The Socio-Eco-Efficiency Analysis:
SEEbalance®
SEEbalance®
Environmental impact
high socio
-eco-efficiency
Reduction of raw material
and energy consumption
low number of working
accidents
Costs
The Four Strategic BASF Guidelines
for Long-term Success
Help our
Earn a
customers to be
premium on our
more successful
cost of capital
Form
the best team
in the industry
12.01.2005
Ensure
sustainable
development
2
The Three Pillars of Sustainable
Development
Sustainable Development
ecology
society
economy
Eco-Efficiency
Analysis
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SEEbalance®Analysis
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Development of SEEbalance®
From the Eco-Efficiency Analysis to the SEEbalance®
 aim:
Integration of quantifiable social indicators in the BASF eco-efficiency
analysis
 schedule:
starting point
2001
end point
March 2005
 this subproject was a part of the BMBF project
„Sustainable Chemistry of Aromatics“
co-operation partners for the development of the SEEbalance® were:
Universität Karlsruhe (TH)
Institut für Geographie
und Geoökologie
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What is an Socio-Eco-Efficiency Analysis
(SEEbalance)?
 Method for the comprehensive assessment of products and
processes.
 Ecological and economic and social 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 (about 15
SEEbalance).
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SEEbalance® Results:
Men‘s Shirts
User benefit
alternative
Wearing a blue
100 % cotton shirt
men‘s shirt (40 times)
Comparable
alternatives
100% polyester
shirt (PET)
blended fabric
shirt (65% cotton,
35% PET)
 This analysis includes in the social assessment the stakeholder
employees, consumers, national community and future generations.
 The 100% polyester shirt is a hypothetical shirt considered only for
comparison and is not frequently encountered in the market.
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Results:
Base Case: Blue Men‘s Shirts
envirnonmental burden
0,75
0,75
Wearing a
blue men‘s
1,00
shirt (40
1,25
1,25
times)
0,75
1,25
Blended fabric
PET
0,75
0,75
1,25
social influence
0,75
Cotton
1,00
costs
1,00
1,00
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1,00
1,00
1,25
1,25
1,00
0,75
costs
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Weighting Factor
Survey in Germany
25% employees
15%
working
accidents
20%
fatal
working accidents
15%
20% consumer
20%
local & national
community
20%
future
generation
15%
international
community
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occupational
diseases
25% toxicity potential
+ transport
10%
wages and
salaries
10%
professional
training
5%
strikes and
lockouts
60%
toxicity
potential
40% other risks and
product characteristics
30%
employees
15%
qualified
employees
15%
gender equality
10%
integration
of disabled people
25%
number of
trainees
25%
R&D (company
expenditures)
25%
capital
investments
25%
social
security
15%
parttime employees
15%
family support
50%
child labour
25%
foreign
direct investment
25%
imports from
developing countries
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Analogies between Ecological and Social
LCA
Ecological LCA
Social LCA
What is to be assessed?
Potential impact of product or processes on
natural capital
e. g. - energy consumption
- global warming potential (GWP)
Potential impact of product or processes on
human/social capital
e. g. - consumer
- future generation
1st : Inventory analysis (inputs/ outputs)
2nd: Impact assessment for defined indicators
e. g. GWP: 11 CO2-equivalent per UB
1st : Inventory analysis (inputs/ outputs)
2nd: Impact assessment for defined indicators
e. g. employees: 3 working accidents per UB
Aggregation and presentation of results
UB = user benefit
Ökologischer
Fingerprint
Ecological
Fingerprint
Social Fingerprint
Employees
Energy consumption
1,0
1,0
Area use
0,5
Emissions
0,0
Raw material consumption
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alternative 1
alternative 2
Internationale
community
Consumer
0,0
Future generation
Eco-toxicity potential
0,5
Local & national
community
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Results:
Social Fingerprint
 The social fingerprint
shows the social influence
of a product or process
according to the weighting
factors
employees
1,00
0,50
future
generation
consumer
0,00
national community
cotton
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polyester
blended febric
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Results:
Employees: Working Accidents
 The graph shows that the
cotton shirt manufacture
causes about four times
more working accidents
than the polyester shirt
manufacture.
working accidents / 1 million CB
45
40
35
30
25
 The accidents occur
primarily during cotton
cultivation, since this step
is very labour – intensive.
20
15
10
5
0
polyester shirt
yarning und weaving
cotton shirt
blended fabric
 Many accidents are caused
by the use of pesticides.
material manufacture
transportation
energy and water supply
cultivation cotton
confection
upgrading
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Assessment Scheme for Social Criteria
Normalization
factor
Weighting
factor
• Question:
To which extent does the product
contribute to the social
problem on a national level?
• Question:
How serious is the social problem
compared to the others?
(probability, extent and duration of
consequences)
• Character: objective
• Source:
To be calculated from
national statistics
X
• Character: normative, subjective
• Source:
polls (among experts or
stakeholders)
= total assessment factor
Source: Schmidt
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Course of Action
 The SEEbalance® will be used as an official tool for life cycle assessment
in the eco-efficiency group
 Boosted external communication and public relations
 In the future 10 – 20 % of all studies will be SEEbalances®
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How Does SEEbalance
®
Work?
 1st step: Search for the economic sector of the product
e.g. polyester: sector “production of polymers” (NACE 24.16)
 2nd step: Search for the entries in the social LCA database

e.g. Production of polymers (NACE 24.16):
–
Working accidents:
0.058 accidents / 1000 t
–
Number of employees:
9,9 employees / 1000 t
–
... (all other indicators)
„Social profile“ of 1000 t of polyester
(analogous to eco-profile)
 3rd step: Multiply specific social profile with the product quantities
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NACE - International Compatibility
Worldwide (UN)
EU-Level
National Level
Industries
Goods
ISIC
CPC
NACE
CPA
national version
NACE
(e.g. WZ)
national version
CPA
(e.g. GP)
 Related
classifications
in more than
140 countries
 Limited
compatibility
with NAICS
(Canada, USA,
Mexico)
Source: Eurostat 2003
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NACE - The EU-Classification of
Industries
Sectors
Industries
A, B
Agriculture and forestry, fishing
C, D, E
Manufacturing industry
F
Construction
G, H, I
Commerce, hotel trade, transports
J, K
Financial industry, enterprise services
L-Q
Public and private services
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NACE – Hierarchical Levels
Level
Code
Example
“1-letter”
A-Q
D
Manufacturing industry
“2-letters”
CA-DN
DG
Chemical industry
“2-digit”
01-99
24
Chemical industry
“3-digit”
01.1-99.0
24.1
Production of basic chemical
goods
“4-digit”
01.11-99.00
24.16 Production of polymers
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Life Cycle of the Cotton Shirt
production
mining of raw
materials
fertilzer/
pesticides
use
sum of all
transports
disposal
raw
materials
MSWI
cultivation of cotton
and transports
yarning
weaving
production of
chemicals for textiles
agents
retail
confection
upgrading
cleaning/
40 times
ironing
collection of
old clothing
dyeing
wearing of
the shirt
production in China
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Not included because the impact for all alternatives are equal
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SEECube®
0,75
1,00
0,75
1,25
1,00
1,00
0,75
alternative 1
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1,25
alternative 2
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Placement of the SEEbalance®
„cradle-to-gate“
...from raw material to factory gate
„cradle-to-grave“
... including use and recycling
eco-profile
„cradle-to-grave and costs“
... including all life cycle costs
„cradle-to-grave, costs and
social aspects“
LCA
eco-efficiency
... including social aspects
SEEbalance®
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Aims of the SEEbalance®
1. „Quality-of-life“:
Improvement of objective living conditions
Improvement of subjective well-being
2. „Social Cohesion“:
Reduction of disparity and social exclusion
Fortification of social bonds and coherence
3. „Sustainability“:
Intergenerational fairness
International responsibility (intergenerational fairness)
According to the system of GESIS/ ZUMA 2001
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Reasons for the development of the
SEEbalance®
Integration of the
third pillar of
sustainability
Increasing
pressure on part
of society
Acceptance by the
customer is
imperative for the
purchase of a
product
Due to the child labour in NIKE
sneaker production, a compaign which
proclaimed an Anti – Nike day was started (May
2001).
Supposed hormonal effects of phthalates (plasticizer)
in children’s toys resulted in disappearance from the
market even though no scientitic proof existed
Taste of packaged food,
e.g. sausages
TV – enclosure with flame
retardant
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Application of the SEEbalance®
Internal
Strategy
 Comparison of
production sites
 Comparison of
markets
Marketing
 (social) acceptance of
the product (projects:
sausage -study,
redevelopment of
residential area)
Profit:
• secure decisions about products
and markets
• communication
- on coperate level
- on product level
has an established and quantifiable
basis
(e.g. for coperate reports)
External
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Procedure
define customer
benefit
society
identify products /
processes
ecology
establish life cycle
economy
determination of social
profiles for each step
determination of ecoprofiles for each step
determination of costs
for all life cycle
segments
aggregation of
stakeholder effects
aggregation of the
effects categories
calculation of total life
cycle costs
normalization of social
effects
normalization of
environmental impact
normalization of costs
create SEECube®
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