Eco-design V Business response
Dec 26, 2015
Eco-design V
Business response
Threat or Opportunity?
Business Responses Ignore Watch and Wait Strategise and Experiment Build Competitive Advantage
Areas of Activity
Eco-Innovation Profiting from Pollution Prevention Eco-Efficiency by Design Innovation
Managing Change Systems, Stakeholders and Reporting
Financial Sector
Engineering Design Elements
Motors Bearings
Materials Fasteners/Joiners
Mechanical Systems Electrical Systems
Fluid Power Electronic Syst.
Interconnects Motion Control
CAD/CAM Other Misc.
What Can Designers Do?
D f XDesign for…X where X is Environment Re-Use Re-Manufacture or Disassembly Energy Efficiency Extended Product Life (>>MTBF) Combination(s) of the above
Business Case Studies
Scancem Energy & Recovery
Wessex Water
BT
Interface
Scancem Energy & Recovery http://www.scancem.com/
Subsidiary of SCANCEM international marketer/mfgr of mineral based building materials
>$2B in revenues, >11,000 employees
reduced use of fossil fuels by 70,000 tons/yr Progress: 6% of all energy from rdf in 1996 14% acheived by 1998 70% reduction by 2002
Wessex Water http://www.wessexwater.co.uk/
reduced over 10% of its energy requirements from its own renewable sources [18.9 Million - kWh] biogas from sewage sludge small scale hydropower
committed to outperform UK gov’t Kyoto targets by achieving 20% by 2005 and 50% by 2020
http://www.wessexwater.co.uk/
Rain harvesting http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=7293
River biodiversity project http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6423
Biogas increase http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=7914
Treatment of rural wastewater (connection) http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6455
Sand filter experiment http://www.wessexwater.co.uk/videolibrary/vidplay.aspx?id=6457
British Telecomm http://www.bt.com/
Cellular Phone - Product Take Back
BT Will Take Back ANY Manufacturer’s worn out cellular phone at any BT Shop
For either; disassembly, re-use, plastic recycling, precious metal recover, or granulation and smelting
http://www.interfaceglobal.com/
One of World’s Leading Carpet Makers
Offers an innovative floor covering lease where customers do not own carpeting but rather lease it. Interface provides clean, maintained and new looking floor covering for a fixed annual lease. They recycle the fibres from worn out stock and keep the customer happy with a great looking floor.
http://www.interfaceglobal.com/Company.aspx
Dow-Jones Sustainability Index http://www.sustainability-index.com/
to quantify the sustainability performance of an enterprise by focusing on a company's pursuit of sustainability opportunities meeting market demand for sustainable products and services the reduction, ideally avoidance, of sustainability risks and costs
This assessment is in line with the five corporate sustainability principles - innovative technology corporate governance shareholder relations industrial leadership social well being
that are focused on the integration of economic, ecological and social factors into business strategies.
Framework for environmental decision-making
Core Charecteristics
Context characteristics
Decision object Temporal and spatial characteristics
Question types
Decision steps
Decision types
Level of chain control
Level of improvement
Importance of subsystem
Complexity of system change
Aspiration of decision-maker
Cultural context
Strategic planning 1 - examples
Policy development
Strategies for the development of new technologies
Strategies for research and development on new product lines
Strategy implementation
Strategic planning
Strategic planning 2 – decision steps
Implementation
implement strategy into operational management
Road maps
make road maps for implementation of strategy in organisation
Strategic plans
consider strategic questions evaluate strategic alternatives
Strategy identification & selection
external analysis self analysis
Monitor & review
Monitor & compare results with strategy report results
Specify the mission
develop vision and goals
Strategic planning considering environment 3 - requirements
Making environmental management a business issue that complements the overall business strategyUse of clear, accepted business terms and conceptsCreation and adoption of indicators to measure the real costs and business benefits of the environmental management programmes Integration of environmental management into business operations such as design, development, communication and marketingJob descriptions and compensation of environmental managers as doing business
Strategic planning 4 – suitable tools
Considering high uncertainty and limited data availability, the following tools prove useful:
Analysis of bulk material flows: MIPS, bulk-MFA
Energy aspects: CERA
In case of good data availability: LCC
Capital investments 1 - description
Long-term decisions
Site-specific elements
Involve external consultants
Large number of indices
Capital investments 2 - examples
Investments in new technologies or production lines
Permit decisions (accompanied with prevention measures)
Acquiring another company
Capital investments 3 – suitable decision tools
More generic future aspects: MFA and MIPS
Consideration of costs: LCC, CBA and TCA
Large investments: MCA
Usual investment evaluation tool: discounted cash flow (DCF) analysis
Design and development 1 – decision steps
Design and development
Marketing
Promotion in-house
Developing promotion plan
Preparation for production
Detail design
Overall environmental evaluation
Conceptual design
Evaluation & selection of ideas
Feasibility study
Problem definition
Environmental analysis & requirements
Evaluation & establishing follow-up activities
Estimation of success of product
Product planning
Policy formulation
Strategic analysis
Product ideas
Evaluate & select
Design and development 2 – basic features
To a large extent based on intuition
Requires environmental awareness of designers
Closely related to R&D
Requires detailed data sets
Should consider concerns of government and customers
Design and development 3 - tools
If enough data – LCA
If fewer data – Eco-indicator, checklists etc,
If little toxicity – MIPS
If monetary terms required – CBA, TCA, LCC
Design phase 1 - planning
SWOT analysis
Scenarios
Checklists
Matrices
Policy and strategy
Evaluation and selection
Design phase 2 – problem definition
ActivitiesProduct analysis (product system + life cycle)Priority settingEnvironmental and design objectivesCriteria (terms of reference)
Information supplyProduct life cycle matricesProduct examplesReference productsChecklists with environmental and design principlesBenchmarkingAspect-based tools (ebergy, resource, emissions)Legal aspects
Design phase 3 – conceptual design
Activities
Generation of ideas
Feasibility study (environmental, economical, technical)
Evaluation & selection
Information supply
Idea generation methods
Product examples
Priority matrices
Strategy wheel
Checklists with eco-design options
Environmental performance indicators
Design phase 4 – detail design
Elaboration: black lists, compatibility matrices / lists, material lists, components lists
Overall environmental evaluation: LCA, Eco-Indicator, Ecoscan
Design phase 5 – marketing & preparatory work for production
Checklists for green marketing
Strategy wheel
Design phase 6 - evaluation
Evaluation (product + process): checklists
Follow-up activities: guidelines
Environmental marketing 1 - steps
1. Identify your target group. Are they consumers or buyers? What is the level of information they require?
2. Identify your message to target group. What are the needs of target group? What are the benefits of the product to this target audience?
3. Form your message. Are you offering a solution to your customers’ needs? Is the claim perfectly understandable to the target audience? Remember to speak the same language as your target audience.
4. Verify your claim. Which is the appropriate means of verification for this target audience: detailed life cycle information or eco-labels?
Environmental marketing 2 – claim verification
Environmental labelling
Environmental performance evaluation (EPE)
Environmental reporting
Detailed life cycle information
Environmental marketing 3 – main features
Not site-specific
Deals with environmental impacts and damages
Refers to global environmental effects (climate change, ozone depletion etc)
Software is important
Small set of indices
Environmental marketing 4 - tools
Audience Question Procedural tools Analytical tools
General public Environmental performance of product or company
Environmental labelling, Environmental Performance Indicators
LCA, MIPS, MFA, ERA, CERA
Stockholders Company-related liability questions
Environmental reporting, Environmental Performance Indicators
TCA, LCC, MIPS, MFA, CBA
Government Environmental performance of company or product
Environmental reporting LCA, MIPS, MFA, ERA, CERA
Supply chain Environmental performance of product
Product declarations, Environmental Performance Indicators
LCA, check-lists, MIPS, ERA, CERA
Academia Environmental performance of product or company
- all
Environmental marketing 5 – five focal areas for general public
Energy consumption
Materials application
Packaging
Environmentally relevant hazardous substances
Durability, recycling, end-of-life
Operational management 1 – main features
Concerns day-to-day decisions
Involves internal staff and managers
Involves external consultants
Site-specific
Small set of indices
Requires readily available software
Operational management 2 – procedural and analytical tools
Operational decision Procedural tools Analytical tools
Compliance with regulation
Environmental Performance Indicators, Environmental reporting, Voluntary agreements
ERA, LCA, MIPS
Environmental management
Environmental Management System (ISO 14001)
Environmental Audit (ISO 14010)
Environmental Performance Indicators (ISO 14030)
ERA, LCA, MIPS, MFA, checklists
Supplier choice, green purchasing
Green Procurement LCA
Benchmarking - LCA, MIPS
Product stewardship - LCA, ERA, checklists
Problems in incorporating environmental information in business decision-making
The complexity of the issueThe knowledge transfer within the companyThe difficulty to incorporate the chain perspective in the business decision-making process – that is broader than traditional in-house visionThe limited control over stakeholders in the chain
The value of integrated decision-making
Enhancement of product and service performanceImprovement of resource productivityCost savings/avoidanceRisk reductionRevenue generationEnhanced imageSustainable enterprise
Success factors
Commitment at the topMotivation of all employeesThe creation of proper knowledge management systemTools have to be compatible to the culture and objectives of an organisationInteraction between the different corporate activities and question typesPartnership with relevant stakeholders, coalitions with supply chain, co-design projects