironmentalAdvantages
Category 4 Few environmental improvements Technic
al and economic problems
Category 2 Few environmental improvements Technic
al and economic feasibility
-

-
Technical and Economic feasibility
Category 1 Highly recommended to carry out in
short term. Category 2 Can be incorporated the
more the better. Category 3 Need further
improvements. Category 4 Will be sorted out.
78
Eco-design Example 1 - Humidity catchers
79
Eco-design Example 2 Clothes from recycled
material
80
Environmental audit
  • Checking of the Environmental Management Systems
  • ISO 14.010 sets out the principles and rules for
    an internal and external auditing of EMS

81
Environmental Performance Evaluation
  • Provides guidelines for the choice, monitoring
    and control of environmental indicators
    representing the performance of a company
  • Supports internal decision making
  • Three indicator categories (1) environmental
    condition indicators, (2) operational performance
    indicators, (3) managements performance indicators

82
Supply chain management
  • Companies as customers can influence their
    suppliers to respect certain sustainability
    requirements with regard to the product they
    procure.
  • Greening the supply chain.

83
Environmental Impact Assessment
  • Evaluation of effects related to a specific
    project
  • Location-specific
  • Comparison of alternatives
  • Three types (1) strategic EIAs, (2) project
    EIAs, (3) location EIAs

84
Total Quality Environmental Management (TQEM)
  • Expansion of TQM programmes
  • Four basic elements
  • Customer Identification environmental quality
    is determined by customer preferences
  • Continuous Improvement involves all employees
  • Doing the job right the first time prevention
    of environmental risks
  • Taking a System approach to design all
    components so that they function together, and
    support each other in achieving desired goals

85
2.4. Communication tools
  • Consumer Communication and Marketing
  • Eco-labelling
  • Multi-stakeholder dialogue

86
Consumer Communication
  • Opportunities for the consumer to make a change
  • Conscious purchasing
  • Consumers power (voting with the pocket,
    activism)
  • Waste separation, water, energy, etc.
  • Buy eco-efficient products (saving)
  • Quality of life versus consumerism
  • Sustainable life styles
  • Crucial role of retail sector

87
Consumer Communication Advertising and Marketing
Could brands be their authority figures?
I use Body Shop products which play a role in
supporting third world countries and their jobs.
Mass Media Marketing are key
88
Eco-labelling
  • Type I (ISO 14024) - third party certification
    labels claims are based on criteria set by a
    third part. Examples include the EC Eco-Label,
    Nordic Swan and the German Blue Angel
  • Type II (ISO 14021) self certified labels
    claims are based on specific declarations by
    manufacturers or retailers. Numerous examples
    e.g. made from X recycled material
  • Type III (ISO /TR 1425) Environmental Product
    Declarations or LCA based labels are claims
    consist of quantified products information base
    on life cycle impacts.
  • Single issue labelling schemes such as the
    private Forest Stewardship Council (FSC) and
    organic food labels do not fall within any of the
    categories but are partially converted by ISO
    14020 General Guidelines for Environmental
    Claims and Declarations.

89
Eco-labelling Examples
90
Multi-stakeholder dialogue
  • Changes of the supply chain need often
    multi-stakeholder dialogue to allow that several
    players act together with the same aim.

91
Voluntary agreements
  • Commitments undertaken by firms or by industrial
    organisations to deal with environmental problems
  • The agreements are made with or recognised by
    public authorities

92
2.5. Product Sustainability Toolbox
Management
Change
Engineering
Applications
Tools
Data
93
Product Sustainability Toolbox
  • Applications
  • Material, Process and Product Comparison
  • Investment Decision Support
  • Strategic Planning
  • Marketing, Customer and Regulatory Compliance
  • Weak Point Analysis
  • Benchmarking

94
Product Sustainability Toolbox
  • Tools
  • ERA, LCA, MFA, FBA
  • Eco-design/ DfE
  • Eco-labelling Type I, II, III
  • Supply Chain Management
  • Multi-stakeholder dialogue
  • Consumer Communication
  • and more...

95
3. Policies and instruments
  • Integrated Product Policy
  • Sustainable Procurement
  • Policy instruments to encourage SCP

96
Traditional life cycle view of policy
Use/Consumption
End of life/ disposal
Resource Inputs
Production
Maximise efficiency
Minimise waste
Traditional focus of governments
Traditional focus of governments
97
Integrated Product Policy (IPP)
  • Life-Cycle Thinking cumulative environmental
    impacts - from the cradle to the grave.
  • Working with the market setting incentives so
    that the market moves in a more sustainable
    direction by encouraging the supply and demand of
    greener products.
  • Stakeholder Involvement it aims to encourage
    all those who come into contact with the product
  • Continuous Improvement improvements can often
    be made to decrease a products environmental
    impacts
  • A Variety of Policy Instruments the IPP
    approach requires a number of different
    instruments because there are such a variety of
    products and different stakeholders.

98
Sustainable Procurement
  • Sustainable procurement is the process in which
    organisations buy supplies or services by taking
    into account
  • the best value for money considerations such as,
    price, quality, availability, functionality,
    etc.
  • environmental aspects ("green procurement" the
    effects on the environment that the product
    and/or service has over its whole lifecycle, from
    cradle to the crave)
  • the entire Life Cycle of products
  • social aspects effects on issues such as poverty
    eradication, international equity in the
    distribution of resources, labour conditions,
    human rights.

99
Policy instrumentsto encourage SCP
  • Regulatory standards, norms, EPR (environmental
    performance reviews), labelling, (enforcement)
  • Economic instruments taxes, subsidies,credits,
    financial incentives, etc.
  • Social awareness raising, education,
    information, voluntary initiatives
  • Others indicators, green accounting...

100
Policies and Instruments for SCP
Source OECD, 2002.
101
4. What now?
102
What Now? (general)
  • Global framework programme on SCP to be based on
    life cycle thinking
  • Global and regional activities to be developed
    and implemented
  • Examine the use of life-cycle related tools to
    support programme activities...

103
What now? (CP Practitioners)
  • What does SCP mean in your day to day work?
  • What is needed to include life cycle perspectives
    in current work?
  • How can the demand side and the question of needs
    be addressed?
  • Who will you need to work with to achieve your
    integrated target objectives?
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