OECD Sustainable Manufacturing Toolkit · OECD Sustainable Manufacturing Toolkit First steps to seizingFirst steps to seizing opportunities from greening your businesses 17 March

OECD Sustainable Manufacturing Toolkit g

First steps to seizingFirst steps to seizing opportunities from greening your businessesy

17 March 2011

T M hibTomoo MachibaSenior Policy Analyst, OECDtomoo machiba@oecd [email protected]/sti/innovation/green

Green Growth & Eco-Innovation projectp j

Governments are looking at green opportunitiesopportunities

• Japan … Green Innovation– New growth opportunity for matured economies

• EU … Eco-Innovation Action Plan– Promote the development of eco-industries

• US … Sustainable Manufacturing Initiative– Empowering supply chain firms

• Korea … Green GrowthM di d l i l i– Medium and long-term national strategies

• OECD … High-level strategy documentsI ti St t i – Innovation Strategy in 2010

– Green Growth Strategy in 2011

Rationale of the project• Post-Kyoto discussions & continuous pressure

• Industry is taking initiatives but improvement in • Industry is taking initiatives but improvement in efficiency has been offset by increasing consumption and outsourcingconsumption and outsourcing

• A new vision for business opportunities based A new vision for business opportunities based on innovation is needed with best practices

• Means to benchmark to accelerate corporate Means to benchmark to accelerate corporate and policy efforts

• Policy co-ordination for enabling industry to y g ytake positive actions

Benefit from green manufacturingBenefit from green manufacturing

• Green market already worth over $5 trillion.– In the UK, 56% of manufacturers invest in green.

• Big players are demanding suppliers to green.– Wal-Mart introduce an index to 100,000 suppliers.

• Green reputation drive up financial value.– Firms with problems pay 0.64% more for debts and

credits.

• Little investment lead to big savings• Little investment lead to big savings.– Cut energy by 20% and increase 5% profit.

• Employees are ready for changes• Employees are ready for changes.– 96% want to have employers greener.

Why measurement?y• Improving environmental performance is increasingly

seen as necessary to improve economic performance and y p psocial responsibility

• Measurement is necessity to improve performance … “If ’ i ’ i ”you can’t measure it, you can’t manage it”.

• Allow to identify problems and track progress over time.

• An good but essential entry point for further activities such as eco-design, CSR, sustainability reporting.

H SME d l h i fi t d t fi d • However, SMEs and supply chain firms tend to find difficult to invest in green, even to understand the issues.

• No international standard in basic measurement despite • No international standard in basic measurement, despite many standards in other areas exist.

Objectives of the OECD ToolkitObjectives of the OECD Toolkit

• Provide a comprehensive international framework of a standard set of environmental performance indicators

• Provide an easy entry point for all companies to understand issues and take action

• Allow to benchmark within firms and peers

• Provide a gate for further actions, linking with g gother methods, initiatives and guidance and keeping compatibility

History of Toolkit developmenty p• 2007: Committee (CIIE) requested to form Advisory

Expert Group (AEG)Expert Group (AEG)

• April 2008: AEG formed (approx. 50); advised to investigate existing initiatives and identify needs

• Apr 2009: AEG recommended development of Toolkit that encourages companies use indicators, aiming for an unified approachunified approach

• Aug 2009: Invited other initiatives to discuss draft technical protocol

• May 2010: Technical protocol completed

• August 2010 - now: Develop a Guide and a Web Portal turning technical protocol into a practical tool Portal, turning technical protocol into a practical tool

• April 2011: Launch of Toolkit

Toolkit features• Provide a set of performance indicators applicable for

any (manufacturing) companiesany (manufacturing) companies

• 18 indicators owe much to existing initiatives including GRI, GHG Protocol, material flow, etc.

• Focus on facility and product mix instead of corporate or national level

P id l i t t d l l i t d f i l • Provide analysis at aggregated level instead of a single product or material … benchmarkable

• Guidance to make an inventory of basic dataGuidance to make an inventory of basic data

• A combination of communication material (Guide) and technical guidance (Web Portal)

• Use illustrative good practices and templates9

Existing approaches & ToolkitExisting approaches & Toolkitai

l

High LCA

GRI MFA

nica

l Det

a

Medium

GRI MFA

IPCCOECDToolkit

Tech

n

L

IPCCPRTRsEMAS

EF

Product | process | facility | corporation | sector | country | global Measurement unit

Low EF

Manufacturing lifecycleManufacturing lifecycle

Inputs Operations Products

List of 18 OECD indicators

Inputs Operations ProductsO1 Water intensity

O2 Energy intensity

O3 R bl i

P1 Recycled/reused content

P2 RecyclabilityO3 Renewable proportion

of energy

O4 Greenhouse gas intensity

I1 Non-renewable

P3 Renewable materials content

P4 Non-renewable materials intensityO5 Residuals intensity

O6 Air releases intensity

O7 Water releases

I1 Non renewable materials intensity

I2 Restricted substances intensity

materials intensity

P5 Restricted substances content

P6 Annual energy iintensity

O8 Proportion of natural land

I3 Recycled/reused content

consumption

P7 Annual greenhouse gas production

Steps to master indicators

Step 1M

Step 1M

Step 7T k

Step 7T k

Understand• Map

impacts & set priorities

• Map impacts & set priorities

• Take action to improve performance

• Take action to improve performance

Improve

Step 2• Select

indicators

Step 2• Select

indicators

Step 6• Review and

monitor indicators

Step 6• Review and

monitor indicators

Step 3• Measure

Step 3• Measure

Step 5• Evaluate

d

Step 5• Evaluate

d

indicatorsindicators

your inputsyour inputs

Step 4• Assess

Step 4• Assess

product impactsproduct impacts

Assess operationsAssess operations

Measure

Good practice – Calstone (US)p ( )• Metal furniture manufacturer

• Introduced a spray to degrease components • Introduced a spray to degrease components … reduced chemical use by 60%

• Installed a water tank to reuse cooling water • Installed a water tank to reuse cooling water … water use reduced by 65%

• Rainwater collected for flushing toiletsRainwater collected for flushing toilets

• Skylights installed and grow plants

• Hung polystyrene foam from the ceiling to • Hung polystyrene foam from the ceiling to reduce space for air conditioning

• Buy green electricityBuy green electricity

• Launched remanufacturing programme

Key elements in Web Portalwww.oecd.org/innovation/green/toolkit

• Home page … Explain objectives and overall structure

Wh t’ S t i bl M f t i ?• What’s Sustainable Manufacturing?

• Action steps … Steps in booklet with further links

• Indicators Technical explanation of 18 indicators• Indicators … Technical explanation of 18 indicators

• Essential … Guidance on 47 data items to collect

• Technical advice … Guidance on normalisation, ,boundaries, trade-offs, etc.

• Good practices … Business examples fit with Steps

• Data tools … A worksheet and conversion factors

• Glossary … Important terminology

Useful links Links to national sectoral and other • Useful links … Links to national, sectoral and other initiatives and tools

Evolution of green manufacturingEvolution of green manufacturing

Eco-efficiency

Lifecycle Manageme

Closed-loop

P d ti

Industrial Symbiosis

Production Process

Pollution Control

Cleaner Production

efficiencynt Production Symbiosis

E New New Mass Green products

Eco-design

New business models

New modes of provision

Mass applicati

onProduct & Service

Organisational Boundary

I t l i ti R di l i tiIncremental innovation Radical innovation

To be launched soon!To be launched soon!

• Guide & Web Portal to be launched worldwide

• Dissemination ideas are welcome!

• Feedback from users help further update

• 1st report from the j il blproject available

[email protected]