AWARENESS ON THE IMPLEMENTATION OF LIFE CYCLE ASSESSMENT IN LIGHT INDUSTRIES . TUAN NOORUNNAZIFAH BINTI TUAN AHMAD A project report submitted in partial fulfillment of the requirements for the award of the degree of Master of Engineering (Civil - Environmental Management) Faculty of Civil Engineering Universiti Teknologi Malaysia NOVEMBER 2009 iii To my beloved parents, Ummi and ayah, You are the aspiration in my life, Love you always, As to my dear siblings and friends, Thanks for always be there for me…. iv ACKNOWLEDGEMENT “In the name of Allah, The Most Merciful and the Most Compassionate” First ad foremost, I would like to express my deepest gratitude upon Allah S.W.T for giving me strength and patience in completing my final year project. There are may people around me that have supported me all the way through and make things possible. I would like to express my gratitude to all those who gave me the possibility to complete this report. Firstly, I would like to express my sincere gratitude and love to my dear parents and the whole family for the consistent love, support, encouragement and guidance shown to me during the course of my study. My grateful and deepest appreciation goes to my supervisor Prof. Dr. Mohd Razman bin Salim who helps, stimulating suggestions and encouragement helped me in all the time in completing the study and writing of the report. My thankful also goes to Dr.Muhammad Ali bin Yuzir whom I received the necessary guidance throughout my project study. With much valuable suggestions contributed lead me to achieve the set aims of the study. Lastly, to all my dear friends whom I am so lucky to have especially Kak Rohani, Mas, Shaikhah, Kak Yaya, Diha and those who not mentioned here. Thanks for all your contributions both directly and indirectly towards by project study and the entire masters program. Last but not least, a million of thanks go to all the respondents involved in this study. Thank you very much. v ABSTRACT As environmental awareness increases, industries and businesses are assessing how their activities affect the environment. Society has become concerned about the issues of natural resource depletion and environmental degradation. Many businesses have responded to this awareness by providing “greener” products and using “greener” processes. Life cycle assessment (LCA) is a systematic approach used to manage the potential environmental impacts of product and services system. This study looked into awareness of LCA among the manufacturers in Taman Universiti, Skudai,Johor and willingness to perform LCA in their company. The data obtained for this study was through surveying where the questionnaires had been distributed among the manufacturers in the study area. The analysis was done by using SPSS software. From the result, only 31.25 percent of the respondents have knowledge on LCA and 68.75 percent not having the idea about LCA. Meanwhile 40.6 percent of the respondents agree to consider performing LCA in their company and 59.4 percent not being sure. Due to lack of information on LCA, 81.25 percent agree that government should provide more training and information. However, there was a significant correlation (r=-0.358), (p<= 0.05) between respondents position and awareness of LCA at 95% significant level. The level of awareness of LCA depends on the position of the respondent. In this case, manager has higher awareness about LCA compare to others. vi ABSTRAK Sejajar dengan peningkatan kesedaran terhadap alam sekitar, banyak perindustrian and perniagaan mula menilai bagaimana aktiviti mereka dapat memberi kesan terhadap alam sekitar. Masyarakat telah mula mengambil berat tentang pengurangan sumber semula jadi dan alam sekitar yang semakin terjejas. Kebanyakan industri perniagaan memberi tindak balas terhadap kesedaran ini dengan menyediakan hasil pengeluaran dan menggunakan proses yang mesra alam. Penilaian kitaran hidup (LCA) ialah satu pendekatan yang sistematik yang digunakan untuk mengendalikan kemungkinan kesan terhadap alam sekitar akibat daripada sesuatu hasil pengeluaran dan sistem perkhidmatan. Kajian ini adalah untuk menilai tahap kesedaran tentang LCA di kalangan pengilang-pengilang di Taman Universiti, Skudai,Johor dan kesanggupan mereka melaksanakan LCA di syarikat masingmasing. Data untuk kajian ini diperolehi melalui tinjauan dengan mengedarkan senarai soalan di kalangan pengilang-pengilang di kawasan kajian. Analisis data dilakukan dengan menggunakan perisian SPSS. Daripada keputusan yang diperolehi, hanya 31.25 peratus daripada rsponden menpunyai pengetahuan tentang LCA dan 68.75 peratus tidak mempunyai pengetahuan tentang LCA. Manakala 40.6 peratus daripada responden setuju mempertimbangkan untuk melaksanakan LCA di syarikat mereka sementara 59.4 peratus masih tidak pasti untuk melaksanakan LCA di syarikat mereka. Disebabkan kurangnya maklumat tentang LCA, 81.25 peratus setuju bahawa pihak kerajaan patut menyediakan lebih banyak latihan dan juga maklumat berkaitan LCA. Terdapat pertalian ketara (r=-0.358), (p<= 0.05) di antara jawatan responden dengan tahap kesedaran tentang LCA pada tahap 95 peratus. Tahap kesedaran terhadap LCA adalah bergantung kepada jawatan yang dipegang. Dalam kajian ini, pengurus syarikat mempunyai tahap kesedaran tentang LCA yang tinggi berbanding yang lain. vii TABLE OF CONTENTS CHAPTER 1 2 TITLE PAGE DECLARATION ii DEDICATION iii ACKNOWLEDGEMENT iv ABSTRACT v ABSTRAK vi TABLE OF CONTENTS vii LIST OF TABLES x LIST OF FIGURES xii LIST OF ABBREVIATIONS xiv LIST OF APPENDICES xv INTRODUCTION 1.1 Overview 1 1.2 Problem Statement 3 1.3 Scope of the Study 4 1.4 Objective of Study 4 1.5 Significant of the Study 5 LITERATURE REVIEW 2.1 Environmental Issue in Malaysia 6 2.1.1 Solid Waste Management 7 2.1.2 Air Pollution 11 viii 2.1.3 Water Pollution 14 2.2 Life Cycle Assessment (LCA) 15 2.3 Application of LCA 21 2.4 LCA and ISO 14000 24 2.4.1 ISO 14000 Series 26 2.5 2.6 3 and Developed Country 29 2.5.1 LCA Activities in Thailand 30 2.5.2 LCA in Malaysia 31 2.5.3 LCA in Japan 34 2.5.4 LCA in Germany 34 2.5.5 LCA in Europe and the United States 36 Environmental Friendly Product 36 2.6.1 Eco-labelling 37 2.6.2 Objectives of Ecolabelling 41 2.6.3 Ecolabeling in Malaysia 41 METHODOLOGY 3.1 Introduction 43 3.2 Data Collection 45 3.2.1 Primary Data 45 3.2.2 Secondary Data 46 3.3 4 Overview of LCA Implementation in Developing Research Design 46 3.3.1 Preliminary Data Collection 46 3.3.2 Data Collection 47 3.3.3 Result Analysis 48 3.3.3.1 Data Interpretation 48 DATA DATA AND RESULT ANALYSIS 4.1 Introduction 50 4.2 Questionnaire (Descriptive Analysis) 51 ix 4.2.1 Background of Respondent 51 4.2.2 Awareness and Knowledge Of LCA 54 4.3 Reliability Test 60 4.4 Inferential Statistical Analysis 60 4.4.1 Bivariate 61 4.4.1.1 Awareness of LCA 61 Regression 64 4.4.2.1 Awareness of LCA 64 4.4.2.2 Recyclability of Product 65 4.4.2 5 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion 67 5.2 Recommendations 69 REFERENCES 71 APPENDIX 75 x LIST OF TABLES TABLE NO. 2.1 TITLE PAGE Percentage of solid waste component from residential and commercial 8 2.2 Environmental factors to be considered in LCA 18 2.3 The description of the LCA component 19 2.4 The description of the components of LCA according to EPA, 2006 21 2.5 Benefits of implementing life-cycle concept 23 2.6 The description of ISO LCA standard and technical report 27 2.7 Evolution of eco-labelling and beginning of the National LCA Project in Malaysia 32 2.8 Some of organization of ISCZ 33 2.9 The definition of Voluntary Environmental Performance Labelling 39 3.1 Elaboration of section in the questionnaire 47 3.2 Five level of Likert scale 48 4.1 Number and category of production in Taman Universiti 51 4.2 Frequency and percentage of respondents 52 4.3 Frequency distribution towards knowledge of LCA 55 4.4 Reliability Statistics 60 4.5 Data Correlation for awareness 61 4.6 Data Correlation for product recyclability 62 4.7 Data Correlation 63 4.8 Data Correlation 63 xi LIST OF TABLES TABLE NO. TITLE PAGE 4.9 Models for awareness 64 4.10 Model summary for Awareness 65 4.11 Model for recyclability of product 66 4.12 Model summary for recyclability of product 66 xii LIST OF FIGURES FIGURE NO. TITLE PAGE 1.1 Location of study area 4 2.1 Industrial air pollution sources by states 12 2.2 Number of Registered vehicles, 2005-2006 13 2.3 The industrial System 16 2.4 A complete life cycle 17 2.5 Life cycle assessment stages and system boundary 17 2.6 The LCA conceptual model 19 2.7 Phases of LCA 20 2.8 ISO and development of environmental management tools 25 2.9 Logo of Blue Angel Scheme, Federal Environment Agency, Germany 38 2.10 Type I ecolabel. Multiple criteria, third party program 40 2.11 Type II ecolabel. Selft-Declared Environmental Claims such as compostable, degradable, recyclable, reduced energy consumption and reduced water consumption 2.12 40 Type III ecolabel. Environmental Declaration. An example of Report card on environmental performance from cradle to grave 40 3.1 The overall processes involved in the project 44 4.1 Manufacturer based on their type of production 52 4.2 Market target of the products. 53 4.3 Percentage of recyclability of the product produced from light industry at Taman Universiti 54 xiii LIST OF FIGURES FIGURE NO. TITLE PAGE 4.4 Consideration to perform LCA 56 4.5 Consideration of green product 56 4.6 Tendency to join the standard development process 57 4.7 Implementation of LCA should be compulsory 58 4.8 Government should provide LCA training and 4.9 more information 58 Medium preferred to deliver information of LCA 59 xiv LIST OF ABBREVIATIONS LCA - Life Cycle Assessment MSW - Municipal Solid Waste DOE - Department of Environment EPA - Environmental Protection Agency SETAC - Society of Environmental Toxicology and Chemistry ISO - International Organization for Standardization TC - Technical Committee EMS - Environmental Management System LCI - Life Cycle Inventory LCIA - Life Cycle Impact Assessment GP - Green Productivity TEI - Thailand Environment Institute SIRIM - Standards and Industrial Research Institute of Malaysia SIRIM QAS - SIRIM Quality Assurance Service ISCZ - Industry Standard Committee MNRE - Ministry of Natural Resources & Environment EU - European Union MICCOS - Malaysian International Commodities Conference CFC - Chlorofluorocarbon xv LIST OF APPENDICES APPENDIX. TITLE PAGE A Set of Questionnaire 75 B Anova Table for Model 1 (Awareness) 78 C Anova Table for Model 2 (Awareness) 79 D Anova Table for Model 1 (Recyclability) 80 E Anova Table for Model 2 (Recyclability) 81 CHAPTER 1 INTRODUCTION 1.1 Overview Malaysia has grown rapidly in especially in industrial sector. The economic growth and the industrialization contribute to the environmental degradation. There are regulations and rules in order to protect the environment in line with the development. Besides, there are many campaigns launched to increase the concern among communities regarding to environmental sustainability. As environmental awareness increases, industries and businesses are assessing how their activities affect the environment. Society has become concerned about the issues of natural resource depletion and environmental degradation. Many businesses have responded to this awareness by providing “greener” products and using “greener” processes. The environmental performance of products and processes has become a key issue, which is why some companies are investigating ways to minimize their effects on the environment. Many companies have found it advantageous to explore ways of moving beyond compliance using pollution prevention strategies and environmental management systems to improve their environmental performance. One such tool is LCA. This concept considers the entire life cycle of a product (Curran, 1996). Life cycle assessment is a systematic approach used to manage the potential environmental impacts of product and services system. It is applied methodologically 2 to build a quantitative inventory of environmental burdens or releases, evaluate their potential impacts and consider the alternatives to interpret the results or improve environmental performance. LCA can be used to identify critical life cycle stages or burdens for which additional environmental assessment tools (such as risk assessment) may be applied to fully understand the potential impacts and risks. In any application, LCA considers the potential environmental impacts along the continuum of a product’s life (i.e., cradle to grave or cradle to cradle), from raw materials acquisition to production, use, and disposal or recovery. The potential environmental impacts to consider include resource depletion human health, and ecological health (Fava, 2005). Most conventional approaches in environment protection only focused on single medium such as air, water or soil, a single stage in the product life cycle like during the production, use or disposal of the product or in single issue for instance chemical limit to an individual. These strategies not always reduce the whole environmental impact. Pollution control resources are spent on activities required by laws and regulations, however do not always provide the most efficient use of those resources in terms of reducing impacts. Sometimes it allows another unexpected impact to occur because it is not designed to tackle the overall environmental problem. The result of an LCA study helps identify the opportunities and risk of a product or technology from the extraction of raw material to the final disposal. LCA helps how our choices influence each of these stages, so positive on economy, environment and society can be made. As industrialization in Malaysia growth rapidly, pollutions can not be avoided. Even there are legislation and regulation to protect the environment, it still not enough to put Malaysia away from environmental problem especially handling industrial waste. Besides depend on the legislation and regulation, Malaysia should adopt a new way to sustain the environment. LCA can assist in identifying opportunities to improve the environmental aspects of products at various points in 3 their life cycle, decision making in industry, government or non government and marketing as well. 1.2 Problem Statement In 2000, the major contributors to water pollution were effluents from manufacturing industries with an estimate of 43% and urban domestic sewage facilities, which amounted to 46.1% of the total water pollutants in the country. The pollution loads contributed by these pollutants significantly affected the river quality. An analysis of manufacturing industries in 2000 showed that the food and beverage industry constituted 23.7% of the total sources of water pollution, while electrical and electronic industries accounted for 11.4%. The chemical industry was found to contribute 11.2% and the paper industry generated 8.8% of the total pollution. The textile and finishing/electroplating industry accounted for 7.4 and 5.3% water pollution sources, respectively (Suleyman et al, 2005). Since economic development tends to cause an increase in the amount of industrial waste generation, environmentally-sound management of industrial waste is essential to promote the LCA. Life Cycle Assessment (LCA) is an internationally recognised methodology for assessing the environmental impacts and a systematic approach to manage the potential impacts of products and services. Environmental impact of the whole aspect of the system or product can be assessed by implementing LCA. Before the implementation can be applied, one must have the knowledge and awareness of the LCA. 4 1.3 Scope of the Study Figure 1.1: Location of study area This study looks only into the awareness of LCA among the manufacturers of light industry in Taman Universiti, Skudai,Johor and willingness to perform LCA in their company. Taman Universiti Industrial Park is a light industrial area in Skudai. This area consists of various industries such as paper, plastic, metal and food. The respondents of the study are selected randomly among the manufacturers in Taman University, Skudai, Johor. 1.4 Objectives of Study This study aims to evaluate the awareness of LCA in industrial sector and their point of view of LCA. Thus the objectives of the study are to: i. Evaluate the awareness of LCA. ii. Evaluate the willingness to perform LCA in their company. 5 1.5 Significant of the Study This study is focusing on awareness of LCA among the manufacturers in light industry at Taman University. Implementing of LCA give more benefit not only to the manufacturers but also to the customers and the environment. By knowing the level of awareness of LCA, a progressive step can be taken in order to introduce or improve their knowledge on LCA. Even though they are only a small industrial sector, they also contribute to environmental degradation. LCA can give them better choice in making decision by taking the environmental aspect in their consideration. CHAPTER 2 LITERATURE REVIEW 2.1 Environmental Issue in Malaysia Environmental issue has attracted a great attention of national level. As a developing country, Malaysia has a progressive development. But the progressive development comes together with the environmental issue. Pollution issue is one of the issues needed to be faced. Not only in Malaysia, but environmental problem is a global issue in every country in the world. The past decade of rapid economic growth, industrialization and high rates of urbanization has caused serious environmental challenges in Malaysia. The high concentration of people and industry in urban areas also puts considerable stress on the environment in those areas. The consequences are air and water pollution, and large volumes of solid waste for which there are very limited disposal options. Moreover, the concentration of people in urban areas means that large numbers of people are exposed to airborne and waterborne pollutants, thereby raising the human cost of that pollution. The most prominent at the moment are considered to be air pollution from industrial emissions and vehicular emissions, solid waste management, deforestation, water pollution from raw sewage and haze from forest fire. Further degradation of environment will threatens not only plant and animal but our own ability to survive and sustain ourselves as well. 7 Environmental awareness is building up in Malaysia and with the 9th Malaysia Plan 2006-2010 the Malaysian government has placed further emphasis on preventive measures to mitigate and minimize negative environmental effects at source, to intensify conservation efforts and to ensure a sustainable development of both the exhaustible and the renewable energy resources. 2.1.1 Solid Waste Management Urbanization and industrialisation has led to an increase in the number of both official and non-official migrants from rural to urban area. As Malaysia aspires to become a developed nation by 2020, it is envisaged that 80% of the population will be living in urban areas. (Waste Management Conference, 2007). For the past 20 years, Malaysia has undergone an economic growth with the rate of 5.2% (Agamuthu, 2001). Corresponding with the industrial sector in Malaysia which undergoing a transformation from minor role in the economic to the large scale manufacturing industries. Due to growing population and increasing consumption, Malaysia generates waste at 19,100 tons per day. In Kuala Lumpur waste generation is about 3,000 tons a day and forecasts shows that this will increase each year (Redigeret, 2009). The solid waste generated per capital has increased from 0.5 kg/capital/day to current volume of 1 kg/capital/day. This represents a 200% increased in 20 years (Agamuthu, 2001). Accelerated industrialization, urbanization and population growth caused rapid accumulation of waste and waste management will be a key issue that needs to be urgently addressed. Proper waste management is a fundamental need especially in countries with modern production and consumption pattern. 8 Waste as defined by Oxford Dictionary tenth edition is ‘unusable or unwanted material’ or ‘eliminated or discarded as no longer useful or required’. Waste can be divided into three categories which are municipal waste, industrial waste and hazardous waste. The material of municipal waste comprising of food waste, rubbish, ashes and residues, demolition and construction waste, special waste and treatment plant waste. Municipal solid waste (MSW) generally generated from residential, commercial, open areas and treatment plant site. Table 2.1 below shows the component and percentage of solid waste from residential and commercial. Table 2.1 : Percentage of solid waste component from residential and commercial (ILO Research Conference, April 2008) Component Residential (%) Commercial (%) Food and Organic 63.1 76.8 Mix paper 6.7 7.6 Mix plastic 14.3 9.0 Yard 6.3 - Glass 2.1 0.9 Others 7.5 5.7 Industrial wastes are those wastes arising from industrial activities. Meanwhile waste that poses a substantial danger immediately or over a period of time to human, plant or animal life is classified as hazardous waste. The characteristic of hazardous waste are ignitability, corrosivity, reactivity or toxicity. Waste generation means unwise use of resources either upstream during extraction, production or processing or downstream during use or consumption. Every unit of waste generated has significant cost attached to it including direct cost of handling, treatment and disposal. 9 The local authorities and waste management consortia have to handle approximately 17,000 tonnes of MSW everyday throughout the country. MSW generation depends on the size of township and level of economical standard, that as low as 45 tonnes of MSW are generated in Kluang (a small town in the southern part of Peninsular Malaysia) to as high as 3000 tonnes in Kuala Lumpur (Malaysia's capital). The largest sources are household waste followed by industrial and commercial waste. In Selangor state, the highest percentage of MSW consisted of putrescible waste of approximately 46%, followed by plastic and paper at 15% and 14%, respectively. (Fauziah et al., 2004) Every one should take serious steps and initiative to reduce the amount of waste generation and whenever possible to reuse or recycle the waste so as to prolong its useful life thus minimizing waste to be disposed of which ultimately would cause adverse impact to the environment. Malaysia in 2002 formulated the National Policy on the Environment that aims at continued economic, social and cultural progress of Malaysia and enhancement of the quality of life of its people through environmentally sound and sustainable development which include proper waste management. Like other countries, Malaysia has its own legislations and regulation to sustain the environment. There are several legislations related to solid waste management in Malaysia. The legislation and regulation are listed below: i. Environment Quality act 1974 ii. Street, Drainage and Building Act 1974 iii. Local Government Act 1976 iv. Refuse Collection, Removal and Disposals By Law 10 Since the solid waste management becomes a prominent issue nowadays, a new act has been developed. Solid Waste and Public Cleansing Management Act 2007 has several changes that can bring the improvement in managing solid waste. Once the Solid Waste and Public Cleansing Management Act 2007 have been implemented, the act would bring the following changes in waste management. Several changes are as follow (Chai, 2009): i. A standard, integrated system in managing waste to promote a more efficient operating procedure. ii. Privatization of waste management. A concessionaire applying for a license to operate. iii. Key Performance Indicator. The concessionaires’ license can be revoked when received pile up of complaints. iv. Proper closure or upgrading of landfills. From 261 landfills, only 10 sanitary landfills and rest have to be closed or upgraded in batches. v. Structured garbage collection. Households will receive a standard 120 litre bin which can be flipped into collection vehicles to prevent leachate spill. The owner will be charged for an overloaded bin. vi. Separation at source. It is compulsory to separate waste into wet and dry waste two to three years after the act is implemented. Twice a week collection for wet waste, while weekly collection for recyclable or dry waste. vii. Encourage higher recycling rate. Introducing the take back and deposit rebate scheme. Perhaps this act will improve the management of landfill as well because the quality of waste has been improved before it is transferred to landfill. The improper management of the landfills has led to environmental and social problem such as groundwater and surface water contamination within the surrounding the landfill areas, bad odour from landfills without daily cover, air pollution from the opening at the landfill areas, noise hazard from the collection vehicles, unaesthetic environment, 11 scavenging activities at the dumpsites or landfills and health hazard to the workers and people who live close to the landfills areas. 2.1.2 Air Pollution Air pollution is the presence of the substance in the atmosphere. The concentration of the substances can interfere with health, comfort, safety and full use and enjoyment of properties. Naturally, the earth already has its own air pollution loading. There are many sources of natural air pollution such as decomposition or biological decay, volcanic eruption and lightning cause forest fire. However, industrialization or just everyday routines has become added burden to the existing air pollution loading. Environmental pollution problems have been local and minor because of the earth's own ability to absorb and purify minor quantities of pollutants. The industrialization of society, the introduction of motorized vehicles, the explosion of the population and the forest fire are factors contributing toward the growing air pollution problem. There is something need to be sacrificed to get something else. As industrial age has risen in Malaysia, the environmental problem has become a prominent issue. Many industrial zones have been approved by the government to be set up in mostly forestland and uninhabited areas. Some examples of the industrial zone in Malaysia are Shah Alam in the state of Selangor, Senai and Pasir Gudang in the state of Johor and Bagan Serai in Penang. As a result, trees have been cut down to accommodate towards the building of large industrial factories. According to the Department of Environment website, Malaysia’s economic growth is mainly based on its manufacturing (especially electronics), chemical and rubber industries. But higher production rates also lead to higher emissions of organic and inorganic gases, chemicals and dust. Not only the oxygen supply has been decreased, these factories are spewing out poisonous gases in the course of its production. Different industries emit different pollutants. For example, the chemical 12 industry releases emissions that contain many nitrogen and sulphur compounds while refineries discharge sulphur dioxide and hydrocarbons. The metal working industry is partially responsible for the emissions of sulphur dioxide and large amounts of toxic dust. Figure 2.1 : Industrial air pollution sources by states, 2006 (Source: DOE, Malaysia) Naturally, people would flock to industrial zones such as Shah Alam because of the high pay and high opportunity of jobs involved. Shah Alam is now one of the most densely populated areas as well as one of the most highly polluted areas in the country, and yet it is not the only one. Carbon monoxide, nitrogen oxides, sulfur oxides, hydrocarbons, and particulate matter are the primary air pollutants found in most urban areas are. These pollutants are dispersed throughout the world's atmosphere in concentrations high enough to gradually cause serious health problems. One can imagine the amount of people who will be affected by the long side effects of the pollution from the gases. Modern society today is highly dependent on motorized transportation such as motorcycles, cars, trucks, and railways. Every movement of people and goods requires energy which relies mostly on the burning of fossil fuels, thus causing emissions and noise with adverse local effects. The air quality of the different transport modes depends on the kind of energy, engine technology and the amount of energy consumed. In text of 'Clean Air For Our Cities, 2006, by DOE Malaysia & 13 German Technical Co-operation cite that in 2004, nearly 14 million vehicles were registered in Malaysia, almost double the number from a decade ago. The number will increase in the next few years, due to higher incomes, rural-urban migration and the lack of efficient public transport systems. Figure 2.2 : Number of Registered vehicles, 2005-2006.( Source: Department of Road Transport, Malaysia, 2006) Household also contribute to air pollution mainly through the use of energy that is required to run machines and electrical appliances such as refrigerators. Refrigerators and air conditioners not only consume energy but they pollute the environment when their coolant fluids release Chlorofluorocarbon (CFC) into the atmosphere. CFC is an odourless and tasteless substance. Chemicals in household equipment such as batteries and pesticide used in houses and gardens are also sources of pollution as well as toxic waste. Open burning of older existing plantations for re-planting creates large amounts of soot particles. These soot particles can be blown over long distances and are mainly responsible for the haze that often covers the sky above Malaysia. Most of the haze happened in Malaysia because of forest fire from neighbour country such as Indonesia and Philippine. These fires not only pollute the air but also destroy the rich habitat of the flora and fauna. 14 Human activities have resulted in harmful substances and polluting emissions being released into the air. They endanger our health and our natural ecosystem, and lead to an additional greenhouse effect. Besides emissions of toxic dust, unplanned and uncontrolled development of industrial premises or zones leads to noise pollution and vibration disturbance. 2.1.3 Water Pollution Water pollution is the contamination of water bodies such as lakes, oceans, rivers or groundwater which can be harmful to the organisms and other aquatic life that live in these water bodies. As Malaysia is fast becoming an industrial country, many of her rivers have become polluted due to the many wastes that have been poured out into her rivers. Industrial development in Peninsular Malaysia has made significant beneficial contributions to the country’s overall economic development. It has generated employment and promoted socio-economic infrastructural development. However, it has effects on the environmental water resources because all industries require the use of both renewable and non-renewable resources from the environment. It is obvious that the conversion of these resources into finished or semi-finished industrial products results in residues that are often discharged as wastes into water. These wastes are in solid, liquid or gaseous forms and, when discharged indiscriminately, could adversely affect the quality of the water. Approximately 2292 industries were identified as significant water pollutant sources in Peninsular Malaysia by the Department of Environment (DOE). The major potentially polluting industries were 928 (40%) food and beverage factories, 324 (14.1%) rubber producing premises and 270 (11.4%) chemical producers. Based on the distribution of water pollution sources by state in Peninsular Malaysia, the majority were found in Selangor (414), Johor (384), Pulau Penang (328) and Perak (253). These are also the most industrialized states in Peninsular Malaysia. In terms 15 of organic water pollution load, sewage and animal wastes were the major contributors of water pollution followed by manufacturing and agro-based industries in the country. In the case of pollution load, both the manufacturing and agro-based industries (palm-oil and rubber) contributed only 8% (37 t/d) of Biological Oxygen Demand (BOD) loads in 1988 in contrast to 13% (65 t/d) and 79% (385 t/d) of BOD loads from animal husbandry and sewage (Suleyman et al., 2005). Manufacturing sector such as the paper making industry, it requires chemicals in paper processing. Chemical such as chlorine has traditionally been used in the bleaching process to make pure white paper, but chlorine use results in the release of small, yet potent amounts of dioxins and furans, which are persistent, bioaccumulative, and toxic substances (California Integrated waste management board). Normally, the rivers are used as an outlet for the chemicals to drain away, in turn harming the waters and the lives that revolve around them. By performing life cycle impact assessment, the impact can be assessed and the less pollutant substance can be used. In this case, using other bleaching agent such as hydrogen peroxide, can help to minimize paper’s environmental impact. 2.2 Life Cycle Assessment (LCA) Every year, more and more companies are becoming concerned with the environmental impacts of their activities. These companies span the entire spectrum of industries from energy producer to product manufacturers and service oriented. They want to be able to understand the environment impacts they cause, in order to control or better yet, avoid them. They do so in a time of increasingly strict environmental regulations in an effort to stay within compliance and meet costumer needs, all the while staying financially healthy. Currently, the main driving force is understandably the needs for the companies to stay competitive in the marketplace (Curran, 1996). 16 Life cycle assessment (LCA) is a tool that can be used to evaluate the environmental effects of product, process or activity (Terrie et al., 2002). Environmental Protection Agency (EPA, 2006) defines LCA as a “ cradle to grave” approach for assessing industrial system. LCA may be formally defined as a systematic inventory and comprehensive assessment of the environmental effects of two or more alternative activities involving a defined product in a defined space and time including all steps and co-products in its life cycle (Pederson, 1993). It is a “cradle-to-grave” approach for assessing industrial systems. A collection of operations which together perform some defined function is called as a system. Any industrial system can be represented by a system boundary that encloses all the operations of interest. The region surrounding this boundary is known as the system environment as shown in Figure 2.3. All raw materials taken from the environment is the inputs and the outputs are waste materials released back to the environment. The environment Inputs The industrial System Outputs Figure 2.3 : The industrial System ( Source : SETAC 1991) “Cradle-to-grave” begins with the gathering of raw materials from the earth to create the product and ends at the point when all materials are returned to the earth. A complete life cycle or ‘cradle to grave’ includes raw material extraction, processing, transportation, manufacturing, distribution, use, reuse, maintenance, recycling and final waste disposal (Hauschild et al., 2005). 17 Figure 2.4 : A complete life cycle An environmental LCA evaluate the environmental effects associated with the given activity from the beginning of gathering the raw materials from the earth to the point where all materials are returned back to the earth. The evaluation includes all side stream releases to the air, water and soil. LCA is an attempt to comprehensively describe all these activities, the resulting environmental releases and the impacts. Life cycle stage Inputs Outputs Raw material acquisition Atmospheric Emissions Waterborne Waste Raw Materials Manufacturing Solids waste Use/reuse/maintenance Energy Co-products Recycle/waste management Other releases System Boundary Figure 2.5 : Life cycle assessment stages and system boundary (Source: EPA, 1993) 18 At every stage there can be material, energy and labour inputs. At each stage there may be waste that is treated or untreated before disposal to air, water or land. Within the cycle, wastes and retired materials may be reused, remanufactured or recycled to minimize the net output. The LCA, or environmental assessment, covers the environmental and resource impacts of alternative disposal processes, as well as those other processes which are affected by disposal strategies such as different types of collection schemes for recyclables, changed transport patterns and so on. There are several environmental factors need to be considered in LCA such as Table 2.2 Table 2.2 : Environmental factors to be considered in LCA (Gerard, 1997) Parameter Comment Resources depletion one also Material and energy are consumed and must consider whether the sources are renewable. Scarcity and alternative or potential uses are issues. Waste Solid, liquid, airborne and energy Ecological degradation Scarcity, diversity and sensitivity of ecosystems Human health and safety general The population at risk, workers, users, or community must be identified Economic effects Financial cost, including alternative uses Social effects amenity Degradation of areas of social interest or value The Society of Environmental Toxicology and Chemistry (SETAC) have been instrumental in increasing the awareness and understanding of the LCA concept. The proceedings for a workshop held by SETAC in 1990 helped define term to describe LCA. Those discussions laid the framework for how we view LCA today (Fava et al., 1991). 19 The key finding from the workshop in 1990 was the consensus to define LCA as a phased approach. LCA was defined as comprising three interrelated components which consist of inventory, impact assessment and improvement assessment. The components and the description of the LCA conceptual components are summarized in Table 2.3. Impact Assessment Goal Definition and scoping Improvement Assessment Inventory Figure 2.6 : The LCA conceptual model ( Source : SETAC, 1991) Table 2.3 : The description of the LCA component Component Description Inventory An objective, data based process of quantifying energy and raw material requirement, air emissions, waterborne effluents, solid waste and environmental release throughout the whole life cycle of the products, process or activity. Impact A technical, quantitative or semi quantitative process to characterize assessment and assess the effects of the environmental loadings identified in the inventory component. The assessment should address both ecological and human health considerations as well as other effects such as habitat modification or noise pollution. Improvement A systematic evaluation of the needs and opportunities to reduce the assessment environmental burden associated with energy and materials use and environmental release throughout the whole life cycle of the products, process or activity. This assessment may include both quantitative and qualitative measure of improvement such as changes in product, process and activity design; raw materials use; industrial processing; consumer use and waste management 20 EPA (2006) stated that the LCA process is a systematic, phased approach and consists of four components: goal definition and scoping, inventory analysis, impact assessment, and interpretation as illustrated in Figure 2.7. The components and the description of the components are shown in Table 2.4. Life Cycle assessment Framework Goal Definition and Scope Inventory Analysis Interpretation Impact Assessment Figure 2.7: Phases of LCA (Source: ISO, 1997) 21 Table 2.4: The description of the components of LCA according to EPA, 2006 Components Description Goal Define and describe the product, process or activity. Establish the Definition context in which the assessment is to be made and identify the and Scoping boundaries and environmental effects to be reviewed for the assessment. Inventory Identify and quantify energy, water and materials usage and Analysis environmental releases (e.g., air emissions, solid waste disposal, waste water discharges). Impact Assess the potential human and ecological effects of energy, water, Assessment and material usage and the environmental releases identified in the inventory analysis. Interpretation Evaluate the results of the inventory analysis and impact assessment to select the preferred product, process or service with a clear understanding of the uncertainty and the assumptions used to generate the results. 2.3 Application of LCA Life Cycle Assessment has been used for various purposes by industry, academics, public interest groups, and government policymakers. Common uses of LCA include: 22 i. Identifying those phases of a product's lifecycle that have the largest environmental burdens, and therefore the greatest opportunities for improvement. ii. Comparing the burdens of different products that are used for the same task. iii. Evaluating the influence of changes to a product, especially whether improvements in one part of a product's lifecycle could have offsetting negatives in another. iv. Assessing the relative environmental burdens of different human activities such as transportation, home heating/cooling and waste management. Application of life cycle assessment (LCA) ensured that the environmental impact is explicitly included in the design process, yielding the ‘best’ alternative. The ‘best’ choice can be difficult in the final analysis to assess, as many factors may cause an objective of LCA to fall into the gray or subjective area. Application of LCA to assess a waste site remedy is making use of the basics of chemical engineering and related field, the materials and energy balances with a few topics included such as economics, health risk assessment and regulatory constraints. Key components for assessment in the material and energy balance approach are the problem basic, boundaries, generation and accumulation and time. These terms and their components must be consistent in remediation or waste management methods for treatment of a process stream. In term of general equation, we may write for any LCA assessment (Constant, 2002): Input = output + generation + accumulation The generation term may be positive or negative (if material is consumed). It is critical that the terms are handled in a consistent fashion for use in LCA Life cycle assessment as both a concept and a methodology has a valuable role to play in improving understanding and reducing the environmental burdens associated with products, technologies, processes and activities from design and 23 development through ultimate disposition. It provides a systematic means to broaden the perspective of a company’s decision making process to incorporate the consideration of energy and material use, transportation, post customer use, disposal and the environmental release s associated with the product system. LCA provides a framework to achieve a better understanding of the benefits and risk associated with specific change in a product, package or process. Benefits realized from the application of life cycle concepts include cost containment, liability management, stakeholder value and competitiveness as indicated in Table 2.5. Companies’ use of LCA is encouraged to help plan and begin to design and improve the environmental quality of product system (Fava et al., 1996). Table 2.5: Benefits of implementing life-cycle concept Cost containment Lower management cost Lowers disposal cost Reduce energy consumption Increase productivity Liability management Reduce legal fine and penalties Improve relationship with regulators Limit criminal liability exposure Increase likelihood of compliance Stakeholder value Increase revenue Increase market share Enhance company image Competitiveness Better meet supplier and consumer need Revenue potential through recycling Increase market share New product opportunities 24 2.4 LCA and ISO 14000 The use of LCA by business firms is being encouraged by international standard setting organizations such as ISO. The ISO has been developing voluntary technical standards for business, industry, and technology since 1947. These standards are documented agreements on the technical specifications for materials, products, processes and services. The international organization for standardization (ISO) is developing standard worldwide in an effort to standardize and thus streamline the international marketplace for industry. ISO began developing standards for management systems in 1987. A management system refers to the rules, procedures, forms, records, and policies an organization uses to manage its processes or activities. The system of rules may not be written down in a very small organization but in larger organizations which involving more people, written rules are needed to ensure that everyone is clear about their own responsibility. Management system standards provide organizations with a model to follow in setting up and operating the management system. When all firms share similar models, it is easier for them to communicate the management practices to one another. ISO has developed standards for two types of management systems which are quality management and environmental management systems. The ISO quality management system standards are known as ISO 9000. A quality management system is the rules and procedures an organization uses to ensure that its products conform to its customers' requirements. The ISO environmental management system standards are known as ISO 14000. An environmental management system is the rules and procedures the organization uses to reduce environment damage caused by its activities. One of the greatest and fastest-moving trends is the development of ISO’s 14000 series, Environmental management Standard. The ISO 14000 series has been developed with global effort where by more than 30 countries participating. 25 In 1993, because of serious concern shared by industry, government and the public about the proliferation of local and national environmental standards, ISO established Technical Committee 207 (TC-207) to develop environmental management tools and system that would be applicable worldwide. Among the tools under development are environmental management systems, auditing, environmental performance evaluation, life cycle assessment and environmental friendly or ‘green’ labeling. Excluded from the scope of these standards are test methods, setting limit values or performance levels and specific product standards (Fava, 1996). Technical Committee 207 (TC 207) Environmental Management ISO 14000 Series Environmental Management System Life Cycle Assessment Environmental Labeling Environmental Performance Evaluation Environmental Aspect in Product Standard Environmental Auditing Organization evaluation Product evaluation Figure 2.8: ISO and development of environmental management tools The use of LCA by business firms is being encouraged by international standard setting organizations such as ISO. The ISO has been developing voluntary technical standards for business, industry, and technology since 1947. These standards are documented agreements on the technical specifications for materials, products, processes and services 26 The ISO 14000 standards for an environmental management system (EMS) provide guidance on how to create an environmental policy for an organization, a management plan for implementing the policy, and procedures for monitoring achievement of policy objectives. The ISO 14000 standards include guidelines on the kinds of procedures needed ensure compliance and go beyond compliance. These include standards on how to develop an LCA for an organization's product. Organizations that follow the ISO 14000 standards can then demonstrate to customers, creditors, insurers, stockholders, communities, and the public as whole what they are doing to reduce environmental pollution. 2.4.1 ISO 14000 Series ISO standards provide excellent resources for understanding the basic elements and requirements for LCA studies. They also provide insights into factors to consider when evaluating the results of an LCA study. The description of ISO 14000 series is summarized in Table 2.6 ISO 14000 series are combining ISO 14040, 14041, 14042, and 14043 into two standards which are: i. ISO 14040- Environmental management - Life cycle assessment Principles and framework. ii. ISO14044 - Environmental management - Life cycle assessment Requirements and guidelines. 27 Table 2.6: The description of ISO LCA standard and technical report ISO 14000 series Description ISO 14040 - General Provides the basic description and framework for LCA Principles from which the remaining LCA standards are based. This and Framework standard also defines the “comparative assertion” requirements, including critical review. ISO 14041 - Goal and Establishes at the outset the goals, purpose, audience, Scope scope, and stakeholders that will be impacted or Definition and influenced by the results. This information influences the Inventory actual conduct of the LCA study. The inventory analysis Analysis portion is where the resources and emissions related to the product system are quantified ISO 14042 - Life Cycle The phase of life cycle assessment aimed at understanding Impact Assessment and evaluating the magnitude and significance of the (LCIA) potential environmental impacts of a product system. ISO 14043 - Life Cycle The interpretation phase of an LCA, where the Interpretation significance and relative contributions of the results are broken down and analyzed ISO 14047 -Technical Provides illustrative examples on how to apply life cycle Report impact assessment. ISO 14048 - LCA Data Provides Documentation Format documenting LCA data. ISO 14049 - Technical Provides illustrative examples on how to apply goal and Report scope definition and inventory analysis. guidance on factors to consider when 28 Fava (2005) in International Conference on Life Cycle Assessment cited that in the new ISO 14040, a number of principles have been added: ● Life cycle perspective - LCA considers the entire life cycle of a product, from raw material extraction and acquisition, through energy and material production and manufacturing, to use and end of life treatment and final disposal. Through such a systematic overview and perspective, the shifting of a potential environmental burden between life cycle stages or individual processes can be identified and possibly avoided. ● Environmental focus - LCA addresses the environmental aspects and impacts of a product system. Economic and social aspects and impacts are, typically, outside the scope of the LCA. Other tools may be combined with LCA for more extensive assessments. ● Relative approach and functional unit - LCA is a relative approach, which is structured around a functional unit. This functional unit defines what is being studied. All subsequent analyses are then relative to that functional unit as all inputs and outputs in the LCI and consequently the LCIA profile is related to the functional unit. ● Iterative approach - LCA is an iterative technique. The individual phases of an LCA use results of the other phases. The iterative approach within and between the phases contributes to the comprehensiveness and consistency of the study and the reported results. ● Transparency - Due to the inherent complexity in LCA, transparency is an important guiding principle in executing LCAs, in order to ensure a proper interpretation of the results. ● Comprehensiveness - LCA considers all attributes or aspects of natural environment, human health, and resources. By considering all attributes and aspects 29 within one study in a cross-media perspective, potential tradeoffs can be identified and assessed. ● Priority of scientific approach - Decisions within an LCA are preferably based on natural science. If this is not possible, other scientific approaches (e.g. from social or economic sciences) can be used or international conventions can be referred to. If neither a scientific basis exists nor a justification based on other scientific approaches or international conventions is possible, then, as appropriate, decisions may be based on value choices. 2.5 Overview of LCA Implementation in Developing and Developed Country LCA nowadays is accepted worldwide. In developed country, LCA has been implemented widely but in developing country it still in infancy stage. On March 2001, a one year project on LCA Case Study Development in Asian Countries has been developed. The objectives of the project are to showcase Asian experience in LCA, to obtain experience and feedback from an Asian perspective on applying ISO 14040, to involve local companies in applying LCA, to promote awareness and education in LCA, and to discover the role of LCA in Green Productivity (GP) and other environmental initiatives. The countries involved are India, Indonesia, Korea, Japan, Malaysia, Singapore, Taiwan and Thailand. Although LCA has been receiving a lot of attention since 1990, the first attempt to look at extended product systems can be traced back to as early as 1996s. With the oil shortage on the early 1970s, both the United States and British governments commissioned extensive studies of industrial studies to conduct detailed energy analyses. After the oil crises faded, LCA activities in United States continued at a slow stage but steady pace of around two or three studies per year. 30 2.5.1 LCA Activities in Thailand Life cycle assessment (LCA) has been introduced to the Thai industries in 1997 as part of the ISO 14000 series. The concept of LCA is being gradually accepted. However, there are a few formal LCA studies in Thailand so far due to the limited amount of LCA expertise and lack of sufficient databases relevant to domestic condition (Pongvipa, 2002). The LCA activities in Thailand were divided into 4 areas. There areas were: a) Workshop and seminar b) Survey of LCA use c) Use of LCA studies in eco-labeling d) Life cycle inventory (LCI) and LCA studies. The concept of LCA has been introduced through out the workshop and seminar in cooperation with many organizations. The LCA seminar and workshop has been done annually during 1997-2001. The entire seminar gained attention from Thai industries successfully. A questionnaire survey method was used to investigate LCA use in industries in July 1998 and December 2001. The data was collected from universities, industries and government agencies. There were 43 respondents involving in first survey and none of the respondents performed a formal LCA. This was mainly because of lack of LCA knowledge and expertise and difficult methodology. However, 79% of the respondent were interested in studying LCA in their companies but required the Thai government to provide LCA training and more information. The second survey was conducted in December 2001. Being aware of the high cost involved and the time consumed in developing product criteria through format LCA, the Thai Green Label scheme has decided that the formal LCA is not applicable. The development of award criteria for the scheme 31 has adopted different methodology. Results from existing LCA studies have been used as a scientific tool in the Thai Green Label Scheme for the development of environmental criteria for a few product categories. The first LCI study in Thailand was conducted by Thailand Environment Institute (TEI), in September 2000. The objective of the study was to develop LCI for Thailand Electricity Grid Mixes, which will be databases for a further LCA study. In addition, there were a few LCA thesis studies in some universities, but all the studies used databases from the commercial software program. 2.5.2 LCA in Malaysia Evolution of eco-labelling in Malaysia has begun in year 1992. In year 1992 a formation of National Advisory Committee on Eco-Labelling under the national standard infrastructure managed by SIRIM. Two years later, ISO formed the Technical Committee on Environmental Management, ISO TC 207 and The National Advisory Committee on Eco-labelling was changed to Industry Standards Committee on Environmental Standards. In 1996, SIRIM QAS International had launched the Environmental Management System Certification Scheme. Industry Standards Committee on Environmental Standards assumed the role of the national mirror committee to TC 207 and was renamed (Industry Standard Committee) ISCZ on Environmental Management in year 1999. 32 Table 2.7 : Evolution of eco-labelling and beginning of the National LCA Project in Malaysia. Year Event 1992 Formation of a National Advisory Committee on Ecolabelling under the national standard infrastructure managed by SIRIM 1994 ISO formed the Technical Committee on Environmental Management, ISO TC 207. The National Advisory Committee on Eco-labelling was changed to Industry Standards Committee on Environmental Standards 1996 SIRIM QAS International launched the Environmental Management System Certification Scheme 1999 Industry Standards Committee on Environmental Standards assumed the role of the national mirror committee to TC207 and was renamed Industry Standard Committee (ISCZ) on Environmental Management 2001-2003 Development of LCA Among APEC Member Economies: Malaysian Component (JEMAI Phase II – III) 2004 -2007 SIRIM JETRO-Establishment of LCA Methodology and Application in Malaysia (Phase I) 2007- 2008 22 LCA studies under MNRE (Ministry of Natural Resources & Environment) to support National LCA project 2008 SIRIM JETRO (Phase II) The organization of ISCZ consist of 27 members which come from various bodies such as professional bodies, industry representative, research institution and universities, government and non-government organizations (NGOs). 33 Table 2.8: Some of organization of ISCZ Organization Professional bodies Example of organization involved Association of Consulting Engineers Malaysia Industry representative Federation of Malaysian Manufacturer Peremba Group of Companies Research institution and SIRIM Berhad universities University Malaya Government Department of Environment MITI Ministry of Primary Commodities Non- government organizations(NGOs) Centre for Environmental Technology and Development Under the Ninth Malaysia Plan, the Government of Malaysia has authorized The National LCA (Life Cycle Assessment) Project to develop the National Life Cycle Inventory Database. The Database will be used to conduct life cycle assessment studies, support the National Ecolabelling Programme and fulfil the requirements of foreign legislation that demand evidence on the control measures taken to reduce environmental impact of products and services throughout their life cycle. The specific objectives of the National LCA Project as stated in LCA Malaysia website are: i. To develop the national life cycle inventory database ii. To develop a critical mass of local LCA practitioners 34 iii. To develop ecolabelling criteria documents for the National Ecolabelling Programme iv. To create awareness among industry and consumer groups on the importance of LCA in today’s manufacturing and procurement practice. 2.5.3 LCA in Japan LCA has been watched with keen interest as a method for evaluating environmental load in order to realize the sustainable development. The standardization of these methods has been promoted by the ISO (the International Organization for Standardization). In Japan as well research activities in the national and private organizations has become ever more active. In the LCA Society of Japan, the methodology and applications of LCA were studied in detail during the period 1995-1997 with the support of MITI and the participation of 250 national, industrial and academic organizations. As a result of the studies the following activities have been addressed: i. Establishment of LCA tools for the whole of Japan ii. Construction of a Japanese public database iii. Establishment of LCA application rules iv. Establishment of education and popularization systems for both the public and industries. 2.5.4 LCA in Germany Life-Cycle Assessment has gained rising relevance in the environmental policy of business in German. This observation was the stimulus for carrying out an empirical survey concerning the application of LCA in German industry. In general, 35 German industry has become more experienced with LCA and will continue to apply this instrument in the near future (Susanne et al., 1996,). A survey was carried out by Ecological Economics Research Institute in cooperation with Federation of German Industry, on the application of LCA in German industry from February to November 1995. The survey aimed at providing an overview of the objectives and investigated products of LCA-studies carried out by German companies. The companies involved in this study were automobile industry, followed by the chemical and paper and print industries. LCA is of growing importance in German industry. The evaluation revealed that the prevailing objective is product and process optimisation, while the utilisation for procurement, for example, is not yet wide spread. Furthermore, LCA is used for information purposes. Companies, however, especially those in the automobile industry, do not always make these studies available to the public. It appears that food companies use LCAs in a more offensive fashion, while chemical industry applies these instruments for more defensive reasons. Few LCAs have been conducted by industrial associations. For them, they more often serve external purposes, likes information of interest groups is more important than product optimization. Even though companies in Germany have become more experienced with LCA, other instruments that extend the set of environment related strategies such as environmental reporting, environmental auditing, risk assessment are gradually being paid more attention. This may sometimes curtail the personnel and financial resources available for LCA. This accumulation of knowledge both on methodology and preparation for instance, the establishment of data banks and application of LCA software will reduce costs per LCA and, thereby, promote its application on a larger scale. 36 2.5.5 LCA in Europe and the United States According to McKiel and Goidel (1996) European countries have been much more willing to use some form of LCA as a basis for their public policy. The willingness of Europeans to use an evolving tool more practically in is most apparent in ecolabeling programs that have cropped in many European countries. Ecolabeling, in fact, is perhaps the most widely publicized area where LCA has been used as an underpinning the public policy. In the European Union (EU), a number of individual member countries have established national labeling programs with Germany Blue Angel. All these programs are adopting the concept of LCA, at least in principle. The EU formally articulated in a directive that the EU ecolabeling program shall be based on LCA. In the United States, the concept of life cycle has been used by the Department of Energy since the late 1960s for analyses the energy use in certain processes and products. In fact, the current methodology of LCA has origins in Department of Energy’s fuel cycles. More recently the use of LCA and its concepts has been much more widespread in the private sector but has not gained a strong following in the public sector. Based on a survey of LCA practitioners carried out in 2006 by Cooper and Fava, (2006), most life cycle assessments are carried out with dedicated software packages such as GaBi Software and SimaPro. With the progressive development of software, the LCA become easier and less time and cost consuming. 2.6 Environmental Friendly Product Lately, word environmental friendly is not strange anymore. Environmentally friendly is also known as eco-friendly, nature friendly and green. Those words are used to refer to goods and services considered to inflict minimal or no harm on the environment. 37 When products, goods or services are bought, environment-conscious consumers may rely on labelling and marks for information about their resource consumption, sustainable production practices, recycling, and overall environmental impact. To make consumers aware, environmentally friendly goods and services often are marked with eco-labels. Consumers also need effective mechanisms to support the credibility of these marks and labels and avoid being misled by unfounded “ eco-marketing ” claims. Products have more complex production and marketing cycles ; the increased resale and recycling of goods (either whole or in parts) and the continuing acceleration of cross-border trade contribute to this. Companies and organizations tend to communicate more to the general public on their environmentally preferable production practices and ethical behaviour, and use this for marketing purposes. But because there is no single international standard for this concept, the International Organization for Standardization considers such labels too vague to be meaningful. 2.6.1 Eco-labelling Ecolabelling is a voluntary method of environmental performance certification and labelling that is practised around the world. Basically, an ecolabel is a label which identifies overall environmental preference of a product (e.g. good or service) within a product category based on life cycle considerations. In contrast to a self-styled environmental symbol or claim statement developed by a manufacturer or service provider, an ecolabel is awarded by an impartial third party to products that meet established environmental leadership criteria. Ecolabelling is only one type of environmental performance labelling, and refers specifically to the provision of information to consumers about the relative environmental quality of a product. There are many different environmental performance labels and declarations being used or contemplated around the world (Global Ecolabeling network, 2004). 38 The origins of ecolabelling can be found in the growing global concern for environmental protection on the part of governments, businesses and the general public. Initially, and mostly in developed countries, as commercial enterprises recognised that environmental concerns could be translated into a market advantage for certain products, a number of environmental declarations and claims emerged on and in association with certain products. These included labels with such claims as "recyclable", "eco-friendly", "low energy", and "recycled content". Such labelling of the products attracted consumers who were looking for ways to reduce adverse environmental impacts through their purchasing choices. The oldest eco-label scheme is the German Blue Angel, established in 1977. Of the 48 eco-label schemes in operation, more than three-quarters are governmental or quasi-governmental schemes, administered or funded by public agencies. Ecolabelling schemes are in existence in at least 29 countries, both in the North and South. Most countries have one eco-label scheme in operation, Sweden has two and the US has 28 operational schemes (FERN, 2003). Figure 2.9 : Logo of Blue Angel Scheme, Federal Environment Agency, Germany. There are many different voluntary (and mandatory) environmental performance labels and declarations. The International Organization for Standardization (ISO) has identified three broad types of voluntary labels, with ecolabelling fitting under the Type I designation. Table 2.9 indicates of Voluntary Environmental Performance Labelling according to ISO definitions. Figure 2.10 to Figure 2.11 shows the types of voluntary labels. 39 Table 2.9 : The definition of Voluntary Environmental Performance Labelling Types of voluntary labels Definition Type I A voluntary, multiple-criteria based, third party program that awards a license that authorizes the use of environmental labels on products indicating overall environmental preferability of a product within a particular product category based on life cycle considerations. Type II Informative environmental self-declaration claims Type III Voluntary programs that provide quantified environmental data of a product, under pre-set categories of parameters set by a qualified third party and based on life cycle assessment, and verified by that or another qualified third party. 40 Figure 2.10: Type I ecolabel. Multiple criteria, third party program Figure 2.11: Type II ecolabel. Selft-Declared Environmental Claims such as compostable, degradable, recyclable, reduced energy consumption and reduced water consumption Figure 2.12 : Type III ecolabel. Environmental Declaration. An example of Report card on environmental performance from cradle to grave.( Source: Slide presentation, MICCOS) 41 2.6.2 Objectives of Ecolabelling Ecolabelling has become a useful tool for governments in encouraging sound environmental practices, and for businesses in identifying and establishing markets (i.e. domestic and sometimes international) for their environmentally preferable products. There are three objectives of ecolabelling as cited by Global Ecolabeling network, 2004: i. Protecting the environment- Through ecolabelling programs, governments and/or non-governmental program authorities seek to influence consumer decisions and encourage the production and consumption of environmentally preferable goods and the provision and use of environmentally preferable services. ii. Encouraging environmentally sound innovation and leadership- By offering products that reduce stress on the environment, the businesses can establish or reinforce a market niche and positive corporate image among consumers, thereby realising an advantage. iii. Building consumer awareness of environmental issues- Ecolabelling programs can also serve to heighten consumer awareness of environmental issues and of the implications of their choices. 2.6.3 Ecolabeling in Malaysia According to paper written by Staff Pengajar from Universitas Mercu Buana stated that environmental labels can be either mandatory or voluntary. Product certification started in Malaysia in 1996 based on voluntary product certification programs supervised by the SIRIM which also co-ordinates its programs with the Ministry of Environment. The program was launched in 1996 by the Standards and Industrial Research Institute of Malaysia (SIRIM). As of March 1997, SIRIM's certification activities were delegated to a fully-owned subsidiary, SIRIM Quality 42 Assurance Service (SIRIM QAS). Malaysia adopted an eco-labeling program which is voluntary with independent third-party verification that attempts to assure that goods meet specified environmental criteria or standards. The criteria are publicly available and uniformly applied. Currently, few products have been eco-labeled such as energy (plum free); papers and packaging (recycle), CFC (cloroflocarbon) free and biodegradable household goods. In this regard eco-labeling programs in Malaysia involve third-party certification done by a body that is not in any way involved in the production, marketing, or consumption of the goods in question. The international standards organization has developed a set of standards on eco-labeling. Basically, ISO 14020 Environmental labels and declaration has set out three categories of certifiable labeling standards. The description of categories of certifiable labeling standards can be referred in Table 2.9: i. Type I- Stamp of approval label ii. Type II - Self declaration label iii. Type III - Report card label. Currently, Malaysia adopts product certification programs that can also be designed according to Type II -ISO 14021 standards which provide a self-declaration pertaining to environmental attributes of the product. For example, eco-labels which have been self declared may contain a percentage of recycled material been used or that the product is recyclable. Thus, this standard has been finalized and printed and is available for use. Certification determines whether a given product meets those standards, while marketing develops consumer awareness and trust in the claim. An example of this will be products with the recycling symbol, or the Mobious Loop which is widely used and recognized as a voluntary eco-labeling program that may be funded and supervised by the private sector or sponsored by the government. CHAPTER 3 METHODOLOGY 3.1 Introduction This section contains the methodological issues used in this research. It primarily focuses on providing information with the tools and techniques used in the research process. A methodology of research defines the activity of the research, measuring the progress of the research and the outcome of the research. Proper methodology for the research is essential in order to ensure all the data and information needed is able to be obtained. Besides that, the methodology refines on the method of analyzing the data for the research using the correct method. The whole process involved to get the findings is shown in Figure 3.1. Gathering the information related to the study was the initial phase of the project. Interpretation of the information in the literature review is important. The sources of the literature review and the secondary data are books, magazines, articles, journals, newspaper articles, conference articles, legislation and standards, brochures and thesis. The information from literature review and secondary data also helps in assisting the development of questionnaires and case study. 44 Phase 1 Gathering Information Gathering information Identification of problem Literature review Phase 2 Question Development and survey Secondary data Questionnaire Development Manufacturer Small and medium scale Phase 3 Analysis and result Analysis of Data (SPSS) Result and conclusion Figure 3.1 :The overall processes involved in the project. 45 The second phase of the process is developing the questionnaire and conducting the survey. The questionnaire consists of two types of question which are open ended question and close ended question. The questionnaire was composed of three sections, which helps in the assessment of the level of awareness of the LCA and also helps in evaluating the willingness to perform LCA in their company. The third phase would be the stage of analysis and result. All the data was analyzed using Statistical Package for the Social Sciences (SPSS). SPSS is a computer program used for statistical analysis. 3.2 Data Collection This study took consideration from various sources including questionnaire, informal conversation and field observation. To fulfill the objectives of the study, data and information used in this study was classified into two groups, namely as primary and secondary data. 3.2.1 Primary Data Primary data were obtained from questionnaire survey done in study area. During the conducting the surveying, observation of the field has been done. Informal conversation related to this study also happened. Data and information which was categorized as primary data in this study is the data obtained from the questionnaire. 46 3.2.2 Secondary Data Beside primary data, secondary data is also needed for this study. Secondary data is an unobtrusive data collection method in which available data that predate the formulation of an evaluation are used to answer the evaluation question (Unrau et.al.,2007). It refers to the information by somebody else other than the researcher conducting the current study. However, secondary data does not permit the progression from formulating a research question to designing methods to answer that question. Such data can be internal or external to the organization and accessed through the internet or perusal recorded or published information. 3.3 Research Design There are three main phases involved in this study as shown in Figure 3.1. These phases are consists of preliminary data collection, data collection and analysis the result. 3.3.1 Preliminary Data Collection Before other steps can be taken, gathering the information related to the study need to be done. This is the initial phase of the project. The information related to the study can be obtained from books, journals, magazines, newspapers, articles, conference articles, standards, brochures and thesis. The information from literature review also helps in developing the questionnaire for this study. 47 3.3.2 Data Collection Developing the questionnaire and conducting the survey is the second phase of the process. The questionnaire consists of two types of question which are open ended question and close ended question. The questionnaire was composed of three sections, which helps in the assessment of the level of awareness of the LCA and also helps in evaluating the willingness to perform LCA in their company. The target questionnaire to be shared is 32 and the companies are selected randomly in the area of the study. The questionnaire is divided into several sections. There are three sections in the questionnaire which seeks to address the issue regarding the aim of the study. Proper elaboration of the section and the topic tackled in each part is shown in Table 3.1 Table 3.1: Elaboration of section in the questionnaire Section Topic A Company’s background B Recyclibility of the product C Awareness of LCA Section A looks more towards the understanding of the company’s background of the respondents such as the product that they produce, the scale of the company and the market for the product. Section B addresses on the product itself like the economical aspect of the product and the recyclibility of the product. Section C asks of the knowledge of LCA and other consideration related to the LCA like the willingness to perform LCA and produce greener product. This section also asked which medium can deliver the information of LCA effectively. It 48 also emphasizes on the knowledge of the impact to the environment through out life cycle of the product. This section is more towards general understanding on environment issue on impact of the product’s life cycle. Respondents are needed to give feedback based on their knowledge on the issue. 3.3.3 Result Analysis The last phase involved in this study is analysis the data. In stage of result analysis, SPSS software is used to analysis all the data. The result will be produced and the conclusion will be drawn together with the recommendation for future study. 3.3.3.1 Data Interpretation For some question, Likert scale is used to indicate the respondent’s level of awareness and level of knowledge. Five level of scale are used in the questionnaire. A Likert scale is a psychometric scale commonly used in questionnaire and the most widely used scale in survey research. These scales range from one (1) to five (5), which represents the lowest and highest strength. Respondents have to specify their level of agreement to the statement given. Table 3.2 shows the typical level of scale used in the questionnaire. Table 3.2 : Five level of Likert scale Scale Level 1 Strongly Disagree 2 Disagree 3 Slightly Agree 4 Agree 5 Very Agree 49 Highest percentage was identified for each part to summarize the level of awareness based on the respondent’s feedback. The information is displayed in a narrative way with suitable charts to make it more easily understood. CHAPTER 4 DATA AND RESULT ANALYSIS 4.1 Introduction All the data obtained is being analyzed and processed in this chapter. All the data is analyzed using SPSS software and there are data that is being analyzed manually as well. The findings is discussed and presented in this chapter. The analysis is based on descriptive statistical analysis and inferential analysis. The data in this study was obtained through questionnaire distribution. The study area chosen is light industrial in industrial park at Taman Universiti, Skudai, Johor Bahru, Malaysia. There are about 47 industries in this area. The number and type of production is summarized in Table 4.1. The questionnaire was covering 68% from the whole numbers of industries in Taman Universiti. The total number of 47 is including warehouses or storages and retail shops. 51 Table 4.1 : Number and category of production in Taman Universiti. Category 4.2 Number Food and Beverage 5 Funiture and Part 3 Metal Product and Part 4 Paper and Paper Product 4 Plastic and Plastic Product 11 Rubber and Rubber Product 3 Textile and Textile Product 3 Others 14 Total 47 Questionnaire (Descriptive Analysis) The questionnaire is the main source of data collection in this study. The questionnaire was distributed amongst manufacturer in the study area of Taman Universiti. This was carried out in order to evaluate the set objectives of the study from the study area. There were 32 of questionnaires has been distributed among the manufacturers in Taman University. This study not only focuses on one production but different type of production. 4.2.1 Background of respondent In order to commence the questionnaire studies, background of the manufacturer and the position of respondent are required. This will help analyze groups like the type of production and the market target for the product. These background questions also will help assess the way in which different role of respondent react to questions being asked. Beside that the recyclability of the product they produce is also obtained in this section. Tables 4.2 shows the frequency and percentage of respondent who response to the questionnaire 52 Table 4.2 : Frequency and percentage of respondents Reply Frequency Percent % Manager 14 43.75 Engineer 13 40.625 5 15.625 32 100 QC Total From the Table 4.2, it is observed that the percentage of manager and engineer doubles that of the Quality Control (QC). Even though this area only consists of light industry, they have their own engineer and QC to make sure their product meet the client requirement. Beside that, the position of the respondent is importance because they know better about the product that has been produced and the process involve in making the product. Figure 4.1 shows the manufacturers involved in this study according to their production. Production based on plastic takes the highest position with number of 10 out of 32 manufacturers involved in this study. Food industry is the second highest manufacturer in this area. Meanwhile the rest shared almost the same position. Type of production 31.25 35 30 25 20 15.625 12.5 percentage 15 12.5 9.375 9.375 9.375 10 5 0 food metal paper plastic rubber textile others Type of product Figure 4.1 : Manufacturer based on their type of production 53 Every single manufacturer has their own market for their product. For this area, most of the product is for local market and only 12.5% for export. 25% of productions for these manufacturers are for local market and for export. Figure 4.2 indicates the percentage for market target of the products. Market target of the product 70 62.5 percentage 60 50 40 25 30 20 12.5 10 0 local export both Figure 4.2: Market target of the products. Local marketing is 62.5% which is the highest because of the production itself. Since the area is light industry, they may not produce the product in large amount. Basically, most of the production is depending on client requirement. The recyclability of a product is important in order to make sure the product can be recycled at end of their useful life. Recycling also can reduce the waste to be dumped in landfill. From the survey, 65.6% of the products produced can be recycled as shown in Figure 4.3. Since the production of the plastic is higher than others, it may contribute to the percentage of recyclability of the product. 54 Recyclability of the product 70 60 50 40 65.625 30 34.375 20 10 0 yes no Figure 4.3: Percentage of recyclability of the product produced from light industry at Taman Universiti Beside that, the respondents were asked about their product either it reusable or not. The respondents said they have no right to decide because it depends on consumer creativity. The product may reusable if the consumer knows how to exploit the product to other purposes. The product life service also depends on how the consumer utilizes the product. All the products involved in this study can not be economically repaired or upgraded. Since they are small and medium manufacturer, most of them produce only a part of the entire product. The components then are sent to other company to coalesce it into a useful product. The suppliers also are not taking back the product for recycling purposes. 4.2.2 Awareness and Knowledge Of LCA This section of the questionnaire is to evaluate the awareness and knowledge of the respondents at the study area on LCA. Issues are based on their knowledge and 55 awareness on application of LCA in industry. Their knowledge and awareness of LCA is essential to improve the future trend of LCA implementation especially in light industry. Table 4.3 : Frequency distribution towards knowledge of LCA Reply Frequency Percent % YES 10 31.25 NO 22 68.75 Total 32 100 From Table 4.3 it is observed that the 10 of respondents out of 32 respondents agree that they do have the knowledge of LCA. This frequency contributes to 31.25% of saying Yes and the rest of 68.75 % responded No to the question indicates that they have no idea about LCA. Informing those who involved in industrial sector about the LCA and the benefits of performing LCA is important to increase their knowledge and awareness. The awareness of LCA indirectly can reduce the impact of the service or product through it life cycle to the environment. Even 31.25% of the respondents know about LCA, but none of the companies have certification of environmental concerned such as ISO 14000 or equivalent. It can be considered that environmental conscious among the manufacturers in the study area are still low. However, they assert that they have plan toward environmental conscious but it still in development. 56 40.625 agree 46.875 slightly agree 6.25 disagree 6.25 strongly disagree 0 10 20 30 40 50 Figure 4.4 : Consideration to perform LCA Even though the awareness and knowledge of LCA is still low, 40.6% of 32 respondents agreed to consider performing LCA in their company as shown in Figure 4.5. Meanwhile the rest of the respondents are still indecisive. This is because they have no knowledge of LCA. More training and information need to be provided to deliver the important of LCA not only to industrial sector but also to the public. Awareness of LCA can help the industry to perform better. 50 50 46.875 45 40 35 30 25 20 15 10 5 3.125 0 0 0 s trongly dis agree dis agree s lightly agree agree very agree Figure 4.5: Consideration of green product 57 Green product becomes the prominent issue in order to sustain the environment. Green product mean the product is environmental friendly which has less impact of the product to the environment. The manufacturers must consider the environment in all aspects of the product lifecycle, from design and engineering to packaging and recycling to produce green product. This means eliminating environmentally sensitive substances from the products and working towards developing reliable, environmentally sound, and commercially scalable solutions. Performing LCA can assess the impact of the product to the environment. 40.6% of respondents agree to consider performing LCA but the consideration is excluding the cost. From Figure 4.5, can be seen that no one agree to change to green product if it increasing production cost. Perhaps they are small industry, so they do not tolerate with financial aspect. Plus, advantages of implementing LCA are still far from their knowledge. They do satisfy with the current situation as long as their company meets the DOE requirement. 0 very agree 0 11 agree 34.375 Frequency 16 slightly agree disagree percentage 50 5 15.625 0 strongly disagree 0 0 10 20 30 40 50 Figure 4.6: Tendency to join the standard development process From Figure 4.6, 50% of respondents slightly agree to join the standard development process if there is a body decides to develop a standard or guidance for LCA. 34.4% agree and 15.6% refused to involve in the standard development process. Development of standard or guidance consumes time and cost. Because of 58 this reason, only 34.4% of respondents agree to join the standard development process. slightly agree, 50 50 45 40 disagree, 28.125 35 30 agree, 18.75 25 Percentage,% 20 15 strongly 10 disagree, 3.125 5 very agree, 0 0 Figure 4.7: Implementation of LCA should be compulsory According to Figure 4.7, only 18.75% respondents agree that implementation of LCA should be compulsory meanwhile the rest of respondents responded negatively toward this question. It shows that the industry is not ready yet to apply the LCA in their organization. 43.75 45 40 37.5 35 30 25 18.75 20 Percentage, % 15 10 5 0 0 0 strongly disagree slightly disagree agree agree very agree Figure 4.8 : Government should provide LCA training and more information. 59 LCA is a new approach to assess and control the environment degradation. Many have no idea what LCA is. So, somebody must have responsibility delivering the information of LCA. In this survey, 81.25% of respondents agree that government should provide LCA training and information on LCA. Government has great influence and priority compare to others. So far, SIRIM has been given a mandate by the government to organize the development of LCA activities in Malaysia. Every year SIRIM conducts the seminar related to LCA. The detail about the seminar can be reviewed in SIRIM’s website. There are several medium such as internet, television, radio, newspaper and seminar which can deliver information to public faster and effectively. From Figure 4.9, the best medium which can deliver better information effectively is chosen by the respondents is through workshop and seminar. They do believe by attending the workshop and seminar, they can gain the information of LCA is better than other medium. This is because in seminar, training is normally provided and any question related to LCA can be directly referred to the expertise. Even though one have to spent some money and time attending the seminar, it worth in delivering information effectively. Meanwhile 12.5% chose television and 6.25% goes to internet, radio and newspaper respectively. Medium preferred to deliver information about LCA new spaper, 6.25 internet, 6.25 television, 12.5 radio, 6.25 w orkshop or seminar, 68.75 Figure 4.9 : Medium preferred to deliver information of LCA Electronic media such as television, internet and radio are the best medium to spread the information. But, via these mediums the information is only to let the 60 public know what LCA is and not emphasize on LCA technically. For those who involved in the industry, they need to know the information on LCA more deepen. A body who in charge conducting seminar or workshop can use electronic media and print media as well to spread out the event. 4.3 Reliability Test Reliability test was carried out for data obtained from the questionnaire. The reliability test was run by using the Alpha Cronbach model. This model is a model of internal consistency based on the average inter-item correlation. From the model, the value of Cronbach’s Alpha as shown in Table 4.4 is 0.702. Data is considered reliable if the value of Cronbach’s Alpha is above 0.7. Since the value of Cronbach’s Alpha is 0.702, it indicates that the data is reliable. Table 4.4 : Reliability Statistics Cronbach’s Alpha Cronbach’s Alpha Based on Standardized Items 0.702 4.4 0.715 Inferential Statistical Analysis The inferential analysis looks into the correlation that exists between set objectives and related significant dependent variables. Analysis is based on bivariate correlation and regression to produce a linear equation. 61 4.4.1 Bivariate This analysis basically correlates the dependent variables and the independent variables. The Bivariate Correlations procedure computes Pearson’s correlation coefficient with their significant levels to measure how variables or rank orders are related. The independent variable being the position of respondents, the production and the market target. These independent variables will be correlated with dependent variables. Thus, deducing there from the level of significance in respect of Pearson correlation (r) and Significant level (p). 4.4.1.1 Awareness of LCA Table 4.5 shows that respondents position has significant correlation (r=0.358), (p<= 0.05) with awareness of LCA and at significant level 95%. Table 4.5: Data Correlation for awareness Awareness of LCA Variables Pearson Sig. (2-tailed) Correlation (r) Respondents position -0.358* 0.044 Type of production 0.007 0.97 Target Market 0.177 0.332 Note : *. Correlation is significant at the 0.05 level (2-tailed). The correlation indicates that the manager has higher awareness about LCA compare to engineer and QC. In organization, manager has higher position which mean manager has the power to control and make the decision. So, manager has to be sensitive with current issue to make sure the market of their product is stable. 62 Many campaigns have been launched regarding to environmental conscious such as recycling program and say no to plastic bag. Generally, recycling rate at Malaysia is still low. In Penang, customer has to pay for plastic bag. This program to lessen the usage of plastic since the plastic takes long time to decompose Table 4.6: Data Correlation for product recyclability Product Recyclability Variables Pearson Sig. (2-tailed) Correlation (r) Respondent position -0.450** 0.010 Type of production 0.113 0.539 Target Market 0.393* 0.026 Note : * Correlation is significant at the 0.05 level (2-tailed). ** Correlation is significant at the 0.01 level (2-tailed). Table 4.6 present the correlation between recyclability of the product and the variables. Correlation is significant at the 0.05 level between recyclability of product and target market with (r=0.398) (P<= 0.05) and correlation is significant at the 0.01 level ( r=-0.450) (P<= 0.01) between product recyclability and respondents position as indicates in Table 4.6. It is explaining that the recyclability of product for export and local market is higher. Every country has it own regulation to protect the environment. As an example, in German, disposal problem strongly favor recyclable materials for product packaging. In fact, German regulation applying to national and imported product require specific levels of recyclability and may even require that an importer take back the packaging materials once the consumer unwraps the product. Packaging materials are much smaller consideration in the life cycle of Malaysian products imported to German. But transportation and energy expenditures associated with collecting, transporting and recycling of packaging materials are prohibitive to effective export of some products under German regulation. 63 Beside that, the product for local and export shows more interest in joining standard development process. The correlation can be reviewed in Table 4.7. The correlation is significant at the 0.01 level with value of Pearson Correlation is 0.548. Table 4.7 : Data Correlation Tendency Joining Standard Variables Development Process Pearson Sig. (2-tailed) Correlation (r) Respondent's position -0.339 0.057 Type of production 0.043 0.816 Target Market 0.548* 0.001 Note : *. Correlation is significant at the 0.01 level (2-tailed). Table 4.8 shows the correlation significant at the 0.01 level between target market and compulsory of implementing LCA with r=0.683. It means that product for international and local need more attention to meet the regulation of local authorities and other country as well. Table 4.8: Data Correlation Compulsory of Implementing LCA Variables Pearson Sig. (2-tailed) Correlation (r) Respondent's position -0.197 0.281 Type of production 0.312 0.083 Target Market 0.683** 0.000 Note: ** Correlation is significant at the 0.01 level (2-tailed). Development of the basic LCA concept has occurred at international level. To make sure the product can be accepted worldwide the manufacturer need to have access to the bases including the LCA methodology of national and regional 64 standard. Better yet, life cycle considerations applied in the development of international standard for product could reveal common elements of both agreement and concern. 4.4.2 Regression Regression is a measure of the relation between the mean value of one variable and corresponding value of other variables. Regression is consists of independent and dependent variables for modeling and analysis of numerical data. The purpose of linear regression is to adjust the values of slope and intercept to find the line that best predict y and x value for linear equation. Linear equation, y= mx + c where y represent dependent variable, m is value of slope, x is the independent variable and c is the constant value which intercept at y-axis. 4.4.2.1 Awareness of LCA There are two models obtained from SPSS. The independent variable for first model is respondent position and independent variables for second model are respondent position and target market. Table 4.9 shows the models for dependent variable awareness. Table 4.9 : Models for awareness Model Linear Regression Model 1 Awareness = 1.666 – 0.456 RP Model 2 Awareness = 1.388 – 0.449 RP - 0.129 MT The best model is the model with highest R square value. Table 4.10 is model summary for R square. Value R square for model one is 0.128 and model two is 65 0.142 which mean model two has higher value of R square. This indicates that model two is the best model for dependent variable awareness. Table 4.10: Model summary for Awareness Model R R Adjusted Standard Change Statistic square R Error of Square the estimate R F Df Df Sig. F Square Change 1 2 Change Change 1 0.358a 0.128 0.099 0.44693 0.128 4.419 1 30 0.044 2 0.377b 0.142 0.083 0.45097 0.142 2.402 2 29 0.108 a. Predictors: (Constant) Respondent position b. Predictors: (Constant) Respondent position, market target Regarding with the higher R square value, model two is the best model. Therefore, the linear regression for awareness as the dependent variable is: Awareness = 1.388 – 0.449 RP - 0.129 MT Equation 4.1 Where : RP = Respondent Position , MT = Market Target 4.4.2.2 Recyclability of Product There is also a linear regression for recyclability of product. As shown in Table 4.11, there are two models obtained from SPSS. The first model is market target as independent variable whereas model two market target and type production as dependent variables. 66 Table 4.11 : Model for recyclability of product Model Linear Regression Model 1 Recyclability = 0.640 + 0.28 MT Model 2 Recyclability = 0.412 + 0.024 MT - 0.065 TP Table 4.12: Model summary for recyclability of product Model R R Adjusted Standard Change Statistic square R Error of Square the estimate R F Df Df Sig. F Square Change 1 2 Change Change a 1 0.393 0.155 0.127 0.45096 0.155 5.496 1 30 0.026 2 0.406b 0.165 0.107 0.45596 0.165 2.861 2 29 0.073 a. Predictors: (Constant) market target b. Predictors: (Constant) Type of production, market target Due to higher R square values as indicate in Table 4.12, model two is chosen as the best model. Therefore the linear regression for recyclability of the product as dependent variables is: Recyclability = 0.412 + 0.024 MT - 0.065 TP Where : MT = Market Target and TP = Type of Production Equation 4.2 CHAPTER 5 CONCLUSION AND RECOMMENDATIONS 5.1 Conclusion The main objective of this study is to evaluate awareness of LCA among the manufacturers. From the analysis, the result shows the awareness of LCA is still low. Only 31.25% which represent 10 out of 32 of respondents claim that they have the knowledge of LCA. But none of them implements LCA in their company. Also, none of the companies involved in this study have certification of ISO 14000. ISO 14000 is environmental management system standards that provide the rules and procedures for the organization use to reduce environment damage caused by its activities. The organization or company which has ISO 14000 certification indicate that the company has environmental conscious with minimizing harmful effects on the environment caused by its activities to achieve continual improvement of its environmental performance. Based on the result, it can be concluded that LCA in Malaysia is still infancy stage. This result agreed with Inaba et al, (2002) and Sumiani (2007). The involvement of APEC nations including Malaysia in LCA at international level has yet to reach an encouraging level. Even though Malaysia is directly involved in programmes conducted but still too few scholars are doing research on LCA. Even surveys conducted from previous study found that the majority of industries have never known about LCA. 68 There are some factors that may contribute to this situation such as lack of expertise, financial problem, time constraint and lack of data needed. Light industry usually not involved in the whole process of making the product. They only make a part of the whole product. However, the Pearson Correlation shows that level of awareness is depend on the role of the respondents. The respondents who possess higher position in the company signify that they more aware about LCA. In this case, managers who possess the highest position has more responsibility and must monitor all the activities in their company to make sure everything goes as planned. Most managers will try to avoid pollution that could cost the company a fine for infringing environmental legislation. But better managers will agree that doing only just enough to keep the company out of trouble with government inspectors is a rather weak and reactive approach to business in today's environment-conscious world. Curran (1996) agreed that LCA is fast becoming an important tool for product designers and production managers. LCA has been used mostly by experts because of the complex nature of the analysis. Gradually, LCA is being used in more general applications as understanding of the approach grows and data become more readily available. The companies that take systematic approach to assess the environmental effects will gain a competitive advantage through cost savings, an improved images, and more effective holistic management style. Although interest in the systematic approach to view environmental consequences has fluctuated over the years, continuing concern for the environment and the new drivers of pollution prevention and sustainability are reemphasizing the need to look at products, processes and activities holistically with a life cycle approach. The respondents tend to disagree using green product in their productivity if it increasing production cost. This regarding to lack of knowledge of LCA and the benefit they could gain after performing LCA. As Tan (2002) cited Green Productivity (GP) is a strategy for enhancing productivity and environmental performance for overall socio-economic development. It is the application of appropriate productivity and environmental management tools, techniques and 69 technologies to reduce the environmental impact of industrial activities, products and services. The principles and practice of Life Cycle Assessment (LCA) have been more widely accepted and applied since the publication of the ISO 14040 family of international standards beginning in 1997. 5.2 Recommendations These are some recommendations suggested in order to improve the awareness of LCA: Conduct awareness seminars and workshops. Promote the benefits and the advantages of LCA especially for industrial sector. According Hauschild (2007), global and international environmental problems are still unsolved (dispersion of hazardous substances, increasing consumption of fossil fuels, increasing consumption of non-renewable mineral resources and overexploitation of biological resources). By conducting the LCA study in Malaysia it will at least reduce these global problems at our level. More studies related to LCA need to be done in order to create experts in LCA. There are a lot of software tools available such as GaBi, SimaPro and BEES which can assist in conducting LCA. Continue to promote environmental awareness to all level of society. Develops environmental awareness among children and young people. Teach them to implement environmental management based on the ISO 14000 approach in their homes and communities. Disseminate the information through the print and electronic media. Print and electronic media plays an important role in spreading the information. Through these medium, the information about LCA not limited to certain person, but the public get the knowledge as well. It is important to educate the 70 public about LCA. At least with the knowledge, public concern on environment pollution due to the product they use can be increase. To ensure that the performance of the study is improved in term of accuracy and data acquisition, some recommendations are suggested for future study: Survey should be carried out in other study areas which include large scale industry and light industry so that comparison can be made. A comprehensive relationship also can be established. A study also can be done in a company which has implemented LCA to see the advantages that the company could gain before and after implementing LCA in economical and environmental aspect. It is also recommended to observe the cost and time needed to finish a LCA study. 71 REFERENCES Agamuthu, P. (2001) Solid waste: principles and management with Malaysian case studies. 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Environmental Assessment Of Products- A Course Of Life Cycle Assessment, 2nd edn, UETP-EEE, Helsinki Pongvipa Lohsomboon (2002). LCA Activites in Thailand, International Conference EcoBalance Redigeret Marts, 2009, Environment Issues In Malaysia http://www.ambkualalumpur.um.dk/da/menu/Eksportraadgivning/Markedsmu ligheder/Sektoranalyser/MiljoeOgEnergi/EnvironmentissuesinMalaysia/, Retrieved on July 8,2009 Slide Presentation by Chen S.S , Overview of Sustainability of Malaysian Industries and Contributions to Climate Change, Seminar on Sustainability of Rubber Industry in Conjunction with the Malaysian International Commodities Conference (MICCOS), 15th August 2009. Staff Pengajar, Eco-Labeling of Environment Friendly Products and Markets Based Regulation: An Empirical Analysis Based on Discrete Choice Modeling, Universitas Mercu Buana Suleyman A. Muyibi, Abdul Rauf Ambali and Garoot Suleiman Eissa (2005). Development-induced water pollution in Malaysia: policy implications from an econometric analysis, Water Policy 10 (2008) 193–206, doi: 10.2166/wp.2008.039, IWA Publishing Susanne, G. and Gerd, S. (1996). Application of LCA in German Industry. Ecological Economics Research Institute, Ecomed publishers, D-86899 Landsberg, Germany, Int. J. LCA 1 (4) 226-230 (1996) 74 Tan R.B.H. (2002). Life Cycle Assessment for Green Productivity-An Asian Perspectiv, Department of Chemical and Environmental Engineering, National University of Singapore, 10 Kent Ridge Crescent, Singapore 117576, Singaporee Terri, K.B., Robert, G.H., James, M.C., William, E.F. (1996). LCA Methodology, McGraw Hill. 75 APPENDIX A NAME : TUAN NOORUNNAZIFAH TUAN AHMAD MATRIC : MA081139 SURVEY ON THE AWARENESS OF IMPLEMENTATION OF LIFE CYCLE ASSESSMENT ( LCA ) You are kindly requested to spare few minutes to help complete a survey on the awareness of implementation of life cycle assessment (LCA) of your product. This survey is part of a research leading to MSc, and involves random selection of factories. Please note that your input is considered very valuable to this survey. SECTION A 1. Which of the following best describes your role? Manager Engineer Quality Control Other, please specify……………………….. 2. What kind of product does your company produce? Please specify ……………………………………….. 3. How many of the product can be produced per month? Please specify ……………………………………… 4. What is the market target for the product? Local Export 5. Does your company involve in recycling activities? 6. 7. Both Yes What does your company recycle the most? Paper Plastic Glass Cans How does your company recycle? Collected from company Taken to recycling facility No Other:……………… Both Neither 76 SECTION B YES 9. NO SPECIFY Does your company has certification (ie: ISO14001 or equivalent)? 10. Does your company have an environmental policy statement at the executive level? 11. Does the product have a long service life? How long? Please specify. 12. Does the product can be economically and effectively repaired or upgraded? 13. Is the product reusable or contain reusable part? 14. Is the product recyclable? 15. Will the supplier take back the product for recycling? SECTION C Please rate accordingly based on ranking below: 1- Strongly 2- Disagree 3- Slightly Agree Disagree 4- Agree 5- Very Agree 16. Do you aware about life cycle assessment (LCA)? 17. Would you consider performing LCA in order to produce better product to consumer and environment? 18. Will you consider green product even it will increase production cost? 29. If a body decides to develop a standard or guidance, would your organization like to join the standard development process? 20. Implementation of LCA should be compulsory to sustain the environment. 21. Government should provide LCA training and more information on LCA 77 22. What medium do you prefer to deliver information about LCA? Internet Television Radio Workshop or seminar Others :………………………………………………….(please specify) The activities as listed in the table below give impact to the environment. Please choose the appropriate impact and state the significant level of the impact which might contribute to environmental degradation. 1 Insignificant 2 Less Significant Activities 3 Slightly Significant 4 Significant 5 Very Significant Waste Air Noise & Water & Depletion problem pollution vibration soil of energy pollution resources Extraction and processing of raw material Manufacturing Packaging Marketing Use, reuse or maintenance of the product Disposal of waste at the end of its useful life In your opinion, what is the best practice should be applied to an organization or production in order to gain profit and at the same time sustain the environment? ………………………………………………………………………………………… ………………………………………………………………………………………… Thank you. 78 APPENDIX B ANOVAb Sum of Squares df Mean Square F Sig. Regression .883 1 .883 4.419 .044a Residual 5.992 30 .200 Total 6.875 31 Model 1 a. Predictors: (Constant), Respondent position b. Dependent Variable: Q24 (Awareness) Coefficientsa Unstandardized Coefficients B Std. Error (Constant) 2.085 .205 Respondent position -.231 .110 Model 1 a. Dependent Variable: Q24 (Awareness) Standardized Coefficients Beta -.358 95% Confidence Interval for B Sig. Lower Bound Upper Bound 10.167 .000 1.666 2.504 -2.102 .044 -.456 -.007 t 79 APPENDIX C ANOVAb Sum of Squares df Mean Square F Sig. Regression .977 2 .489 2.402 .108a Residual 5.898 29 .203 Total 6.875 31 Model 1 a. Predictors: (Constant), markettarget, Respondent position b. Dependent Variable: Q24 (Awareness) Coefficientsa Unstandardized Coefficients B Std. Error (Constant) 1.958 .279 Respondent position -.218 .113 -.338 Market target .064 .094 .119 Model 1 Standardized Coefficients Beta a. Dependent Variable: Q24 (Awareness) 95% Confidence Interval for B t Sig. Lower Bound Upper Bound 7.025 .000 1.388 2.528 -1.935 .063 -.449 .012 -.129 .258 .682 .501 80 APPENDIX D ANOVAb Sum of Squares Model 1 df Mean Square Regression 1.118 1 1.118 Residual 6.101 30 .203 Total 7.219 31 F Sig. 5.496 .026a a. Predictors: (Constant), markettarget b. Dependent Variable: Q15 ( Recyclability) Coefficientsa Unstandardized Coefficients Model 1 B Std. Error Standardized Coefficients 95% Confidence Interval for B t Beta Sig. Lower Bound Upper Bound (Constant) .989 .171 5.789 .000 .640 1.338 markettar get .218 .093 .393 2.344 .026 .028 .408 a. Dependent Variable: Q15 ( Recyclability) 81 APPENDIX E ANOVAb Sum of Squares Model 1 df Mean Square Regression 1.190 2 .595 Residual 6.029 29 .208 Total 7.219 31 F 2.861 Sig. .073a a. Predictors: (Constant), production, markettarget b. Dependent Variable: Q15 ( Recyclability) Coefficientsa Unstandardized Coefficients Model 1 B Std. Error Standardized Coefficients 95% Confidence Interval for B t Beta Sig. Lower Bound Upper Bound (Constant) .895 .236 3.789 .001 .412 1.378 markettarget .216 .094 .390 2.298 .029 .024 .409 production .026 .045 .100 .561 -.065 .118 a. Dependent Variable: Q15 ( Recyclability) .588