Eco-Efficiency Analysis- A Sustainability
Decision Tool for BASF
A. Kicherer (Ludwigshafen, Germany)
Validated
Eco-Efficiency
Analysis
Method
Eco-Efficiency
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The Ludwigshafen site
 BASF’s largest production site
worldwide
 8,000 sales products
 2,000 buildings

70 miles of roads
150 miles of rail track
 35,000 people (83,000 worldwide)
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Sustainable Development is based on three
Pillars
Sustainable Development
Ecology
Society
Economy
Eco-EfficiencyAnalysis
Eco-Efficiency
SEEbalance®Analysis*
* being
developed3
Dr. Kicherer
What is Eco-Efficiency Analysis?
 Method for the comprehensive assessment of products and
processes.
 Ecological and economic aspects are given equal weight in
assessments.
 The products are analyzed from the angle of the end customer.
 (Future) scenarios and effects of various action options are
presented.
 Eco-efficiency analysis is a standard tool in the BASF Group;
more than 240 analyses have been carried out.
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Project
Furniture Clear Coat
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Alternative Systems for Furniture Clear
Coat
Determine demandspecific benefit
Define comparable
products
NC-lacquer (established
technology)
Coating of 1 m²
furniture
surface
PUR-lacquer (market leader)
UV-powder (new technology)
UV-water (new technology)
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Further Development of UV-Water
Technology Improves the Eco-Efficiency
User spezific
benefit:
Coating of 1
m² furniture
surface
Environ. Impact (normalized)
0,3
UV-water
High eco-efficiency
Further
development
UV-powder
1,0
PURlacquer
NC-lacquer
Circle size:
Market share in
Europe
Low eco-efficiency
1,7
1,7
1,0
0,3
Total costs (normalized)
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Communication
 BASF-Coatings develops new, environmentaly friendly lacquers,
even if they are innitially somewhat more expensive.
 Together with customers improvements can be initiated which
reduces the costs.
 The eco-efficiency analysis can easily communicate these future
trends and improvements.
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Assessment Factors of the society
20%
20%
Energy
consumption
Raw material
consumption
Air
Air emission
emissions
50%
50%
Greenhouse
warming potential
50%
Ozone depletion
potential
20%
Photochemical
ozone creation
potential
20%
Acidification potential
10%
10% Area requirement
20%
Emissionen
Emissions
Emissions
20%
Toxicity
potential
10%
Risk potential
Eco-Efficiency
Water
emissions
35%
Wastes
15%
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Acceptance of the Method by
Stakeholders, NGOs and Science ...
...Basically, the large number
of indicators used in
eco-efficiency analysis make
relatively reliable statements
possible ...
Dr. Reinhard Loske
Mitglied des
Deutschen Bundestages
Umweltpolitischer Sprecher
Bündnis 90/DIE GRÜNEN
Öko-Institut e.V.;
Bereiche Chemie
und Umweltrecht
Eco-Efficiency
......Politically, it is worth considering how this tool can
find wider application.......
....The sensitivity considerations carried out in the
eco-efficiency analysis make sense and provide
good orientation as regards further ecological and
economic optimizations....
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... and the whole World.
Pilot project with UNEP/UNIDO
to improve the eco-efficiency of
Moroccan dyehouses
Assessed since 2002 as one of the
world’s most sustainable chemical
companies, partly as the result of the
development of eco-efficient products
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What does BASF use Eco-Efficiency
Analysis for?
Internal
Strategy
Research/product
development
• Decisions on investments
• Prioritization of research
projects
Politics
Marketing
• Discussion with opinion makers
in political decisions
• External customers optimize their
products and processes with ecoefficiency analyses
External
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Consequences of Eco-Efficiency
Analyses
Environmental Impact (normalized)
low
Depending on
the position of
the analysed
product, different
strategic
1,0
recommendations are
given.
bring to market!
reduce
costs!
develop
alternatives!
reduce
environmental
impact!
high
high
Eco-Efficiency
1,0
costs (normalized)
low
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Examples for More Profit Created
Through Eco-Efficiency Analysis
 An eco-efficiency project with a coatings customer resulted in a additional
business of about 400.000 € per year.
 An annual saving of 100.000 € could be obtained by an eco-efficiency
analysis for transportation of chemicals.
 The eco-efficiency analysis with an American customer in the aggregate
sector increased the annual sales of 2.200.000 US$ by about 10%
 The ROI is therefore much smaller than 1 year
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Why is Eco-Efficiency Successful?
 Quantitative results with a clear assessment
 Simple and impressive illustration of the results
 Scenario- and sensitivity analysis
 Short timeframe (2 - 6 month)
 Low costs for the analysis
 Combination of LCA with LCC
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The Eco-Efficiency Team:
Our Homepage:
http://www.oekoeffizienzanalyse.de
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Back-up slides
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The detailed Results can be read off in the
Ecological Fingerprint
Energy consumption
Solution,
electrochemically
1,0
Material
consumption
Solution,
40%
0,5
Emissions
Granules,
synthetically
0,0
Granules,
biotechnologically
Risk
potential
Eco-Efficiency
Toxicity
potential
Powder
from plants
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Raw material costs are normally small
compared to total costs
DM/m² thermal insulation system
House Insulation Systems
160
140
120
Disposal
100
Transports
80
Adhesive and plaster
60
Aluminium edges
40
handscrafts
20
Insulation material
0
Neopor
Eco-Efficiency
Styropor
Mineralfiber
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Are you interested?
How can you proceed?
 Get in touch with us. (http://www.oekoeffizienzanalyse.de)
 We will provide you with a tailor-made proposal.
 Your own efforts to determine the input data are relatively low.
 The total costs are between € 20,000 and 30,000 (depending on
the complexity).
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Opportunities for Marketing and Sales
 Direct comparison with your competitor
 Show your customer the superiority of your
product
Label, broschures, publications
Comparison of your customers competitors
Demonstrate your customer the superiority of his product.
Common communication, label
Help your customer to optimize his processes
Added value increases customer relation
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Development of environmental protection
in companies
Production inte- Product integrated
End-of-pipe grated environenvironmental
technology mental protection
protection
80‘s
e.g. Waste
water
treatment
plants,
Eco-Efficiency
90‘s
e.g.: Residual
materials of a
procedure are
raw materials of
another
Sustainable
Development
00‘s
e.g.: Green
Engineering
Social, economical
and ecological
aspects of
products
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Production-related waste and emissions
Per metric ton of BASF Aktiengesellschaft products
Total: 28.2 kg
Air
Water
3.6 kg
1.8 kg
Landfill
22.8 kg
Total: 6.7 kg
1.8 kg
1.0 kg
3.9 kg
1991
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2001
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Jeans Dyeing
Project
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Alternative Systems for Indigo dying
Determine demandspecific benefit
Select BASF
product
Define comparable
products
Indigo powder from
plants
Dyeing of blue
synthetic
denim for the
indigo
production of
granules
1000 jeans
biotechnological Indigo
granules
synthetical indigo
solution,40%,
synthetical lndigo
solution, 40%, electrochemical dyeing process
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In the Eco-Efficiency Portfolio, the Environmental Impact is plotted against the Costs
Environ. Impact (normalized)
0,4
High eco-efficiency
Electrochemical
Benefit:
1.000 jeans
dyed with
indigo
Solution
1,0
Biotechnological
Granules
Plants
1,6 Low eco-efficiency
1,6
1,0
0,4
Total costs (normalized)
Eco-Efficiency
The portfolio is based onto a
principle idea of Schaltegger
and Sturm 1992
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Consequences of the Analysis
 Construction of a plant for the production of 40% indigo solution
(beginning production at the end of 1999)
 Increased R&D expenditure for the electrochemical process
(construction of a pilot plant)
 Communication with customers and professional circles
 Success of the measures: Increase of the market share
from 2% (1999) to approximately 40% (2002)
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