Environmentally Superior Products and Services – An Environmental & Business Opportunity 8 - 9 March 2006, RDS, Dublin, Ireland Dr. Dorothy Maxwell Senior Environment Specialist EnviroCentre Enterprise Ireland EnviroBusiness 06
Environmentally Superior Products and Services –An Environmental & Business Opportunity
8 - 9 March 2006, RDS, Dublin, Ireland
Dr. Dorothy Maxwell Senior Environment SpecialistEnviroCentreEnterprise Ireland
EnviroBusiness 06
Summary
Introduce Enterprise Ireland & environmental activitiesEnvironmentally Superior Products initiative (2000 – to date)
Environmentally Superior Products & ServicesEnvironmental / Sustainability CaseBusiness Case
How to design Environmentally Superior Products & Services?Checklist : EnvironmentIndustry examples (Irish & international)WIN WINs
Enterprise Ireland
Government Agency (DETE)
Assist the development of Irish businessProvision of range of services
business, technology, marketing, R&D, innovation etc…EnvironmentClients
indigenous Irish companies - Ireland and worldwide> 10 employees
13 offices - Ireland
33 offices - worldwideEurope, USA, Asia Pacific
AimsSupport Irish industry to improve their environmental performanceSupport growing Irish environmental market
Provide range of environmental supportsFree information, advice, support guides & tools, networking
all environmental issuesFinancial supportsEvents & regional environmental business fora
30 environmental scientists /engineers & 3 business specialistswww.EnviroCentre.ie
One stop environment shop for industry, free
Environment
Environmentally Superior Products (ESP)
Support projects in Irish industry to develop environmentally superior products & services
Information, Advice, Networking, MentoringWeb – www.enterprise-ireland.com/esp
guides, case examples, databasesIn personEvents – www.envirocentre.ie
Funds of 50 % of project costs up to maximum of €32,000 per approved company
Irish manufacturing industry SMEs
Range of Environmentally Superior Products & Services
Electronics & ICT FurniturePackagingTimberBuildings/ ConstructionWasteChemical
Case study brochure
Significant environmental impacts associated with production & consumption of products
ENVIRONMENTmajor causal factor for environmental degradatione.g. GHG/Climate Change, waste, resource depletion (materials & energy), non-renewables, pollution
Associated with entire “product life cycle”
Why? Environment Case
Environmental Impacts associated with entirePRODUCT “LIFE CYCLE”
Extent of Environmental Impact: type & volume
Wide range of products100 million products on sale worldwide in 2000 (developed world)
Large volumeshigh consumer demand
One quarter of the global population (1.7 billion people) are part of the “global consumer class”
Using products e.g. TVs, telephones and the internet.
high population levels worldwiderapid technological developmentquickly changing consumer preferences
Examples: Electronics, Packaging, Transport (cars, airplanes..), Buildings, Food
Cars
Global car fleet > 530 million (2004)Growing by 11 million / annum
Ireland 1990 – 200470 % increase in number of cars
Environmental Impact e.g.Resource depletion (fuel consumption) Air emissions
CO2 - GHG/Climate changeLand useWaste
Increasing volume of End of Life Vehicles
Electronics
Energy Useresidential electrical appliances second largest consumer of electricity (OECD)third largest emitter of GHG (OECD)
Waste Electrical & Electronic Equipment (WEEE)Fastest growing waste streams
Increasing 3 x average municipal waste (EU)Approx. 50,000 tonnes/annum (Ireland)
Hazardous Substances/ Pollutione.g. Lead, Mercury, Cadmium….
Resource UseMetals, plastics (fossil fuels)…
Social Impacts
Products typically manufactured in supply chainsCan be global
Range of social & ethical issues:-Health & safety, exploitation, child labour……
Increasingly prominentGlobalisationIncreased sub-contract market in developing world
e.g. Nike, GapEmployee exploitationAsian sub contract supply chains
Why ? - Business
Increasing industry drivers to reduce environmental & social impacts of products &/ services
Environmental Policy & Legislation Market Financial
Copyright New Yorker 2001
Product manufacturersShift in focus towards reducing environmental impacts of products over the entire PRODUCT LIFE CYCLE
Sectoral focus: Targeting packaging, vehicles, electronics, buildings/construction, batteries….Europe, Japan, Asia, Australia, USA
Drivers: Environmental Policy & Law
RawMaterials
ProductionProcess
Packaging,Distribution
Use End of Life
Environmental Impacts
Reducing environmental impacts of products at sourceDesigning products with reduced environmental impact throughout life cycleClosed loop, cradle to cradle Eco design
Incorporating environmental criteria into design of products and services
Key Trends
RawMaterials
ProductionPackaging,Distribution
Consumption
End of Life(Reuse/
Recycling / Energy Recovery /
Treatment)
Key Trends
Extended Producer Responsibility (EPR)Producer responsibility (+ financial) extended beyond environmental impacts at production site to other lifecycle stages (end of life)Motivate producers to design out environmental problems at source
EPR Legislation examplesPackaging Vehicles (ELV)Electronics (WEEE, RoHS)Ecodesign of “Energy using Products”Energy Performance in BuildingsBatteriesC&D wasteFarm plastics…………
Extended Producer Responsibility
Market Drivers – Customer Demand
Market leadersEstablished eco design activities e.g.
Automotive & ElectronicsTextilePackagingHealthcare
Market Drivers
Supply chain pressure
Downstream of Original Equipment ManufacturerImprove environmental performance of productsGreen Supply Chain Programmes/ Management
e.g. Sony Green Partner
Market Drivers
Initiatives to manage & demonstrate good environmental performance e.g.
Environmental Management Systems (e.g. ISO14001)ISO14062 – Eco design
Use of Eco Labels for products and services
Corporate reputation & branding
Green procurementEU public procurement approx. 12 % of GDP
ISO 14001
Financial Drivers
Global Market for Environmental Products & Services - €500 billion (2003)
5% / annum growth
Increasing cost associated with poor environmental performance e.g. energy, wastecollection & environmentally sound end of life management
packaging & WEEE…..Financial motivation for product manufacturer to “design out” environmental problems at source
Cost Benefit & Competitive AdvantageReducing environmental impact
Reduced raw materials costsReduced waste recovery, treatment & recovery costs
Innovation Opportunities
Design and development stages
80% of the environmental impacts of a product, incurred throughout its whole life-cycle
more than 80% of the economic cost connected with a product.
Opportunities:-
Prevent/minimise environmental impacts at sourceCost, Competitive Advantage, new markets
How to do Eco design Checklist? ........Rethinking Required
Find ways to meet our human needs in sustainable ways?
Shelter (Buildings)TransportFood
Shift mindset from producing products to delivering functions/solutions to meet consumer / end user need (s) (VS. starting with a product)
Determine most sustainable way to provide functions
Open mind
•Energy•Information & Communications
Ecodesign Checklist – Raw Materials
Substitute hazardous materials with non hazardous alternatives where feasiblee.g. water based vs. solvent based substancese.g. lead free solder on circuit boardsReduce hazardous waste generation requiring disposal (COST)
Use of reuseable materials, parts and componentsUpcycled
Recyclable materialsBiodegradable materials
Renewable vs. non renewable resourcesFossil fuels, metals, plastics, paper, timber
Reduce energy inputs
Reduce the volume of materials used
Ecodesign Checklist
Design product to have extended working life
Modular designUpgradeable for new technology
Functionality, energy performance etc.Repair, upgrade and maintenanceBenefits: Resource use & Waste
Chose raw materials & design to maximise recovery for reuse at end of life (products, parts & components) (best eco option)
Recycling and recovery of energy Include cost of end of life mgt.
Xerox
Closed loop remanufacturing
4 remanufacturing facilities globally
e.g.Dundalk
Add on servicesRepair, Upgrade, End of Life take backLease / OwnershipB2B / B2C
Xerox
Environmental BenefitsReduces raw material use Reduces energy to mft. new parts (390,000MW hours (light > 315, 000 homes)), Extended product life = less waste (2003: 73,000 tonnes diverted from landfill)
Financial Benefits2003
$ several hundred million cost savings (Xerox, EHS Report 2004)
MICROPRO Computers, Dublin
Applied eco design to Computers
Designed closed loop PC solution Modular components designed for upgrade, reuse and recycling
Repair/maintenance, upgrade services
No loss in functionality for userTechnology required
Extend life time of PC vs. traditional
MICROPRO Computers, Dublin
Reduced materials use and Wasteone third size of traditional PCeliminate/reduce hazardous substancesincrease reuse & recycling options at end of life
Energy efficientScreen (36 Watts vs. 150 (CRT))Power supply unit - 80% efficiency
Social Economy
PC cost is similar to competing
Opportunities for innovation & added value to PC production
add on servicescombined product & service model -profitable
Ecodesign Checklist
Design production process to eliminate / minimise environmental impactsAir, effluents, wasteEfficient use of energy and waterCOST Benefit
Store and Distribute products e.g. Transport
Product Use e.g. Minimising energy usage
e.g. Electronics goods, building products Quantity & nature of consumables needed for proper use & maintenance
Waste generationEnvironmental information
Summary
Significant case for designing environmentally superior products & services
EnvironmentBusiness
Increasing legal & market driversSound business model
WIN WIN Opportunities Environment & Business Internationally & Ireland
Improved environmental performance
effective environmental solutions
Improved functionality
Cost Savings & Competitive Advantage
Opportunities for innovation & added value to business
Further Information
Enterprise Ireland Environment Policy Dept. [email protected]. 01 808 2612 / 2229www.envirocentre.ie
Ecodesign in Electronics/ICTwww.envirocentre.ie/electronics
Environmentally Superior Productswww.enterprise-ireland.com/esp