LARGE SCREEN DISPLAY 46” + led backlight: CRADLE TO GATE CHAIN ANALYSIS REPORT Issued by: QSM Date: 09/09/2013 TABLE OF CONTENTS 1. INTRODUCTION ............................................................................................... 1 1.1 References .................................................................................................... 2 2. OBJECTIVE OF THE CHAIN ANALYSIS ...................................................... 2 3. DEFINING THE SCOPE OF THE ANALYSIS ................................................ 3 4. SYSTEM BOUNDARIES AND PARTNERS IN THE LIFE CYCLE.............. 3 4.1 Methodology for the analysis relevant to purchased materials ..................... 3 4.2 Materials and energy flows ........................................................................... 4 4.3 Step 1: Purchased materials CO2 emissions.................................................. 6 4.4 Step 2: Transportation & Distribution (Up-stream) ...................................... 7 4.5 Step 3: Production ........................................................................................ 9 5. ALLOCATION ................................................................................................. 10 6. DATA COLLECTION AND DATA QUALITY .............................................. 10 7. QUANTIFICATION OF CO2 EMISSIONS .................................................... 11 8. COMPARISON BETWEEN CHAIN ANALYSIS 1 AND CHAIN ANALYSIS 3 9. RESULTS .......................................................................................................... 12 12 10. DISCUSSION .................................................................................................... 12 11. POSSIBLE REDUCTIONS .............................................................................. 13 12. REDUCTION GOALS ...................................................................................... 13 13. CONCLUSION .................................................................................................. 13 14. REFERENCES .................................................................................................. 13 1. INTRODUCTION It’s GDS Group ambition to maintain level 4 of CO2 Performance Ladder. An important part to achieve level 4 of the CO2 Performance Ladder is obtaining an understanding of the Scope 3 emissions of the organization. Scope 3 emissions categories have been identified, according to the 1 steps as described in the Corporate Value Chain (Scope 3) standard of the GHG protocol. Their impact on CO2 emissions in the GDS business model has been evaluated in “Scope 3 categories ranking” report where the categories have been ranked according to the relevant CO2 emissions figures and to the degree of influence that GDS exerts on them. Two of the six highest ranked categories have been specifically included and analysed in this chain analyses. 1.1 References The structure of this document is based on the Corporate Value Chain (Scope 3) standard [GHG, 2010a]. In addition, where necessary, the methodology of the Product Accounting & Reporting Standard [GHG, 2010b] stands. The below table shows the relationship between GHG, 2010a, GHG 2010b and the present report’s chapters. Corporate Value Chain (Scope 3) Standard Product Accounting & Reporting Standard Chain Analysis: H3. Business goals and Inventory H3. Business Goals design Chapter 2 H4. Overview of Scope 3 emissions - See GDS doc: Scope 3 categories ranking H5. Setting the Boundary H7. Boundary Setting Chapter 3 & Chapter 4 H6. Collecting Data H9. Collecting Data & Assessing Data Quality Chapter 6 H7. Allocating Emissions H8. Allocation Chapter 5 H8. Accounting for Supplier Emissions - NA: applies to CO2 Performance Ladder level 5. H9. Setting a reduction target […] - 2. Chapter 11 OBJECTIVE OF THE CHAIN ANALYSIS The main objective for performing chain analyses is to identify GHG reduction opportunities, to define reduction targets and to monitor the progress of the consequent reduction activities. On the basis of the understanding of the Scope 3 emissions and by means of the chain analyses, reduction targets can be set-up. Within the Energy Management Program proper activities are defined, based on the set targets, in order to reduce the Scope 3 emissions. The information from this analysis is used to start a dialog between supply chain’s partners and it hopefully contributes in general to support similar analyses helping to achieve CO2 reduction targets. 2 3. DEFINING THE SCOPE OF THE ANALYSIS Chosen product is G4600061. These size of displays is used for public information in railway stations. The unit of analysis is an individual piece, so the analysis’ outcome will be CO2 unitary emissions per piece. 4. SYSTEM BOUNDARIES AND PARTNERS IN THE LIFE CYCLE The starting point of this analysis was to search for a product inside the organizational and operational boundaries described in document ”GEQP 4A-1 Att. n. 1 Legal structure and boundaries”. Hence Displays manufactured in Italy and Romania and sold in Europe have been considered. The life cycle steps considered for the chosen product are: Step 1: Material acquisition and reprocessing Step 2: Upstream materials transportation & Distribution Step 3: Production So the present analysis is “cradle-to- gate one” and it stops with at GDS finished products warehouse. 4.1 Methodology for the analysis relevant to purchased materials Due to the numbers of parts that contains the KIT, some filtering criteria have been adopted to focus the analysis on the most significant materials. From a first evaluation of the weight of each material and the energy effort estimated in the relevant production processes, a list of the “most significant” materials has been drawn-up. In the list are present those materials that have a higher impact as weight contribution on the total weight and that require the most energy intensive upstream operations. Total product weight is 75 Kg. The selected materials account for about the 90% of the total weight. The remaining materials have been deemed to be less significant for weight or the basis of energy Notes: W = weight; E = energy For Suppliers names and data refer to the original internal document. 3 Material component GDS P/N LCD 46" Panel + Led Backlight Heat sink Box (2x) Rear Box Rear Metal Sheet Front Panel Glass Gel Printed wiring boards and components LCA00088 Cables Fans Power supplies PAR 1861 PAR 1863 MTW03993 PAR1865 GLA00286 BRD00142 BRD00144 BRD00148 BRD01211 BRD01205 BRD00835 BRD01218 BRD00261 BRD01273 BRD01272 FAN00088 (x4) PSU00090 PSU00112 Sub-component Decision rule E,W Weight (Kg) 16,5 Weight % 22 Aluminium Aluminium Aluminium Aluminium W W W W E,W E,W E,W 1,875 7,5 5,25 6,75 13,5 3,75 1,275 2,5 10 7 9 18 5 1,7 E,W E,W 5,25 2,25 7 3 E,W 3 4 67 kg 90% Gel PWB + electronic components PWB + electronic components Table 4.1-A Selected purchased materials 4.2 Materials and energy flows In the diagram 4.2-A, the selected materials flow to build-up the final display, along with the required energy for their development, are depicted. For the selected parts, the main constituent sub-materials/ sub-products have been indicated. The central block, blue highlighted, represent the internal GDS process. Exclusions: powder coating, gel and fans have not been analyzed as: both primary and secondary data is not present and extrapolation and ' proxy ' data (General sector numbers) cannot be identified to supplement the shortage of data. 4 UPSTREAM – CRADLE TO GATE Iron Electronic components Led Glass sheets Electricity PWB TFT panel Backlight Gas/ fuel Glass Gas/ fuel Polarizer LCD panel Electricity Gas/ fuel Electricity Gas/ fuel Gas/ fuel Aluminium Powder coating Aluminium Front panel Rear box Electricity Electricity Gel Gas/ fuel Aluminium PWB Aluminium Gas/ fuel Display manufacturing Power supplies Rear metal sheet Electricity Electricity Fans PWB Gas/ fuel Gas/ fuel Heatsink Electricity Plastics Printed wiring boards Cable wires Aluminium Copper Electricity Gas/ fuel 5 Electricity Fig. 4.2-A Materials and energy flows 4.3 Step 1: Purchased materials CO2 emissions The CO2 emissions have been carried out using conversion factors from EcoInvent V2.0 database. Material component LCD 46" Panel + Led Backlight Heat sink Box (2x) GDS P/N Rear Box PAR 1863 Subcomponent LCA00088 PAR 1861 Weight (Kg) 15,84 Aluminium 1,8 Aluminium 7,2 Rear Metal Sheet MTW03993 Aluminium Front Panel PAR1865 5,04 Aluminium 6,48 Glass GLA00286 Gel - Gel Printed wiring boards and components PWB + electronic components Cables - Fans FAN00088 (x4) PSU00090 PSU00112 Power supplies 12,96 Backlight, LCD screen, at plant/GLO U Aluminium product manufacturing, average metal working/RER U Aluminium product manufacturing, average metal working/RER U Aluminium product manufacturing, average metal working/RER U Aluminium product manufacturing, average metal working/RER U Tempering, flat glass/RER U 3,6 Kg/Kg 10,7 CO2 emissions 169,488 3,34 6,012 3,34 24,048 3,34 16,8336 3,34 21,6432 0,233 NA 3,01968 0 155 1,224 5,04 2,16 PWB + electronic components Conversion factor 2,88 Printed wiring board, mixed mounted, unspec., solder mix, at plant/GLO U 189,72 Cable, ribbon cable, 20-pin, with plugs, at plant/GLO U NA 9,21 Desktop computer, without screen, at plant/GLO U 135 NA 46,4184 0 388,8 865,9829 Table 4.3-A Purchased materials CO2 emissions 6 4.4 Step 2: Transportation & Distribution (Up-stream) The transportations from the first tier Suppliers have been analysed. In fig. 4.4-A, the flow of the selected materials has been depicted: Electronic Components Supplier (Far East) Lcd Panel Supplier (Far East) PSU Supplier (Italy) 20000 km 20000 km 1200 km GDS Arad 1050 km GDS Cornedo Fan Supplier (Italy) 1200 km 1200 km Aluminium Parts Supplier (Italy) 1200 km Glass Supplier (Italy) 1200 km Gel Supplier (Italy) Fig. 4.4-A Based on the analyzed transportation patterns, total distances have been carried out and listed in Table 4.4-A. It shall be said that preferred Suppliers have been considered, in some cases there can be some alternative Supplier. For electronic components, it has been assumed that the majority of them come from Far-East and the shipment is by sea. Exclusions: No transportation relevant to raw materials have been considered, due to the need of conduct a more deep and time consuming analysis along with Suppliers. No quick service has been evaluated, as it requires a more complex analysis. All the parts are delivered directly to Arad with exclusion of the LCD panels that arrive in Italy from Far-East and then are sent to Arad. 7 Part Type Weigh t (Kg) Supplier Distance km Tons*k m CO2 emissions(kg ) 316,8 SKA O Facto r 45 LCD 46" Panel + Led Backlight LCD 46" Panel + Led Backlight LCD 46" Panel + Led Backlight Heatsink Box (2x) Rear Box 15,84 Lcd Supplier Far East to sea port 20000 15,84 Lcd Supplier Sea port to Cornedo 300 4,752 300 1,4256 15,84 Lcd Supplier Cornedo to Arad 1050 16,632 130 2,16216 1,8 Rear Metal Sheet Front Panel 5,04 Glass 12,96 Gel 3,6 Mech.Suppl ier Mech.Suppl ier Mech.Suppl ier Mech.Suppl ier Glass supplier Gel supplier 1200 2,16 130 0,2808 1200 8,64 130 1,1232 1200 6,048 130 0,78624 1200 7,776 130 1,01088 1050 13,608 130 1,76904 1200 4,32 130 0,5616 Electronic componenst Supplier to Arad Supplier to Arad Supplier to Arad Supplier to Arad Supplier to Arad Supplier to Arad Far East to sea port Printing wiring boards and components Printing wiring boards and components Cables 1,224 20000 24,48 45 1,1016 1,224 Electronic componenst Sea port to Arad 300 0,3672 300 0,11016 5,04 Cables Supplier to supplier Arad Fan supplier Supplier to Arad 1150 5,796 300 1,7388 Electrical Parts / Parti Elettriche Electrical Parts / Parti Elettriche Finished Product 2,16 1300 2,808 130 0,36504 2,88 Psu supplier 1300 3,744 130 0,48672 75 Arad to Cornedo 1100 82,5 130 10,725 7,2 6,48 Supplier to Arad 14,256 37,90284 8 4.5 Step 3: Production Product manufacturing inside GDS Group concerns the assembly of GDS design’s printed circuit boards and the assembly operations of the LCD panel and of mechanical parts for the display. The boards that constitute the product involve SMT and or Pin-through-hole assembly phases, depending on the board type. Assembly of mechanical and optical parts is split in pre-assembly and final assembly operations. After an analysis of the absorption of the involved equipment based on the “Energy Inventory database” and on the production cycles, some production steps have carried out to be insignificant from an energy point of view. The most relevant energy consuming steps have been highlighted in Fig. 4.5-A. The energy consumption has been scaled taking into account that, for certain steps, consumption is shared between more pieces. This is for instance the case of reflow ovens. On the contrary, set-up times have not been considered. I N I S H E M A F FINAL ASSY PRE-ASSY BURN - IN D T P E R SMT PLACEMENT REFLOW ICT AOI FCT R I O A D L MANUAL WAVE U VISUAL C S T Fig. 4.5-A Production steps The overall data are the following: Assembly section Absorbed energy/ piece Electronic boards Optical and mechanical – final assembly TOTAL 2,5 kWh 10 kWh SKAO Conversion factor 455 g CO2 / kWh 455 g CO2 / kWh CO2 emissions (kg)/ piece 1,13 4,55 5,68 Table 4.5-B CO2 emissions form production in GDS facilities. As the manufacturing process in Arad is remained the same since 2011, we can assume as CO2 emissions values the same used in the Chain Analysis 1 2011. In fact time and energy to produce a board and to assemble a monitor is quite the same. 9 5. ALLOCATION For allocation method refer to chapter 8 of the Product Accounting & Reporting Standard is used. Allocation has been used to quantify three production steps: Reflow Wave-soldering Pre-assembly as, for these steps, the use of the relevant equipment/ structure serves more product units concurrently. As reflow and wave soldering machine processing times are longer than the upstream production steps, more pieces are processed during machine time and the machine’s absorbed energy has been accordingly scaled by the number of pieces concurrently present inside the machine. This number has been derived dividing the machine’s processing time by the upstream cycle time. Similarly, pre-assembly in clean room hosts more parts, in this case they are processed in parallel. For the remaining production steps, the energy absorption has been calculated as the product of the power times the single piece cycle-time, so no allocation has been necessary. 6. DATA COLLECTION AND DATA QUALITY The strong preference to the data collection lies with the use of primary data. Secondary (proxy) data is used only if no other information is present. The order in which the data collection is carried out is located in the following list: 1) primary data measured on the basis of CO2 emissions data. 2) primary data on the basis of fuels/energy consumption. CO2 emissions shall be calculated by a conversion factor. 3) secondary data measured on the basis of CO2emissions data. 4) secondary data on the basis of fuel/energy consumption. CO2 emissions shall be calculated by a conversion factor. 5) secondary data on CO2 emissions from general (sector) databases. A starting point in each chain analysis is that the CO2 emissions, within the chain steps object of the chain analysis, should be based on primary data. For this reason it has been made use of secondary data in the form of fuel/energy consumption of similar equipment and/or (sector) databases. Within this chain analysis is used the EcoInvent 2.0 database [Ecoinvent v2]. This database contains a lot of CO2 emissions data, mainly on the extraction of raw materials, production and transport to a usage location of many types of materials. With reference to the criteria mentioned in the GHG protocol Product Accounting and Reporting Standard, features of this database are: technological representative: the EcoInvent database contains information about many different production methods, that usually prevents information technological representative. temporal representative: the EcoInvent database uses data of usually less than 10 years old. geographical representative: chosen for production methods where possible is representative of Western Europe. completeness: CO2 emissions data in the database are very complete in the number of processes that is taken into account. precision: CO2 emissions data in the database are based on literature with mostly a uncertainty of < 5%. 10 7. QUANTIFICATION OF CO2 EMISSIONS PHASE Purchased Goods & Services Transportation & Distribution upstream Product manufacturing CO2 emissions/ product unit 865,9829 Kg/piece 37,9 Kg/piece 5,68 Kg/piece Data Quality 100% secondary data on CO2 emissions from general (sector) databases primary data on the basis of fuels/energy consumption. CO2 emissions shall be calculated by a conversion factor primary data on the basis of fuels/energy consumption. CO2 emissions shall be calculated by a conversion factor. 909,56 kg/piece 11 Scope 3 ranking (reference to GDS report “Scope 3 categories ranking”) Scope 3 category rank 2 Scope 3 category rank 3 8. COMPARISON ANALYSIS 3 BETWEEN CHAIN ANALYSIS 1 AND CHAIN Here below we can compare the results of the Chain Analysis 1 with the result of this Chain analysis. In 2011 we have analyzed a LCD Monitor + CCFL backlight. In this Chain analysis is under inspection a LCD Monitor + Led Backlight. PHASE Purchased Goods & Services Transportation & Distribution upstream Product manufacturing 9. CO2 emissions/ product unit (Monitor Led) 865,9829 Kg/piece CO2 emissions/ product unit (Monitor CCFL) 856,18 Kg/piece 37,9 Kg/piece 46,47 Kg/piece 5,68 Kg/piece 5,55 Kg/piece 909,56 kg/piece 908 Kg (0,90 tons) / piece RESULTS Purchased Goods & Services gives the main contribution to CO2 emissions. It weighs about 95% of the total of the three considered Scope categories. In both cases. As we can see the total value is quite the same . As we use aluminium in most part of the mechanical elements, the monitor with Led Backlight is lighter than previous version but, due to the conversion factor used, the CO2 emissions in the phase “Purchased Good & Services”, are bigger. Is evident also the contribution in reduction of the emissions due to the simplification of the logistic. Most part of the suppliers used for the monitor analysed in this report send their material directly to Arad. 10. DISCUSSION Data uncertainty is due to the following reasons: 1. shortage of some data in the evaluation of the emissions of some purchased materials. We have use, for the Lcd Panel + Led the same conversion factor used with the Lcd Panel + CCFL. 2. secondary data referring to EcoInvent 2.0 database are declared with a < 5% uncertainty 3. Energy used in production to assemble boards and monitor is estimated taking in consideration the data used in 2011. The following improvement action is devised: 12 to investigate, in the next chain analysis, the Electrical Energy used to assemble a large screen monitor. 11. POSSIBLE REDUCTIONS The analysed product has just been back from a design effort that has simplified materials and upstream processes. So, it’s difficult at the moment to expect further significant improvements, nevertheless GDS technical office will continue to pursue in this direction. About the process, absorptions from clean room and for burn-in are unavoidable as linked to necessary processes. Some further improvements can be done in simplification of logistics. Now we are sending directly to Arad most parts of the components of a monitor. Anyway our suppliers are still far from the plant. Next step could be have suppliers in Romania. We are working in this direction. 12. REDUCTION GOALS A target is set to reduce within 2016 Scope 3 CO2 emissions related to “Transportation & Distribution upstream” . See the Energy Management Program to have a detail of the target. 13. CONCLUSION A chain analysis has been carried out on a GDS 46 with Led Backlight” display product, characterized by a revised design and a new technology. This screen size model is increasing in the e-signage market, that it properly represents. The chain analysis confirms that Scope 3 emissions are predominant ones compare to Scope 1 and 2 emissions and a possible reduction measure has been devised affecting a further simplification of logistics. Our Supply Chain, Logistics and D&D departments are in charge of this activity, that is already in progress. 14. REFERENCES Ref. 1 Handboek CO2-prestatieladder 2.0, 23 juni 2011 Stichting Klimaatvriendelijk Aanbesteden & Ondernemen 2 Corporate Accounting & Reporting standard GHG-protocol, 2004 3 Corporate Value Chain (Scope 3) Accounting and Reporting Standard GHG-protocol, 2010a 4 Product Accounting & Reporting Standard GHG-protocol, 2010b 5 Nederlandse norm Environmental management – Life Cycle assessment – Requirements and guidelines NEN-EN-ISO 14044 6 www.ecoinvent.org Ecoinvent v2 13