Arla Foods Environmental Profit and Loss Account (E P&L) – Organisational LCA with Monetarisation SETAC Europe 26th Annual Meeting, Nantes 22-26 May 2016 Jannick H Schmidt and Anna Flysjö Nantes 24 th May 2016 2.-0 LCA consultants Skibbrogade 5, 1, 9000 Aalborg, Denmark www.lca-net.com Picture: Arla Foods
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Arla Foods Environmental Profit and Loss Account …...2016/05/24 · Arla Foods Environmental Profit and Loss Account (E P&L) –OrganisationalLCA with Monetarisation SETAC Europe
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Arla Foods Environmental Profit and Loss Account (E P&L)
– Organisational LCA with Monetarisation
SETAC Europe 26th Annual Meeting, Nantes 22-26 May 2016
Intention: complement the company’s financial Profit & Loss account with monetarised external benefits/costs of the life cycle of the company’s product portfolio.
2
Life cycle costs: - compensation of employees
- taxes- profit
Externalities
Revenue
Inputs Outputs
Inte
rnal
co
sts/
ben
efit
s
Missing compensation / compensation paid by others
Value of externalities = loss of productivity + loss of welfareWellbeing cannot exceed loss of productivity because of budget constraint (on average)
What is an E P&L?
Similarity with LCA: E P&L same as organizational LCA (e.g. GHG protocol, the Commission, UNEP/SETAC) with monetarisation as weighting.
Functional unit: Product portfolio: upstream, direct and downstream.