Life Cycle Management
a Business Guide to Sustainability
Training Session 3 of 4
November 2006
1
Life Cycle Management
Training - Outline
•
Introduction to LCM
– First session
•
How LCM is used in Practice
– Second Session
•
Communicating LCM Results
– This Session!
•
LCM and Stakeholder
Expectations
– Fourth Session
2
2
Learning Objective: Understand the theoretical basis of life cycle
management & its history
08.00-08.30
Why LCM is needed in business and in
government?
Drivers
08.40-09.15
Introduction to LCM
– First session
What is a life-cycle? Impacts & value created
along the life cycle of a product or service
Definitions
History
Use
08.30-08.40
•
What does LCM encompass?
What are the unique aspects of LCM?
09.15-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments

done
3
3
Learning Objective: Understand the practical aspects of
LCM in policy development & business operations, through
discussions of how to integrate it into decision making &
through case examples
10.30-10.45
Life cycle management
•
How LCM is used in Practice
– Previous Session
Definition & Benefits
10.45-11.00
LCM involves…
Learning from a range of examples
11.00-12.00
A process for implementing LCM
Plan – Do – Check – Adjust
A focus on design
Further examples to illustrate
12.00-12.30
Group exercise
12.30-13.30
Break for lunch

done
4
4
Learning Objective: Provide a good understanding of
communication tools and strategies. Why and how they can
be valuable to business?
08.00-08.15
Why communicating LCM? To whom?
Definition and scope, drivers, target
groups of communication
08.15-09.00
Communication toolbox
Main features and link with LCM
Examples and diffusion of tools
09.00-09.45
•
Communicating LCM Results
– This Session!
Case-studies
Sector-specific drivers
Communication strategies
Combination of tools
09.45-10.00
Group exercise
10.00-10.30
Break for coffee & refreshments
5
5
Learning Objective: Understand how to identify
stakeholders, as well as their priorities & concerns
10.30-10.35
Why Engage Stakeholders?
10.35-10.45
Identifying Stakeholders
Potential Stakeholders
Ask the right people
Ranking
10.45-11.00
Importance of Including Stakeholders
Risk Avoidance
Opportunity Creation
11.00-11.45
Case example
11.45-12.30
Group exercise
12.30-13.30
Break for lunch
•
LCM and Stakeholder
Expectations
– Fourth Session
6
6
Contents
1.
Definition and scope and section goals
2.
Overview of LCM Communication toolbox – Main features and
link with LCM
3.
Which communication tools used in practice? Examples and
diffusion
4.
Case-studies
–
–
5.
Sector-specific requirements
Leading companies with communication strategies
What comes next? Recent trends and outlook
7
7
Definition and Scope &
Section Goals
8
8
Definition
• Definition of “Communication” within the present training kit:
Any manner of information sharing with stakeholders,
generally through one-way, non-iterative processes, e.g.
Corporate Sustainability Reporting or product eco-labeling
9
9
Drivers – Why communicating LCM?
• Consumer demands
• Information request from business clients (e.g in the supply chain)
• External pressure from society stakeholders (e.g. NGOs) and civil
society
• Increasing attention from financial stakeholders
• Green Public Procurement programs of public administrations
• Requirements from policy-makers (e.g. WEEE and RoHS European
Directives)
10
10
Opportunities / Target audiences
• Competitive advantage in emerging or new green markets
– Final consumers
– Business clients
– Public administrations
• Better image
–
–
–
–
Consumers and clients
Financial stakeholders
NGOs and civil society
Legislators
• Influence regulations and pre-normative processes
11
11
Target groups of communication
• External stakeholders
•
•
•
•
•
•
Final consumers
Business clients
Financial stakeholders
Public administrators and policy makers
Civil society and society stakeholders
Suppliers
• Internal stakeholders
• Shareholders
• Employees and management
12
12
Section Goals
• Provide good understanding of:
– Communication tools and strategies
– Why and how can be they valuable to business?
13
13
Main questions/topics
• Which communication tools used in practice by industry and
business?
• Distinguish communication tools vs. target stakeholders
– What is used to communicate with whom?
• Why and how communication valuable to business?
– Relevance and diffusion of communication tools
– Case-studies of companies with comprehensive communication
strategies
– Sector-specific drivers and communication needs
14
14
Overview of LCM Communication Toolbox
Main Features and Link with LCM
15
15
Communication Toolbox
FIRM & ORGANIZATION LEVEL
(F&O)
• Environmental reports F&O
• EHS reports
• Social reports
• Sustainability reports
• CSR - Corporate Social
Responsibility
• Company Codes
• Manuals of Conduct
• Audits
• Supplier evaluation systems
PRODUCT-RELATED (P-R)
• Eco-labels
P-R
• Environmental claims
• Environmental product
declarations
• Product Environmental
Performance Indicators
• Product Profiles
• Eco-efficiency analysis
• Prod. Information Schemes
• GPP guidelines
Advertising, Information brochures & campaigns, websites
16
16
Which tool to communicate to whom?
• External stakeholders
Ext
• Final consumers
• Business clients
• Public administrators and
policy makers
• Financial stakeholders
• Other society stakeholders
• Suppliers
P-R
F&O
Ext
Int
• Internal stakeholders
• Employees and management
• Shareholders
Int
17
17
Reporting - From Environmental Reporting to
Corporate Social Responsibility (CSR)
F&O
Global report output by « type » since 1992.
18
18
Reporting – Contents & LCM
F&O
• Many different approaches
• Several guidelines (e.g GRI – Global Reporting Initiative)
• Difficult classification, because
– Voluntary instruments
– Different and heterogeneous industry sectors
• Life Cycle Thinking (LCT) and Life Cycle Management (LCM) not
always taken into account / reported
19
19
Codes of Conduct & Supplier Screening
F&O
• Set of requirements on
–
–
–
–
Ethical
Social
Health & Safety
Environmental aspects
• To be fulfilled internally in the company
• Often extended to suppliers
• Good tool to interact with SMEs
• Link with LCM intrinsic in
– Corporate Social Responsibility
– Extended Producer Responsibility
– Involvement of Suppliers
20
20
Product-related communication tools
P-R
• Wide range of Environmental Product Information
Schemes (EPIS)
• Main classification according to verification:
– First party verification
– Third party verification/certification
• Coded by ISO norms 1402x
21
21
Environmental Product Information Schemes
(EPIS) - Reference norms
P-R
14020 ISO norms
Environmental
claims and
declarations
Type-I
ISO 14024
(1999)
Environmental labels
(e.g. EU-Flower, Blue Engel,
White Swan)
Type-II
ISO 14021
(1999)
Self-declared environmental
claims
Type-III
ISO 14025
(2006)
Environmental declarations
(e.g. EPD®, Eco-leaf)
22
22
ISO-type I ecolabels
P-R
• Indicate the overall environmental preferability of a product within a
particular product category
• Qualitative, concise information
– Allows consumers to take quick purchasing decisions
• Main features/characteristics:
–
–
–
–
Voluntary instrument
Multiple criteria
Life cycle approach
Third-party independent verification (national bodies)
• LCT - Life Cycle Thinking (but not necessarily LCA) explicitly
used to set the criteria (multiple indicators)
23
23
ISO-type II environmental claims
(ISO 14021):
P-R • Definition
“self-declared environmental claims made by manufacturers, importers,
distributors, retailers, or anyone else likely to benefit from such a claim
without independent third-party certification”
• Several forms of communication:
– Statements, symbols or graphics on product or package labels, or in
product literature, technical bulletins, advertising, publicity,
telemarketing, internet
– Main advantage for firms: flexibility
24
24
ISO-type II environmental claims
P-R
• Main features/characteristics:
– Voluntary instrument
– Generally single criteria
– First-party self-declaration
• Relationship with product life cycle and LCM is implicit,
generally weak
25
25
ISO-type III environmental declarations
• Definition (ISO 14025):
P-R
“Quantified environmental data for a product, with pre-determined
parameters, based on the ISO 14040 series of standards, which may be
supplemented by other qualitative and quantitative information”
• Environmental Product Declarations (EPD)
26
26
ISO-type III declarations
P-R• Environmental Product Declarations (EPD) - Main
features/characteristics:
–
–
–
–
–
Voluntary instrument
Multiple environmental impact indicators (from LCA)
No threshold criteria / minimum levels to be met
Allows comparability of products
Third-party verified
• Product Category Rules (PCR)
– Defines all rules for LCA study and EPD format for the specific product
category
– Open stakeholder consultation process
• Relationship with product life cycle is explicit,
strictly based on underlying LCA study
27
27
Communication Toolbox and LCM
Communication tool
F&O
P-R
Link with LCM
Reporting
Variable
LCT and LCM not always taken into
account / reported
Codes of Conduct and Supplier
Screening Systems
Intrinsic in:
- Corporate Social Responsibility
- Extended Producer Responsibility
- Involvement of Suppliers
ISO-type I ecolabels
LCT (but not necessarily LCA)
explicitly used to set the criteria
(multiple indicators)
ISO-type II environmental claims
Relationship with product life cycle
and LCM is implicit, generally weak
ISO-type III environmental
declarations
Explicit relationship with product life
cycle, strictly based on underlying
LCA study
Other assessment and certification
tools
Variable
28
28
Which communication tools are used by industry
and business in practice?
Examples and Diffusion
29
29
Which tool to communicate to whom?
• External stakeholders
Ext
• Final consumers
• Business clients
• Public administrators and
policy makers
• Financial stakeholders
• Other society stakeholders
• Suppliers
P-R
F&O
Ext
Int
• Internal stakeholders
• Employees and management
• Shareholders
Int
30
30
Importance and impacts of communication
• Very difficult to measure impacts of LCM communication
– Direct impacts (e.g. increase of market share)
– Indirect impacts (image, other factors, etc.)
• An indirect indicator for the importance of the different
communication tools is the degree of its diffusion, e.g.
– Number of labelled products
– Amount of sales
31
31
Observed trends
• ISO-type I labels are still the most widely used communication tool
to final consumers
• However, important limitations of eco-labels
 other communication tools are increasing awareness and fostering
better use of products
• Simplification of complex life-cycle information into ISO-type II
claims, however some credibility issues
• ISO-type III declarations for B2B – increasing but still limited
diffusion
• Combination of tools and reporting for various stakeholders
32
32
Examples and diffusion of communication tools
in function of target group
Communication to:
I.
II.
III.
IV.
V.
VI.
Final consumers
Business clients
Public Administrations
Various stakeholders
Suppliers
Internal communication
33
33
I.1 - Final consumers - ISO-type I labels
•
Diffusion of ISO-type I labels as of Oct. 2006
Country (Status)
Year of
Product groups
Firms
Products
establishment
Japan (October 2006)
1989
South Korea (June 2006)
1992
Germany (State July 2006)
1978
Nordic Countries (2006)
47
2107
5152
1001
4100
89
529
3,650
1989
61
680
n.a.
EU (October 2005)
1992
24
309
n.a.
The Netherlands (Milieukeur,
1992
69
257
360
Catalonia (DGQA)
1994
26
171
895
Austria
1991
49
n.a.
n.a.
France
1992
19
n.a.
n.a.
Spain (AENOR)
1994
11
52
275
Sweden (Falcon) (October 06)
1992
11
n.a.
n.a.
China (2005)
1993
56
n.a.
n.a.
India (October 2006)
1991
16
n.a
n.a
Brazil (ABNT
– Qualidade
1993
n.a.
n.a.
7 (groups) 103 (categories)
October 2006)
10 (under development)
Ambiental)
Source: Frankl et al (2006)
34
34
I.1 - Final consumers - ISO-type I labels
•
Example of diffusion: Evolution of sales of EU-Flower labelled products
Source: http://ec.europa.eu/environment/ecolabel/marketing/statistics_en.htm
35
35
I.2 - Final consumers – “ISO-type I like” labels
• “ISO-type I like” labels and certifications, e.g.
• FSC – Forest Stewardship Council
– 4945 Chain of Custody certificates in 73 countries
as of Sep. 2006
– 854 Forest management/COC certificate in 74 countries
– www.fsc.org
• PEFC – Pan European Forest Certification
• Blue Flag
– www.blueflag.org/blueflag
• Eco-Tex standard
– Thousands of awards
– www.oeko-tex.com
36
36
I.3 - Final consumers – ISO-type II claims
Examples:
• UKCRA The United Kingdom
Cartridge Recyclers
Association (UK)
• NAPM The National
Association of Paper
Merchants (UK)
• Ecological Woodparticle
board (Italy)
• DIGODREAM- 100%
recyclable textile floor
covering (Italy)
37
37
I.3 - Final consumers – ISO-type II claims
38
38
I.4 - Final consumers – Advertising
• Example: Fujitsu develops ISO-type III declarations and
advertises it in newspapers
Transportation
Design and manufacturing
Extraction
Transportation
Environmental Impact
Use
Disposal/Recycling
Transportation
Environmental impact data through product life cycle is captured quantitatively.
Advertising of Fujitsu Co. In newspapers
In June 2004, Fujitsu Co. took out a fullpage advertising in major newspapers,
including the Nikkei Shimbun, the most
popular business newspaper in Japan. In
the ad, an engineer points out that, “there
are widely many environmentally conscious
products in the market. But most of them
are not proved with objective data
comprehensively. Even if a product is called
an energy-saving product during the use
stage, it might consume numerous amount
of energy during the production stage while
consumers/purchasers are not informed.
Such a product should not be claimed as
environmental conscious product. In order
to fulfill high ideals that real environmental
friendly products are selected by
consumers, environmental impact
39
39
I.5 - Final consumers – Information campaigns
•
Example: AISE
Washright Campaign
fosters better use of
detergent products
40
40
II.1 - Business clients
ISO-type III declarations
• National EPD Programmes:
– Sweden (107 declarations as Oct 2006, companies of
several countries participating)
– Japan (210 decl as Oct 2006)
– South Korea (96 EDP as Oct 2006)
– Norway (96 declarations)
•
Many sector-specific EPD programmes
– Particularly in the construction and building sector
– IT sector
– Automotive sector
41
41
II.1 - Business clients
ISO-type III declarations
•
Examples: Japanese Eco-leaf and German AUB EPD
42
42
II.2 - Business clients
Marketing and Sustainability reports
• Example of marketing of Eco-leaf at the example of CO2
emissions at Fujitsu
Source: FUJITSU GROUP 2004 Sustainability Report
43
43
II.4 - Business clients
Eco-efficiency + ISO-type II
•
Example: BASF
Eco-efficiency analysis
combined with “improved” ISOtype II claim (3rd party critical
reviewed)
44
44
II.5 - All clients
Advertising (ISO-type II)
• Example: DOW BUILDING MATERIALS
•
•
•
Qualitative Claim
Visual
Self-claim
II.5 - All clients –ddd
[Source: T.Smith 2005]
45
45
III.1 Public Administrations
GPP Guidelines
• Green purchasing guidelines in
Denmark
• Currently for 50 product groups
• Guideline typically 4-pages doc
• Checklist for more insight
46
46
III.2 Public Administrations
Combination of tools
• Combination of tools used by Japanese companies
to provide life cycle information to public stakeholders for green
public procurement
Local authorities
prefecture
municipality -ward & city
town & village in the prefecture
Total
Total
Eco-Mark
(ISO-I)
Energy star
FSC
Eco-Leaf
(ISO-III)
56
55
52
7
4
100%
98.2%
92.9%
12.5%
7.1%
449
441
247
11
20
100%
98.2%
55.0%
2.4%
4.5%
917
846
161
5
39
100%
92.3%
17.6%
0.5%
4.3%
1422
1342
460
23
63
100%
94.4%
32.3%
1.6%
4.4%
[Source: Resource: Japanese Ministry of Environment, 2003 Report of Green procurement]
47
47
IV.1 Various
Variousstakeholders
stakeholders
Sustainability reporting
• Avoided life cycle costs at
Johnson&Johnson
[Source: J&J sustainability report 2003]
48
48
IV.1 Various stakeholders
Sustainability reporting
•
ECOBILANCIO
ITALIA
Henkel: 1992 first corporate Environmental Report
Since 2000 Sustainability Report
•
Procter&Gamble: 1993 first corporate Environmental Report
Since 1999 Sustainability Report
•
Unilever: 2000 first corporate Environmental Report
Since 2001 Environmental Report + Social Report
•
Johnson&Johnson: Since 2000 Corporate Sustainability Report
49
49
IV.1 Sustainability reports & Life Cycle
Information
ASPECTS
Quality
Reported instruments
Henkel
J&J
P&G
Unilever
ISO9000

N.a.
N.a.
N.a.
ISO14000
Since 2003 all
business units
Since 2003 all
business units
N.d.
Since 2003 for
all main sites
EMAS
-
-
-
-
LCA




SA8000
On-going
N.a.
N.a.
N.a.
OHSAS18011
7 plants

N.a.
N.a.
GRI Guidelines
(in accordance)



No




N.a.



Environment
Social Responsibility
Sustainability
DJSI (Eco-rating)
Other
Use of renewable energy
sources
[Source: Menichetti, in Largo Consumo 1/2004]
50
50
IV.1 - Reporting – Diffusion per country
51
51
V.I - Suppliers – Codes of Conduct
• Example: LEGO
• Code of Conduct introduced in 1997
–
–
–
–
Ethical
Social
Environmental
Health and Safety
• Internal requirements + extended to 200 suppliers
• Suppliers audited by independent auditors
52
52
V.II - Suppliers – Screening Systems
• Example: INMINSUR, Peru
•
•
•
•
ISO 14001 at the main mining site Antapite
Extended application of EMS to suppliers (10)
Extended application to cover healty & safety aspects
“Supplier assessment policy”:
–
–
–
–
Compliance with law
Attention to H&S of employees and subcontractors
Positive impacts on neighborhood
Minimize pollution of water courses
53
53
VI.1 – Internal communication
LCM matrix at 3M Brazil
• LCM is a formal part of
3M's new product
introduction process
worldwide
• Cross-functional, new
product introduction
teams use a LCM matrix
for systematic and holistic
assessment
• LCM matrix analysis applied at 3M Brazil on an adhesive product
• As a consequence of LCM matrix analysis, opportunities were
identified for process stage, use stage and disposal stage taking into
consideration the changing from sticks shape to pellets shape
[Source: Lienne Pires – 3M Brazil]
54
54
VI.2 – Internal Communication
STEP®-model at Hartmann
• STEP®-model (Systematic Tool for Environmental Progress) since
1997
• Integrates environmental impacts with assessments of health, safety
and social relations over the product life cycle
• Department for Sustainable Development at Hartmann Corporate
Headquarter in Denmark is responsible for guiding the production
sites
• Simple tool for non-experts
– developed and implemented throughout the organization
 progressive integration in everyday decision-making
[Source: A.A.Jensen 2006]
55
55
VI.3 - Internal Communication
KEPIs at Nokia
• Key Environmental Performances Indicators (KEPIs)
– Based on LCA results of a KEPI project by Motorola, Nokia, Panasonic
and Philips
– Method significantly reduces the reliance on the supply chain for data
on material flows
– Identifies components and materials that account for
most of the environmental impacts over the life cycle
• Internal communication channels with employees:
– Intranet
– Two global events yearly
– Global in-house magazines, global environmental e-magazine, monthly
newsletters and several other internal publications
[Source: Nokia, Integrated Product Policy Pilot Project –
Stage 1 Final Report: Life Cycle Environmental Issues of Mobile Phones, Finland, April 2005]
56
56
Summarising considerations
• ISO-type I ecolabels
– Most suited for communication to consumers, allow for quick decisions,
thousands of labelled products
– Pros: Credibility (criteria, stakeholder involvement, 3rd party verification)
– Cons: Several limitations (top-down approach, limited number of
product groups, format not always appropriate, bureaucracy)
• ISO-type I-like labels
– Well suited for communication to consumers, allow for quick decisions,
thousands of labelled products
– Pros: Credibility (criteria, 3rd party verification)
– Cons: restricted to specific sectors (e.g. wood, textiles)
• ISO-type II-environmental claims
– Well suited for communication to consumers, thousands of claims
– Pros: Flexibility (bottom-up approach)
– Cons: limited credibility, usually not whole life cycle, just one
environmental parameter
57
57
Summarising considerations – (cont.)
• ISO-type III environmental declarations
– Most suited for B2B communication, complex for consumers, allow for
comparison, hundreds of declarations worldwide
– Pros: Credibility (PCR with stakeholder involvement, 3rd party
verification), large amount of detailed information, full life cycle
– Contra: Complex information without benchmark, high resources need
(full LCA), complicated for SMEs (simplified systems needed, currently
being tested)
• Codes of conduct, supplier screening systems
– Well suited for communication with and gather info from suppliers
– Pros: Simplicity and flexibility, well suited to involve SMEs
– Contra: Limited to cradle-to-gate, not necessarily 3rd party verified
58
58
Sector-specific approaches &
Case-studies
59
59
Key aspects of case-studies
•
•
•
Presence of a Communication Strategy
Sector-specific drivers
Combination of tools
–
–
Firm-level reporting
Product-oriented communication (combination of labels)
•
•
•
•
•
–
•
•
ISO-type I eco-labels
“ISO-type I like” labels and certification
ISO-type II environmental claims
ISO-type III environmental declarations
Social labels
Advertising & marketing
Focus on Sustainability
Two sectors:
I. Energy
II. Electronics
60
60
I.
Energy
Sector-specific drivers
• Pressure from regulation / EU Directive on electricity markets
– Fuel Mix disclosure
– Public information on environmental impacts, at least in terms of CO2
emissions and radioactive waste
• Information request from business clients
• Emerging markets for “Green Electricity”
– Green pricing / tariffs
– Green electricity labels
• Green Public Procurement programs of public administrations
• Social acceptance issues / Dialogue with stakeholders
– e.g. nuclear, but also renewables
61
61
I.
Energy
Examples of Life Cycle Communication
• Vattenfall (SE)
• Enel (IT)
• British Energy (UK)
• Electricité de France (FR)
62
62
Sector I. Energy
Case-study 1: Vattenfall (Sweden)
• Longstanding experience in LCA
• Extensive reporting
– Environmental reports
– Life cycle assessment of Vattenfall’s electricity supply in Sweden
2005
– Several EPDs
• EPD Lule River 1999 first absolute EPD® in the Swedish system
• ISO-type I ecolabel for certification of “green energy”
63
63
I.1 Vattenfall
Combination of EPIS for communication
Vattenfall can apply for
labelling for electricity ca 1
TWh, Bra Miljöval, ”Good
Environmental Choice”
95% of electricity production is
certified with an Environmental
Product Declaration
[Source: Bodlund 2005]
64
64
I.1 Vattenfall
Added value of certified EPD® - More than LCA
• Information system open for all
products and services
• Based on ISO/DIS 14025
• Third-party verified and certified
• An EPD® for electricity and district
heat contains
– Life Cycle Assessment (LCA)
– Study of impacts on biodiversity
– Environmental Risk Assessment
(ERA)
– Radiology (nuclear power)
[Source: Bodlund 2005]
65
65
I.1 Vattenfall
Strategy and key conclusions at Vattenfall
• LCA towards common practice
• Credibility needed, ensured by third-party certification and
Product Category Rules (PCR) with stakeholder participation
• Focus on not just one environmental issue, but several ones
• EPD® is one way, which Vattenfall Nordic countries have
chosen for keeping track
• Key values: “Openness and accountability”
[Source: Bodlund 2005]
66
66
Sector I. Energy
Case-study 2: Enel (Italy)
• LCA activities
– Since 1999 at R&D level
– Just recently at corporate level (Environmental Direction)
• First two EPDs in 2004-05 within the LIFE-INTEND project
• EPDs on two renewable energy technologies
– Wind (first EPD of electricity systems in Italy)
– Geothermal (first EPD worldwide)
• EPDs used for communication with local authorities
– Social acceptance issues (wind)
– Provide holistic approach and new perspective on comparison of
technologies
• Communication channels: website + sustainability report
• Green pricing: adoption of guarantee label “100% energia verde”
67
67
I.2 Enel
EPDs at Enel
Certified Environmental Product Declaration of Electricity
from Enel’s wind plant
in Sclafani Bagni (Palermo, Italy)
68
68
I.2 Enel - Green electricity labelling for
business clients and consumers
Green electricity label is also attached to the
products of the business client buying renewable
energy from Enel (e.g. producer of mineral water)
 Important means of LC communication
69
69
I.2 Enel
LCM in Sustainability reporting
LCM results (e.g. green electricity labelling) is communicated through
Corporate Sustainability Report
70
70
II.
Electronic Sector
Sector-specific drivers
• Environment embedded in management structure
• LCA/LCT and eco-design with clear targets
• Green Public Procurement programs of public administrations
– Japan, China, other countries and public administrations
• Pressure from regulation
– WEEE, RoHS, Directives on batteries and accumulators containing
mercury, etc.
• Information request from business clients
• Diversification and competitiveness on the market
• Increasing attention from financial stakeholders
71
71
II.
•
•
•
•
•
•
Electronic Sector
Examples of LC communication
Samsung
Seiko Epson
Canon
Konica Minolta
Matsushita Electric / Panasonic
Ricoh
72
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Sector II. Electronic Sector
Case-study 1: Samsung (S. Korea)
• Green management report since 1999
• Environment/Safety Management Committee, headed by CEO
• LCA first adopted in 1995, currently applied for design &
development of products, in combination with DfX
(design for recycle/service/disassembly/assembly)
• Internal tool EPS – Eco-Product System
– 5 modules: LCA, ecodesign, environmental accounting, Green
procurement, Customer Service
• Wide range of EPIS applied
[Source: Menichetti 2005]
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II.1 Samsung
Combination of applied EPIS
ISO TYPE I
More than 60 products, of which:
7 models of printer
1 model of fax
Kela (since 1995)
5 models of TV sets
20 models of computers+monitors
8 models of air purifiers
Different EPIS applied
for different products
and different markets
19 models of other products (not specified)
TCO
15 models of displays
Blue Angel
1 model of printer
ISO TYPE II
Eco – RoHS compliant label (for memories, PwBs, DVDs, digital cameras, etc.
ISO TYPE III
1 model of digital camera
1 model of optical disk drive
1 model of TFT-LCD plate glass
1 model of CRT glass
EMC (Korean EPD system)
1 model of TFT-LCD monitor
1 model of PDP TV
1 model of air conditioner
[Source: Menichetti 2005]
1 model of VCR
1 model of household refrigerator
1 model of laser printer
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II.1 Samsung
Combination of applied EPIS – (cont.)
Energy Labels
EU Energy Star
Hong Kong Energy
Efficiency labelling
scheme
10 models of PC monitor
15 models of PC monitor
2 models of printer/fax
36 models of printer/fax
16 models of printer
US Energy Star
75 models of printer
8 models of MFD
14 models of MFD
3 models of fax machine
18 models of fax machine
3 models of printer
Energy labels used in
relevant markets in
addition to env. labels
and declarations
Energy Saving Label
South Korea
Several products, including: TVs,
notebooks, mobile phones, air
conditioners
[Source: Menichetti 2005]
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Sector II. Electronic Sector
Case-study 2: Seiko-Epson (Japan)
• Self-definition: “Visionary Company”
– CEO: “aim of the corporation is to be five or ten years ahead of other
companies in implementing comprehensive eco-programs, thus
exceeding the expectations of its stakeholders”
• Environmental report since 1999, Sustainability and CSR report
since 2003
– Environmental target and progress
• LCA both at product and production plant level
– Strong emissions reductions achieved in new plant
• Groupwide LCT targets at each level:
– Design, procurement, manufacturing, sales, recovery/recycling
• Obtaining environmental label qualifications is an objective of
both design and sales departments
[Source: Menichetti 2005]
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II.2 Seiko-Epson
Combination of applied EPIS
ISO TYPE I
Eco Mark
Inkjet, laser, and SIDM printers +
paper
Blue Angel
2 models of printer
41 products, including laser printers, inkjet printers and cartridges
Taiwan Green Mark
ISO TYPE II
50% of all products and 43% of total sales in all business qualify for the Epson Ecology label
ISO TYPE III
Ecoleaf
1 model of notebook PC
15 models of printer
1 model of desktop PC
20 models of data projector
1 model of PC display
4 models of large format printer
Energy Labels
4 models of computer
International Energy Star
6 models of printer
Different EPIS applied
for different products
and different markets
1 model of MFD
US Energy Star
3 models of scanner
Energy Saving Label
South Korea
N.A.
25 models of printer
7 models of scanner
Energy Conservation Product
Certification
China
several models of printers (inkjet,
laser, SIDM)
[Source: Menichetti 2005]
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II.2 Seiko-Epson
Communication Strategy
• Existence of an overall communication strategy
• Each type of EPIS has its own target-audience and objectives
• ISO-type II label “Epson Ecology” demonstrates improved
environmental performance over conventional models (both IT
and semiconductors)
– Customers can obtain specifications with Epson Ecology Profile
•
Specific ISO-type II labels for sustainable procurement
– IT Eco Declaration format in Scandinavian countries
– PC green label in Japan (indicates promotion “recycling society” and
meeting industry-wide voluntary targets)
[Source: Menichetti 2005]
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II.2 Seiko-Epson
Communication Strategy – (cont.)
• High priority on ISO-type I ecolabels
– Japan, Taiwan and Germany
– In Taiwan increased sales  Epson aims at certifying at least 80% of
entire product range
– Respond to growing number of green public procurement regulations
(e.g. certified for China’s energy conservation product certification)
• 42 models hold Ecoleaf ISO-type III declaration
• Strong internal LCM communication
• Use of web-based communication tools
[Source: Menichetti 2005]
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What comes next?
Outlook
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Recent and near-future trends
• Reporting: More Life Cycle Approaches
• Product-related communication: towards providing benchmarks
and communicating progress
• Sustainability assessment (also product-related) integrating
environmental, social and economic aspects
• One tool is not enough!
Combination of EPIS along the product life-cycle
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Sustainability reporting
• Oct 2006: Revision of GRI Guidelines (G3)
• Increasing attention to life cycle management
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Communicating progress (product-related)
New ISO-type II claims
•
•
Example: ISO-type II labels in Japan
Panasonic: Factor X provides concise information about the
improvement of new products with respect to old ones
GHG factor = (GHG efficiency of the new product) / (GHG efficiency of the old product),
where
GHG efficiency = (Product life x Product functions) / (GHG emissions over the entire life cycle)
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Future EPDs with benchmarking
•
•
Recent study (2006) on Consumer demands on Type III environmental
declarations
Recommendation: Benchmark with graphical presentation
– Economic benchmark, reflecting quality/price ration
– Benchmark both within product category and average goods
[Source: K.Christiansen et al 2006]
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Towards product-related sustainability
communication
• “Socio-Eco-Efficiency Analysis” (SEEbalance®) at BASF
• Used for internal
purposes (eco-design,
product development)
but also:
• Marketing, support to
external customers and
social acceptance of
product
• For communication
issues e.g. in corporate
sustainability report
[Source: A.A.Jensen 2006
http://corporate.basf.com/de/sustainability/oekoeffizienz/vortraege.htm?id=V00-S64E69T3rbcp466]
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Life Cycle Management
Training - Outline
•
Introduction to LCM
– First session
•
How LCM is used in Practice
– Second session
•
Communicating LCM Results
– Third session
•
LCM and Stakeholder
Expectations
– Fourth Session
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